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The CARES Act Update Page

The CARES Act is a comprehensive law which addresses small business interruption loans; relief for individuals, families and businesses; assistance to severely distressed sectors of the economy and a health care response which covers the strategic national stockpile, mitigating emergency drug shortages, preventing essential medical device shortages, the emergency use of laboratory developed tests as well as access to health care for COVID-19 patients. Readers may click here to view the text of the CARES Act in its entirety.

Hodgson Russ attorneys vigilantly access and gather the most current and up-to-date information which will help our clients navigate this most challenging period of time in the United States. Please continue also to visit our Coronavirus Resource Page for alerts focusing on the pandemic and the developments relating to that area. 

Webinars

Upcoming Webinars

CLE: Borrower Beware: Defending PPP Loans from After-the-Fact Government Scrutiny July 29, 2020 12pm - 1pm
The PPP program was a lifeline to many companies faced with the existential threat of an unknown pandemic.  But the prospect of “free money” by loan forgiveness comes with strings – the possibility of an audit and scrutiny by federal agencies with the jurisdiction and political will to investigate the use of funds.  Prepare now to protect yourself, your company, or your client against the inevitable scrutiny to come. (click here to learn more).

Past Webinars

The Hodgson Russ CARES Act Webinar Series – A Primer for Businesses April 6 & 13
Join us for a series of webinars presented by various Hodgson Russ attorneys as they discuss what you need to know now regarding the CARES Act and how it impacts your business (click here to access a recording of the webinar).

You can either click on the All Alerts button below to access the full list of alerts we have drafted on the CARES Act organized by publication date, or view them organized by practice area.

alerts 

All Alerts

  • CARES Act: IRS Issues New Retirement Plan Guidance for Coronavirus-Related Distributions and Plan Loan Relief July 9, 2020
    On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act. We previously reported on the CARES Act provisions relevant to employer-sponsored retirement plans that delivered certain relief in connection with the Coronavirus pandemic (see our March 30, 2020 Hodgson Russ Employee Benefits Alert here.) Recently released IRS Notice 2020-50, which focuses on the relief under CARES Act Section 2202, addresses coronavirus-related distributions (CRDs), the temporary increase to the allowable plan loan amount, and the delayed due date of plan loan repayments payable during the period beginning on March 27, 2020 and ending on December 31, 2020. Click on the title to read the full alert.
  • Relief from Some PPP Restrictions June 4, 2020
    As small businesses received Paycheck Protection Program ("PPP") loans and began to consider the best way to maximize loan forgiveness, many argued the initial scope of forgiveness was too narrow to address the challenges they faced in these difficult times. Congress appears to have heard many of these borrowers’ concerns, and on June 3 passed the Paycheck Protection Program Flexibility Act of 2020 (the “Act”) to alleviate some of these issues. The President is expected to sign the Act into law in the coming days. Click on the title to read the full alert.
  • Paycheck Protection Program: SBA Releases Forgiveness Application – Some Questions Answered, Others Remain May 18, 2020

    The concept of a forgivable loan has been the most attractive feature of the Paycheck Protection Program (“PPP”) since the first rumors of the program began emanating from Washington.  Millions of companies applied for and received PPP loans with the hope (and in many cases, expectation) that the loan would be fully forgiven. However, borrowers and professional advisors attempting to calculate potential forgiveness on issued PPP loans have been stymied by the forgiveness provisions in Section 1106 of the CARES Act. Click on the title to read the full alert.​​​​​

  • PPP Update: SBA Provides Guidance on Application of Necessity Certification May 13, 2020
    On May 13, 2020, the Small Business Administration (“SBA”) issued additional guidance on the interpretation of the certification necessary to obtain a loan under the Paycheck Protection Program (“PPP”), in the form of FAQ 46. Click on the title to read the full alert.
  • New COVID-19 Pilot Program and Extensions for Patents and Trademarks May 8, 2020
    Many government agencies are implementing policies to reduce the need for in-person interaction and accommodate those affected by the COVID-19 outbreak. The United States Patent and Trademark Office is no exception. Click on the title to read the full alert.

