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 …
CARES Act Makes Paycheck Protection Program Loans Available For Businesses — Application Released
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, …
Essential Resources for Managing Your Business in Uncertain Times
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 …
New DOL Guidance Clarifies Families First Coronavirus Response Act
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. …
The CARES Act and Its Impact on Retirement Plans
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 …
COVID-19 and its Impact on Health Plan Continuation Coverage, HIPAA Privacy, and Other Welfare Benefit Plans
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 …
COVID-19 and Its Impact on Group Health Plans
The world has been hit hard by the loss of life, human suffering, and financial repercussions of the COVID-19 (coronavirus) pandemic. Here in the U.S., federal, state, and local governments have been issuing guidance and directives that affect the general population as well as businesses and employees. At current count more than 100 million Americans are under state or local directives to stay at home or otherwise “shelter in place.” In several states, governors have required or otherwise encouraged “non-essential” businesses to suspend operations and even “essential” businesses are experiencing reductions in working hours, layoffs or furloughs. This situation has …
DOL Issues Q&A Guidance on Families First Coronavirus Response Act
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 …
UPDATE 3.27.20: Small Business Administration Simplifies Disaster Loan Online Application Process For Direct Government Funds Up To $2 Million For Qualified Small Businesses
Congress Passes and President Signs CARES Act, Expanding SBA Disaster Loan Program and Loosening Program Requirements, As Well As Other Relief Programs As the COVID-19 outbreak wreaks havoc across many sectors of the economy, small businesses in particular are shouldering a heavy burden. While other relief packages may be forthcoming, the Disaster Loan Assistance program administered by the Small Business Administration (SBA) offers direct government funds through an existing program to private for-profit businesses and nonprofit organizations of up to $2 million with low interest (3.75%), long-term payback provisions (up to 30 years). Here is a summary of the program …
U.S. Department of Labor Issues Workplace Poster on Employees’ Rights to Protected and Paid Leave under the Families First Coronavirus Response Act
On March 25, 2020, the U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) released a workplace poster detailing employees’ rights to expanded medical leave and paid sick leave under the Families First Coronavirus Response Act (FFCRA). The DOL poster can be located here: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Federal.pdf This poster must be posted by all covered employers (employers with fewer than 500 employees) in frequently used common areas, on or before the effective date of the FFCRA, in order to satisfy the notice obligations under the new federal law. Covered employers must ensure that the FFCRA notice is posted in a conspicuous …