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PPP/CARES Act Loan Application Attached

Wed Apr. 1st, 2020 PTWWW Legal Alert

The U.S. Treasury Department Provides More Information and Loan Application for Paycheck Protection Program

The PPP loan application cannot be filed until Friday April 3, 2020. Contact your bank to determine if you will be able to file with your banker on Friday!

Link to Application:

Link to Fact Sheet:

Summing it up – there are four main loan/grant programs tailored to small business:

  1. Economic Injury Disaster Loans (EIDL)
  2. Emergency Economic Injury Grants
  3. Payment Protection Program (PPP) Loans
  4. Small Business Debt Relief Programs

Note – You can apply for the EIDL and a Grant right now. The Grant portion of the program is an “emergency advance” of “up to $10,000” for small businesses within “3 days of applying for an Economic Injury Disaster Loan (EIDL)”.  If you receive the Grant it will go against the amount forgiven under the PPP loan should you apply for that as well.

Small Business Debt Relief Programs appear to be programs for businesses who have an existing non-disaster SBA loans.

City of LA Ordinance Requires Employers with More than 500 Employees to Provide Supplemental Paid Sick Leave

On Friday, March 27, 2020, the Los Angeles City Council passed a new paid sick leave ordinance applying to any employer with more than 500 employees. The new ordinance closely mirrors the language of the emergency paid sick leave provisions in the Families First Coronavirus Response Act, which as we have previously discussed, applies to employers with fewer than 500 employees. Covered employees under the new Ordinance are those who perform any work in the City of Los Angeles on behalf of their employer. The Ordinance provides that an employee who has been employed with the same employer from February 3, 2020 through March 4, 2020, is entitled to Supplemental Paid Sick Leave as follows: 1) A full time employee shall receive 80 hours of Supplemental Paid Sick Leave; 2) A part time employee shall receive Supplemental Paid Sick Leave in an amount no greater than the employee’s average two week pay over the period of February 3, 2020 through March 4, 2020.

However, the Supplemental Paid Sick Leave paid to any employee shall not exceed $511 per day and $5,110 in the aggregate.

The following are covered events requiring the payment of Supplemental Paid Sick Leave: 1) The employee takes time off because a public health official or healthcare provider requires or recommends the employee isolate or self quarantine to prevent the spread of COVID-19; 2) The employee takes time off work because the employee is at least 65 years old or has a health condition such as heart disease, asthma, lung disease, diabetes, kidney disease, or weakened immune system; 3) The employee takes time off work because the employee needs to care for a family member who is not sick but who public health officials or healthcare providers have required or recommended isolation or self-quarantine; 4) The employee takes time off work because the employee needs to provide care for a family member whose senior care provider or whose school or child care provider caring for a child under the age of 18 temporarily ceases operations in response to a public health or other public official’s recommendation.

An employer of an employee who is either a First Responder or a health care provider as defined in Section 12945.2 of the California Government Code is exempt.

Lastly, an employer is entitled to an offset from its obligations to provide 80 hours of Supplemental Paid Sick Leave for every hour an employee was already provided paid sick leave on or after March 4, 2020 for any of the reasons identified in the Ordinance.

The Ordinance awaits the Mayor’s signature.

Tendering Claims to Business Interruption Insurance Carrier

We are suggesting that everyone tender a claim to their business interruption insurance carrier. We can do it on your behalf if you send us your policy. The claim will most likely get denied. We are anticipating that down the road Congress will pass legislation that covers COVID-19 under the same provisions that cover things like a terrorist attack. At that point, the carriers will have to settle claims. They will only settle with businesses that have tendered a claim.

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