SBA, CARES Act & Tax Updates
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SBA/PPP Updates

  • A deal has been reached in Congress to provide additional funding for the Paycheck Protection Program, which ran out of money last week. The Senate has approved a roughly $480 billion relief package, including an additional $310 billion for the PPP scheme. It will next need to be passed by the House before it can go to the President’s desk.

 

  • Lawmakers Agree to New Funding for Paycheck Protection Act Program Summary: Senate lawmakers agreed on April 21, 2020, to inject cash into the Paycheck Protection Program, a mechanism for offering forgivable loans to small businesses. Lawmakers also agreed to allocate more money for disaster loans, healthcare providers, and testing. These funds give businesses a second chance at relief from the economic damage caused by COVID-19. The House is expected to take up and pass the bill shortly, and the president has indicated he will sign it into law.

 

 

  • The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals prepare to file for a loan. Here are the questions you may be asking— and what you need to know. Small Biz Coronavirus Loan Guidance

 

  • Watch the step by step disaster loan application video.
 
  • Watch the (Bank) Step by step Payroll Protection Program Loan Video PPP 

 

  • Understand PPP vs SBA loans
 

 

 

Tax Updates

  • U.S. DOL Briefing. The U.S. Department of Labor will hold a stakeholder briefing on Thursday, April 23 at 2:00 p.m. (Eastern). Senior officials are expected to review various topics including unemployment insurance programs, workplace safety, and implementation of paid sick leave and expanded family medical leave. Participants must register to attend, and the link to register is here.

 

 

  • #COVID19 Capital Relief is a searchable website that includes grants, loans, and other cash equivalents that can help entrepreneurs, nonprofits, and businesses anywhere in the world. Relief resources are listed at global, national, and regional levels. All entries are also fully searchable by any text you want: country, city, state, etc.

 

  • FFCRA Regulations. The U.S. Department of Labor issued regulations today, effective immediately, implementing the Families First Coronavirus Response Act. The temporary rule is available here.

 

  • FFCRA Spanish Posters. The DOL’s FFCRA posters are now available in Spanish, here.

 

  • DOL Releases Regulations Implementing the Families First Coronavirus Response Act
    Summary: On April 1, 2020, the day the federal Families First Coronavirus Response Act (FFCRA) took effect, the U.S. Department of Labor (DOL) released temporary regulations interpreting this new law that requires private employers with 499 or fewer employees, and certain public employers, to provide covered employees emergency paid sick leave (EPSL) and emergency unpaid and paid family leave (FMLA+). In the 124-page rulemaking document, the DOL covers a lot of ground.

 

CARES Act Updates

 

  • IRS Explains How Employers Can Receive Tax Credits under the CARES Act and FFCRA
    Summary: On March 31, 2020, the IRS published new guidance clarifying how employers can claim tax credits for giving employees paid leave and maintaining their payrolls during the COVID-19 crisis. The agency explained that employers can start taking these credits immediately by reducing the taxes they deposit with the IRS. It also outlined the documents employers should be keeping to support their requests for credits.

 

  • Labor Law “Neutrality” in CARES Act. This issue is garnering a lot of attention – as it should.  The CARES Act empowers the Treasury Secretary to establish a $500 billion direct-lending program for mid-size U.S. businesses (i.e., those with 500 – 10,000 employees). This program includes emergency loans for companies as well as several special-assistance programs for key industries (e.g., airlines).  Note that the law only requires that Treasury “shall endeavor to seek the implementation” of such a program.  This means it is optional on the part of the Treasury Secretary to establish such a fund, which it may not. Here is the kicker – in order to obtain a loan, the recipient must certify that for the life of the loan, the borrower will: 

    • retain its workforce;
    • not outsource any jobs;
    • not abrogate any collective bargaining agreement; and
    • remain “neutral” in any union organizing effort 

 

  • CARES Act passes with relief for businesses and additional unemployment benefits.

 

  • EO Member & CEO of Peach Cap, David Miller is providing immediate emergency assistance to all EO Members and Accelerators now that the 2 Trillion Dollar Bill passed. Also offering complimentary CPA/Tax consulting on payroll tax credits, SMB relief, etc…He also provided a 35 page condensed summary of the COVID bill to help you all. David Miller (David@peachcap.com) CARES COVID Bill

 

 

  • CARES UI Guidance. The U.S. Department of Labor issued a publication, Unemployment Insurance Program Letter 17-20, offering guidance to states on the Pandemic Emergency Unemployment Compensation (PEUC) program that was included in the CARES Act. Generally speaking, the PEUC provides for an additional 13 weeks of unemployment benefits to eligible claimants.

 

 

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