Paycheck Protection Program - What you Need to Know
Federal Paid Sick Leave and Expanded Family and Medical Leave Implementation
On April 1, 2020, the U.S. Department of Labor - Wage & Hour Division announced new action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA). Wage and Hour posted a temporary rule issuing regulations pursuant to this new law, effective April 1, 2020.
Stimulus Package Information
The CARES Act includes Paycheck Protection Program would provide 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency. If the employer maintains payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven. This would help workers to remain employed and small businesses and our economy to recover quickly from this crisis. This proposal would be retroactive to February 15, 2020, to help bring workers who may have already been laid off back onto payrolls. Attached is a recently released FAQ for the small businesses provisions included in the bill from the U.S. Senate Committee on Small Business and Entrepreneurship.
The U.S. Department of Labor’s Wage and Hour Division (WHD) published more guidance for employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it goes into effect on April 1, 2020. This guidance adds to a growing list of compliance assistance materials published by WHD, including the English-language versions of a Fact Sheet for Employees, a Fact Sheet for Employers, and two new required posters—one for federal workers and one for all other employees, as well as Questions and Answers about posting requirements, and a Field Assistance Bulletin describing WHD’s 30-day non-enforcement policy.
- Payroll Protection Part of Stimulus Package
- This is a 16 minute video on the Payroll Protection Part of Stimulus Package.
- SBA loans can be converted to grants
- Apply correctly so that loan can be converted to a grant
- Who are the lenders
- Who is eligible
- Summary of all Elements for the Stimulus Package
- This is a 58 minute video summarizing all the elements for the Stimulus Package.
- SBA loans and grants
- Unemployment Expansion
- Liquidity measures for employees – direct deposit stimulus checks
- Liquidity measures for employers- tax credits, tax delays
- Advice to support small businesses
Inslee's Stay Home Stay Safe Ordinance
On March 23, 2020, Governor Jay Inslee presented his ordinance Stay Home Stay Safe. Below is the list provided by the Governor's office stating what is considered critical and essential.
Summary of Paid Leave Mandates under the Families First Coronavirus Response Act, H.R. 6201:
On March 18, 2020, Congress approved and the president signed into law legislation that includes mandates for employer-fronted federal paid leave—emergency sick leave and emergency paid family and medical leave described below. These requirements take effect on April 2, 2020, and sunset on December 31, 2020.
Of direct interest to the business community, this new law includes requirements for specified employers to provide emergency paid sick leave, as well as emergency paid leave under the Family and Medical Leave Act (FMLA).
The final bill provides that private-sector employers with fewer than 500 employees, and covered public-sector employers, must provide up to 12 weeks of job-protected FMLA leave for “a qualifying need related to a public health emergency” to employees who have been on the payroll for 30 calendar days. This “qualifying need” is limited to circumstances where an employee is unable to work (or telework) due to a need to care for a minor child if the child’s school or place of childcare has been closed or is unavailable due to a public health emergency.
As with emergency FMLA leave, an employer may exclude employees who are health care providers or emergency responders from this coverage. The bill also grants the Secretary of Labor the authority to issue regulations to: (a) exclude certain health care providers and emergency responders from the definition of employee by, among other things, allowing them to opt out; (b) exempt small businesses with fewer than 50 employees from these requirements if they jeopardize the viability of a business as a going concern; and (c) ensure consistency between the paid family and paid sick standards and tax credits
WCIC mailed letter to legislators and Governor Inslee
COVID-19 Jobsite Safety Resources
As the safety and health of our workforce remains our No. 1 priority, ABC has compiled COVID-19
prevention best practices from the Centers for Disease Control and Prevention, as well as practical
construction jobsite safety recommendations based on input from the ABC National Safety and
Health Committee. This is for informational purposes only and does not eclipse any established
local, state or federal guidelines. Please contact ABC National’s Safety team with any issues or
concerns and, as this issue constantly evolving, to stay updated on information and
recommendations from your local governments and health departments.
Paycheck Protection Program
Financial institutions will be facilitating loan applications for the Paycheck Protection Program, check with your bank to see if they are an SBA Preferred Lender.
CARES Act Paycheck Protection Program: Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. The guidance suggests applying quickly because there is a funding cap
PPP Eligibility Under the CARES Act:
- The CARES Act defines eligibility for these loans as an employer with not more than 500 employees
- Sole-proprietors, independent contractors, and other self-employed individuals are eligible for loans.
- The bill requires eligible borrowers to make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19, and that they will use the funds to retain workers and maintain payroll, lease, and utility payments.
- Borrowers also must not be receiving duplicative funds for the same uses from another SBA program and participation in a PPP loan excludes businesses from taking advantage of tax programs included in the CARES Act to prevent double dipping into these federal programs.
- SBA-certified lenders are only required to determine whether a business was operational on February 15, 2020, and had employees for whom it paid salaries and payroll taxes for eligibility in the PPP.
- Principal amounts on PPP loans, for the first 8-week period from when the PPP Loan is made, may be forgiven, if loan funds are used to cover payroll costs, interest payments on mortgages (not including prepayments or principal), rent and utilities.
- The amount of a PPP loan that may be forgiven cannot exceed the principal amount of the loan. The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation. Payroll costs are capped at $100,000 on an annualized basis for each employee.
- To encourage employers to rehire any employees who have already been laid off due to the COVID-19 crisis, borrowers that re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period.
- The Act also directs the SBA to issue guidance and regulations implementing the PPP Loan forgiveness provisions within 30 days.
Small Business Guide and Checklist
Paycheck Protection Program Application
Here is some more information regarding the process for SBA’s Disaster Assistance loans