SS+D COVID-19 Response Team: Federal and State Update May 14, 2020
May 14, 2020 | Sebaly Shillito + Dyer
FEDERAL – SBA EXTENDS PPP REPAYMENT DEADLINE TO MAY 18, 2020
In another 11th hour move, the SBA extended the repayment deadline from today, May 14, to Monday, May 18, 2020, for borrowers concerned about audit or PPP eligibility. For those businesses that received $2 million or more in PPP funds or that otherwise have continuing concerns or questions about PPP eligibility or fund usage, SS+D’s COVID-19 Response Team is here to help.
FEDERAL – SBA SET TO ISSUE MUCH-ANTICIPATED PPP FORGIVENESS GUIDELINES
We expect later today or tomorrow morning that the SBA will publish much- anticipated forgiveness guidelines for borrowers who were able to secure a PPP loan. We will provide an update when more information comes available.
STATE – RESPONSIBLE RESTARTOHIO: SPECIFIC OPERATING REQUIREMENTS ANNOUNCED FOR SEVERAL BUSINESS SECTORS
This week, the Ohio Department of Health rolled out specific operating requirements for specific business sectors, including general office environments. A complete list of these sectors and applicable requirements can be found HERE. Despite reopening of certain sectors, many remain closed. A list of sectors with continued closure orders can be found HERE.
STATE – PERSONAL CARE SERVICES AND OUTDOOR DINING ESTABLISHMENTS TO REOPEN TOMORROW, MAY 15
Personal care services, such as salons and spas, will be permitted to reopen tomorrow. Restaurants and bars will be permitted to reopen for outdoor dining tomorrow, with dine-in services resuming May 21. Specific operating and safety guidelines apply for each.
FEDERAL – MAIN STREET LENDING PROGRAM LAUNCH DATE NOT YET SET
The Federal Reserve is continuing work to roll out the Main Street Lending Program (“MSLP”), a new loan program using CARES Act funds to loan money to small and mid- size businesses. Eligible borrowers will be U.S. businesses with: (1) 15,000 employees or fewer; or (2) 2019 revenues of $5 billion or less. Unlike the PPP, businesses will have to meet minimum creditworthiness requirements established by each individual lender. Loans would have a 4-year maturity, and principal and interest (LIBOR+3%) payments on the loans will be deferred for one year. MSLP Loans under the program will not be forgivable. More information on this program can be found HERE, and we will continue to monitor the program as it gets closer to launch.
STATE – EXCEPTIONS TO WEARING FACE COVERINGS
The recent Stay Safe Ohio Order provides exceptions to the employee face covering requirement mandated by Governor DeWine’s Responsible RestartOhio plan. Businesses must require all employees to wear face coverings, except in the following circumstances:
- An employee’s job or position prohibits by law or regulation the use of a face covering while working;
- Wearing a face covering violates documented industry standards;
- Wearing a face covering is not advisable for health reasons;
- Wearing a face covering violates a company’s documented safety policies;
- An employee works alone in an assigned work area; or
- There is a practical reason that a face covering should not be worn by an employee, such as working in extreme
Upon request, employers are required to provide written justification explaining the reasons why an employee is excused from the face-covering requirement.
LOCAL – “REOPEN DOWNTOWN DAYTON” GRANT PROGRAM TO ACCEPT GRANT APPLICATIONS UNTIL MAY 22, 2020
The Dayton Area Chamber of Commerce and the Downtown Dayton Partnership launched REOPEN Downtown Dayton, a new grant program designed to help downtown Dayton businesses shuttered by the COVID-19 pandemic. The grant program will award between $2,000 and $10,000 to downtown Dayton businesses to help them keep their doors open until revenue sources recover. Applications can be submitted at ReOpenDayton.com starting today, May 14. The deadline to apply is May 22. More information on the program can be found at ReOpenDayton.com.
FEDERAL – THE FEDERAL GOVERNMENT ISSUES STIMULUS CHECKS TO DECEASED INDIVIDUALS
Since the passage of the CARES Act, the IRS has issued nearly 90 million stimulus checks. The IRS used tax information from 2018 or 2019 to determine eligible stimulus check recipients. The IRS did not, however, consider the fact that some of those individuals may have passed away since filing taxes in the previous two years. As checks are being delivered, relatives of the deceased recipients are left wondering what to do with the money. According to Treasury Secretary Steven Mnuchin, money that has been inadvertently distributed must be returned. But, the CARES Act ostensibly permits recipients to keep all stimulus money they receive. Further, the Act is silent about how the IRS may recover stimulus payments. The Treasury Department is expected to issue guidance in the coming weeks.
ABOUT THE SS+D COVID-19 RESPONSE TEAM
The SS+D COVID-19 Response Team was formed to provide clients, colleagues, and friends of the Firm updates for the foreseeable future on COVID-19 issues facing businesses, executives, and employees. Please let us know if there are any items/issues you would like for us to track or summarize.