Covid-19 Information and Links
Payroll Protection Program Loans (PPP Loans)
SBA Paycheck Protection Program
The $2 trillion coronavirus relief package signed last week, officially known as the CARES Act, includes nearly $350 billion for a federal small business loan program called the Paycheck Protection Program (PPP). The program is designed to get cash in the hands of small businesses quickly, and incentivize business owners to keep employees on payroll by offering them loan forgiveness.
Starting April 3, 2020, SBA will begin accepting applications (through their lenders) for Paycheck Protection loans. Initial program details have been released by the US Treasury so that lenders can start working with their borrowers.
Click here to access an overview of the program
Click here for the borrower information sheet
Click here for suggested loan document checklist
Which companies qualify for PPP Loans?
Any company with 500 or fewer employees can apply for a PPP Loan, but a higher threshold may apply depending on the industry. Subject to certain exceptions, the calculation is made on an aggregate basis with all of the company’s affiliates (i.e. the total number of employees of the company, any parent, any subsidiary, and any other company under common control must not exceed the applicable threshold) (the “Affiliation Rule”). Companies also must have been in operation as of February 15, 2020, and have paid employees or independent contractors, in order to be eligible.
What is the maximum amount of PPP Loans that can be borrowed?
The maximum PPP Loan amount is determined by a payroll-based calculation, subject to a maximum cap of $10 million. Generally, the available amount for a given company is 2.5 times its average monthly payroll costs during the one-year period prior to the loan date. The calculation is subject to certain adjustments in the case of seasonal employers, companies that borrowed loans under the SBA’s economic injury disaster loan program since January 31, 2020 (which may be refinanced into PPP Loans), and companies that have been in business for less than a year as of the calculation date. Payroll costs include salaries, wages, leave payments, severance payments, payments of group health benefits and retirement benefits, and payments of compensation-related taxes. However, payroll costs exclude, (ii) Social Security, Medicare and income withholding taxes
What are the conditions applicable to PPP Loans?
A company applying for a PPP Loan must certify in good faith that (i) the PPP Loan is necessary to support the ongoing operations of the company due to the uncertainty of current economic conditions, (ii) funds will be used to retain workers, maintain payroll or make mortgage payments, lease payments and utility payments, (iii) the company does not have a pending application for a duplicative loan under Section 7(a) of the Small Business Act, and (iv) for the period from February 15, 2020 through December 31, 2020, the company has not received any such duplicative loans under Section 7(a) of the Small Business Act.
Are PPP Loans eligible for loan forgiveness?
A company’s PPP Loan may be forgiven by application to the lender, together with certain supporting documentation. The amount of the PPP Loan eligible for forgiveness is the amount expended by the company during the eight-week period after the origination of the PPP Loan on (i) payroll costs and (ii) to the extent the underlying arrangements were in place prior to February 15, 2020, mortgage interest payments, lease payments and utility payments (the “Forgiven Amount”). The Forgiven Amount may not exceed the principal amount of the PPP Loan. Any remaining PPL Loan balance is subject to a maximum maturity of 10 years from the date of application for forgiveness.
If, during such eight-week period, the company (x) employs fewer full-time employees per month on average than it did during specified earlier periods or (y) reduces salary or wages by more than 25% for any employee earning less than $100,000 annually compared to their compensation in the most recent full quarter prior to such eight-week period, then the Forgiven Amount is reduced by a corresponding fraction or amount, as applicable. To incentivize rehiring and reversal of compensation reductions, the calculation of the Forgiven Amount will disregard any reductions made between February 15, 2020 and April 26, 2020 to the extent eliminated by June 30, 2020.
How long will PPP Loans be available?
The Paycheck Protection Program expires on June 30, 2020.
How does a company apply for a PPP Loan?
Eligible companies should contact a registered SBA lender to start the application. A list of active vendors can be found here. A sample application can be found here. Note: Lenders should be contacted directly for loan application documents.
Families First Coronavirus Response Act (FFCRA)
The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31, 2020.
Generally, the Act provides that employees of covered employers are eligible for:
Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
Covered Employers: The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to certain public employers, and private employers with fewer than 500 employees. Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern.
Eligible Employees: All employees of covered employers are eligible for two weeks of paid sick time for specified reasons related to COVID-19. Employees employed for at least 30 days are eligible for up to an additional 10 weeks of paid family leave to care for a child under certain circumstances related to COVID-19.Notice: Where leave is foreseeable, an employee should provide notice of leave to the employer as is practicable. After the first workday of paid sick time, an employer may require employees to follow reasonable notice procedures in order to continue receiving paid sick time.
Qualifying Reasons for Leave:
Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to telework) due to a need for leave because the employee:
is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
has been advised by a health care provider to self-quarantine related to COVID-19;
is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19; or
is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.
Under the FFCRA, an employee qualifies for expanded family leave if the employee is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19.
Duration of Leave:
For reasons (1)-(4) and (6): A full-time employee is eligible for 80 hours of leave, and a part-time employee is eligible for the number of hours of leave that the employee works on average over a two-week period.
For reason (5): A full-time employee is eligible for up to 12 weeks of leave (two weeks of paid sick leave followed by up to 10 weeks of paid expanded family & medical leave) at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.
Calculation of Pay:
For leave reasons (1), (2), or (3): employees taking leave are entitled to pay at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period).
For leave reasons (4) or (6): employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).
For leave reason (5): employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period).
Helpful Links for Child Care Providers
Training Calendar 2020 (download here)
Current Provider's Pages Newsletter (download here)
Smart REWARDS Packet (download here)
Early Childhood Education Courses (Haywood Community College)
Early Childhood Education Courses (AB Tech)
National Association for the Education of Young Children (NAEYC)
The Green Desk (Click Here)
DCDEE (Click Here)
The North Carolina Star Rated License (Click Here)