  • IRS Issues Additional Guidance on Employee Retention Tax Credit; Consistency with Congressional Intent Again Questioned May 5, 2020
    This is an update to our April 14, 2020 alert which discussed, in part, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) employee retention credit (“ERC”) for certain employers subject to closure due to COVID-19.  On April 29, 2020, the Internal Revenue Service (“IRS”) released additional Frequently Asked Questions (“FAQs”) on the ERC.  The ERC is not available to businesses that took advantage of the Paycheck Protection Program (“PPP”).  Recent frustration and open questions surrounding the availability of and qualifications for the PPP loan has given way to renewed interest in the ERC for some businesses. Click on the title to read the full alert.
  • IRS Denies Deductions for Expenses Paid with Forgiven PPP Loans May 1, 2020

    On April 30, 2020, the IRS issued Notice 2020-32 which provides that expenses paid with proceeds from a Paycheck Protection Program (“PPP”) loan are nondeductible for federal income tax purposes to the extent the payment of those expenses results in the forgiveness of the PPP loan. Click on the title to read the full alert.

  • More Funds for Paycheck Protection Program, More Uncertainty for Businesses April 24, 2020
    President Trump is expected on April 24 to sign into law new legislation that will provide an additional $310 billion in funding for the Paycheck Protection Program (PPP). Once effective, banks should again begin accepting applications for the program. While the additional funding may bring hope to some businesses who were left out of the first tranche of PPP funds, guidance released by the Small Business Administration (SBA) and Department of Treasury (Treasury) on April 23 is causing some borrowers to second guess their involvement in the massive program. Click on the title to read the full alert.
  • Should My Business Apply for an Economic Injury Disaster Loan (EIDL)? April 24, 2020
    In addition to establishing the Paycheck Protection Program (“PPP”) and Main Street lending program, which we have covered in prior alerts, the Coronavirus Aid, Relief, and Economic Security (“CARES Act”) expanded an already-existing program: the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) Program. EIDL Loans are authorized under Section 7(b) of the Small Business Act, and differ from PPP Loans in several important respects. The information below summarizes the EIDL Program as it has been expanded by the CARES Act. Click on the title to read the full alert.
  • Coronavirus Legislation and Programs - What Agricultural Producers Should Know April 20, 2020
    For weeks, farmers, ranchers, and other agricultural producers across the country have been working to address COVID-19 and the wide-ranging negative effects experienced across their industry. The federal government passed several major pieces of legislation in response to the Coronavirus pandemic and COVID-19, including the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). FFCRA requires certain employers to provide paid sick and other leave to address COVID-19 issues, while the CARES Act provides emergency economic relief to individuals and businesses. There are provisions in both Acts that apply to agricultural producers. Additionally, programs created under the Acts provide for economic relief specifically directed to farmers and other agricultural producers. Click on the title to read the full alert.
  • CARES Act Update: IRS Issues Guidance on Federal Tax Changes April 14, 2020
    This is an update to our March 27, 2020 alert summarizing the various federal tax law changes enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Since, the IRS has been working furiously to issue guidance addressing those federal tax law changes, and we expect further guidance will be issued. Notable recent IRS guidance impacting the business federal tax law changes is addressed below. Click on the title to read the full alert.

  • $500 Billion in Direct Federal Loans Available for Local Governments April 13, 2020
    This alert describes a newly-announced Federal Reserve program to support the municipal bond market and the flow of credit and liquidity to state and local governments. Up to $500 billion in direct federal short-term lending will be made available to help these governments manage cash flow disruptions arising out of the pandemic. These loans can be directly accessed by the largest state, county and city borrowers, and indirectly accessed by smaller governmental issuers (including smaller counties and cities, as well as towns, villages and school districts), once the program is fully in place. Click on the title to read the full alert.
  • Updates to the Paycheck Protection Program April 8, 2020
    On March 30, 2020, Hodgson Russ issued an alert summarizing the basics of the Paycheck Protection Program (“PPP”). Since that release, the Treasury Department issued additional guidance regarding the PPP, found here.  Below are a number of updates relevant to any business’s determination of whether and how to apply for a PPP loan. Click on the title to read the full alert.
  • CARES Act Impact on Bankruptcy Law April 8, 2020
    Business owners and individuals facing the impacts of COVID-19 should be aware of some important changes the Coronavirus Aid, Relief, and Economic Security (CARES) Act makes to the United States Bankruptcy Code. Click on the title to read the full alert.
  • Non-Profit Organizations and the CARES Act: Can Non-Profits Take Advantage of the Financial Assistance Programs? April 3, 2020

    Like for-profit businesses, non-profit organizations are struggling with many of the same financial difficulties during this uncertain time. Some non-profits have several employees and largely depend on grants or donations to stay afloat. Some have hundreds of employees and provide programs or other services, many of which may or may not be considered essential services under the various state-mandated Coronavirus lockdown directives. Click on the title to read the full alert.

