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CARES Act: Loan Programs and Employment Matters for Business Owners

CFS joined Cole Schotz P.C. for a 1-hour webinar on April 2, 2020 to speak about various loan programs that are available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as well as related employment matters regarding federal and state leave laws, expanded unemployment benefits, and employee confidentiality during this crisis. The economic stimulus package provides a number of benefits to businesses.

Topics Discussed (video as of 4/2/2020)

Loan Programs under CARES Act for Small Businesses

  1. SBA's Payroll Protection Program (PPP)
    1. Descriptions of new program
    2. Eligibility
    3. Participating lenders
    4. Maximum loan amount
    5. Use of proceeds
    6. Forgiveness and reduction
    7. Payment deferrals
    8. Other key terms (Waiver of affiliation rules in certain cases and "credit elsewhere" requirements
  2. Expansion of SBA's Economic Injury Disaster Loan Program (EIDL) for COVID-19
    1. Relaxed eligibility requirement
    2. Increased funding
    3. Use of proceeds
    4. EIDL grants ($10,000) during application
    5. Other key terms (waiver of personal guarantees and "credit elsewhere" requirements
    6. Interplay with PPP loan program
  3. Changes to the SBA Express Loan program
  4. Establishment of "Main Street Lending Program" for small and medium sized businesses

Employer Considerations in Response to the COVID-19 Pandemic

  1. Layoffs, Furloughs, and Pay Cuts
    1. Permanent vs. temporary layoffs
      1. termination letter requirements and health care continuation information
    2. Furloughs involving a reduction in hours vs. a consecutive amount of unpaid leave
    3. Potential WARN triggers and violation of laws passed in response to COVID-19
    4. Pay cuts
    5. Unemployment benefits
  2. OSHA Standards and Employee Confidentiality
    1. General duty to protect employees
    2. Workplace communicable illness and policies
    3. Measures to take after an employee tests positive for COVID-19
  3. Families First Coronavirus Relief Act
    1. Up to 80 hours of emergency paid leave to employees
    2. 12 weeks of expanded paid Family and Medical Leave Act benefits
    3. Small business exception for employers with less than 50 employees
    4. Similar state law protections


Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guardian and its subsidiaries do not issue or advice regarding SBA, EIDL or PPP loans. And make no representation as to the completeness, suitability, or quality of information provided thereof.  No State or Government entity has approved, endorsed, or authorized this presentation.  Contact the specific entity for complete details regarding individual eligibility for benefits.  Christopher Kula, Marissa Mastroianni & Cole Schotz P.C. not affiliated with or endorsed by PAS, Guardian, or Certified Financial Services and opinions stated are their own.