MPL General Counsel Corner – Stimulus Round 4 – HEROES Act – DOA
The House Democrats released their version of Stimulus Round 4, the Health Economic Recovery Omnibus Emergency Solutions Act (aka, HEROES Act), earlier this week. It is a $3 Trillion plan that includes funding for state and local governments ($1 Trillion), funds for hazard pay for employees ($200B), funds for mail-in ballots ($3.6B), modifications to the PPP program (extension of the covered period and time to use the funds) and more. The Act also expands eligibility in the non-profit sector to all 501(c) organizations, not just 501 (c)(3)’s.
The Senate and the President have already expressed the HEROES Act is DOA because it does not include liability protection for companies. The mail-in ballot funding was also mentioned as a non-starter.
In DC it is business as usual, lets hope the private sector is afforded the same privilege.
Here are some other things that may be important or relevant for you:
- Interim Final Rule – Loan Increases – Last night the Treasury Department provided guidance for Partnerships and Seasonal Employers who applied for and received loans under criterion that have since been updated.
- Partnerships: If a Partnership received a PPP loan and did not include a Partner’s compensation, the Lender is authorized to increase the loan amount to cover the Partner’s compensation.
- Seasonal Employers: If a seasonal employer received a PPP loan under the original criterion and the revised criterion would have resulted in a larger loan, then the Lender is authorized to increase the loan amount.
- In both cases, the Lender is still subject to the reporting requirements to the SBA and the additional amounts must still conform with current PPP standards.
- PPP FAQ #47 – Given the last minute release of the Good Faith clarification, the Treasury Department has extended the time frame to return the funds to 5/18 if you believe you cannot meet the certification.
- PA Supreme Court Case Ruling Unfriendly to Insurance Carriers: The Friends of Devito ruling could be used to deny insurance company’s ability to issue blanket coverage denials to businesses who sustained massive losses due to forced closures by executive orders. (thanks to Scott Rogers from the Southwest Insurance Agents Alliance for sharing).
- More Pushback on Stay at Home Orders – The Wisconsin Supreme Court struck down the Governor’s shut down order. This ruling is groundbreaking because for the most part, Courts have sided with Governors on this issue.
- Upcoming Webinars and Helpful Resources
- Designing the Pivot and Staying Mentally Tough (5/14 @ 11am) – This may be a good webinar for those of you “working on” your business (presented by Inc.com)
- US Chamber of Commerce: National Small Business Town Hall (5/15 @12pm)
- EisnerAmper – Insurance Recovery for Pandemic Losses: Issues and Options (5/20 @ 2:15pm)