  • The CARES Act and Public Finance April 1, 2020
    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. The CARES Act was enacted to provide approximately $2.2 trillion of relief to Americans and the U.S. economy in connection with the COVID-19 pandemic. Click on the title to read the full alert.
  • The Top Five Things to Know about Medicare Telehealth under the CARES Act March 31, 2020

    It took a worldwide pandemic to bring telehealth into the 21st century. Today, the novel Coronavirus COVID-19 is disrupting the traditional model of delivering healthcare to the point where face-to-face visits are no longer tenable, or in many settings not even available. The CARES (Coronavirus Aid, Relief, and Economic Security) Act, enacted March 27, 2020, in large part to stimulate the U.S. economy, is banking on telehealth as a solution.

    Envisioned initially as a rural healthcare strategy, telehealth is an effective means to care for patients efficiently and effectively, while reducing exposure to infectious disease. To facilitate access to telehealth, the CARES Act makes a number of important changes to Medicare and other policies surrounding its use. Click on the title to read the full alert.

  • The CARES Act: Financial Assistance Highlights for the Real Estate Industry March 31, 2020

    On March 27, 2020, President Trump signed into law H.R. 748, titled the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a $2 trillion economic stimulus package that includes public health spending, immediate cash relief for individuals, and loans for businesses. Notably for the real estate industry, the CARES Act provides assistance to commercial property owners, residential homeowners, landlords and tenants impacted by the pandemic.

    SBA Loan Guaranty Program

    The “Paycheck Protection Program”, a $349 billion boost to the Small Business Administration’s (SBA) loan guaranty program, allows eligible borrowers to use loan proceeds for, among other things, payments of interest on any mortgage obligations (but not prepayment or principal payments), rent payments and utilities. Click on the title to read the full alert.

  • Is Your Business Eligible for Distressed Industry Relief Under the CARES Act March 30, 2020

    On March 27, 2020, President Trump signed into law H.R. 748, titled the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a $2 trillion economic stimulus package that includes public health spending, immediate cash relief for individuals, and loans for businesses.

    Title IV of the CARES Act, the “Coronavirus Economic Stabilization Act of 2020” (“Title IV”), provides up to $500 billion in relief for states, municipalities, and severely distressed industries.  Specifically, Title IV provides loans, loan guarantees and other investments in support of “eligible businesses,” which include air carriers and other United States businesses that have not otherwise received adequate economic relief in the form of loans or loan guarantees provided under the CARES Act. Click on the title to read the full alert.

  • COVID-19 Stimulus Legislation: Benefit Plans Highlights March 30, 2020

    On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act (the “Act”).  There are number of provisions relevant to employer-sponsored retirement and welfare benefit plans intended to deliver relief in connection with the Coronavirus pandemic. Those provisions include:

    Retirement Plan Distribution Provisions

    Distribution Relief.  For eligible retirement plans, the Act prescribes special relief for “Coronavirus-related distributions.”  Making Coronavirus-related distributions available to retirement plan participants is optional. Click on the title to read the full alert.

  • COVID-19 Developments for Tax-Exempt Organizations/Non-Profits March 30, 2020

    In response to the COVID-19 pandemic (the “Coronavirus”), a variety of relief efforts have been enacted, many of which may impact tax-exempt organization and non-profit clients. This update will discuss certain of these relief efforts, detailing their status as of Monday, March 30, 2020.

    1. Non-Extension of Form 990 and 990-PF Filing Deadlines

    In Notice 2020-18 and Notice 2020-20, the full text of which can be found here, the IRS extended the deadline for filing of certain Federal returns as well as the payment of Federal income, gift, and generation-skipping transfer tax liability. Click on the title to read the full alert.

  • What is the $349 Billion Paycheck Protection Plan? March 29, 2020

    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. Among the programs in the Act is “Paycheck Protection Program”, which is a $349 billion boost to the existing Small Business Administration (SBA) loan guaranty program.

