Coolidge Wall Outlines Key Features of the Paycheck Protection Program For Your Business

In COVID-19 Information Hub by Coolidge Wall

The Paycheck Protection Program provides approximately $350 billion for a temporary supplement to the SBA’s current loan program through which SBA-approved banks are authorized to make loans to qualifying eligible entities. The PPP has three key components: Expanding the businesses that are eligible for loans; Modifying the loan terms, including eliminating guaranty and collateral requirements of the borrower; and Allowing all or a portion of the loan to be forgiven if the borrower maintains its payroll during the eight-week period following the funding and uses the loan proceeds as permitted. SBA-approved banks are moving expeditiously to create simple PPP loan …

Stay at Home Order Enforcement Underway in Montgomery County, Ohio

In COVID-19 Information Hub by Coolidge Wall

The Dayton Daily News reported this morning (April 1, 2020) that 270 Montgomery County sites are being investigated for failing to comply with Ohio’s Stay at Home Order. The Dayton & Montgomery County Department of Public Health is sending letters to businesses covered by such complaints and are requesting that they provide information proving that they comply with the Stay at Home Order. Health inspectors also started visiting sites on Monday. Specifically, responding businesses are going to be asked to submit: justification that the business meets the definition of essential businesses and operations; the measures the business has implemented to …

SBA Affiliation Rules as They Pertain to the CARES Act

In COVID-19 Information Hub by Coolidge Wall

On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Our separate post outlines the Paycheck Protection Program (“PPP”), which is administered by the U.S. Small Business Administration (SBA), and is a distinct component of the Act. Inherent to the PPP (and other SBA loans modified by the Act), is the question of “affiliation” as it pertains to businesses, their owners, and their parent and subsidiary entities and affiliations. Importantly, the SBA’s size and affiliation rules are broader than most common understandings of the affiliation concept in other aspects of the law and will …

CARES Act Makes Paycheck Protection Program Loans Available For Businesses — Application Released

In COVID-19 Information Hub by Coolidge Wall

UPDATE: On March 31, 2020, the Small Business Administration and the U.S. Treasury released the Application Form for the new SBA PPP Loan forgiveness program, which we have included at the end of this article. President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27, 2020. In addition to providing relief to millions of workers, the CARES Act allocates approximately $350 billion to the Small Business Administration (SBA) to administer emergency loans through the Paycheck Protection Program (PPP). Who is Eligible. Generally, any sole proprietor, for profit business, nonprofit 501(c)(3) organization, tribal business, …

The CARES Act and Its Impact on Retirement Plans

In COVID-19 Information Hub by Coolidge Wall

This is the third in a series of articles discussing the impact that the COVID-19 (coronavirus) pandemic and the governmental responses to it have had on employee benefits. The first two articles dealt with employer group health plans, continuation coverage, HIPAA privacy, and other welfare benefit plans. This article summarizes the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted March 27th that affect employer-sponsored retirement plans and individual retirement accounts (IRAs). Coronavirus-Related Distributions The CARES Act creates a new type of permissible distribution under 401(k), 403(b), and governmental 457(b) plans plus IRAs. The Act states …

13-Week Cash Flow Projection Template for Your Business

In COVID-19 Information Hub by Coolidge Wall

UPDATED:  This template has been updated to include a tool for projecting and tracking use of PPP loan proceeds and optimizing the amount of loan forgiveness here. A rolling 13-week Cash Flow Projection is an essential weapon in your battle against uncertainty. This template may be used to create that tool for your business. Instructions for creating and using the template are included. If you need additional information, assistance, or a review of your projection, contact Herman Chandiramani. (Please note this tool will automatically download onto your computer into your Download files.) You may also find the below articles helpful …

New DOL Guidance Clarifies Families First Coronavirus Response Act

In COVID-19 Information Hub by Coolidge Wall

A new compliance assistance guidance from the DOL (“Guidance”) has been posted concerning the paid leave provisions under the Families First Coronavirus Response Act (“FFCRA”), which includes Emergency Family and Medical Leave Expansion leave (“Expanded FMLA”) and Emergency Paid Sick Leave (“EPSL”) provisions, all of which become effective April 1, 2020. As before, the new Guidance is in the form of “FAQ” statements — 59 of them, to be exact. Much of the new Guidance simply reiterates information from the previous statements issued in the last two weeks. However, some of the information is new or clarifies existing DOL positions. …

Essential Resources for Managing Your Business in Uncertain Times

In COVID-19 Information Hub by Coolidge Wall

Your business is or will be under unprecedented pressure. We have created the Resource Center to provide you with critical tools to manage through this uncertainty, including a Toolkit, Cash Flow Projection template, and essential information for accessing government programs such as the Economic Injury Disaster Loans and the new Paycheck Protection Program included in the CARES Act. TOOLKIT – A 4-Step Process to Address COVID-19 Uncertainties.pdf Changes to PPP in SBA’s Interim Final Rule.docx SBA Issues Last Minute Interim Rule on PPP Critical Leadership Traits during Crisis SBA Affiliation Rules as They Pertain to The CARES Act Key Features …

COVID-19 and its Impact on Health Plan Continuation Coverage, HIPAA Privacy, and Other Welfare Benefit Plans

In COVID-19 Information Hub by Coolidge Wall

This is the second in a series of articles discussing the impact that the COVID-19 (coronavirus) pandemic and the governmental responses to it have had on employee benefits. The first article addressed key issues involving employer group health plans. This article focuses on the impact on group health plan continuation coverage, HIPAA privacy, and other welfare benefit plans. Group Health Plan Continuation Coverage Requirements Employers have certain responsibilities under the Consolidated Omnibus Budget Reconciliation Act (COBRA). If employees experience a loss of coverage as a result of a business closure-for example, due to a termination of employment or a reduction …

DOL Issues Q&A Guidance on Families First Coronavirus Response Act

In COVID-19 Information Hub by Coolidge Wall

Late on March 26, 2020, the Department of Labor (“DOL”) issued new guidance answering many but not all of the questions that businesses have regarding the Families First Coronavirus Response Act (“FFCRA”). Some of the key takeaways pertaining to emergency paid sick leave (“EPSL”) and expanded family and medical leave (“EFMLEA”) are as follows: Documentation (Question 15). The DOL makes it clear that employers must require its employees to provide it with appropriate documentation supporting the reason for any leave requested under the Act, including the employee’s name, qualifying reason for requesting leave, statement that the employee is unable to …