CARES Act and PPP: Important Updates Regarding Loan Forgiveness Calculations and Returns
On May 5, 2020, the Small Business Administration (“SBA”) and U.S. Treasury Department (“Treasury”) revised their FAQ concerning the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Paycheck Protection Program (“PPP”). Of note, this new guidance clarifies PPP loan forgiveness amount calculations and extends the deadline for PPP borrowers to return loan proceeds. According to Question 40 of the FAQ, a PPP loan borrower’s forgiveness amount will not be reduced should the company make a good faith attempt, . . . Read More
$484 Billion Relief Bill Signed Into Law, $310 Billion Allocated to Paycheck Protection Program
H.R. 266 , the Paycheck Protection Program and Health Care Enhancement Act, was signed into law today. Appropriating $484 billion in relief for the COVID-19 outbreak, it provides additional funding for small business loans, healthcare providers, and COVID-19 testing. The Small Business Administration (SBA) has been unable to accept new applications for the Paycheck Protection Program or the COVID-19 related Economic Injury Disaster Loan (EIDL) assistance program (including EIDL Advances) because Coronavirus Aid, Relief, and Economic Security Act funding was exhausted. The . . . Read More
DOL Issues Temporary Regulations the Day the FFCRA Became Law
The Families First Coronavirus Response Act (FFCRA) went into effect on April 1st. That same day, the Department of Labor (DOL) issued temporary regulations to implement the new provisions of the Expanded Paid Sick Leave Act (EPSLA) and the Expanded Family and Medical Leave Act (EFMLA). The much-anticipated regulations generally follow the additional guidance provided by the DOL in the past few weeks. We previously wrote on the FFCRA on March 18, 2020 ( link ), and on the additional guidance . . . Read More
FFCRA Leave Effective April 1: DOL Issues Additional Guidance
DOL has issued additional guidance to assist employers in providing Families First Coronavirus Response Act (FFCRA) emergency sick and family leave. We previously wrote on the FFCRA on March 18, 2020 ( link ). Below is important information to prepare for implementation this week. Will state or local isolation orders qualify an employee for FFCRA sick leave? It depends. Leave taken prior to April 1 regardless of the qualifying reason will not be eligible for FFCRA’s tax credit. However, if needed after April 1, . . . Read More
The CARES Act and Leave Guide for Employers: Deciding Which Option is Best for You and Your Employees
Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the “Act” or the “CARES Act”) on March 27, 2020 in an effort to mitigate the economic impact of COVID-19 on businesses and employees. President Trump is expected to sign the bill into law any moment. Once signed, the CARES Act allows businesses to apply for loans to continue paying employees and maintaining operations, which may be forgiven, expands on provisions of the Families First Coronavirus Act ( FFCRA ), and . . . Read More
Contracting Officers Can Pay You Even If the Contract Is Shut Down!
Yesterday, we discussed the emergency loan programs and loan forgiveness opportunities for small businesses in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). However, it is critical to understand that there are other avenues for relief that do not have to wait for SBA or private lenders to start processing such loans. Specifically, OMB Memorandum M-20-18 gave Contracting Officers (“CO”) broad authority and specifically states that all contracting personnel should “feel fully empowered to use acquisition flexibilities.” Further, Section 3610 of the Act, entitled “Federal Contractor Authority,” specifically states that . . . Read More
Senate Passes Historic COVID-19 Stimulus Package: Billions Set Aside for Small Businesses
On March 25, 2020, the U.S. Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and the House of Representatives is expected to similarly pass the CARES Act on March 27, 2020. The legislation represents an unprecedented stimulus package as the government attempts to mitigate the economic damage associated with the novel COVID-19 pandemic. Below is a summary of some of the central components of the stimulus package that focus on economic relief for small businesses. . . . Read More
Breaking Down SBA’s COVID-19 Economic Injury Disaster Loan
UPDATE: Since this alert was posted, all states and territories received an EIDL decaration. Also note that loan terms will change with the CARES Act. Please follow the linked text to PilieroMazza’s Client Alert “ Senate Passes Historic COVID-19 Stimulus Package: Billions Set Aside for Small Business ” for recent developments. _____________________________________________________________________________________________________________________________________________________________________________________________________ The unprecedented impact of the COVID-19 pandemic on small businesses has caused the Small Business Administration (SBA) to institute an Economic Injury Disaster Loan (EIDL) program aimed at aiding those affected by the pandemic. Whether you’re a government contractor . . . Read More
COVID-19 Emergency Sick and Family Leave: What Employers Need to Know
The United States Senate just rubber stamped the House version of emergency measures to help employees and families in response to the COVID-19 pandemic during this National Emergency. The law includes provisions you have likely been following closely. President Trump is expected to sign the bill this evening and it is expected to go into effect on April 2. Below, we’ve broken down what employers need to know now to prepare their business for sick and family leave in the era of . . . Read More
Alert! FAR Council Changes Rules Regarding Small Business Rerepresentation/Recertification and Multiple Award Contracts (MACs)
On February 27, 2020, the FAR Council published a final rule (Rule) that amends the Federal Acquisition Regulation (FAR) to implement regulatory changes made by the Small Business Administration (SBA) in 2013. See 78 Fed. Reg. 61114 (Oct. 2, 2013). Although these “new” rules have been reflected in SBA regulations for some time, their addition to the FAR is significant because, as any experienced government contractor knows, procurement officials do not always follow SBA’s rules, particularly if such rules are not incorporated . . . Read More