    How does the program work? – The Paycheck Protection Program, found in Title I of the Act, is a $349 billion boost to the SBA’s existing 7(a) guaranty program. These are NOT loans from the Federal Government. Instead, the Federal Government guarantees loans made by eligible lenders to eligible borrowers. The Paycheck Protection Program also expands eligibility for, and liberalizes other requirements of, the SBA 7(a) guaranty program. Perhaps most notably, the Act sets forth the possibility for these loans to be forgiven under certain circumstances. Click on the title to read the full alert.

  • COVID-19 Federal, State and Local Tax Employer Relief Efforts Update last updated March 29, 2020

    Original posting March 21, 2020; updated through April 17, 2020

    The unprecedented COVID-19 pandemic has triggered a wide variety of relief efforts from the Federal, state, and local governments. This update will provide insight into several of these relief efforts, and discuss the effect they might have on employers coping with the impact of the Coronavirus on their business operations. Click on the title to read the full alert.

  • Trump Signs CARES Act – Federal Tax Law Changes March 27, 2020

    Earlier today the House of Representatives passed what was, in effect, the Senate version of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) previously passed by the Senate on March 25, 2020.  Shortly thereafter, President Trump signed the CARES Act into law.

    The first two COVID-19 federal legislative responses passed earlier this month focused largely on healthcare related funding, unemployment benefits and paid sick leave.  This “phase 3” legislation known as the CARES Act attempts to address financial stability and liquidity issues, in part, through various federal tax law changes impacting businesses, employers and individuals. Click on the title to read the full alert.

Agriculture

  • Coronavirus Legislation and Programs - What Agricultural Producers Should Know April 20, 2020
    For weeks, farmers, ranchers, and other agricultural producers across the country have been working to address COVID-19 and the wide-ranging negative effects experienced across their industry. The federal government passed several major pieces of legislation in response to the Coronavirus pandemic and COVID-19, including the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). FFCRA requires certain employers to provide paid sick and other leave to address COVID-19 issues, while the CARES Act provides emergency economic relief to individuals and businesses. There are provisions in both Acts that apply to agricultural producers. Additionally, programs created under the Acts provide for economic relief specifically directed to farmers and other agricultural producers. Click on the title to read the full alert.

Banking & Finance

  • Relief from Some PPP Restrictions June 4, 2020
    As small businesses received Paycheck Protection Program ("PPP") loans and began to consider the best way to maximize loan forgiveness, many argued the initial scope of forgiveness was too narrow to address the challenges they faced in these difficult times. Congress appears to have heard many of these borrowers’ concerns, and on June 3 passed the Paycheck Protection Program Flexibility Act of 2020 (the “Act”) to alleviate some of these issues. The President is expected to sign the Act into law in the coming days. Click on the title to read the full alert.
  • Paycheck Protection Program: SBA Releases Forgiveness Application – Some Questions Answered, Others Remain May 18, 2020

    The concept of a forgivable loan has been the most attractive feature of the Paycheck Protection Program (“PPP”) since the first rumors of the program began emanating from Washington.  Millions of companies applied for and received PPP loans with the hope (and in many cases, expectation) that the loan would be fully forgiven. However, borrowers and professional advisors attempting to calculate potential forgiveness on issued PPP loans have been stymied by the forgiveness provisions in Section 1106 of the CARES Act. Click on the title to read the full alert.​​​​​

  • PPP Update: SBA Provides Guidance on Application of Necessity Certification May 13, 2020
    On May 13, 2020, the Small Business Administration (“SBA”) issued additional guidance on the interpretation of the certification necessary to obtain a loan under the Paycheck Protection Program (“PPP”), in the form of FAQ 46. Click on the title to read the full alert.
  • More Funds for Paycheck Protection Program, More Uncertainty for Businesses April 24, 2020
    President Trump is expected on April 24 to sign into law new legislation that will provide an additional $310 billion in funding for the Paycheck Protection Program (PPP). Once effective, banks should again begin accepting applications for the program. While the additional funding may bring hope to some businesses who were left out of the first tranche of PPP funds, guidance released by the Small Business Administration (SBA) and Department of Treasury (Treasury) on April 23 is causing some borrowers to second guess their involvement in the massive program. Click on the title to read the full alert.
  • Should My Business Apply for an Economic Injury Disaster Loan (EIDL)? April 24, 2020
    In addition to establishing the Paycheck Protection Program (“PPP”) and Main Street lending program, which we have covered in prior alerts, the Coronavirus Aid, Relief, and Economic Security (“CARES Act”) expanded an already-existing program: the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) Program. EIDL Loans are authorized under Section 7(b) of the Small Business Act, and differ from PPP Loans in several important respects. The information below summarizes the EIDL Program as it has been expanded by the CARES Act. Click on the title to read the full alert.
  • Updates to the Paycheck Protection Program April 8, 2020
    On March 30, 2020, Hodgson Russ issued an alert summarizing the basics of the Paycheck Protection Program (“PPP”). Since that release, the Treasury Department issued additional guidance regarding the PPP, found here.  Below are a number of updates relevant to any business’s determination of whether and how to apply for a PPP loan. Click on the title to read the full alert.
  • Is Your Business Eligible for Distressed Industry Relief Under the CARES Act March 30, 2020

