Withum COVID-19 Bill Update – 5/6/2020

May 6, 2020

“Grace period” extended and SBA commits to new guidance on eligibility – FAQ 43 was released May 5th, indicating that the May 7th deadline for companies to return PPP funds without penalty if they have determined they are not eligible has been extended to May 14thThe big news is that the SBA committed to providing “additional guidance” on how it will review the certifications made in the application prior to May 14, 2020.  This could mean that the SBA will further clarify (and possibly narrow) the scope of what they meant by the concept of “economic uncertainty.”  This is something that borrowers will need to closely consider. 

Clarification on Foreign Affiliates – FAQ 44 was released May 5th and clarified that, for the 500 employee limit, the employees of foreign affiliates need to be included.  This is important because many companies were under the impression that only US employees were considered when it came to affiliation guidance.  Thus, if a company had a foreign subsidiary, those employees will now need to be included for the purpose of the 500 FTE headcount limitation.  Keep in mind, the 500 employee limit considers ALL employees as a full employee.  So a part time employee is considered 1 person for the purpose of this calculation.  This may require some companies to re-evaluate their eligibility. 

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).
  • Be in constant communication with your bank (about status of your PPP application).
  • 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
The CDC recently reported that airborne transmission of SARS-CoV-2 can occur in rare cases under just the right circumstances. In most cases, the virus is transmitted from one person to another in droplet form, and occurs when affected individuals are less than six feet away from the source for 15 minutes or more. However, new research indicates that when exposure occurs in enclosed spaces, exposure time is greater than 30 minutes, and some kind of expiratory exertion is taking place, such as shouting, singing, or exercising, the virus can be transmitted in aerosol form (smaller particles suspended in air).…
As the very public debate in Congress regarding another stimulus bill rolls on, Withum wanted to share an update issued late last week by the SBA, in conjunction with the Department of Treasury. With lobbying groups, lenders, and borrowers long-since advocating for a more simple forgiveness process, specifically for smaller loans, the SBA took this into their own hands late last week, as they released a new interim final rule (“IFR”).…
The Alston & Bird Health Care Group details how changes by the Centers for Medicare & Medicaid Services to the AAP loan program delays repayment obligations for all health care providers and suppliers that received AAP loans during the COVID-19 pandemic.…
This year has certainly challenged us all. COVID-19 has forced us all to change and adapt, to re-invent the way we provide services and resources and change the way we learn. Thanks to your MCAA Officers, Board of Directors and dedicated national staff, MCAA has not skipped a beat. Considering the safety of MCAA members, the association and our industry partners, it was decided that the MCAA 2021 Annual Convention will be cancelled due to the impacts of COVID-19. Instead, MCAA will hold the first MCAA Virtual Education Conference.…

MCAA's Annual Student Chapter Competition will be virtual in 2021. Don't worry, MCAA and the Career Development Committee are committed to setting each team up for success. Check out the schedule of events and be sure to put the dates in your calendar! http://ow.ly/PQ3h50C77Jv

Don't miss the inaugural episode of MCAA’s Sponsor Spotlight series on Friday, Oct 30 at 2pm Eastern, with Tim Brink, MCAA CEO and Bill Hughes, Executive Vice President, End User Solutions for @MilwaukeeTool and Chair of the Manufacturer/Supplier Council. http://ow.ly/5E4r50C4czn

Develop rockstar employees with @tyfoomtraining's simple mobile training platform. Through December 2020, MCAA members receive a 10% discount for a two-year subscription. Learn more today at http://ow.ly/DthG50C4cMX

Don't miss the inaugural episode of MCAA’s Sponsor Spotlight series on Friday, Oct 30 at 2pm Eastern, with Tim Brink, MCAA CEO and Bill Hughes, Executive Vice President, End User Solutions for @MilwaukeeTool and Chair of the Manufacturer/Supplier Council. http://ow.ly/5E4r50C4czn

Load More...