In response to the growing public health concern over the COVID-19 virus, the Maryland Chamber of Commerce has compiled resources to help keep our members and the Maryland business community informed.
U.S. Small Business Administration (SBA)
The SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise.
The SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise.
U.S. SBA Releases New FAQ Document; PPP “Safe Harbor” for loans under $2 million | Information Is Courtesy of Shawe Rosenthal, LLP
Yesterday, May 13, 2020, the U.S. Small Business Administration, in consultation with the U.S. Department of Treasury, released an updated FAQ document (LINK HERE) concerning the implementation of the Paycheck Protection Program (PPP). Through this document, we learned that the SBA has determined that loans with an original principal amount of less than $2 million will be deemed to have made the requisite certification regarding the necessity of the loan “in good faith.” This information is tremendously helpful for those who are awaiting guidance on the forgivability of PPP Loans.
In particular, we would direct you to the following:
46. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?
Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.
SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.
Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.
PLEASE NOTE: We wanted to provide this information for your review as 5/18/20 is the deadline to return the loan funds to be in the safe harbor from prosecution for not making a good faith certification.
Recently the SBA put out a guide to help small businesses navigate the different relief programs, you can download the most recent version here.
Regarding SBA size standards, please go here to find out if you meet SBA’s size standards.
As the nation’s only go-to resource and voice for small businesses, they are poised to help during this COVID-19 pandemic with:
- Small Business Guidance and Loan Resources
- Small Business Loan Information- Disaster Loan Assistance
Paycheck Protection Program (PPP) FAQ’s from the U.S. Department of Treasury
The U.S. Department of Treasury released an FAQ document to address common inquiries and requests for information pertaining to the Paycheck Protection Program (PPP).
In addition to the FAQ document, please review the following resources provided by the U.S. Department of Treasury below and visit their webpage for additional information.
- A top-line overview of the program can be found here.
- If you’re a lender, more information can be found here.
- If you’re a borrower, more information can be found here.
The application for borrowers can be found below:
The NFIB has compiled multiple small business resources in response to coronavirus and they can her found below:
Centers for Disease Control and Prevention
The Centers for Disease Control and Prevention has issued a guide for employers to plan for and respond to COVID-19.
The CDC encourages employers to:
- Actively encourage sick employees to stay home
- Separate sick employees
- Emphasize respiratory and hand hygiene for all employees
- Perform routine cleaning
The full employer guide can be found here. The CDC has also issued a “workplace tips” guide.
U.S. Chamber of Commerce Resource Tool Kit
The U.S. Chamber of Commerce is working closely with the Trump Administration, U.S. government agencies and foreign government officials to ensure that businesses have the most up-to-date information and resources.
The U.S. Chamber of Commerce and their Foundation has put together multiple documents featuring workplace health and safety information from the CDC.
- NEW – Guide to PPP Loan Forgiveness
- NEW – Small Business Reopening Playbook
- Guide to SBA’s Economic Injury Disaster Loans (EIDL)
- Guide to the Employee Retention Tax Credit
- UPDATED – Coronavirus Emergency Loans Small Business Guide and Checklist (Paycheck Protection Program)
- Workplace Tips for Employers
- Workplace Tips for Employees
- Corporate Aid Tracker
- Resilience In A Box
- Consolidated Business Specific Resources
In addition to the information in the toolkit: the U.S. Chamber’s own interactive digital platform designed specifically for business owners, called CO, has created a COVID-19 business guide to help small business owners navigate the pandemic—including information about managing financial difficulties, keeping your team engaged, supporting and retaining your customers, and more. They have created an accompanying digital resource toolkit that includes “key messages, example posts, and social media graphics for you to utilize while sharing the tools and resources with your local business communities and networks.”
Much of the U.S. Chamber’s content has been pulled from the CDC’s “Interim Guidance for Businesses and Employers.”
Federal Legislative Resources
The Maryland Chamber of Commerce is actively monitoring federal legislation seeking to address challenges posed by the ongoing COVID-19 crisis to ensure that it appropriately balances public health and safety with the economic realities employees and employers are facing at this time.
U.S. Senate Passes $2 Trillion COVID-19 Emergency Relief Deal
Late Wednesday night (3/25), the Senate voted to pass the largest economic rescue effort in American history. As of Friday morning (3/27), the bill, known as the CARES Act, is being considered by the House. Once passed by the House, it will head to the desk of President Trump, who has said he will sign it immediately.
The $2 trillion relief package will, in the words of Senate Majority Leader Mitch McConnell, “rush new resources onto the front lines of our nation’s historic fight and it will inject trillions of dollars of cash into the economy as fast as possible to help American workers, families, small businesses and industries make it through this disruption and emerge on the other side ready to soar.”