    On March 27, 2020, President Trump signed into law H.R. 748, titled the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a $2 trillion economic stimulus package that includes public health spending, immediate cash relief for individuals, and loans for businesses.

    Title IV of the CARES Act, the “Coronavirus Economic Stabilization Act of 2020” (“Title IV”), provides up to $500 billion in relief for states, municipalities, and severely distressed industries.  Specifically, Title IV provides loans, loan guarantees and other investments in support of “eligible businesses,” which include air carriers and other United States businesses that have not otherwise received adequate economic relief in the form of loans or loan guarantees provided under the CARES Act. Click on the title to read the full alert.

  • What is the $349 Billion Paycheck Protection Plan? March 29, 2020

    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. Among the programs in the Act is “Paycheck Protection Program”, which is a $349 billion boost to the existing Small Business Administration (SBA) loan guaranty program.

    How does the program work? – The Paycheck Protection Program, found in Title I of the Act, is a $349 billion boost to the SBA’s existing 7(a) guaranty program. These are NOT loans from the Federal Government. Instead, the Federal Government guarantees loans made by eligible lenders to eligible borrowers. The Paycheck Protection Program also expands eligibility for, and liberalizes other requirements of, the SBA 7(a) guaranty program. Perhaps most notably, the Act sets forth the possibility for these loans to be forgiven under certain circumstances. Click on the title to read the full alert.

Bankruptcy, Restructuring & Commercial Litigation

  • CARES Act Impact on Bankruptcy Law April 8, 2020
    Business owners and individuals facing the impacts of COVID-19 should be aware of some important changes the Coronavirus Aid, Relief, and Economic Security (CARES) Act makes to the United States Bankruptcy Code. Click on the title to read the full alert.

Bond Counsel

  • The CARES Act and Public Finance April 1, 2020
    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. The CARES Act was enacted to provide approximately $2.2 trillion of relief to Americans and the U.S. economy in connection with the COVID-19 pandemic. Click on the title to read the full alert.

Education

  • The CARES Act and Public Finance April 1, 2020
    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. The CARES Act was enacted to provide approximately $2.2 trillion of relief to Americans and the U.S. economy in connection with the COVID-19 pandemic. Click on the title to read the full alert.

Employee Benefits

  • CARES Act: IRS Issues New Retirement Plan Guidance for Coronavirus-Related Distributions and Plan Loan Relief July 9, 2020
    On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act. We previously reported on the CARES Act provisions relevant to employer-sponsored retirement plans that delivered certain relief in connection with the Coronavirus pandemic (see our March 30, 2020 Hodgson Russ Employee Benefits Alert here.) Recently released IRS Notice 2020-50, which focuses on the relief under CARES Act Section 2202, addresses coronavirus-related distributions (CRDs), the temporary increase to the allowable plan loan amount, and the delayed due date of plan loan repayments payable during the period beginning on March 27, 2020 and ending on December 31, 2020. Click on the title to read the full alert.
  • COVID-19 Stimulus Legislation: Benefit Plans Highlights March 30, 2020

    On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act (the “Act”).  There are number of provisions relevant to employer-sponsored retirement and welfare benefit plans intended to deliver relief in connection with the Coronavirus pandemic. Those provisions include:

    Retirement Plan Distribution Provisions

    Distribution Relief.  For eligible retirement plans, the Act prescribes special relief for “Coronavirus-related distributions.”  Making Coronavirus-related distributions available to retirement plan participants is optional. Click on the title to read the full alert.

