COVID-19 Update June 5, 2020

President Trump has signed into law HR 7010 giving employers more flexibility when using Paycheck Protection Program (PPP) funds and applying for loan forgiveness.

As of Friday, June 5, 2020, this legislation does not address tax-deductibility of expenses paid with
a forgiven PPP loan.

Here are a few more questions we hope will be answered in the coming days:

• Can a current borrower still use the June 30, 2020 FTE Reduction safe harbor instead of December 31, 2020?
• Does anything change with the Salary and Hourly Wage Reduction calculation and Safe Harbor?
• Does the limit on cash compensation change to $100,000 x 24/52 from $100,000 x 8/52?

Hopefully, Congress will put pressure on the SBA to provide guidance in a timely manner.

Today downloads:

• 2.5 Million jobs gained in May – This is great news. We all hope it continues to get reduced as Phase 2 and Phase 3 reopenings occur across the country
• HR 7010 final document – The copy of the bill that is now signed into law
• No Infectious disease standard coming from OSHA – This is interesting because we believe they are waiting on the next stimulus bill to address liability. They do say they will enforce against any business not taking proper precautions to protect workers.
• PPP Flexibility Act Analysis – This is a summary and analysis of the new law prepared by the law firm that represents our National association, NAPEO.
• Trump signs bill easing PPP requirements – Another briefing on the new law and PPP loan forgiveness. This one is from SHRM.

As a reminder, we are planning another webinar next Thursday at 3 pm. For the first 5-10 minutes, we will review the new PPP flexibility law and answer questions before we turn it over to our team to review other current issues.