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

June 22, 2020

Updated Loan Forgiveness Application:  The SBA released two loan applications, one is an updated version and the other is a new “EZ” form. Withum has analyzed both in this article.  The EZ form allows borrowers to ignore FTE and headcount reduction calculations and fill out a truncated form if they meet one of three criteria. True to form, some of the criteria requires meaningful clarification, specifically the third one noted in the article. There are rumors that a number of new FAQs are coming out within the next week or so.  

With respect to the criteria below, it is unclear if the borrower needs to demonstrate an inability to operate at a point in time, or a period of time. Also the SBA calls out requirements and/or guidance  issued by three specific Federal organizations, and for the most part the restrictions on commerce have been imposed by States. Withum assumes more clarification is coming or borrowers will have to scour the websites of the three Federal organizations listed to see what restrictions or guidance have been provided.

“Borrower was unable to operate during the CP at the same level of business activity as before 2/15/20 due to compliance with requirements established or guidance issued between 3/1/20 and 12/31/20 by HHS, CDC or OSHA, relating related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.”

New Bill in Congress Relating to the PPP:  It’s a new week, so there is of course a new Bill in the works. This one is called the Prioritized Paycheck Protection Program (P4) Act. This Bill is designed to allow small companies (less than 100 employees) to obtain a second PPP loan if they exhausted their current PPP loan and have suffered a 50%+ reduction in business as a result of COVID. This Bill was just introduced and we will see if it picks up steam in the coming weeks.  

Updated Loan Forgiveness Calculation:  The rules relating to loan forgiveness have evolved over time. Withum has updated the article on the mechanics of loan forgiveness here for those who are looking for updates and examples.

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 qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act).
  • 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...