COVID-19: Business and Employment Update

Main Street Lending Program (MSLP)

• Eligible Businesses: up to 10,000 employees or up to $2.5 billion in 2019 annual revenues
• Loans capped at $25 million, with a term of four years that includes an automatic one-year deferral
• Includes compensation, stock repurchase, and capital distribution restrictions
• More information is available here: https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200409a7.pdf

NY Executive Order 202.16 – Face Coverings Provided to Employees

• As of April 15, 2020 at 8 p.m., all essential businesses must provide face coverings, at the businesses’ expense, to be worn by any employee in the workplace when in direct contact with customers or members of the public
• Executive Order 202.16 is available here: https://www.governor.ny.gov/news/no-20216-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

IRS Extends Deadlines for 1031 Like-Kind Exchanges

• For those engaged in a 1031 exchange, a 45-day identification period or 180-day exchange period deadline that occurs between April 1, 2020 and July 14, 2020 is extended to July 15, 2020
• 45-day and 180-day deadlines are also extended for reverse 1031 exchanges
• IRS Notice available here: https://www.irs.gov/pub/irs-drop/n-20-23.pdf

Updated Guidance on COVID-19 Issued by CDC

• The CDC has updated its cleaning and disinfecting guidelines, social distancing best practices, and strategies and recommendations to respond COVID-19
• Updated guidance is available here: https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html

SBA PPP Guidance – Affiliation Rules for PPP Loans Clarified

• The SBA has released guidance on frequently asked questions related to the Paycheck Protection Program Loans
• The FAQs clarify that it is the borrower’s responsibility to determine which entities, if any, are its affiliates and to determine its employee headcount
• The SBA’s FAQs are available here: https://www.sba.gov/sites/default/files/2020-04/Final%20PPP%20FAQs%20for%20Lenders%20and%20Borrowers%204-8-20_0.pdf 

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning matters related to COVID-19.