Late last week the House passed the Paycheck Protection Flexibility Act of 2020 (HR 7010) which outlines significant changes to PPP regulations. While this still has a long way to go until it is signed into law, it has more support than originally anticipated so we will potentially see further changes. Unfortunately, the predicted timeline of when changes would be determined and the end of the 8-week timeline could be very close together, if not after the fact, for many practices. With this being said, below you will find additional information related to where we are now, where we could go, and what you should be doing to prepare. Please note, this is a highly complex situation, so this correspondence contains significant detail. If you do not have time to read this in full, please skip to the final section “what should I do”?

If the PPP loan does not transpire, there are other avenues which will be beneficial - most significantly is the employer retention credit (ERC). It is only applicable if you do not receive PPP funds, so depending upon what the future holds it potentially may be beneficial. This is not a decision you need to make now but can be made when we learn more about the fate of the PPP loan….

After the initial rush of PPP applications, banks are making their way through backlogs and the first applicants are starting to learn they have been approved. As we discussed previously, there are two calculations related to this program – 1) the amount you qualify for and 2) the amount eligible for forgiveness. Much like the first question, we are still waiting on additional guidance by the SBA related to the loan forgiveness feature. This is required to be provided by the SBA no later than April 26th, so some practices may find themselves in a situation where they are required to take receipt of the funds before the rules have been clarified. Below you will find initial information if you find yourself in this situation…

Yesterday the SBA released the sample Paycheck Protection Program (PPP) loan application and adjusted several other terms that will have an impact on your planning strategies. The decision to apply now or wait until a later date is dependent on weighing when you believe you will be able to reopen and your risk tolerance that funds will run out quickly. There is no clear guidance related to either piece, so this is a personal choice…

On Friday afternoon the President signed Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. As we discussed in our last update, this expands unemployment benefits and creates several SBA loan programs. Applying for these loans will be important, as well as the strategy of when to apply. With this being said, while we are still waiting on several technical aspects (such as the actual application itself), below you will find important information for you and your practice…

Last night the Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is expected to pass through the House Friday, and then the President will sign the bill into law by the end of the week. Below is a summary of the key provisions to be aware of from both a business and personal standpoint…

As you may be aware, on Wednesday evening, the President signed a coronavirus relief package into law that addresses employee wages in light of implications caused by COVID-19. While this provides a framework of benefits employers will provide, it does not provide a complete picture leaving key questions unanswered. The Department of Labor has 15 days to create regulations, meaning that it may be April 2nd before we have additional information. From a high-level standpoint, the bill addresses two points – paid sick leave and FMLA expansion – which outline employer responsibilities…