On March 11, 2020, the World Health Organization (WHO) declared the rapidly spreading Novel Coronavirus a/k/a COVID-19, a pandemic. With a growing number of infections on almost every continent, the World Health Organization announced the outbreak has reached the “highest level” of risk for the world.
As we keep a close watch on emerging cases and affected regions, we’re committed to keeping you posted on what we’re doing.
We’re here for you. If you’ve been affected by COVID-19, reach out to see how we can support you. We may be able to provide some answers to legal questions that can help. Call us at 843-839-3210 to learn more.
Outlined below, we have listed some common questions and answers regarding the ever-changing situation with respect to the law, businesses, employment, and the economy. We also have provided some additional resources.
Families First Response Act
This Federal Act expanded paid sick leave and family leave, strengthened unemployment insurance and food assistance, and enhanced protections for health care workers. It was signed into law by the President on March 18 and takes effect April 2. The funding available for this bill was $3.5 billion. The specifics of this program are described in greater detail in other FAQ’s.
Coronavirus Preparedness and Response Supplemental Appropriations
This Federal Act was passed, authorizing more than $8 billion in funding for health care research and emergency funding for the Department of Health and Human Services (HHS) and the US Agency for International Development (USAID) in support of domestic and international response efforts respectively. This Act does not provide much, if any, direct relief to most American families or businesses as its intended target was health care research and emergency funding for HHS.
Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
The most recent is the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).At about $2 Trillion dollars, the CARES Act is the largest economic stimulus legislation in American history since the New Deal in the 1930s. This massive stimulus effort by the Federal Government is designed to provide relief for families, individuals, small businesses, and major sectors of our economy impacted by the coronavirus outbreak.
Under the CARES Act, individuals and families will receive the following assistance:
The primary, but not sole element of the CARES Act, is the small business-focused Paycheck Protection Program (PPP) of the CARES Act increases the government guarantee of loans to 100 percent through Dec. 31, 2020, for US Small Business Administration (SBA) Program 7(a) loans. SBA 7(a) loans are an existing type of SBA loan and is the SBA’s primary program for providing financial assistance to small businesses. The loans are available to companies with not more than 500 employees and those which have below a gross annual receipts threshold in certain industries. Under the legislation, 501(c)(3) nonprofits, sole-proprietors, independent contractors, and other self-employed individuals are eligible for loans. Certain portions of the loans may be eligible for future debt forgiveness based on qualifying performance criteria.
To learn more about the CARES Act and how it can benefit your small business and what programs are available through the Small Business Administration see the attached Guide from the US Senate’s Guide to the CARES Act and or visit https://www.uschamber.com/
Federal Income Taxes
State Income Taxes
*** This is a legal alert providing information on a rapidly developing situation. It is not intended to be and may not be construed as legal advice.