Law firms have been relieved that the COVID-19 pandemic has not been as financially catastrophic for the industry as predicted in March, but the coming months will bring more uncertainty for firms and the broader economy as Paycheck Protection Program loans run out and coronavirus cases continue to rise in the U.S., the American Lawyer reported. The PPP, intended to cover salaries for up to two and a half months, disbursed most of its funding in April. More than 1,500 law firms across the United States received PPP loans, and at least 47 firms in the Am Law 200 received loans totaling between $218 million and $445 million, according to data released by the Small Business Administration, which administers the program. Nearly two months after most loans were disbursed, though, firm leaders and legal observers now say firms aren’t out of the woods yet. “There’s still substantial uncertainty around the ‘second wave’ and the long-term economic impact,” said Sullivan & Worcester managing partner Joel Carpenter. “Supplemental unemployment is up at the end of the month. We’re cautiously optimistic, but we still don’t know where all this is going to take us.”
