Treasury Clarifies PPP Loan Eligibility
SBA released an Interim Final Rule late last week with a drafting error that caused confusion about the eligibility requirements for the PPP loan program. The Treasury Department has posted revised Frequently Asked Questions that, among other things, clarify this issue.Read More
DOL Updates Guidance on FFCRA Sick Leave and Expanded Family Leave
Today, the Department of Labor (DOL) added twenty new Frequently Asked Questions (FAQs) to its guidance on new Families First Coronavirus Response Act (FFCRA) sick leave and expanded family leave. Among the elaboration provided in this guidance are matters such as clarification that a worker must be able to cite medical advice to utilize the two weeks paid sick leave under the FFCRA. According to the updated guidance, “[i]f you become ill with COVID-19 symptoms, you may take paid sick leave under the FFCRA only to seek a medical diagnosis or if a health care provider otherwise advises you to self-quarantine,” per new FAQ #62. “You may not take paid sick leave” according to the new guidance “if you unilaterally decide to self-quarantine for an illness without medical advice, even if you have COVID-19 symptoms.”Read More
Treasury Deptartment and SBA Announce "Paycheck Protection Program"
The Treasury Department, in conjunction with the Small Business Administration (SBA), has announced the launch of the new $349 billion “Paycheck Protection Program.” This federal loan program is intended to help small businesses with their payroll and other business operating expenses and to provide capital to businesses without collateral requirements, personal guarantees, or SBA fees. All loan payments will be deferred for six months and the SBA will forgive the portion of loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. Notably, the program is available retroactively from February 15, 2020, so that employers can rehire recently laid-off employees through June 30, 2020. The Treasury Department has also issued: (1) a one-page Paycheck Protection Program fact sheet; and (2) Q&A documents for both lenders and borrowers. The SBA has launched its own related webpage dedicated to the Paycheck Protection Program, which includes a sample application for borrowers.Read More
Treasury Department and IRS announce "Employee Retention Credit"
The Treasury Department and IRS have announced the launch of the new “Employee Retention Credit” of the CARES Act, which is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is available to all employers, regardless of size, and covers 50 percent of qualifying wages up to $10,000 paid by an eligible employer whose business has been financially impacted by COVID-19. A set of FAQs is available here.Read More
SWACCA Signatory Contractor Guide to FFCRA Paid LeaveRead More