By Corporate Law Practice Group
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) helps small business and individuals affected by the COVID-19 pandemic and provides much needed support to the health care field. In Part Two of our two-part series, we continue with a summary of each small business loan and credit program now available. Please keep in mind there are specific certifications required to ensure only affected businesses receive this assistance.
Employee Retention Credit – Section 2301
The CARES Act includes a one-year credit against the employer’s share of Social Security payroll taxes for any business that is forced to suspend or close its operations due to COVID-19. However, the business must continue to pay its employees during the shut-down.
A business is eligible for the credit in one of two ways:
- The operation of the business was fully or partially suspended during any calendar quarter during 2020 due to orders from an appropriate government authority resulting from COVID-19, or
- The business remained open, but during any quarter in 2020, gross receipts for that quarter were less than 50% what they were for the same quarter in 2019.
The business will then be entitled to a credit for each quarter, until the business has a quarter where it is recovered sufficiently that its receipts exceed 80% of what they were for the same quarter in the previous year. For each eligible quarter, the business will receive a credit against its 6.2% share of Social Security payroll taxes equal to 50% of the “qualified wages” paid to each employee for that quarter, ending December 31, 2020.
“Qualified wages” depend on the size of the business:
Continue reading »
03/31/20 8:56 AM
Business Law, COVID-19 | Comments Off on The CARES Act: Loans and Credits for Small Businesses, Sole Proprietors, and Nonprofits– Part Two |
Permalink
The CARES Act: Loans and Credits for Small Businesses, Sole Proprietors, and Nonprofits– Part Two
By Corporate Law Practice Group
UPDATED 4/23/20*
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), commonly referred to as the stimulus bill, was enacted on Friday, March 27, 2020 to help small businesses and individuals affected by the COVID-19 pandemic. The CARES Act also provides much needed support to the health care field. This two-part series provides a summary of each small business loan and credit program now available. Please keep in mind that specific certifications are required to ensure only affected businesses receive this assistance.
It may take a few weeks for the relevant funding to be received by small businesses. In an effort to help fill this gap, regulators are encouraging banks and credit unions to make small loans to individuals and businesses immediately and independently of the CARES Act.
Small Business Payroll Protection Loans – Section 1102
The CARES Act provides that businesses with fewer than 500 employees – including sole proprietors, independent contractors, eligible self-employed individuals, and nonprofits – will have access to approximately $350 billion in loans under Section 7 of the Small Business Act during the “covered period.” The “covered period” runs from February 15, 2020 through June 30, 2020 and the business must have been in operation as of February 15, 2020.
Theses paycheck protection loans are fully guaranteed by the federal government through December 31, 2020. Loans greater than $150,000 return to an 85% guarantee after December 31. The loans will have a maximum maturity of 10 years with an interest rate not to exceed 4%. At this time, the Treasury Department has indicated they will set the maturity at 2 years and that the interest rate shall be fixed at 1%. Proceeds may be used to cover payroll, mortgage payments, rent, utilities, and any other debt service requirements. The standard fees imposed under Section 7 of the Small Business Act are waived, and no personal guarantee is required by the business owner. The CARES Act also provides for possible deferment of repayment of the loans for a period of at least six months. However interest will accrue during this deferment.
Continue reading »
03/30/20 4:48 PM
Business Law, COVID-19 | Comments Off on The CARES Act: Loans and Credits for Small Businesses, Sole Proprietors, and Nonprofits – Part One |
Permalink
The CARES Act: Loans and Credits for Small Businesses, Sole Proprietors, and Nonprofits – Part One
By Ruth Binger
Manufacturers across the country have started repurposing or retooling their factories to produce much needed medical supplies and personal protective equipment (PPE). Companies with 3-D printers are being utilized to create face masks and shields and components for medical devices.
Here’s just a glance at what is going on in manufacturing. If you have any questions about manufacturing PPE, one of our attorneys can assist you.
Manufacturing Industry:
Medical Technology:
- The U.S. medical technology industry as a whole is working to meet the urgent demands by increasing production and are finding new suppliers. According to Scott Whitaker, president and CEO of AdvaMed, an international medical technology association, “We’re exploring ways to repurpose, retrofit, and reimagine the production of PPEs. Factories that typically make shoes and underwear and diapers are being retooled to make surgical gowns and gloves. Industrial paint masks and automotive respirators are being transformed into health care-specific safety masks.”
