Small Business Provisions of CARES Act

by Aman Badyal

and Andrew D. McCarthy

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act).

There is no shortage of coverage and commentary on the CARES Act, so we are focusing here on provisions most likely to provide immediate cash flow to small and medium-sized businesses.

I. Lending Programs

a.       Paycheck Protection Program (PPP) and Loan Forgiveness.

The CARES Act creates the PPP which allows the Small Business Administration (SBA) to provide $349,000,000 of federally backed loans to eligible businesses. 

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Coronavirus Aid, Relief, and Economic Security (CARES) Act: Expansion of Unemployment Benefits Through the Pandemic Unemployment Assistance Program

by Katie A. Collins
The Labor & Employment Law Blog

On March 27, 2020, the $2 trillion Coronavirus Aid, Relief, and Economic Safety (CARES) Act was passed by the House of Representatives and signed into law by President Trump as the largest emergency aid bill in history. The CARES Act significantly expands unemployment benefits and comes on the heels of 3.3 million Americans having applied for unemployment benefits last week. In California specifically, there were 186,809 claims for unemployment benefits to the Employment Development Department last week.

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DOL Updates Questions & Answers Page for Families First Coronavirus Response Act

by James Kachmar
The Labor & Employment Law Blog

Earlier this week, we advised you that the US Department of Labor had issued a Question & Answers webpage that addressed some issues arising out of the passage of the FFCRA, most importantly clarifying that it would become effective on April 1, 2020. (Click here.) Yesterday, the DOL updated that “Questions and Answers” webpage and added more than 25 new questions and answers regarding various issues under the FFCRA for both employers and employees.

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SCOTUS Rules That North Carolina is Protected from Copyright Infringement Claims by Sovereign Immunity

by Josh H. Escovedo
The IP Law Blog

The Supreme Court of the United States has held that the state government is free to infringe copyrights without fear of retribution. In Allen v. Cooper, the Supreme Court decided whether the state of North Carolina could be held liable under the Copyright Act for infringing filmmaker Frederick Allen’s copyright relating to Queen Anne’s Revenge. If that name sounds familiar, it’s probably because it is, in fact, the flagship of the infamous pirate Blackbeard.

The facts giving rise to this dispute go back to the 1990s.

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San Francisco Issues New Guidance on San Francisco Paid Sick Leave During Pandemic; Financial Relief for San Francisco Employers

by Shauna N. Correia
The Labor & Employment Law Blog

On March 24, 2020, the San Francisco Office of Labor Standards Enforcement issued guidance pertaining to the use of Paid Sick Leave under the San Francisco Paid Sick Leave Ordinance (PSLO).  This publication supersedes the OLSE’s guidance issued just last week. Employers should be aware of temporary changes in the PSLO rules specific to the current pandemic:

  1. No Doctor’s Notes for Duration of COVID-19 Local Health Emergency

Under normal circumstances,

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DOL Issues Model Notice To Employees Of Rights Under Families First Coronavirus Response Act

by Lukas Clary
The Labor & Employment Law Blog

In response to the COVID-19 pandemic, Congress recently passed the Families First Coronavirus Response Act (“FFCRA”). Among other things, the FFCRA requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. Employees’ leave rights under the FFCRA apply from April 1, 2020 through December 31, 2020.

The FFCRA requires that employers “post and keep posted, in conspicuous places on the premises of the employer where notices to employees are customarily posted,

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Federal Stimulus in Response to COVID-19

by Andrew D. McCarthy

On Wednesday, March 25, the Senate and the White House reached a deal regarding a $2 trillion coronavirus economic stimulus package.

The Senate plans to vote on the legislation on March 25.  Then the House will need to pass it before it goes to the President to sign it into law.  For the House to pass it quickly on Wednesday, the vote would need to happen by a voice vote without any objections from any member of the House,

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Families First Coronavirus Response Act Takes Effect April 1, 2020

by James Kachmar
The Labor & Employment Law Blog

We have kept you advised of recent federal actions taken in response to the COVID-19 outbreak, including the passage of the Families First Coronavirus Response Act (“FFCRA”) which, among other things, provides paid family leave for certain employees. (See previous blogs at herehere, and here.) The FFCRA was to take effect “no later than 15 days” after being signed by the President. Given that it was signed on March 18,

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More On The FFCRA: Payroll Tax Credits And Period Of Non-Enforcement

by Meagan D. Bainbridge
The Labor & Employment Law Blog

As we told you on March 22, 2020, the Department of Treasury (DOT), Internal Revenue Service (IRS), and Department of Labor (DOL) announced plans to provide some relief for small and midsize employers in light of the recently passed Families First Coronavirus Response Act (FFCRA). In their announcement, it was also stated that employers may make immediate use of their tax deposits to pay employees taking emergency leave under the Emergency Family and Medical Leave Act (E-FMLA) or as Emergency Paid Sick Leave Act (E-PSLA).

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Business and Tax Relief in Response to COVID-19

by Andrew D. McCarthy

and Jim Clarke

As COVID-19 imposes challenges on our communities, Weintraub is tracking developments to help you deal with the pandemic’s business and legal implications.

I.                 SBA Economic Injury Disaster Loans

A.                 Overview

The U.S. Small Business Administration (SBA) is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by COVID-19 in presidential and SBA-declared disaster areas.  Borrowers can use the loans to cover accounts payable,

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