Alliance Stake



What we Know about the Stimulus Package as of 04-03-20SBA information on various programsInformation is now up on the SBA website regarding the Paycheck Protection Program loans. Great site, with concise information. More information is listed on page 3. Paycheck Protection Program - PPP: is a borrower application form on the SBA website. Treasury Secretary has stated that banks can begin accepting applications for the loans starting - April 3, 2020.In the press conference April 2, Secretary Mnuchin stated that loans could be disbursed on the same day. ?That sounds pretty optimistic, but perhaps that may happen.BenefitsBelow are some additional links that may be helpful to members in the stake:CARES - Summary/overview of COVID-19 related relief for small employers: ? Coronavirus Aid, Relief and Economic Security Act (CARES) expands unemployment benefits by 13 weeks and adds $600 to the weekly amount an individual would usually receive. While these unemployment benefits are generous, employers should still consider their options and incentives under the CARES Act mentioned before making decisions about reduced hours, furloughs, or layoffs.Employees who experience reduced hours, furloughs, or layoffs should be encouraged to file for unemployment insurance as soon as possible. We recommend that both employers and employees visit their state’s unemployment insurance department website and track local and state news, as departments across the country are updating their rules to facilitate displaced workers during this timeFFCRA - U.S. department of Labor FAQ Regarding “Families First Coronavirus Response Act” (FFCRA)? (paid leave for which small employers will be reimbursed via tax credit):? Department of Labor (DOL) in support of the Families First Coronavirus Response Act (FFCRA) has directed that you must provide your employees access to a new??mandatory employee rights poster. Access is considered achieved when sent electronically to all employees and, when you can go to your office, posted in a conspicuous location in your office, most likely a break room bulletin board. More information on this is included in a FFCRA section below. is a critical first step in the overall enforcement of the FFCRA. IRS FAQs related to employers obtaining tax credits for paid leave under the FFCRA:? – Job Seekers (employees/those on furlough/job seekers *** remember, “gig” economy workers, independent contractors and self-employed individuals are also potentially eligible!):? Information for Employers:?*Summary of Enhanced Unemployment:(Relief for Workers Affected by Coronavirus Act (“RWACA”).? Generally, RWACA provides additional financial support for states and additional support for individuals through a $600 weekly federal unemployment benefit on the top of weekly state unemployment benefits.? To distribute these new unemployment benefits, RWACA provides for states and the federal government to enter into agreements that provide three different tiers of support, each with different requirements.? Although whether an individual will qualify for unemployment benefits varies based on the applicable tier, the ultimate weekly benefit received by the individual is generally the same: State weekly unemployment benefits plus $600 in weekly Federal Pandemic Unemployment Compensation (“FDUCTier One: Emergency Increase in UnemploymentIf the individual qualifies for unemployment benefits under state law, then the individual may receive the enhanced unemployment benefits under RWACA, which includes the state’s weekly unemployment benefit plus the $600 FDUC.? The unemployment benefits under Tier One are only available through July 31, 2020.Tier Two: Extension of Emergency Unemployment CompensationIf the individual qualifies for unemployment benefits under state law and has exhausted such available state benefits, then he/she may qualify for up to a 13-week extension of unemployment benefits under RWACA provided that the individual is available to work and actively seeking work.? The benefit is the same as under Tier One: the state’s weekly unemployment benefit plus the $600 FDUC.? The main difference between Tier One and Tier Two unemployment benefits is that the federal government will cover the costs of the state unemployment weekly benefit and the individual must be available to work and actively seeking work, even if the state’s unemployment insurance program does not require it.? Extended unemployment benefits under Tier Two are only available through December 31, 2020.Tier Three: Pandemic Unemployment AssistanceAn individual who is not eligible for unemployment benefits under state law or who has exhausted state unemployment benefits may still qualify for unemployment benefits under RWACA, even if the individual is not actively seeking work.? Unlike Tier Two, individuals who are not actively seeking work may still collect unemployment benefits, under the same calculus of the state’s weekly unemployment benefit plus the $600 FDUC, provided they qualify as a “covered individual” under RWACA.? Generally, to be a “covered individual” qualified for unemployment benefits under RWACA, an individual must not be entitled to paid sick leave or other paid benefits and must be available to work but remain