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HSC CORONAVIRUS
C
OMMUNICATION
April 6, 2020
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HSC COVID-19 Fast Response Team
We are here to help!
In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information.
In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals.
If you have questions or would like to speak with this team please contact your HSC team member or Kyle Wininger, CPA, CICA, CVA, CFE at [email protected].
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Paycheck Protection Program
SBA Releases Interim Final Rule on Affiliation to Determine Number of Employees
U.S. Small Business Administration (SBA) issued an interim final rule with additional guidance regarding the application of certain affiliate rules applicable to SBA's implementation of the "size rules" of the Act and requests public comment.
The new guidance effectively reiterates the "control" standards previously communicated including, but not limited to:
- A holder of more than 50% of an applicant's voting securities de facto "controls" the applicant;
- A minority holder (a holder of less than 50% of an applicant's voting securities, but in any amount), will be deemed an affiliate if that minority holder can "control" the applicant (by charter, bylaws or stockholder agreement) by preventing a quorum or otherwise blocking actions by the board or stockholders:
If "control" is found between an applicant and another company, all of the applicant's employees - and employees of all the applicant's affiliates (including portfolio companies of private equity holders) will be aggregated with the applicant's employee count in determining eligibility.
More information can be found at the US Treasury PPP Assistance Page.
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Paycheck Protection Program - Video
The COVID-19 Pandemic has forced employers to cut millions of jobs throughout the US. In response, Congress passed the CARES Act which includes a provision known at the Paycheck Protection Program. This $349 billion program provides emergency loans to small businesses and nonprofits for the primary purpose of keeping employees on their payroll. The loans are 100% guaranteed by the SBA and contain a provision to forgive the debt if used to pay certain costs.
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What the CARES Act Means for Businesses -
Video
On March 27th, 2020 the Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act, was signed into law to provide much-needed help to both businesses and individuals. Here is an overview of what the Act means for businesses.
The CARES Act provides $349 billion for the Small Business Administration to distribute through the Paycheck Protection Program. This program provides a forgivable loan to small businesses and certain non-profits with fewer than 500 employees to help cover the costs of payroll, healthcare benefits, mortgage interest, rent, utilities and interest on other debt. The loan amount can be up to 2.5 times the average monthly payroll, not to exceed $10 million.
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RSM Coronavirus Webcasts
RSM Coronavirus Webcast Series
RSM has launched a weekly webcast series on issues related to the Coronavirus. The webcasts are approximately one hour, each Wednesday at 1:00 p.m. EDT.
Date and time for the final webcast is below:
Wednesday, April 8, 2020 - 1:00 p.m. EDT
Free webcast, no CPE will be provided.
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Keeping Other Members of Your Team Informed
If you would like other members of your team to begin receiving this communication, please forward to each individual and they can subscribe here or email Leslie Wight at [email protected] and she will add them to the communications.
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Disclaimer:
The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not, intended to provide legal, tax or accounting advice.
Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.
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proprietary to RSM U
S LLP.
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Harding, Shymanski & Company, P.S.C.
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