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FREQUENTLY ASKED QUESTIONS
Click here for the frequently asked questions about stimulus individual payments and the Paycheck Protection Program.
Funding Available to Small Businesses:
• Always check with SBA and your lender to determine what you are eligible for.
• SBA Disaster Loans
• SBA Economic Injury Disaster Loan (EIDL) Grant
o You can request an advance of up to $10,000 on the loan to provide covered leave, maintain payroll, and pay debt obligations.
• For companies larger than 500 employees:
o The CARES Act provided $454 billion for the Treasury Secretary to provide loans and loan guarantees through the Exchange Stabilization Fund (ESF).
Treasury has not issued any guidance on the ESF, but it expected to do so this week.
o Treasury will also endeavor to implement a special program targeted specifically at nonprofit organizations and businesses between 500 and 10,000 employees.
Treasury has not issued any guidance on this program either.
Paycheck Protection Program (PPP):
• The CARES Act authorized $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis
• The loan amounts will be forgiven so long as:
o The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made
o Employee and compensation levels are maintained.
o Due to likely high subscription, Treasury has issued guidance saying at least 75 percent of the forging amount must be used for payroll.
• Who is eligible?
o Small businesses with fewer than 500 employees, including 501(c)(3)s, veteran organizations, tribal businesses, self-employed individuals, sole proprietorships, and independent contractors – are eligible. Businesses with more than 500 employees are eligible in certain industries.
• When can you apply?
o Starting April 3, 2020, small businesses and sole proprietorships can apply.
o Starting April 10, independent contractors and self-employed individuals can apply. SBA encourages you to apply as quickly as you can because there is a funding cap.
• How can you apply?
o You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
o Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.
o All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
Family and Medical Leave – Family First Coronavirus Response Act (FFCRA) Phase 2:
• Businesses with less than 500 employees must provide 14 days (80 hrs) paid sick leave.
• Employees taking leave shall be paid at either their regular rate or minimum wage, whichever is higher, up to $511 per day and $5,110 over a 2-week period.
• Employers may not discharge, discipline or discriminate against any employee who takes expanded family and medical leave.
Tax Credits for Family and Medical Leave (FFCRA):
• You will be covered dollar-for-dollar for reimbursement through tax credits for all qualifying wages paid under FFCRA.
o This includes paying for employees’ health insurance coverage.
• To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes.
Unemployment Benefits – CARES Act:
• Pandemic Unemployment Assistance
o This temporary program which runs through December 31, 2020.
o Provides unemployment assistance to those not traditionally eligible (self-employed, independent contractors, those with limited work history, and others).
The individual must be unable to work as a direct result of the coronavirus public health emergency.
o DOL has not provided guidance to states yet on how to implement this program.
Individuals will apply through the Oklahoma Employment Security Commission.
• Federal government will provide an additional $600/week to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months.
• Federal government will provide an additional 13 weeks of unemployment benefits through 2020 to help those who remain unemployed after state unemployment benefits are no longer available.
How to get Personal Protective Equipment (PPE):
• Providers should go through their Regional Medical Response System (RMRS) https://www.okrmrs.com/map.cfm to request more PPE.
• The RMRS will report to Oklahoma State Department of Health.
• Requests for assistance from local entities must go through the state for fulfillment.
• Through the state, FEMA is receiving requests for masks, swabs, test site supports, ventilators, and more.
• Providers can also call the FDA’s hotline if they are having shortages of PPE (1-888-INFO-FDA) and then choose option (*)
• $100 billion for the Public Health and Social Services Emergency Fund for providers.
o It’s not clear how the $100B in relief is going to be implemented.
o We do know it is to reimburse health care providers for health care related expenses or lost revenues that are attributable to coronavirus. This includes:
Medical supplies and equipment including personal protective equipment and testing supplies.
Increased workforce and trainings and emergency operation centers.
Building or construction of temporary structures or leasing of properties, retrofitting facilities, and surge capacity.
o Until there is final guidance on how those funds will be distributed, our hospitals and health providers need to make sure they are meticulously documenting their losses.
Make sure they have a good accountant and take good notes.
Good documentation will be key to getting reimbursed.
• If there are providers in need of immediate relief, CMS announced a loan program that allows doctors to get an advance on Medicare claims.
o This is based on historical billing for 3 months and hospitals for six months at 100 percent of their historic claims.
o Critical Access Hospitals can get extra funding.
o Providers need to apply on their Medicare Administrative Contractor’s (MAC) website.
Nonprofits – Paycheck Protection Program (PPP):
• Religious organizations and other non-profits needing assistance should:
o Calculate each employee’s total payroll cost and
o Go to their local lender and apply for a loan through the SBA PPP.
Even if your religious organization is not a 501(c)(3), you should still go and work with your lender to begin the application process.
• Congressman Mullin cosigned a letter to the SBA asking the Administrator to clarifying that religious organizations are included in the emergency programs while still protecting their religious freedom.
• Under the CARES Act, taxpayers can deduct up to $300 in charitable donations from their 2020 taxes regardless of whether they itemize their deductions.
o This is to incentive people to continue donating to non-profits and churches.