Treasury Market Guidance on Paycheck Protection Program Loans

On Tuesday, the Treasury Department released guidelines to the market in the form of a Top-Line Overview of the Paycheck Protection Program (PPP), Lender Information Sheet, Borrower Information Sheet and Application Form, which can be found here: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses. This guidance is not firmly established and we expect additional guidance, clarification or reconsideration of interpretations to come. For now, however, the market guidance is noteworthy for several reasons as it is informative, clarifies and even contradicts the statutory provisions contained in the CARES Act. Specifically, below are the notable points of information, clarification and contradiction:

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Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program and Loan Forgiveness

On March 27, 2020, the bipartisan legislation, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, was signed into law and became the third aid package from Congress in the month of March to address the growing pandemic. Section 1102 of the CARES Act created a new loan product within the Small Business Administration’s 7(a) Loan Program known as the Paycheck Protection Program as discussed below. 

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SEC Temporarily Changes Rules for Form ID Filers

With many businesses closed and many working from home, the Securities and Exchange Commission and its staff recognized that many applicants for EDGAR access were having difficultly getting signatures notarized on their Form ID applications.  Such notarization is required by Rule 10(b) of Regulation S-T.

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Updated March 30, 2020 - CARES Act EIDL Loans and Emergency Grants

CARES Act EIDL Loans and Emergency Grants

Under the approved CARES Act, many small businesses are now able to obtain Section 7(a) SBA loans under the Paycheck Protection Program (which also allows for loan forgiveness). The regulations for the new Paycheck Protection Program Act may take time to implement and borrowers who have an extremely limited headcount may not be qualified. If you do not have time to wait for the Paycheck Protection Program Act to be implemented and have fewer salaried employees, you may want to consider filing for an Economic Injury Disaster Loan (EIDL). 

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Department of Labor Releases Q&A Regarding Coronavirus Emergency Paid Sick Leave and FMLA Leave Rules

The United States Department of Labor (DOL) on Tuesday issued a concise Q&A relating to the leave, pay calculation, employee count, overtime, and other technical details contained in last week’s Families First Coronavirus Response Act (FFCRA).  The Q&A answers many of the immediate and common questions raised by the recently released emergency changes to the nation’s paid sick leave and paid FMLA leave requirements.

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$2 Trillion Federal Coronavirus Stimulus Package Deal Announced

A $2T stimulus package deal was announced by Congress and Administration late last night after lengthy negotiations.  It is expected that the package will be passed and enacted within days. The New York Times reports that portions of the bill are still being drafted as of early today, for a vote expected when the Senate convenes this afternoon. 

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Business Continuity During Coronavirus Lockdowns: Am I an “Essential” Business?

With at least one in four Americans living under lockdown orders due to the Covid-19 pandemic, a new question has started to affect many US companies: can my company stay open during a lockdown?

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Shutdowns and Child Care Centers

In the last 24 hours, we have seen three shutdown orders, only two of which affect Georgia child care centers. Under Mayor Bottom’s order, Atlanta residents are confined to their homes, but the order specifically exempts child care centers as essential businesses.  The mayor of Savannah’s order exempts child care centers providing services to employees of other exempt businesses and has several restrictions.  

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Covid-19 and Employee Privacy

The Covid -19 pandemic has brought into focus issues relating to workplace health and safety and their interplay with employee privacy. An employer is required to maintain a safe workplace pursuant to the Occupational Safety and Health Act (“OSH Act”).

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Brief Summary of Tax Provisions in Families First Coronavirus Response Act (H.R. 6201)

Tax Credits for Paid Sick and Paid Family and Medical Leave

• The Act provides 100 percent refundable tax credits to employers with regard to two categories of paid sick and family leave (described below) that employers must grant to employees under the Act to address employment interruptions related to COVID-19.

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