The following is a statement from Christine Ross, president and CEO of the Maryland Chamber of Commerce:
“We are pleased the U.S. Senate has passed this urgent legislation in a unanimous vote, and we ask the House to do the same so that the president can sign it into law as soon as possible. As we all do our part to help stop the spread of the coronavirus, this law will begin the process of getting Maryland families and businesses back on their feet in the midst of an unprecedented economic shutdown, and give our businesses the confidence to reopen their doors.”
What’s in the bill:
• $367 billion in loans for small businesses. Small businesses could obtain federally-backed loans through community banks through June 30. If they keep all their employees, the loans would be forgiven.
• $500 billion in loans from the Treasury Department for larger industries, including $25 billion for passenger airlines; $4 billion for carriers; $3 billion for aviation contractors; and $17 billion for businesses critical to national security. For mid-sized businesses with between 500 and 10,000 employees, there would be no payments due for the first six months after the loan is issued.
• Direct payments of $1,200 to most single Americans making up to $75,000, or $2,400 for couples making up to $150,000. Parents would receive $500 for each child under 17. The amount decreases for individuals with incomes above $75,000, with no payments for those making more than $99,000.
• Expanded unemployment benefits that increase the maximum benefit by $600 per week and provide laid-off workers their full pay for four months. Eligibility is extended to independent contractors and the self-employed.
• $150 billion for state and local governments, with $8 billion set aside for local governments, which are losing a great deal of tax revenue, as only essential businesses remain open and unemployment claims skyrocket.
• More than $100 billion for hospitals: The bill provides more than $100 billion to help hospitals prepare for an influx of patients.
• Creation of an oversight board and inspector general to oversee loans to large companies.
• Suspension of student loan payments: The Department of Education would suspend payments on student loans until September 30.
HR 6201 | Families First Coronavirus Response Act
On Wednesday evening, President Trump signed HR 6201, the Families First Coronavirus Response Act, as a broad response to many of the labor, employment and economic challenges presented by COVID-19.
“Today, I have signed into law H.R. 6201, the ‘Families First Coronavirus Response Act.’ The Act makes emergency supplemental appropriations and other changes to law to help the Nation respond to the coronavirus outbreak,” President Trump said in a statement on Wednesday.
The legislation provides paid sick and family leave for some for U.S. workers impacted by the illness, expands unemployment assistance, and includes nutrition assistance and free COVID-19 testing, among other provisions.
A full summary of the legislation provided by the U.S. Chamber of Commerce can be found here.
The U.S. Chamber of Commerce is also calling on President Trump and congressional leadership to swiftly enact the following three policy proposals:
- Legislation canceling payment of all payroll taxes paid by employers for the months of March, April and May
- Legislation expanding and streamlining loan programs for small businesses
- Legislation enabling the creation of credit facilities to provide loans and loan guarantees to employers with more than 500 employees
Lastly, the U.S. Chamber is calling for a series of measures to help businesses weather supply chain disruptions, support business operations, assist employees and protect small and mid-sized businesses.
Also, for your awareness, the U.S. Department of Treasury has proposed three key terms for COVID-19 legislation specific to the Exchange Stabilization Fund, economic impact payments, and small business interruption loans. Click here to view the full stage three proposal.
Resources for rural businesses
USDA- COVID-19 Federal Rural Resource Guide
Additional resource links
ALL COVID-19 RESOURCES FROM THE MARYLAND CHAMBER OF COMMERCE
CHAMBER RESOURCES
Resources include: the ReNEW Maryland Initiative, the Safe Workplace: Best Practices and Baselines for Reopening Maryland PDF, Essential Employee Designation Letter, MDCC advocacy communications on behalf of our membership, recordings and resources from Maryland Chamber Foundation webinar series, and more.
STATE RESOURCES
Resources include: Maryland Strong: Roadmap to Recovery, information for businesses from the Maryland Interagency, Maryland Business Relief Wizard, resources from the Maryland Department of Health, Maryland Unites, resources from the Maryland Small Business Resource Center (SBDC), state legislative resources, resources for rural businesses, and more.
ADDITIONAL RESOURCES
Resources include: Resources from Maryland Chamber of Commerce Members such as BGE, CareFirst BlueCross BlueShield, Johns Hopkins, The Maryland Bankers Association, and Shawe Rosenthal; resources from the World Health Organization; the McKinsey and Company Talent Exchange; resources from the National Association of Manufacturers (NAM); and more.
For more information contact mdchamber@mdchamber.org or (410) 269-0642.
