On May 15, 2020, the Small Business Administration (SBA) issued the Paycheck Protection Program Loan Forgiveness Application (the “PPP Loan Forgiveness Application”), which includes detailed instructions for the process for applying for forgiveness of a loan made under the Paycheck Protection Program (PPP).
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- PublicationPaycheck Protection Program (PPP) FAQ Updated with Guidance on Necessity Certification and Eligibility
On May 13, 2020, the Small Business Administration (SBA) updated the Paycheck Protection Program Frequently Asked Questions (FAQs)(the “FAQ”) to provide much needed guidance for borrowers under the Paycheck Protection Program (PPP) administered by SBA. On May 14, 2020, the FAQ was further updated by adding a new FAQ #47, which extends the “safe harbor” repayment deadline for PPP loans from May 14, 2020 to May 18, 2020 in order "to give borrowers an opportunity to review and consider FAQ #46."
- PublicationCentral Issues for Employers as They Navigate Re-Opening Orders in St. Louis City and County
Effective May 18, 2020, most businesses in the City and County of St. Louis will ostensibly be permitted to re-open subject to their compliance with the respective Orders issued by the City and County on May 11, 2020 and May 8, 2020. In any case, these Orders – and certain related industry-specific recommended “operating protocols” published on May 11, 2020 by the City and County – raise a number of practical questions that each employer must confront as it plans to re-open or continue its operations after May 18, 2020.
- PublicationRemote Notarization in Missouri and Illinois During the COVID-19 Pandemic
In response to the COVID-19 pandemic, the governor of Illinois ordered residents to stay home and all non-essential businesses and operations to cease pursuant to Executive Order 2020-10, issued on March 20, 2020. The Director of the Missouri Department of Health and Senior Services issued a similar order on April 3, 2020 requiring that every individual adhere to strict social distancing guidelines. Some counties, including St. Louis City and St. Louis County, have ordered non-essential businesses to cease operations. In response to these challenges, both Missouri and Illinois have temporarily permitted remote notarization.
- PublicationReopening During COVID-19: Questions Employers Must Consider before Bringing Employees Back to Work
Employers across the country, both those that have been forced to close by state or local stay-at-home orders and those “essential” employers who have transitioned many employees to remote work, are eager to bring their employees back. Yet, COVID-19 workplace concerns are not going to go away overnight simply because a state or local government relaxes restrictions. Employers are once again left to balance economic and operational imperatives against potential concerns and risks.
- PublicationKey Guidance on Claiming the Employee Retention Credit under the CARES Act
On April 30, 2020, the IRS answered 94 FAQs on the employee retention credit created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), providing much needed clarity to businesses on qualifying for, computing, and claiming the credit. Generally, the employee retention credit is available to employers that continue to pay their employees despite financial hardship stemming from the COVID-19 pandemic.
- PublicationNo Deduction for Business Expenses Paid Out of Forgivable Payroll Protection Program Loans
On April 30, 2020, the IRS released Notice 2020-32 addressing the deductibility of covered expenses for which loan forgiveness is available under the Payroll Protection Program (PPP). The PPP, which was implemented as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), allows borrowers to receive up to $10,000,000 to fund eligible payroll costs, certain mortgage payments, rental payments, and utilities payments.
- PublicationPaycheck Protection Program (PPP) FAQ Updated to Address Certification Liability – Applicants and Borrowers Should Beware
The Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA), while offering much needed financial assistance to small businesses, has also been a source of much confusion for businesses interested in the program. While the interim final rules and official guidance have answered some questions, many were left unanswered due to ambiguities or inconsistencies in the CARES Act, the interim final rules, and the SBA’s Paycheck Protection Program Frequently Asked Questions (FAQs)(the “FAQ”), which was most recently updated the morning of April 23, 2020.
- PublicationNew Tax Credits under the Families First Coronavirus Response Act
The Families First Coronavirus Response Act (the “Act”) was signed into law on March 18, 2020. The IRS and the Department of Labor issued News Release 2020-57 on March 20, 2020 addressing several issues under the Act and issued subsequent guidance on March 27, 2020. In addition, the IRS has provided answers to frequently asked questions relating to the Act.
- PublicationSBA Paycheck Protection Program Rule Issued: What Borrowers Need to Know
On April 2, 2020, the U.S. Small Business Administration (SBA) issued an interim final rule (the “Interim Final Rule”) relating to the new Paycheck Protection Program (PPP) added to the SBA 7(a) Loan Program under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed by President Trump on March 27, 2020. The CARES Act provides emergency assistance and health care response for individuals, families, and businesses affected by the COVID-19 pandemic. Loans covered under the PPP will also be 100% guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. The Interim Final Rule provides formal guidance to businesses interested in obtaining a loan under the PPP and to lenders that are interested in making loans under the PPP.