Healthcare

  • The Top Five Things to Know about Medicare Telehealth under the CARES Act March 31, 2020

    It took a worldwide pandemic to bring telehealth into the 21st century. Today, the novel Coronavirus COVID-19 is disrupting the traditional model of delivering healthcare to the point where face-to-face visits are no longer tenable, or in many settings not even available. The CARES (Coronavirus Aid, Relief, and Economic Security) Act, enacted March 27, 2020, in large part to stimulate the U.S. economy, is banking on telehealth as a solution.

    Envisioned initially as a rural healthcare strategy, telehealth is an effective means to care for patients efficiently and effectively, while reducing exposure to infectious disease. To facilitate access to telehealth, the CARES Act makes a number of important changes to Medicare and other policies surrounding its use. Click on the title to read the full alert.

Intellectual Property

Labor & Employment

  • What is the $349 Billion Paycheck Protection Plan? March 29, 2020

    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. Among the programs in the Act is “Paycheck Protection Program”, which is a $349 billion boost to the existing Small Business Administration (SBA) loan guaranty program.

    How does the program work? – The Paycheck Protection Program, found in Title I of the Act, is a $349 billion boost to the SBA’s existing 7(a) guaranty program. These are NOT loans from the Federal Government. Instead, the Federal Government guarantees loans made by eligible lenders to eligible borrowers. The Paycheck Protection Program also expands eligibility for, and liberalizes other requirements of, the SBA 7(a) guaranty program. Perhaps most notably, the Act sets forth the possibility for these loans to be forgiven under certain circumstances. Click on the title to read the full alert.

Municipal

  • $500 Billion in Direct Federal Loans Available for Local Governments April 13, 2020
    This alert describes a newly-announced Federal Reserve program to support the municipal bond market and the flow of credit and liquidity to state and local governments. Up to $500 billion in direct federal short-term lending will be made available to help these governments manage cash flow disruptions arising out of the pandemic. These loans can be directly accessed by the largest state, county and city borrowers, and indirectly accessed by smaller governmental issuers (including smaller counties and cities, as well as towns, villages and school districts), once the program is fully in place.
  • The CARES Act and Public Finance April 1, 2020
    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. The CARES Act was enacted to provide approximately $2.2 trillion of relief to Americans and the U.S. economy in connection with the COVID-19 pandemic. Click on the title to read the full alert.

Public Authority

  • The CARES Act and Public Finance April 1, 2020
    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. The CARES Act was enacted to provide approximately $2.2 trillion of relief to Americans and the U.S. economy in connection with the COVID-19 pandemic. Click on the title to read the full alert.

Real Estate

  • The CARES Act: Financial Assistance Highlights for the Real Estate Industry March 31, 2020

    On March 27, 2020, President Trump signed into law H.R. 748, titled the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), a $2 trillion economic stimulus package that includes public health spending, immediate cash relief for individuals, and loans for businesses. Notably for the real estate industry, the CARES Act provides assistance to commercial property owners, residential homeowners, landlords and tenants impacted by the pandemic.

    SBA Loan Guaranty Program

    The “Paycheck Protection Program”, a $349 billion boost to the Small Business Administration’s (SBA) loan guaranty program, allows eligible borrowers to use loan proceeds for, among other things, payments of interest on any mortgage obligations (but not prepayment or principal payments), rent payments and utilities. Click on the title to read the full alert.

Securities Regulation & Corporate Compliance

  • Relief from Some PPP Restrictions June 4, 2020
    As small businesses received Paycheck Protection Program ("PPP") loans and began to consider the best way to maximize loan forgiveness, many argued the initial scope of forgiveness was too narrow to address the challenges they faced in these difficult times. Congress appears to have heard many of these borrowers’ concerns, and on June 3 passed the Paycheck Protection Program Flexibility Act of 2020 (the “Act”) to alleviate some of these issues. The President is expected to sign the Act into law in the coming days. Click on the title to read the full alert.
  • Updates to the Paycheck Protection Program April 8, 2020
    On March 30, 2020, Hodgson Russ issued an alert summarizing the basics of the Paycheck Protection Program (“PPP”). Since that release, the Treasury Department issued additional guidance regarding the PPP, found here.  Below are a number of updates relevant to any business’s determination of whether and how to apply for a PPP loan. Click on the title to read the full alert.
  • What is the $349 Billion Paycheck Protection Plan? March 29, 2020

    The Coronavirus Aid, Relief, and Economic Security, or “CARES Act” was signed into law on Friday, March 27, 2020. Among the programs in the Act is “Paycheck Protection Program”, which is a $349 billion boost to the existing Small Business Administration (SBA) loan guaranty program.

