COVID-19 Resources & Information

Updated as of April 16, 2020

Lapse in Appropriations Notice: SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

Please get in contact with your banker so that you can be ready when/if additional funds are appropriated to continue the programs. You will receive the best service from a banker you already use.

This sheet is not meant to be all inclusive. You should seek legal advice for a complete analysis of your eligibility and opportunities for federal assistance and benefits under the new legislation.


Employment Law Attorneys

Sam Jackson
Member Attorney
Bone McAllester Norton, PLLC
511 Union Street, Suite 1600
Nashville, TN 37219
615-238-6312
615-687-8312 fax
615-202-7281 cell
sjackson@bonelaw.com
www.bonelaw.com

Gaylord Gardner, Attorney
Lodestone Legal Group
256 Seaboard Lane, Suite G-103
Franklin, TN 37067
615-807-1240
615-807-1468 fax
ggardner@llgtn.com
www.llgtn.com

Chuck Mataya, Partner
Bradley
1600 Division Street, Suite 700
Nashville, TN 37203
615-252-2324
615-252-6324 fax
cmataya@bradley.com
www.bradley.com

Michael Goode, Attorney
Lewis, Thomason, King, Krieg &Waldrop, P.C.
424 Church Street, Suite 2500
Nashville, TN 37219
615-259-1366 office  404-680-6295 cell
615-259-1389 fax                                                                                                mgoode@lewisthomason.com
www.lewisthomason.com


Families First Coronavirus Response Act

If you have employees who are sick with COVID-19, caring for someone who is sick or is unable to work due to their child’s school being closed due to COVID-19, you could be eligible for a payroll tax credit for two weeks of emergency paid sick leave and ten weeks of paid family medical leave. Depending on your situation, you may be entitled to a tax credit of between 2/3rd and 100% of qualifying employee wages. Please contact your attorney or feel free to call one of the above attorneys to find out if your employees qualify.


Coronavirus Aid, Relief and Economic Security Act (the CARES Act)

  • For individuals, there will be one time stimulus checks, expanded unemployment benefits, and temporary changes to the rules for retirement account disbursements and HSA uses.
  • For employers there are opportunities for payroll tax holidays and credits
  • The CARES Act also includes new and expanded rules for business loans through the Small Business Administration (SBA).

Small Business Administration (SBA) loans

The CARES Act provides small businesses and 501(c) 3 nonprofits loan programs and payroll tax holidays. You need to speak to your attorney because electing one part of the CARE Act benefits above could render you ineligible for SBA loans.

These SBA programs have changed dramatically since their inception only two weeks ago. You must continue to monitor the SBA’s website for new information. The SBA is unable to accept new applications. Applicants who have already submitted their applications will continue to be processed.

Economic Injury Disaster loans (EIDL)
The interest rates for those qualifying are 3.75% for small businesses and 2.75% for nonprofits. There is an option for a $10,000 emergency advance that you don’t have to repay. The rest of this loan is to be repaid over 30 years. Except for the $10,000 advance, this loan is not forgivable. You can apply online at this website. https://www.sba.gov/funding-programs/disaster-assistance

Paycheck Protection Program (PPP)
Loan proceeds may be used for employee salaries (up to $100,000 annual salary), mortgage interest, rent and utilities. You can find the application in the link below. You must apply through a SBA 7(a) lender. Please contact your bank to apply at https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

  • On April 2, 2020 the Interim Final Rule was published and on April 15, 2020 it was updated.
  • On April 15, 2020 additional guidance and rules were issued on Affiliation businesses and faith based applicants.
  • You cannot use Families First credits, EIDL and PPP loan funds for the same expense. In other words; no double dipping.

Forgiveness of the Loan

  • The funds can only be used for employee salaries (up to $100,000 annual salary), mortgage interest, rent, utilities and interest on some other debt. (We have not seen any additional guidance about these permitted usage. Please monitor the SBA website for forgiveness guidance.)
  • We recommend following all requirements of your lender. They will be the ones to certify to the SBA that you have met the requirements. (Some lenders are requiring that you maintain a separate bank account and pay only permitted usage.)
  • At least 75% of the loan must be used for payroll. (You must maintain schedules and specific invoices to support the usage of these funds.)
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
  • Unforgiven portions will be at a rate of 1% and will have maturities of 2 years.
  • The maximum amount that can be borrowed is 2.5 times the average monthly payroll costs during the one-year period prior to the loan date.

You can find recently issued frequently asked questions at this website:

https://www.sba.gov/document/support–faq-lenders-borrowers

SBA Debt Relief: The Act also allows for grants of six months of existing SBA loan payments.

Businesses of the Self-employed and sole proprietorships: We know that self-employed and sole proprietorships are eligible for the programs based on the Interim Final Rule (linked above). On April 15, 2020 Additional Guidance was issued for the self-employed. We will update this summary when we have an opportunity to review this guidance issued just yesterday.