- The Global Center for Medical Innovation has designed two different face shield types (foam and rigid) that are ready for prototyping and production for manufacturers wishing to produce face shields for healthcare providers. GC
- The University of Wisconsin-Madison’s Department of Engineering has partnered with designers, a hospital, and team of medical providers, and a prototyping company to create an open source design for a medical face shield.
State Level:
Continue reading »
03/30/20 1:08 PM
Business Law, COVID-19, Manufacturing and Distribution | Comments Off on Manufacturers Are Stepping Up to Produce Personal Protective Equipment |
Permalink
Manufacturers Are Stepping Up to Produce Personal Protective Equipment
By Corporate Law Practice Group
Just
as we are adapting our daily lives, cyber-criminals have adapted their
nefarious activities to capitalize on people’s fears and potential system
weaknesses during COVID-19. Hackers are targeting connection vulnerabilities
and sending phishing emails with COVID-19-related subject lines or pretending
to be a boss/coworker using a personal account. They have also been sending malware
with fake COVID-19 tracker maps, WHO, or CDC information and making social
media posts or comments with pleas related to COVID-19.
Reasons
systems and data could be particularly vulnerable during COVID-19 include:
- Human error;
- Unvetted personal
devices;
- Devices behind in
patches or updates;
- Public Wi-Fi
networks; and
- Lack of remote
work ‘protocol’ or training.
As
a result, now more than ever you need to review your company’s data and privacy
policies and ensure your workforce can successfully work from home. To
illustrate just how important this is, consider Privacy Rights Clearinghouse’s
statistic that 11,613,547,443 records have been breached since 2005.
Continue reading »
03/25/20 8:00 AM
Business Law, COVID-19, Cybersecurity, Employment Law | Comments Off on Privacy and Cybersecurity Practices for Working Remotely During COVID-19 |
Permalink
Privacy and Cybersecurity Practices for Working Remotely During COVID-19
By Ruth Binger
UPDATED 4/1/2020
The Small Business Administration (SBA) is offering low-interest economic disaster assistance loans due to the coronavirus/COVID-19 pandemic to Illinois and contiguous counties in Missouri.
For more information, click on the following links:
SBA COVID-19 Disaster Loans
SBA Paycheck Protection Program (PPP)
- PPP Borrower Information Sheet
- PPP Application Form
- Application dates:
- April 3, 2020: Business owners and sole proprietors can apply through existing SBA lenders*
- April 10, 2020: Independent contractors and self-employed individuals can apply through existing SBA lenders*
*Additional lenders will be available to make loans after they are approved by the SBA
If you have any questions, one of our attorneys can assist you.
Additional Resources:
Coronavirus/COVID-19 Resource Center
COVID-19 Business Operations for Danna McKitrick
Posted by Attorney Ruth Binger with assistance from Brenda Christmas Marlowe, Marketing Manager. Binger serves both emerging and mature businesses concentrating in corporate law, intellectual property and technology law, cybersecurity, digital media law, and labor and employment law. Her commitment to the success of small to medium-sized businesses, and her understanding of multi-faceted issues inherent in operations, are what distinguish Binger’s practice.
03/24/20 1:07 PM
Business Law, COVID-19 | Comments Off on SBA Loan Assistance for COVID-19 Pandemic |
Permalink
SBA Loan Assistance for COVID-19 Pandemic
By David R. Bohm
Hat tip to my friend, Harold Kirtz, who is a senior litigator with the FTC:
It is important that we, and our employees, families and friends, be vigilant for various scams playing off coronavirus fears. For your information, click on the link below for a good summary from the FTC concerning various of these types of scams.
More than ever, it is important that we engage in safe internet practices.
Coronavirus Scams – What the FTC is Doing
Additional Resources:
COVID-19 Business Operations for Danna McKitrick
Coronavirus/COVID-19 Resource Center
Posted by Attorney David R. Bohm. Bohm is an experienced litigator working with health care, government, and business clients on employment, intellectual property, and complex contract issues. He is also skilled in alternative dispute resolution as a means to solve disagreements without litigation.
(c) tashatuvango www.fotosearch.com
03/24/20 11:57 AM
Business Law, COVID-19, Cybersecurity, Employment Law | Comments Off on Coronavirus Scams and the FTC |
Permalink
Coronavirus Scams and the FTC
By A. Thomas DeWoskin
Who would have thought we’d be in a situation like this? This is the 21st century, not the Middle Ages. The need for action is certain, but the need for panic is not. In fact, panic makes the matter worse for all concerned.
On the personal front, take care of yourself first. You need to have your wits about you at a time like this.