    How does the program work? – The Paycheck Protection Program, found in Title I of the Act, is a $349 billion boost to the SBA’s existing 7(a) guaranty program. These are NOT loans from the Federal Government. Instead, the Federal Government guarantees loans made by eligible lenders to eligible borrowers. The Paycheck Protection Program also expands eligibility for, and liberalizes other requirements of, the SBA 7(a) guaranty program. Perhaps most notably, the Act sets forth the possibility for these loans to be forgiven under certain circumstances. Click on the title to read the full alert.

Tax

  • IRS Issues Additional Guidance on Employee Retention Tax Credit; Consistency with Congressional Intent Again Questioned May 5, 2020
    This is an update to our April 14, 2020 alert which discussed, in part, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) employee retention credit (“ERC”) for certain employers subject to closure due to COVID-19.  On April 29, 2020, the Internal Revenue Service (“IRS”) released additional Frequently Asked Questions (“FAQs”) on the ERC.  The ERC is not available to businesses that took advantage of the Paycheck Protection Program (“PPP”).  Recent frustration and open questions surrounding the availability of and qualifications for the PPP loan has given way to renewed interest in the ERC for some businesses.
  • IRS Denies Deductions for Expenses Paid with Forgiven PPP Loans May 1, 2020

    On April 30, 2020, the IRS issued Notice 2020-32 which provides that expenses paid with proceeds from a Paycheck Protection Program (“PPP”) loan are nondeductible for federal income tax purposes to the extent the payment of those expenses results in the forgiveness of the PPP loan. Click on the title to read the full alert.

  • CARES Act Update: IRS Issues Guidance on Federal Tax Changes April 14, 2020
    This is an update to our March 27, 2020 alert summarizing the various federal tax law changes enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Since, the IRS has been working furiously to issue guidance addressing those federal tax law changes, and we expect further guidance will be issued. Notable recent IRS guidance impacting the business federal tax law changes is addressed below. Click on the title to read the full alert.
  • COVID-19 Federal, State and Local Tax Employer Relief Efforts Update last updated April 17, 2020

    Original posting March 21, 2020; updated through April 17, 2020

    The unprecedented COVID-19 pandemic has triggered a wide variety of relief efforts from the Federal, state, and local governments. This update will provide insight into several of these relief efforts, and discuss the effect they might have on employers coping with the impact of the Coronavirus on their business operations. Click on the title to read the full alert.

  • Trump Signs CARES Act – Federal Tax Law Changes March 27, 2020

    Earlier today the House of Representatives passed what was, in effect, the Senate version of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) previously passed by the Senate on March 25, 2020.  Shortly thereafter, President Trump signed the CARES Act into law.

    The first two COVID-19 federal legislative responses passed earlier this month focused largely on healthcare related funding, unemployment benefits and paid sick leave.  This “phase 3” legislation known as the CARES Act attempts to address financial stability and liquidity issues, in part, through various federal tax law changes impacting businesses, employers and individuals. Click on the title to read the full alert.

Tax-Exempt Organizations

  • Non-Profit Organizations and the CARES Act: Can Non-Profits Take Advantage of the Financial Assistance Programs? April 3, 2020

    Like for-profit businesses, non-profit organizations are struggling with many of the same financial difficulties during this uncertain time. Some non-profits have several employees and largely depend on grants or donations to stay afloat. Some have hundreds of employees and provide programs or other services, many of which may or may not be considered essential services under the various state-mandated Coronavirus lockdown directives. Click on the title to read the full alert.

  • COVID-19 Developments for Tax-Exempt Organizations/Non-Profits March 30, 2020

    In response to the COVID-19 pandemic (the “Coronavirus”), a variety of relief efforts have been enacted, many of which may impact tax-exempt organization and non-profit clients. This update will discuss certain of these relief efforts, detailing their status as of Monday, March 30, 2020.

    1. Non-Extension of Form 990 and 990-PF Filing Deadlines

    In Notice 2020-18 and Notice 2020-20, the full text of which can be found here, the IRS extended the deadline for filing of certain Federal returns as well as the payment of Federal income, gift, and generation-skipping transfer tax liability. Click on the title to read the full alert.