Withum COVID-19 Bill Update – 5/26/2020

May 26, 2020

IFR 14 – On May 22nd, the SBA issued its 14th “final” ruling with respect to the PPP.  We have written extensively about it in this article. Much of this ruling seems to support assertions made on the application itself which recently was released. The application came out before this ruling, and an application is certainly not “law”, thus this IFR was needed to cement the SBAs views on a variety of issues.

We highly recommend you read the entire article as many topics were covered, but here are some notable highlights:

  • For the purpose of forgiveness, owners of Partnerships and Schedule C’s are capped at their 2019 earnings. That could be problematic for companies that had down years in 2019.
  • As we know, borrowers do not have to count (as a reduction of FTEs) employees who were offered employment during the covered period and refused to come back to work,  however this IFR indicates that the borrower will need to inform the applicable state unemployment insurance office of the rejected offer of reemployment within 30 days of the rejection.
  • As we expected, employee hazard pay and bonuses are eligible for loan forgiveness because they are a similar form of compensation. Notably, the IFR offers no other limitations on the payment of bonuses, so the bonus payment may be able to exceed 8 weeks’ worth of the annual bonus amounts and still be eligible for forgiveness (up to the $15,385 limit).

Reminder Section:  (what should I be doing):

  • Call your payroll company about claiming the payroll tax deferrals and employee retention credits that were made available in the CARES Act.
  • Talk to your payroll company about the Sick Pay Bill (passed prior to the CARE Bill).
  • Consider speaking with your bank to discuss changes to terms of existing debt facilities. The banking system remains strong.
  • If you have already applied for the PPP, start forecasting how you intend to spend the funds and how to qualify for the highest amount of forgiveness possible.

Related Articles
Following an energy audit, McKinstry specified Uponor’s flexible Ecoflex preinsulated piping to resolve a remote Minnesota school’s longtime heating problems and save the school thousands in energy costs. Ecoflex proved easy to install, allowing workers to lay hundreds of feet of piping in just one week.…
MCAA’s Virtual Trade Show connects our contractor members with the members of MCAA’s Manufacturer/Supplier Council.…
Prefabrication was just one of the ways that Olson Plumbing and Heating leveraged Viega ProPress to take on a mountain of a project: building a new visitor’s complex at the summit of Pikes Peak that met strict environmental standards … during the COVID-19 pandemic. “We prefabbed all the domestic and hydronic piping, as much as we could, to minimize labor at the top,” said Josh Crippen, superintendent at Olson. “We prefabbed our pump skids, all the water heater and boiler skids, all the waste and vent piping. As much as possible.”…
The Manufacturer/Supplier Training area of MCAA’s website connects our contractor members with training opportunities available from the members of MCAA’s Manufacturer/Supplier Council.…

Did you know MCAA members can enroll with @ClickSafetyOT and receive 10% off OSHA 10 and OSHA 30 training courses?
https://www.mcaa.org/wp-content/uploads/2021/01/ClickSafety-Partner-Discount-Flyer-MCAA-2021.pdf

Subscribe today for SDS Binderworks and make OSHA hazard communication compliance easy with MCAA member discount prices!
https://www.mcaa.org/wp-content/uploads/2021/01/SDS-BinderWorks-MCAA-Hand-Out_2021-compressed-compressed.pdf

Load More...