unemployed, partially employed, or unable to work (or telework) because:He/she is diagnosed with COVID–19 or is experiencing symptoms of COVID–19 and seeking a medical diagnosis;A member of the individual’s household has been diagnosed with COVID–19;He/she is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID–19;A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of the COVID-19 public health emergency and such school or facility care is required for the individual to work;The individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency;The individual is unable to reach the place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID–19;He/she was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency;?He/she has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID–19;?He/she has to quit his or her job as a direct result of COVID–19;The individual’s place of employment is closed as a direct result of the COVID–19 public health emergency; orThe individual is self-employed, seeking part-time employment, does not have sufficient work history or otherwise would not qualify for state or federal benefits but fits within one of the above categories.The unemployment benefits under Tier Three apply to benefits beginning as early as January 27, 2020, and are only available through December 31, 2020 (capped at 39 weeks including any week in which the individual otherwise received benefits).RWACA also provides assistance for states that waive the one-week waiting period for unemployment benefits. (TX, LA, OK, AR, are all included) ? For those states, the federal government will refund states through December 31, 2020.? This provision will further encourage states that are not already waiving the waiting period to do so.? The Department of Labor will soon issue more guidance on RWACA.Families First Coronavirus Response Act - FFCRA Regarding informing employees by way of the Employee Rights Poster, the DOL will not bring an enforcement action against employers for violations of the FFCRA prior to April 17, 2020 (provided you have made a reasonable and good faith effort to comply with the Act).However, be prudent, we advise you to electronically distribute the poster today and to carefully read through the entire?Question and Answers document, so you have an understanding of how the leaves work. The following are some highlights from the updated guidance: leaves are not available to employees with reduced hours, furloughed employees, or employees whose workplaces are closed. See questions 23-28.These leaves are not available to employees whose workplaces are closed due to a federal, state, or local shelter-in-place or stay-at-home orders, or due to business slowdowns. See questions 23 and 27.These leaves (and payroll tax credit) are not retroactive. Employees are not entitled to pay under these leaves if they were absent or out of work (for any reason) prior to April 1. See question 13.Both emergencies paid sick leave (EPSL) and emergency Family and Medical Leave (EFMLA) can be taken on an intermittent basis in certain situations. See Questions 20-22 for explanations about when intermittent leave is allowed.Employees may not be required to use other forms of paid leave prior to or concurrently with EPSL or EFMLA. See questions 32 and 33.Employers should keep documentation to show that employees who received leave were actually in need of leave. The documentation requirements will be outlined in soon-to-be-released IRS guidance. See Questions 15 and 16.Paycheck Protection Program: - PPPThe Department of Treasury recently released guidance relating to loans to small business ( it is called the Paycheck Protection Program) under the CARES act (i.e., the recent stimulus bill that President Trump signed into law). Given that many members in our ward are business owners (i.e, dentists, doctors, chiropractors, independent contractors, etc.) I wanted to get this information out to you in case you were not aware of this great program that may be available to you. The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. Funds from this program:Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;Are 100% forgivable if used for the above purposes; andAre available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals.Treasury Website with for this program: Within the link above there are four documents, 3 have been extracted for convenience (one of the four documents is for Lenders such as banks and likely not relevant to this group so only the content for borrowers has been extracted below). Program Overview: Program Guide: Application for the Program: Business owners, self-remployed, independent contractors, etc. should review this content to see if they qualify for this program. This could be a significant relief.benefit to you due to the mandatory closure of non-essential businessesAttorneys at Fox Rotherschild LLP which is a solid and clear summary of PPP and was published by the ASA featuring a deeper dive into the SBA guidance on the PPP. The PPP program is open until June?30, 2020, so you are encouraged to apply as quickly as possible as there is a funding cap and lenders will need time to process the loans.summary [] ................
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