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Economic Relief for Businesses

April 23, 2020

We have created this page in order to provide instant access to the latest news and updates in this area. Please continue also to visit our Coronavirus Resource Center and CARES Act page for news relating to additional topics that may be of interest.

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  • 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.​​​​​
  • New York State Launches Forward Loan Fund Program – What Do I Need to Know? May 26, 2020
    As New York State moves forward with re-opening plans and as the federal government debates further COVID-19 relief packages, the state is launching its own COVID-19 economic relief fund. On Friday May 22, 2020, Governor Andrew Cuomo announced the New York Forward Loan Fund (FLF). The $100 million program will provide working capital loans to assist small businesses, small nonprofits and small landlords with upfront costs related to reopening. Pre-applications open on Tuesday May 26, 2020 at 12:00 noon (EDT). Click on the title to read the full alert.​​​​​

  • IRS Issues Section 125 Cafeteria Plan Relief to Increase Employer Flexibility During the COVID-19 Pandemic May 18, 2020
    On May 12, 2020, the Internal Revenue Service (“IRS”) released two pieces of guidance providing increased flexibility with respect to Internal Revenue Code section 125 cafeteria plans (“Section 125 plans”). In response to the COVID-19 pandemic, Notice 2020-29 and Notice 2020-33 provide relief including expanded election opportunities, extended claims grace periods, and increased carryover allowances.  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.
  • 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 here and here, 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.
  • COVID-19 Federal, State and Local Tax Employer Relief Efforts Update April 17, 2020 (originally published March 21, 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.
  • IRS Postpones Due Date for Form 990 Series Returns April 16, 2020
    The Internal Revenue Service (the “IRS”) recently issued Notice 2020-23 and related guidance which postpones the due date for a wide variety of federal tax returns, forms, schedules and tax payments. This alert will discuss the significance of Notice 2020-23 for tax-exempt organizations. 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: 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. 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. 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.  Click on the title to read the full alert.
  • What is the $349 Billion Paycheck Protection Plan? March 30, 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. Click on the title to read the full alert.
  • NYS Mandates 90 Days for Forbearance for COVID-19 Impacted Borrowers March 24, 2020
    As part of the State of New York’s response to the COVID-19 pandemic, on March 21, 2020, Governor Andrew Cuomo issued Executive Order No. 202.9 (the “Order”), which, in part, temporarily modifies subdivision 2 of Section 39 of the Banking Law of the State of New York (which provides that the superintendent may issue an order directing the discontinuance of unauthorized or unsafe business conduct) to deem it an unsafe and unsound business practice for a bank to refuse to grant a forbearance for 90 days to any person or business who has a financial hardship as a result of the COVID-19 pandemic.  Click on the title to read the full alert.
  • Federal Government Issues Informal Guidance to Speed FFCRA Tax Credits to Employers March 24, 2020
    On March 20, 2020, the U.S. Treasury Department, Internal Revenue Service (“IRS”) and Department of Labor (“DOL”) issued additional guidance relating to the federal tax incentives and employer compliance under the “Families First Coronavirus Response Act” (“FFCRA”).  Click on the title to read the full alert.