Covid-19 Resources

Over the past week, we’ve spoken with clients, colleagues and friends who are seeking more information about the coronavirus, how it may impact various government functions, how to get help, and how to help others. We hope that you find the below information helpful. As always, please reach out to us if we can help in any way.

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Podcasts

  • Gay Men’s Health Crisis
    Continuing Healthcare and meal delivery during the crisis, as well as COVID19 education and resourcing.

  • Coalition Against Trafficking Women 
    The Coalition Against Trafficking Women fights human trafficking, which increases in times of economic displacement.

  • World Without Exploitation
    Another great organization that fights to end trafficking and sexual exploitation.

  • St. John’s Bread of Life
    One of the few soup kitchens in New York City continuing to operate during the crisis – serving Brooklyn & Queens. They have had to reduce their hours.

  • First Book
    First Book has the goal of delivering seven million books to children in the United States who do not have internet access or home libraries so they can continue learning while schools are closed.

Both the federal and local governments have created loan and grant programs to help small businesses weather this crisis.  A discussion of these programs, including the recently passed federal Coronavirus Aid, Relief and Economic Security (CARES) Act can be found below.

At Peters Brovner, we have considerable experience dealing with government programs and we are available if you have questions about how these programs will operate; please do not hesitate to reach out to us.

New York City has also established both grant and loan programs as well.  Each of these programs is summarized below.

The CoronaVirus Aid, Relief and Economic Security (CARES) Act.

The CARES Act, in addition to many other provisions, calls for $349 billion in loans from the federal Small Business Administration (SBA).  Here are the most important provisions of the loan program related to small businesses:

  • Small businesses may apply for loans starting Friday, April 3rd 2020. Eligible businesses should apply as soon as possible.

  • Loans are available to small businesses (generally defined as 500 or fewer employees) and are also available to non-profits, sole proprietors and independent contractors.

  • Loans can equal 250% of the employer’s average monthly payroll up to $10 million.  However, in calculating payroll, salaries in excess of $100,000 are not included.

  • Loans may only be used to cover payroll, healthcare, rent and certain other related expenses.  Employers must certify that they will use the funds for this purpose.

  • Loans are available during the covered period which is February 15, 2020 to August 30, 2020

  • Repayment ability is not an eligibility standard; rather, eligibility is based upon whether the business was operational on February 15, 2020.

  • Loans can be forgiven.   Specifically:

    • Forgiveness will be in the amount spent by the borrower during the eight-week period after the loan’s origination on payroll, rent and certain other expenses.

    • The amount forgiven is subject to certain restrictions.  Most importantly, the extent to which the business maintains employees on payroll.  The amount forgiven will be reduced if payroll is reduced, based on a formula set out in the Act.

  • In addition to the SBA loans, the Act also funds a separate $100 billion in grants to hospitals and other non-for-profit healthcare providers for unreimbursed healthcare expenses and other lost revenue due to Corona Virus.

New York City’s Employee Retention Grant Program

This program provides small business with fewer than five employees grants to cover 40% of payroll costs for two months to retain employees.  In order to be eligible, the employer must:

  • Be located in New York City

  • Demonstrate that the Corona Virus crisis has caused a 25% decrease in revenues

  • Employ 1-4 workers

  • Be in operation for six months

  • Have no outstanding tax liens or legal judgments

New York City’s Small Business Continuity Loan Fund

This program provides no interest loans up to $75,000 to businesses that meet the following criteria:

  • Located in New York City

  • Demonstrate that the Corona Virus crisis has caused a 25% decrease in revenues

  • Employ 99 or fewer workers

  • Demonstrate an ability to repay the loan

  • Have no outstanding tax liens or legal judgments

Finally, we’d like to add a few observations from our own experience in government for over 20 years.  As the coronavirus pandemic continues to spread, there has been a necessary slow down of non-coronavirus related government work.  This is not to say that non-coronavirus activity has stopped entirely.  Indeed, we’ve received reports of investigations that are continuing, albeit at a slower pace.  As things begin to stabilize in the coming weeks, we believe this activity will continue to increase. If we can help with any issues that arise, please don’t hesitate to reach out to us – we’re working remotely but fully up and running.

Legal Advice Disclaimer: The materials in this Client Alert are provided for informational purposes only and are not intended to be a comprehensive review of legal developments (which in any event are changing rapidly), to create a client–attorney relationship, to provide legal advice, or to render a legal opinion. Readers are cautioned not to attempt to solve specific legal or other problems on the basis of information contained in this Client Alert. This communication may be considered an advertisement or solicitation.