April 30, 2020
The SBA Temporarily Locked Big Banks Out of PPP
Lenders with $1 billion or more in assets were temporarily blocked yesterday from submitting applications for the Paycheck Protection Program (PPP).
The U.S. Department of Treasury and the Small Business Administration said those lenders will not be permitted to access the government’s electronic loan portal, called E-Tran, for an eight-hour time period starting at 4 p.m. yesterday. The agencies said the move was made to “ensure access to the PPP loan program for the smallest lenders and their small business customers.”
Feds Extend Health Benefits, Retirement Income Timeframes
The New Jersey Business and Industry Association (NJBIA) had an article in their e-newsletter yesterday that I would like to share with you on two federal agencies extending health benefits and retirement income timeframes.
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today issued deadline relief and other guidance under Title I of the Employee Retirement Income Security Act of 1974 (ERISA) to help employee benefit plans, plan participants and beneficiaries, employers and other plan sponsors, plan fiduciaries, and other service providers impacted by the coronavirus outbreak.
A
Department of Labor notice
jointly issued with the Department of the Treasury and Internal Revenue Service extends certain time frames affecting participants’ rights to healthcare coverage, portability, and continuation of group health plan coverage under COBRA, and extends the time for plan participants to file or perfect benefit claims or appeals of denied claims. These extensions provide participants and beneficiaries of employee benefit plans additional time to make important health coverage and other decisions affecting their benefits during the coronavirus outbreak. The joint notice is posted on EBSA’s website and will be published in an upcoming edition of the Federal Register.
EBSA Disaster Relief Notice 2020-01
extends the time for plan officials to furnish benefit statements, annual funding notices, and other notices and disclosures required by ERISA so long as they make a good faith effort to furnish the documents as soon as administratively practicable. The notice explains that good faith includes the use of electronic alternative means of communicating with plan participants and beneficiaries who the plan fiduciary reasonably believes have effective access to electronic means of communication, including email, text messages, and continuous access websites. The notice also includes compliance assistance guidance on plan loans, participant contributions and loan payments, blackout notices, Form 5500 and Form M-1 filing relief, and other general compliance guidance on ERISA fiduciary responsibilities. The Disaster Relief Notice is posted on EBSA’s website.
The department also issued a set of
Frequently Asked Questions (FAQs)
on health benefit and retirement benefit issues to help employee benefit plan participants and beneficiaries, plan sponsors, and employers impacted by the coronavirus outbreak understand their rights and responsibilities under ERISA.
Source: Feds Extend Health Benefits, Retirement Income Timeframes. NJBIA. April 29, 2020.
Pennsylvania is Reopening Some Outdoor Recreational Activities Tomorrow
Governor Tom Wolf today announced that starting on Friday, May 1, golf courses, marinas, guided fishing trips and privately owned campgrounds may reopen statewide. They are required to follow updated
life-sustaining business guidance
and
FAQ
issued by the Wolf Administration. These include specifics for how these outdoor recreational industries can resume activities while prioritizing public health and safety. Campgrounds in state parks will remain closed through Thursday, May 14.
New Jersey is Reopening State Parks and Golf Courses This Weekend
Governor Phil Murphy announced in yesterday’s COVID-19 press conference that via an executive order, golf courses and state parks would reopen this Saturday, May 2, under guidelines ranging from limiting their parking lot capacity to 50% and having restrooms remain closed, to prohibiting picnics and other organized activities, for example. Counties will have discretion regarding whether or not their “county parks” remain open or closed. Murphy described approved park use activities such as “passive recreation, including running, hiking, fishing, boating, kayaking and horseback riding.”
Pandemic Unemployment Assistance (PUA)
Murphy also announced at yesterday’s press conference that recipients of the first federal Pandemic Unemployment Assistance (PUA) payments to “self-employed workers, independent contractors, and other workers will receive those payments beginning next week.”
Additional information is available. T
ype
“self-employed” in the website’s search box.
Join us tomorrow at our webinar Loan Forgiveness Under the Paycheck Protection Program.
Click here
to register for our 11:00 AM session or
Click here
to register for our 1:00 PM session.
We will share more details as they become available. Please visit our
COVID-19 Resource Page
for more updates.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at
Richard.Higgins@MCC-CPAs.com
. I can be reached at
Marty.McCarthy@MCC-CPAs.com
. As always, we are happy to help.
Stay safe,
Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
