COVID-19 Federal Updates: April 24
Updated: Jun 9, 2020
More than 50,000 people in the United States have died of COVID-19.
In case you missed it, the President signed into law additional funding to support those impacted by the coronavirus. You can read the bill language and summaries here.
This legislation provides $320 billion in additional funding for the Paycheck Protection Program (PPP).
The bill also appropriates $60 billion more for the Small Business Administration’s (SBA) Disaster Loan Program.
To aid in coronavirus response efforts, $75 billion in funding will be provided to hospitals and healthcare providers and $25 billion will support testing efforts.
Federal policymakers are discussing what a potential fourth coronavirus relief package might look like.
Democrats are looking for more funding for state and local governments.
The President tweeted this week that he envisioned the next package including fiscal relief for state and local governments, funding for infrastructure investments and a payroll tax cut.
Senate Majority Leader Mitch McConnell signaled Wednesday that the next package would likely not be approved until May, when lawmakers return to Washington, and he has reservations about the national debt.
The Treasury Department and the Internal Revenue Service today released state-by-state figures for Economic Impact Payments. As of April 17, Ohio has made 3,504,529 payments totaling $6,258,547,152.
The U.S. Department of the Treasury updated its FAQs on the Paycheck Protection Program (PPP) to provide guidance on whether businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan (FAQ 31). See this link: Paycheck Protection Program FAQ
Treasury advises that borrowers must carefully assess their economic need for a PPP loan and make a good faith certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.”
Treasury noted that a public company with substantial market value and access to capital markets unlikely will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to the Small Business Administration, upon request, the basis for its certification.
Moreover, Treasury provided a May 7, 2020 deadline for large companies to repay PPP loans and be deemed to have obtained them in good faith.
Many businesses that have been severely impacted by coronavirus will qualify for two new employer tax credits:
Credit for Sick and Family Leave
Employee Retention Credit
Learn about these new employer tax credits at IRS.gov/coronavirus and share the information with employees, clients, and associates.