Following approval last evening by the House of Representatives and signature earlier today by the President, Congress has green-lighted an additional $310 billion for the Payroll Protection Program (PPP), a provision under the CARES Act designed to assist small businesses that have been economically affected by the COVID-19 pandemic. Learn more from OFP Shareholder Michelle DiCintio.
On April 3, 2020, GSA applied a class-wide waiver of the Buy America Act (BAA) and the Trade Agreements Act (TAA) for the acquisition of personal protective equipment. Learn more from OFP Shareholder Shiva Hamidinia.
Last night, April 2, the SBA issued an Interim Final Rule for the Paycheck Protection Program. You can find the Interim Rule here. These rules are not final but do contain multiple changes and interpretations of the Act that will affect the loan amount, potential repayments, among other items. In particular, the SBA is now stating the interest rate on the loans will be 1% (rather than .5%) and the term will be 24 months. Learn more from OFP Shareholder Michelle DiCintio.
On the heels of the Office of Management and Budget’s (OMB) memorandum encouraging agencies to consider requests for equitable adjustment (REAs) for increased costs related to COVID-19, the U.S. Department of Defense (DOD) issued a similar memorandum for defense agencies on March 30, 2020. Learn more from OFP Shareholder Michelle DiCintio.
Paycheck Protection Program Under The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
As has been well publicized, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a $2 trillion economic relief package enacted to help individuals and businesses in the United States weather the severe financial impact of the COVID-19 pandemic. A key feature of the CARES Act is the creation of the Paycheck Protection Program (PPP), where the federal government will be allocating $349 billion to the Small Business Administration (SBA) to guarantee loans to small businesses. Loans will be administered pursuant to SBA’s section 7(a) loan program. OFP Shareholders Michelle DiCintio and Jennifer Banks discuss the key features of the PPP here.
The US Department of Labor (“DOL”) issued a notice that covered employers are required to share regarding the recently passed paid sick leave provisions. At present, the DOL is soliciting questions from employers and employees as the agency prepares to draft enabling regulations to address how to implement these paid-leave provisions. As shown by this solicitation for comments and questions, there are many open questions about how an employer is to respond to requests for coverage. Learn more here.
COVID-19 is creating unprecedented business disruptions around the globe, and it is important to take this situation seriously. Acting with urgency is crucial, but having a plan of attach will mitigate confusion down the road. Click Here to learn more.
U.S. Department of Homeland Security Cybersecurity & Infrastructure Security Agency (CISA), the U.S. Department of Defense, and other agencies have issued guidance on industries and workers “essential” to critical infrastructure. They recommend these businesses remain open and prioritized for continuous operations. Learn more from attorney Shiva Hamidinia.
In an attempt to mitigate the unfolding COVID-19 public health emergency, state and local governments have started issuing “lockdown” or “stay-at-home” orders. Generally, the state lockdown orders have directed that all businesses utilize telecommuting or work-from-home procedures to the maximum extent practicable. Where telework is impractical, some states are only permitting essential businesses to remain open. Companies with operations in these jurisdictions must understand the scope of applicable restrictions and whether their operations are essential and should continue during the lockdown. Learn more from attorney Michelle DiCintio.
As COVID-19 continues to stir economic uncertainty, businesses are concerned about possible defaults under their credit facilities and some businesses may want to consider how they are using credit vehicles to support ongoing operations. Click Here to learn more.
On March 18, 2020, the Families First Coronavirus Response Act was signed into law and will become effective not later than 15 days later, April 2, 2020. There are some differences between what was ultimately passed and what was summarized in our early article from March 16, 2020. Learn more from attorney Marina Blickley.
Construction and many other contractors who cannot telework may be receiving stop-work orders or facing other unique challenges on their government contracts in the face of COVID-19. Impacts may be exacerbated for personnel working in the field who may not be receiving guidance from the government due to unavailability of their Contracting Officers (CO) or Contracting Officer Representatives (COR). Learn more from attorney Shiva Hamidinia.
As the coronavirus shifts the way the world works, businesses should take this break in normal operating procedure to re-evaluate their finances. Learn more from attorney Brad Jones.
Businesses and individuals now will have until July 15 to file and pay their taxes. This means that you have an additional three months to plan and prepare your returns without having to incurring penalties or interest on up to $1 million in tax owed. Businesses will have the same time period to pay amounts due on up to $10 million in tax owed.
Learn more from attorney Catherine Schott Murray.