Below are five points of focus for Maiello Brungo & Maiello this week:
Updated April 27, 2020
PPP Treasury Guidance. The U. S. Treasury Department PPP’s “Frequently Asked Questions” April 26, 2020 guidance stated in part, “CARES Act uses the standard of ‘fulltime equivalent employees’ to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions. Businesses must properly document their FTE count upon the completion of each payroll. Loan forgiveness will be significantly impacted by a reduction in FTEs.
Business Re-Opening Mistakes. The re-hiring and/or returning employees to the workplace creates many potential pitfalls: claims of discrimination, an unsafe workplace, or the invasion of privacy due to health screening requests all loom for businesses without a strategic plan for resuming operations.
Additional Loan Funding: On April 24, 2020 Congress passed a supplemental relief package $310 billion for the Paycheck Protection Program (“PPP”), $60 billion for the Economic Injury Disaster Loan program. The SBA has yet to provide an update as to when the EIDL portal will open to new applications. PPP applications will be accepted as of Monday, April 27th.
Bankruptcy Impact. Landlords and tenants are entering into rent deferral agreements and arrangements to apply security deposits to unpaid rent. Remember a tenant bankruptcy filed within 90 days of the deferred payment or the application of the security deposit may be voidable and recoverable by the debtor. Consider your risks and options in this uncertain climate.
Construction Re-Opens May 1, 2020. Understand that it is “limited” construction and, unfortunately, is not business as usual – the limitations placed on returning to work by the Governor’s office are burdensome. Owners and contractors will have existing contractual obligations which must be clarified immediately. MBM can assist with providing the proper construction site notices and contract modifications necessary to move forward.