Christian Miller’s COVID-19 Legal Updates for April 9th
It has been some time since I sent out an update, as things have been hectic dealing with the new loan programs and assisting many of you with the PPP Loan Application. However, I wanted to get some new information out regarding some updates and additional information on the COVID-19 programs aimed to assist small businesses.
Linked is a memo that provides clarification from the Dept. of Labor regarding implementation of the two paid leave programs (or expansions in the case of FMLA) for employees effected by COVID-19. These were released on April 1st, so if you have already seen them this might be a duplication of information. To provide you with additional context, I am also linking prior memos (1), (2) regarding paid leave programs to fill in any gaps in your recollection of these programs (they have older dates – disregard if a recap isn’t helpful). An important reminder I have been asked about is the interplay between the paid leave benefits and the increased unemployment compensation benefits. Please know that these can’t both exist, as the paid leave programs were one attempt to keep employees on payrolls and off UC benefits. So if employees were laid off (and applied for UC), you do not have to worry about the paid leave programs (the payments or the credits) unless an employee is subsequently rehired.
I am also linking an updated FAQ sheet related to the PPP Loan Program. One of the interesting updates (via an added question) is that funds must be disbursed within 10 days of loan approval. Many of you have received PPP approvals, but have not seen any documentation or disbursements, so it will be interesting to see this point in practice. We welcome any questions about the PPP Loan Program, but we also advise discussing with your lender (although you have to understand they are highly burdened right now) as they are the ones charged with administration of the PPP Loan Program, and will be in the best position to advise. Some additional advice on PPP questions is not to plan on how to use the funds until you have the approval and the loan documents/information from your lender. Things remain very dynamic, so it would be best practice to reserve any analysis until you have the loan documents and information (from your lender) in hand to know the exact parameters of the loan. Then is the time to review, ask questions, and develop a plan to best maximize the funds and the forgiveness element. Doing so beforehand requires speculation, and may end up being scrapped in the end. Our office is more than happy and equipped to assist with the review and implementation of the program from a practical ase
Finally, I encourage all of you to take a peek at the information, resources, and contacts on our MPL Law Firm Resource Page. Although it has been a few days since I pushed out an update, this site is frequently updated with new information. For tax information related to the COVID-19 assistance, and more importantly the CARES Act, feel free to review information here from Eisenhart & Co., one of our trusted CPA partners. Thank you, and stay safe.