WPG
Special Edition
April 6, 2020
Tel: 404-874-0555
WPG
COVID-19 Update for HBCUs
Latest News
Information is more important now than ever before. WPG is working hard to provide you the information you need to navigate the COVID-19 crisis.  We have assembled a task force to help you take advantage of provisions in the recent stimulus packages. 

Do not delay as some of the resources are limited and will be allocated on a first-come-first-served basis. Call 404-874-0555 to speak with our managing associate, Donald Murphy, or email him at don@wpg-inc.com.

Federal Reserve announced that it will establish a facility to facilitate lending to small businesses via the Small Business Administration's Paycheck Protection Program (PPP) by providing term financing backed by PPP loans. Industry experts anticipate the facility will be along the lines of a Fannie Mae or Freddie Mac type organization.

The Small Business Administration (SBA) has released the latest rule for the Paycheck Protection Program. Once published in the Federal Register, it will be open for public comment.  

Forms Required for Emergency SBA Loans

●  The Paycheck Protection Program (PPP) provides guaranteed loans that can be used to cover salaries, sick leave, insurance premiums, utilities, mortgages, and rent. Small businesses with fewer than 500 employees are eligible. Certain businesses that have more than 500 employees may be eligible if they meet the SBA's size standard for their industry. Sole proprietorships, independent contractors and self-employed persons, 501(c)(3) non-profit organizations, 501(c)(19) veterans organizations, and tribal businesses may be eligible.

This loan may be forgiven in total or in part. Degree of forgiveness is based, in part, upon the employer maintaining employee number and salary levels. Employees who have been rehired quickly may count. The rules regarding eligibility for faith-based entities are on the SBA website. The application form is online (updated April 2).

●   Emergency Economic Injury Disaster Loans (and advance): These loans are for small businesses, private nonprofits, and small agricultural cooperatives. Rules and requirements have been relaxed to offset the impact of the COVID-19 Emergency. An advance of up to $10,000 is available to allow individuals to access capital quickly. The advance does not have to be repaid. The application for the advance and the application for the loan are bundled together. The loan is available to any small business as defined by the SBA. The application is available online.

●   Express Bridge Loans: This program was expanded during the COVID-19 Emergency to cover small businesses in all states, territories, and the District of Columbia. The term of the program was extended through March 13, 2021. The program provides bridge loan financing on an emergency basis in amounts of up to $25,000 for disaster relief. While a qualified business may obtain only one Express Bridge Loan during the COVID-19 Emergency, that loan will not count towards the maximum limitation on the amount of SBA Express loans that can be outstanding to any borrower (including affiliates). It will, however, count towards the maximum limitation on the amount of 7(a) loans that can be outstanding to any borrower (including affiliates). See the FAQ for details. Applicants must complete Form 1919 and in some cases Form 159 will also be required.

In addition, you may find the SBA's list of regional offices,  local partners and most active lenders, and its overview of coronavirus relief options helpful.

Debt Relief for Existing and New SBA Loans

●  No forms are required for the SBA's Debt Relief program. The SBA will pay the principal, interest, and fees of current SBA 7(a), 504, and microloans for a period of six months. 

●  The SBA will pay the principal, interest, and fees of new SBA 7(a), 504, and microloans issued before September 27,2020. No forms are required.

●  Current SBA Serviced Disaster Loans in regular servicing status on March 1, 2020, will be put into automatic deferral status through December 31, 2020. Interest will continue to accrue on the loans,The automatic deferral does not cancel established preauthorized scheduled debits or recurring payments setup by borrowers. Borrowers are responsible for canceling scheduled payments. Borrowers may continue to make regular payments during the deferment period. If they do so, such payments will be applied normally (as if there was no deferment). 

Sick Leave and Tax Credits


Families First Coronavirus Response (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Acts


The FFCRA required certain employers grant paid sick leave to eligible employees. The CARES act provides a tax credit to cover the cost of that mandated leave.

The FFCRA rule applies to all public agencies and to private sector employers of fewer than 500 employees, including not-for profit employers. Employers with fewer than 50 employees are exempt from mandatory paid sick leave due to school closure and mandatory emergency paid leave when doing so would jeopardize the viability of the business.

Employees are eligible if and when they:
  1. are subject to a federal, state, or local COVID-19 quarantine or isolation order
  2. have been advised by a health care provider to self-quarantined due to COVID-19
  3. are experiencing COVID-19 symptoms and are seeking a medical diagnosis
  4. are caring for an individual who is subject to item 1 or item 2
  5. are caring for a child whose school or place of care is closed or whose child care provider is unavailable due to COVID-19
  6. is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services.

In determining the number of employees, an employer: 
  1. does not include employees working outside the US, US territories or DC
  2. includes full-time and part-time employees
  3. includes active employees and those on leave
  4. includes temporary employees who are jointly employed
  5. includes day laborers supplied by a temporary agency
The employee is entitled to 2/3 their regular pay with a maximum set at $200 per day.

The Emergency Family and Medical Leave Expansion mandates employers grant  up to 12 weeks of leave to qualified employees. Employees must have been employed for a least 30 days to be eligible. If eligible, they are entitled to 2 weeks of unpaid and a maximum of 10 additional weeks of paid leave. Pay is capped at 2/3 of their regular pay with a maximum set at $200 per day.


Employee Retention Credit


The CARES Act provides a tax credit to employers. The  Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that eligible employers pay their employees. It applies to qualified wages paid between March 12, 2020, and January 1, 2021. The maximum credit per employee is $5,000.

Forms you will need:

●  Form 7200 Advance Payment of Employer Credits Due to COVID-10. 

●  Form 941 Employer’s Quarterly Federal Tax Return

●  See also this IRS notice for a full schedule of dates.
WPG
WPG is here to help you navigate the challenges posed by this evolving national crisis. Please call us today with any questions or concerns you may have. Stay safe. Keep in touch. Be blessed.


Phone: 404-874-0555
Email: don@wpg-inc.com
1475 Klondike Road, Suite 100
Conyers, GA 30094
This is an ongoing crisis that is evolving rapidly. The information and links provided here may be superseded at any time. Further, they are not intended as legal or fiscal advice. We make no warranties or guarantees about completeness, suitability, or accuracy. 
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