Greetings,

The long, uncertain wait for tariff refunds from the Trump administration is pushing some companies into a legitimate cash-flow crisis. And the thousands of lawsuits that have been filed to speed up the process aren't moving the needle. More on that below.

Also in this edition:

• DOL proposes rule allowing alternative assets in 401(k)s
• SEC disclosure rule moves closer to release
• Iran war hits small companies hardest since pandemic
• Private credit lenders turn to PIK to avert defaults

US businesses are facing financial strain as they await refunds from tariffs imposed by the Trump administration that were later voided by the Supreme Court. Companies have filed more than 3,000 lawsuits to expedite the refund process, but the government's slow response has left many businesses in a cash flow crisis. Endless Pens, for instance, is nearing bankruptcy without a $175,000 refund. The situation is further complicated by the government's lack of a clear refund process, leaving businesses uncertain about when they will receive their money.

The Labor Department has proposed a rule that would allow 401(k) retirement plans to incorporate alternative assets, including private credit, real estate and cryptocurrency. The rule would create a prudence standard for these investments, potentially shielding fiduciaries from lawsuits, and comes amid growing concerns about the risk of private credit markets. "The theory is that this will protect fiduciaries from legal challenge if they recommend alternatives that may be less liquid or suffer losses because they involve more risk," says Jaret Seiberg, an analyst at TD Cowen.

A Securities and Exchange Commission proposal to shift corporate reporting to a semiannual basis has advanced to the White House for review, signaling progress toward potential rulemaking. The plan, backed by the Trump administration, aims to reduce reporting burdens, though critics warn it could limit transparency for investors.

Small companies have experienced significant financial setbacks in March 2026, with firms such as Jack-in-the-Box, KinderCare, and American Vanguard ranking among the hardest hit. These losses follow a two-month period of gains and are attributed to rising oil prices and borrowing costs stemming from the war in Iran. The increased cost of essentials has also pressured the consumer base that many of these companies rely on.

The Securities and Exchange Commission is expected to propose an "innovation exemption" allowing crypto firms to trade tokenized stocks with temporary regulatory relief. Traditional financial firms largely oppose a broad exemption, citing concerns about investor protection and potential profit loss. The exemption is expected to be incremental, serving as a proof of concept for on-chain trading.

Private credit lenders, particularly business development corporations, are increasingly using payment-in-kind provisions to help borrowers avoid loan defaults. The trend comes as BDCs face redemption pressure amid concerns about credit quality and as software companies struggle with artificial intelligence competition and loan maturities.