April 20, 2020
The $450 billion agreement economic relief package to replenish emergency funds for small businesses and to expand coronavirus testing around the country. The agreement would include $300 billion to replenish the emergency fund, called the Paycheck Protection Program; $50 billion for the Small Business Administration’s disaster relief fund; $75 billion for hospitals and $25 billion for testing.
The timing of a vote is uncertain.
Pennsylvania Will Lift Some Restrictions on May 8
Governor Tom Wolf extended Pennsylvania's stay-at-home order until May 8. He intends to begin taking small, measured steps toward reopening the state on that date, including allowing what he called limited construction operations. curbside pickup of orders at the state liquor stores, and online automobile sales.
May 8 is a "target date" to begin relaxing some of his executive orders that stopped much of the social and business life of the commonwealth and ground Pennsylvania's economy to a halt. As Wolf and other officials have said, May 8 will not be the day when everything opens back up in Pennsylvania.
The Construction Industry Gets 13% of PPP Loans
Construction still tops all other industries in funds received through the U.S Small Business Administration's Paycheck Protection Program. As of April 16, contracting firms had received
13% of the $342 billion
spent on the program, accounting for 177,905 loans worth a total just shy of $45 billion.
The IRS Announced a FAQ Page in Now Available on the Families First Coronavirus Response Act
The IRS posted
67 FAQs
on the employer tax credits for paid sick and family leave enacted in the
Families First Coronavirus Response Act (FFCRA)
, P.L. 116-127. Under FFCRA, businesses with fewer than 500 employees (referred to as “eligible employers”) will obtain funds to provide employees with paid sick leave and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members. The FAQs were updated on Friday to address issues for employers of health care workers and emergency responders.
IMF and World Bank Pledge Help More
The 189-nation International Monetary Fund and its sister lending agency, the World Bank,
pledged
last Friday to step up their efforts to cushion the blow to the global economy from the coronavirus pandemic.
The IMF is forecasting that the global economy will shrink by 3% this year, the worst downturn since the 1930s and far more severe than the 2008 financial crisis.
Both the IMF and World Bank over the past two months have assembled a number of support programs, with the IMF processing requests for emergency loans from almost half of its 189 member-countries. the World Bank hoped to have support programs under way for 100 countries by the end of this month with a goal of providing $160 billion in financing over the next 15 months to deal w
ith the pandemic.
We will continue to update you on the federal, state, and local government’s response to COVID-19 as we learn new developments.
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).
