Finding Relief Under the Stimulus Bill (CARES Act)
President Signs Law on July 4 Extending Application Deadline for Paycheck Protection Program until August 8
The White House statement says that the President signed into law S. 4116, which “reauthorizes lending under the Paycheck Protection Program (PPP) through August 8, 2020.” There is no text yet, but this July 6 National Law Review Article provides a useful summary on the extension. Be sure to understand the rules for loan forgiveness as well. This June 4 National Law Review Article provides another useful summary on the rules. Highlights include:
- Expansion of forgiveness period from roughly eight weeks to the earlier of 24 weeks from the origination date of the loan and December 31, 2020.
- Forgivable expenses only require 60% dedicated to payroll as opposed to 75% originally.
- Extends period for measuring FTEs and salary/wages.
- Additional exceptions to requirement that borrowers must restore FTEs to February 15 levels if lower hiring due to social distancing and other requirements.
- Maturity date extended to a minimum of five years instead of two and deferment period extended by six months.
- Borrowers may defer 50% of employer share of payroll taxes until 2021 and the remaining 50% until 2022.
Guidelines for Opening Up America Again
President Trump has unveiled Guidelines for Opening Up America Again, a three-phased approach based on the advice of public health experts. These steps will help state and local officials when reopening their economies, getting people back to work, and continuing to protect American lives. For more information, check out Guidelines for Opening Up America Again. Please check with your state and local governments for additional resources.
SIIA Calling for Relief Benefiting Members
And Providing Information for Members to get that Aid
SIIA brings our member concerns to policymakers and provides resources to our members as they look for relief in this unprecedented time. If you missed it, please watch our April 9th webinar with Nelson Mullins: "Navigating the CARES Act - How to Use the Coronavirus Stimulus Package to Benefit Your Business.” → Webinar Recording and Handouts.
Tell Us About Your Challenges in Receiving Assistance
The topline $2.5 trillion in assistance funding is impressive, but the reality remains that getting all that money distributed will take time. Contact Carl Schonander, or Sara Kloek for education related questions, and tell us about your practical challenges in receiving assistance. We will anonymize examples and make sure they get to the right people.
Resources for Members
Economic Relief Resources:
The Federal and many state governments are also providing regulatory relief to assist businesses during the pandemic. This relief may include extended deadlines for tax payments, and temporary, targeted measures to assist designated market participants. Check with Federal and state regulators on whether COVID-19 regulatory relief of some kind might be available for your business.
- The Federal Reserve has released over half a dozen statements, including how its supervisory approach is changing because of the virus outbreak.
- The Securities and Exchange Commission (SEC) has put out this reference guide for investors.
- The Commodities Futures Trade Commission (CFTC) is providing temporary relief for a number of market participants.
- The Federal Trade Commission (FTC) and Department of Justice released this joint statement committing to provide quicker antitrust advice.
- Check the Internal Revenue Service (IRS) Coronavirus Tax Relief page in addition to the Treasury page referenced above.
Business Guidance Resources
Paycheck Protection Program Resources
Information for Borrowers