- Keep your mind busy with something other than worry. If you have a hobby, now is a good time to engage in it. Read a book; write a letter; call your mother. If working 80 hours a week has limited time with your kids, spend some time with them now. Just speak to them with open-ended questions. Find out what’s on their minds. Do something together.
- Help someone else – you’ll feel good about it.
- We’ve all heard the saying that every problem is an opportunity. One of the best ways to stay calm is to do something. You can’t sit and fret your way out of this.
On the business front, now is a great time to analyze your situation, both short- and long-term.
Continue reading »
03/24/20 8:38 AM
Bankruptcy, Business Law, COVID-19, Emerging Business, Employment Law | Comments Off on Thoughts for Business Owners Trying to Run a Business During a Pandemic |
Permalink
Thoughts for Business Owners Trying to Run a Business During a Pandemic
By Ruth Binger
UPDATED 3/7/2022
Review the links below for guidelines for reopening your business based on your location. If you have any questions, one of our employment attorneys can assist you.
Additional Resources:
COVID-19 ORDERS AND INFORMATION
State of Missouri
St. Louis Metro Area
St. Louis County
City of St. Louis
St. Charles County
Franklin County
Jefferson County
Lincoln County
Warren County
Other Missouri City and County Orders
Continue reading »
03/23/20 9:21 AM
Business Law, COVID-19, Emerging Business, Employment Law, Manufacturing and Distribution | Comments Off on Updated COVID-19 Information: St. Louis City, St. Louis County, Missouri, Outstate Missouri Areas, and Illinois |
Permalink
Updated COVID-19 Information: St. Louis City, St. Louis County, Missouri, Outstate Missouri Areas, and Illinois
By Employment Law Practice Group
UPDATED 9/21/2020
This chart is intended to provide a general overview of new obligations under the recently enacted Families First Coronavirus Response Act legislation. This new law is complex and subject to regulatory guidance and evolving interpretations. The employment law attorneys at Danna McKitrick, P.C. are available for up-to-date guidance before taking any action. For updated DOL regulations, see Department of Labor’s Updated Regulations for FFCRA effective 9/16/2020.
EMERGENCY FAMILY & MEDICAL LEAVE EXPANSION ACT
(FMLA EXPANSION)
|
Who must provide leave under the FMLA Expansion?
|
Employers with less than 500 employees
|
|
Who is eligible to
use this leave?
|
Employees (both full- and part-time) after 30 days from hiring, for the reasons listed below.
|
|
Why may an employee use this leave?
|
The employee is unable to work, either onsite or remotely, because the employee must care for a minor son or daughter whose school or place of care has been closed, or whose care provider is unavailable due to a public health emergency
|
|
How long is the
leave?
|
Up to 12 weeks
|
|
What is the required pay during the leave?
|
The first 10 days may be unpaid. An employee may choose to use accrued PTO for the first 10 days.
This is the employee’s choice and may not be mandated by the employer. After the first 10 days, the employee must receive pay based on the number of hours the employee would normally be scheduled to work. The pay must be two thirds of their regular rate of pay, not to exceed $200 per day or $10,000.00 total.
|
|
Is job protection
required for an employee who uses this leave?
|
Yes, the employee must be able to return to the same or equivalent position.
|
|
Are there exceptions to the requirement for job protection?
|
Yes, job protection requirements may not apply to employers with less than 25 employees, if specific conditions are met and the position is eliminated due to changes
resulting from the public health emergency. In this circumstance, an employee must be placed on a re-hire list for one year.
|
|
Are any employers with less than 500 employees exempt from the new FMLA expansion?
|
Possibly. The Secretary of Labor may choose to exempt small businesses with less than 50 employees if following the requirements would jeopardize the viability of the business.
Note that the Secretary of labor has NOT made this exemption as of the time
of this writing.
Employers of health care providers or emergency responders may exclude such an employee from the benefits of this Act. The regular FMLA definition of health care provider is limited and this exclusion should be applied cautiously.
|
|
When is the FMLA Expansion in effect?
|
April 1, 2020 through December 31, 2020
|
|
How will my
business recover the cost of this leave?
|
With a refundable tax credit equal to 100% of the qualified paid wages required under this Act.
|
EMERGENCY PAID SICK LEAVE ACT
Continue reading »
03/20/20 4:04 PM
Business Law, COVID-19, Employment Law | Comments (4) |
Permalink
An Employer’s Guide to Paid Leave Under the Families First Coronavirus Response Act
