Our office is currently closed, but we continue to provide legal services by working remotely.
In light of Governor Wolf’s emergency declaration and current recommendations our office is currently closed. Our attorneys and staff continue to work remotely, however, and we can assure you they are set up to respond to your calls, emails and all communications. For more details on AMM operations during this time, read our full update.
Thank you for your understanding, and please take care.
Much has been made and reported about the federal government’s effort to sustain the economy and assist working families through programs such as enhanced unemployment benefits and the Payroll Protection Plan. AMM has assisted many small business owners in negotiating the application process and anticipating both documentary requirements and potential financial consequences of the available programs. State and local governments have also offered programs to the business community. Bucks County has now announced the creation of a new grant funding opportunity: the “Bucks Back to Work Small Business Grant” program. Availability is limited, however, and the application window is small so qualifying business owners must act quickly to obtain a share of the grant fund.
May 14, 2020
Yesterday the Small Business Administration (SBA) issued updates to its Frequently Asked Questions (FAQs) guidance on the Paycheck Protection Plan (PPP) Loans, and added Questions/Answers (Q&A) 45 and 46, with the latter Q&A being directly related to the certification issues, and to the corresponding May 14th deadline for the return of funds as a “safe harbor” from civil and criminal penalties relating to the certification of need.
As previously reported, the PPP applications required borrowers to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Until its issuance of this Q&A, the SBA’s guidance suggested that it would seek to impose civil and criminal penalties relating to the certification as a first resort, if it determined that the loan was unnecessary. In doing so, the SBA induced a sense of fear; and then further induced a sense of urgency by offering the safe harbor from such penalties, allowing borrowers to return the funds on or before May 7th to avoid such penalties. Such deadline was further extended to May 14th.
As state governments issue stay-at-home orders, employment lawyers across the country have been digesting new employment laws, assisting clients in managing layoffs, furloughs, and leaves of absence, and working to keep up with a changing employment landscape. Federal legislation has imposed dramatic, although temporary, changes to the way employers manage their employees during this trying time. The Families First Coronavirus Response Act (“Families First Act”) and its regulations impose, for the first time under federal law, paid leave obligations. The CARES Act changes the economics of layoffs, furloughs and reduced hours for employers.
On March 18, 2020, President Trump signed the Families First Act into law. The Act includes provisions to assist employers and employees during these extraordinary times. The Families First Act creates two forms of paid leave related to the Covid-19 crisis: two-week paid leave (“Emergency Leave”); and expansion of the Family and Medical Leave Act (“FMLA”) to provide twelve weeks of paid leave (“Expanded FMLA Leave”).
On April 23, 2020, Governor Wolf announced that all businesses in the construction industry in the Commonwealth are permitted to resume “in-person operations” beginning Friday, May 1, 2020. Construction industry businesses include those in new construction, renovation, and repair, as well as land subdivision and design-related field/project site activities.
The Wolf Administration has issued guidance (the “Guidance”) for all construction industry businesses and their employees in anticipation of resuming operations while at the same time mitigating the spread of COVID-19. The Guidance provides universal protocols for all construction activity, as well as specific additional guidance for residential, commercial, and public construction projects. If you own or manage a construction industry business, you should review these guidelines and ensure such safety protocols are in place before starting up again.
On April 1, 2020, the Department of Labor issued temporary regulations regarding the terms of the Families First Coronavirus Response Act (“Families First Act”). The regulation provides extensive guidance regarding the regulation to help employers comply with its terms.
In response to the ongoing COVID-19 crisis, the Pennsylvania Supreme Court declared a general, statewide judicial emergency and ordered the closure of Pennsylvania courts to the public, except for specific emergency matters. As a result, the Registers of Wills across the Commonwealth, who also serve as the Clerks of the Orphans’ Courts, have only been accepting emergency petitions for guardianships of incapacitated adults and emergency petitions for medical or end-of-life decision making authority.
Without a doubt, the financial issues arising from the Coronavirus Pandemic and the resulting shutdown of businesses and “stay-at-home” order issued in Pennsylvania by Governor Wolf have had a major impact for many, including those with Support obligations, as well as those who rely on those payments.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, provides $349 Billion in SBA 7(a) forgivable loans to businesses and nonprofits with fewer than 500 employees [see endnote 1), including sole proprietors, the self-employed and independent contractors. Known as the Paycheck Protection Program (PPP), the maximum available loan amount is 2.5 times your average total monthly payroll costs, capped at $100,000 per employee on an annualized basis [see endnote 2]. The loan proceeds can be used for any authorized business purpose, but to the extent used to pay payroll costs, healthcare benefits, eligible rent or mortgage interest payments and utility costs over an eight (8) week period from the date the loan is made, the loan can be forgiven (the lender is paid by the SBA). There is no collateral and no personal guarantees required. There is no requirement regarding exhausting other available credit. The SBA pays the lender all loan origination fees and has waived many of its otherwise onerous requirements. To the extent any loan balance is not forgiven, the interest rate will be fixed at the time of the loan somewhere between 0.50% and 4.0% [see endnote 3], amortized over up to 10 years, payable over two (2) years, with all payments deferred for six (6) months. There is no prepayment penalty. The program is only available through June 30, 2020, but funds are limited, so don’t wait. For more detailed information, see below and PPP Information Sheet.
By Michael Mills and Elaine Yandrisevits
Taxing jurisdictions continue to assess how to respond to the COVID-19 pandemic, with state and local jurisdictions being challenged by budget limitations. In the forefront of most people’s minds is the tax deadline for personal income tax returns normally due on April 15th. The following is an updated overview of the tax payment and filing deadlines applicable to our region: