Updated May 14, 2021
Guidance to Reopen Safely
Introduction
The Southern Wayne County Regional Chamber is committed to providing our members with the most updated information as we navigate through the current health and economic crisis. Please utilize this resource for the most up to date information from federal, state, and local authorities.

Please follow the SWCRC on Facebook, where we are posting new legislative updates frequently, resources on safely reopening economic activity, and loan and grant resources for operational capital as they become available. Further, the following link provides information assembled by the SWCRC on loans, grants, guidance and more resources for businesses impacted by COVID-19.
County/Local Level Information & Resources
WAYNE COUNTY TOOLKIT PROVIDES INDUSTRY SPECIFIC GUIDANCE INCLUDING RESTAURANTS, RETAIL, HAIR SALONS AND MORE. WAYNE COUNTY HEALTH DEPARTMENT & ECONOMIC DEVELOPMENT INFORMATION & RESOURCES
The Wayne County COVID-19 business toolkit provides reopening safety guidance for specific industries. Also, please follow the Wayne County Health Department and Economic Development Corporation on their websites for further guidance at the County level.
State Level Information & Resources
April 29, 2021: GOVERNOR WHITMER ANNOUNCES PLAN TO LIFT RESTRICTIONS BASED ON STATEWIDE VACCINATION RATE
On April 29, Governor Gretchen Whitmer announced a new plan to lift restrictions on businesses and the general public based on the statewide vaccination rate. The plan, called "MI Vacc to Normal," is based on the number of Michigan residents who receive a first dose of a COVID-19 vaccination.

Below are the details of the plan, which were announced at the Governor's press conference earlier this morning.

• Step One: two weeks after 4.5 million Michiganders, or 55% of those eligible, have received their first shot, MDHHS will lift the requirement for employers to require remote work when feasible.
 
• Step Two: two weeks after 4.9 million Michiganders, or 60% of those eligible, have received their first shot MDHHS will:
  • Increase indoor capacity at sports stadiums, conference centers, banquet halls and funeral homes to 25%.
  • Increase capacity limits at gyms to 50%.
  • Lift the curfew on bars and restaurants.

• Step Three: two weeks after 5.3 million Michiganders, or 65% of those eligible, have received their first shot, MDHHS will:
  • Lift all indoor capacity limits, only requiring social distancing between parties.
  • Relax the limits on residential social gatherings.

• Step Four: two weeks after 5.67 million Michiganders, or 70% of those eligible, have received their first shot MDHHS will:
  • Lift the gatherings and face masks order and no longer impose mitigation measures of that kind unless the virus threatens to overwhelm the medical system or some other unanticipated circumstance arises.
May 14, 2021: MIOSHA EMERGENCY WORKPLACE REGULATIONS
MIOSHA Emergency Rules have been extended and remain in affect until October 14, 2021.

Because the MISOHA Emergency Rules remain unchanged in this May 14 announcement, employers should continue to follow the requirements found in the rules for now. It is anticipated that changes to the Emergency Rules will be announced in the coming days, including changes to the following requirements, although the details remain unclear. Currently, the Emergency Rules require:
  • Mask mandates for all employees, regardless of vaccination status. “The employer shall require face coverings to be worn when employees cannot consistently maintain 6 feet of separation from other individuals in the workplace and consider face shields when employees cannot consistently maintain 3 feet of separation from other individuals in the workplace.” And “The employer shall require face coverings in shared spaces, including during in-person meetings and in restrooms and hallways.” (Rule 7)
  • Social distancing for all employees, regardless of vaccination status. “The employer shall keep everyone on the worksite premises at least 6 feet from one another to the maximum extent possible and to reduce congestion, including using ground markings, signs, and physical barriers, as appropriate to the worksite.” (Rule 7)
  • Industry specific requirements regarding masks and social distancing for customers/patrons, regardless of vaccination status. Applies to restaurants and bars, retailers, libraries, museums, health care, personal-care services (barbering, cosmetology, tanning, massage, etc.), public accommodations (sports and entertainment facilities), gyms and casinos. (Rule 9)
  • Quarantine and isolation requirements for all employees regardless of vaccination status. (Rule 6)
  • Remote work requirements regardless of vaccination status. “The employer shall create a policy prohibiting in-person work for employees to the extent that their work activities can feasibly be completed remotely.” (Rule 5) - Expected to change on May 24


On Tuesday, April 13, Governor Gretchen Whitmer, the Michigan Labor and Economic Opportunity Department and MIOSHA extended the current set of emergency rules detailing general and industry-specific guidelines and requirements for protecting the workforce during the COVID-19 pandemic. The MIOSHA Emergency Rules for workplaces was extended by another 6 months, with a new expiration date of October 14, 2021. One key component of the rules, Section 5(8) requires that employers establish a remote work policy when feasible: "The employer shall create a policy prohibiting in-person work for employees to the extent that their work activities can feasibly be completed remotely." It is expected that this will change on May 24, to allow businesses to re-engage in-person work as the State has reached the 55% vaccination first dose threshold of the "MI Vacc to Normal" Plan.

These rules must be followed and implemented by employers under the Michigan Occupational Safety and Health Act.

General Regulations

The rules implement general regulations for all employers including: Rule 3, requiring employers to classify job duties into a category of either lower, medium, high, and very high risk, in which procedures and regulations are detailed for each category within a preparedness and response plan; Rule 4, requiring the development and implementation of a preparedness and response plan, in which the plan shall me made available for review by employees or their representative; Rule 5, implementing basic prevention measures for all employers, including cleanliness rules, requiring employees to stay home when ill, prohibiting shared office equipment when possible, and requiring remote work when possible; Rule 6, requiring daily health screenings for employees and vendors; Rule 7, instating workplace controls such as signage, and face covering requirements; and Rule 8, instating personal protective equipment (PPE) requirements in the workplace.

Rule 10 instates training requirements for all employers (page 8). Rule 11 reestablishes a requirement to maintain records of daily screenings, training, etc. for 1 year from the time of generation (page 8).


Industry Specific Regulations

Rule 9 (beginning on page 5) establishes industry specific regulations for the following industries. The MIOSHA website includes direct links to guidelines including video instructions and guidance by industry including offices.

Construction - page 5
Manufacturing - page 6
Museums, Libraries, Retail - page 6
Restaurants and Bars - page 6
Healthcare - page 6
In-home Services - page 7
Personal Care Services including Barber Shops and Salons - page 7
Public Accommodations such as Sporting Venues - page 7
Gymnasiums and Exercise Facilities - page 8
Meat & Poultry- page 8
Casinos - page 8
May 14, 2021: EPIDEMIC ORDER UPDATES MASK MANDATE BASED ON NEW CDC GUIDANCE FOR FULLY VACCINATED. RESTAURANT, ENTERTAINMENT, AND OTHER BUSINESS CAPACITY & GATHERING RESTRICTIONS REMAIN IN EFFECT
On May 14, Governor Gretchen Whitmer and the Michigan Department of Health & Human Services (MDHHS) announced a new Gatherings & Face Mask Order, based on newly released CDC guidance and eliminating an outdoor mask mandate for all individuals, and indoors for fully vaccinated individuals, while continuing to require an indoor face covering mandate for unvaccinated Michiganders. According to the governor, "Michiganders who are outdoors will no longer need to wear a mask regardless of vaccination status. While indoors, fully vaccinated Michiganders will no longer need to wear a mask, but residents who are not vaccinated, or have not completed their vaccinations, must continue to wear a mask or face covering to protect themselves and others. After July 1, the broad indoor mask mandate will expire."

The Order also continues mandates for gatherings and events, and retains capacity and gathering restrictions for restaurants, bars, retail, entertainment venues, and other businesses with no changes from the previous Order. The new Order takes effect on Saturday, May 15, 2021, and expires on Monday, May 31, 2021. The new Order rescinds the previous Order, under the authority of the Public Health Code, Act 368, MCL333.2253. 

REMINDER: It is anticipated that the requirement for businesses to mandate remote work for employees when feasible according to the MIOSHA Emergency Rules,, Rule #5 (8), will be amended on May 24 to allow for in-person work as the State has reached the 55% vaccination first dose threshold of the "MI Vacc to Normal" Plan. However, the MIOSHA Emergency Rules currently remain in effect unchanged.

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Key Mask Mandate Changes Under the May 15 Order:

1) Fully vaccinated individuals are exempt from the mask mandate

2) Mask mandate for indoor gatherings:
  • Unvaccinated and not fully vaccinated individuals are required to wear a face mask indoors
  • Individuals responsible for gatherings must ensure that individuals comply with the indoor face mask mandate, with specific details located in 6(b).

3) Masks are not required for outdoor gatherings.


Updated CDC Guidelines for mask wearing include the following.

For those who have been fully vaccinated, they:
  • Can resume activities that they did prior to the pandemic
  • Can resume activities without wearing a mask or staying six feet apart, except when required by federal, state, or local rules / orders
  • Do not need to stay away from others after COVID-19 exposure or get tested for COVID–19 unless they develop symptoms
  • But should still get tested if they live or work in a correctional / detention facility or a homeless shelter - even if there are no symptoms
  • Should still wear a mask when travelling on planes, buses, trains, and other forms of public transportation
  • Should still watch out of symptoms of COVID–19, especially when being around someone who is sick
  • Are not required to have a COVID–19 test before or after travel or self–quarantine when traveling in the United States
  • Careful attention should be paid for international destinations
  • No COVID–19 test is required unless the destination requires it
  • A negative test result or documentation of recovery is required before boarding an international flight to the United States
  • A person should still get tested three to five days after international travel
  • Self–quarantine is not required upon return to the United States


Attendance Limitations on Gatherings

The Order establishes the following attendance restrictions on gatherings throughout the State:

1) Indoor gatherings are permitted at residential homes with no more than 15 people from 3 households.
2) Indoor gatherings at non-residential venues are permitted with no more than 25 people. Anything beyond this requirement is prohibited.
3) Outdoor gatherings are permitted at residential homes, with no more than 50 people, or 20 people per 1,000 sq. feet up to 300, whichever is greater.
4) Outdoor gatherings are permitted at non-residential venues, with no more than 300 people.

Gatherings not subject to this rule are detailed within Section 2 (c), including "Workplace gatherings that occur consistent with the Emergency Rules issued by MIOSHA on October 14, 2020, and subsequently extended."



Guidelines for Entertainment & Recreational Venues, and Outdoor Larger Events

The Order establishes new guidance and mandates for larger outdoor events, which can be viewed HERE.

Key Regulations:
1) Group capacity restrictions at entertainment venues remains at 25 indoors, and 300 outdoors. Overall venue capacity restrictions remain at 300 indoor, and 1,000 outdoor, with new exceptions and policy for larger outdoor events.
2) Venue density and capacity restrictions remain as detailed below.

Section 3 of the Order outlines guidelines and restrictions for food service and the entertainment industry. Entertainment venue guidelines within the order are as follows:

1) All patrons must wear a face mask at all times
2) Groups of patrons participating in activities together (such as those seated together at a concert or movie, or bowling in the same lane) do not exceed 25 indoors, and 300 outdoors.
3) Patrons are prevented from mingling with or engaging in physical contact with persons outside their group;
4) Groups must maintain at least 6 feet of distance between each other at all times
5) Consumption of food is allowed only when groups of patrons are seated, and are 6 feet apart, with no more than 6 patrons seated at a table. Groups cannot intermingle
Density: 6) Venues abide by the following density limitations:
  1. Occupancy must not exceed 50% of the limits established by the State Fire Marshal or a local fire marshal; and groups must be at least 6 feet apart
Capacity: 7) Maximum Venue Capacity Limit Requirements:
  1. For indoor entertainment and recreation facilities, no more than 300 patrons may be gathered within any distinct space within the venue;
  2. For outdoor entertainment and recreation facilities, no more than 1,000 patrons may be gathered, with exceptions and policy detailed in the Order for larger outdoor events. The new guidelines and policy for larger outdoor events can be review HERE.
8) Stadium Capacity
  1. At indoor stadiums and arenas with a fixed seating capacity of up to 10,000, no more than 375 patrons may be gathered;
  2. At indoor stadiums and arenas with a fixed seating capacity greater than 10,000, no more than 750 patrons may be gathered;
  3. UPDATED: At outdoor stadiums and arenas with a fixed seating capacity of up to 10,000, no more than 1,000 patrons may be gathered;
  4. UPDATED: At outdoor stadiums and arenas with a fixed seating capacity of greater than 10,000, no more than 1,500 patrons may be gathered;
  5. UPDATED: At outdoor entertainment and recreational facilities, outdoor stadiums and arenas that establish and abide by an infection control plan that complies with the MDHHS publication entitled Large Outdoor Events Guidance issued May 14, 2021, gatherings may not exceed 20% of the venue's fixed seating capacity or 20 persons per 1,000 square feet, whichever is greater. Such venues must post their plan publicly, including on a public website. Infection control plans must be provided to the local health department at least seven days before scheduled events. Sports organizers of events occurring at outdoor stadiums and arenas proceeding under this subsection must administer a testing program as specified in the MDHHS publication entitled Interim Guidance for Athletics issued May 14, 2021. 


Be sure to review all requirements for entertainment venues located in Section 3 of the Order.


Restaurants/Bars:

Key Regulations:
1) Restaurants and bars are permitted to remain open at up to a 50% capacity, or up to 100 persons, whichever is less.
2) "Curfew" is set at 11 PM for food service establishments.

Restaurant/Eatery Restrictions within the Order are as follows:

1) Indoor consumption of food is only permitted when patrons are seated within a designated dining area, with groups at least 6 feet apart, with not more than 6 people per table, and groups cannot intermingle.
2) Indoor dining capacity, and curfew guidelines at restaurants/bars are as follows:
  1. The number of patrons indoors (or a designated dining area of a multi-purpose venue) does not exceed 50% of normal seating capacity, or 100 persons, whichever is less;
  2. Food service establishments, or the food service establishment portion of a multi-purpose venue, must close indoor dining between the hours of 11:00 PM and 4:00 AM;
  3. The venue displays, in a prominent location, the MDHHS “Dining During COVID-19” brochure. Click HERE to download and print the brochure.
5) All dine-in food service establishments must maintain accurate records of the names and phone numbers of patrons who purchase food for consumption on the premises, and the date and time of entry. Upon request, must provide names and phone numbers of individuals with possible COVID-19 exposure to MDHHS and local health departments to aid in contact tracing and case investigation efforts.
6) Click HERE to download and view the Outdoor and Indoor Dining Guidelines for restaurants and bars.

MHDDS has launched a new program, "MI Covid-19 Safer Dining program," promoting eateries which have worked with certified HVAC inspectors who recommend changes to air ventilation to improve circulation and reduce the risk of COVID-19 spread. In the program, restaurants agree to abide by safety protocols, including mask wearing, social distancing, and regular disinfection and cleaning. The program encourages Michigan residents to check the program webpage for eateries which are certified within the program for safe dining. The program information and webpage is located HERE.



REVIEW OF OTHER RESTRICTIONS IN THE ORDER:

According to the Order, the following services and businesses are to suspend indoor/in-person operations: Businesses must require remote work for employees with the exception of essential workers who must conduct operations in-person according to the MIOSHA Emergency Rules, which expire on October 14, 2021; dance floors at night clubs; and water parks.


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Capacity Restrictions for Businesses


Retail businesses, libraries and museums are limited to 50% occupancy capacity. A retail store, library, or museum may permit one customer at a time to enter if strict adherence to the 50% total occupancy limit would otherwise result in closure. Retail stores must establish lines to regulate entry and checkout, with markings for patrons to enable them to stand at least six feet apart from one another while waiting.


Exercise facilities, such as gymnasiums and fitness centers are limited to 30% occupancy limits, with a requirement of 6 ft. of space between exercise stations and individuals. Group fitness is permitted with 6 ft. of space between participants.

Outpatient health-care facilities, veterinary clinics, personal care services, and other businesses - waiting room gatherings are prohibited unless a system is established to allow for 6 feet of distancing between patients (with a system in place that allows patients to wait in their car, if possible).

Pools - A gathering at an indoor or outdoor pool not otherwise prohibited by the Order must not exceed 30% of bather capacity limits.

Indoor ice and roller rinks - Gatherings are permitted, provided that occupancy is limited to 10 persons per 1,000 square feet, including within the exercise space.

Non-essential personal care services, including hair, nail, tanning, massage, traditional spa, tattoo, body art, and piercing services, and similar personal care services - All services must be provided by appointment, and gatherings in waiting areas are prohibited.



Business Contact Tracing Requirements

The order establishes that several businesses, in order to hold gatherings, must maintain "accurate records, including date and time of entry, names of patrons, and contact information, to aid with contact tracing, and denies entry for a gathering to any visitor who does not provide, at a minimum, their name and phone number." This rule applies to the following businesses:

(1) All businesses or operations that provide barbering, cosmetology services, body art services (including tattooing and body piercing), tanning services, massage services, or similar personal care services;
(2) Exercise facilities
(3) All dine-in food service establishments must maintain accurate records of the names and phone numbers of patrons who purchase food for consumption on the premises, and the date and time of entry.


Upon request, businesses, schools, and other facilities must provide names and phone numbers of individuals with possible COVID-19 exposure to MDHHS and local health departments to aid in contact tracing and case investigation efforts.


In-Home Services: According to the Order, "All businesses or operations that provide in-home services, including cleaners, repair persons, painters, and the like must not permit their employees to gather with clients unless the business maintains accurate appointment records, including date and time of service, name of client, and contact information, to aid with contact tracing."
October 14, 2020: CHAMBER COALITION CHAMPIONED COVID-19 LIABILITY PROTECTION BILLS PASS LEGISLATURE
At 11:30 PM on Tuesday, October 13, the Southern Wayne County Regional Chamber was notified that a deal had been reached between legislative and business leaders, and the Governor's office relating to the ongoing bipartisan negotiations to pass liability protection legislation for businesses who continue to face hardships throughout the ongoing pandemic. In a strong effort to protect Michigan’s ethical business community, the Southern Wayne County Regional Chamber joined trade associations and chambers of commerce from across the State to urge for and support common sense legislation from the state legislature and Governor Whitmer that will protect ethical businesses, which are operating according to the guidelines and orders provided by our governing authorities, from unfair and damaging COVID-19 related litigation.

Late last night, the Legislature passed House Bills 6030, 6031, and 6032, which incentivize employers to protect and promote workplace and customer safety and protect organizations against the acute economic threat of COVID-19 related lawsuits and other COVID-19 related liability concerns. The SWCRC applauds Wendy Block, vice president of business advocacy and member engagement, and her team at the Michigan Chamber of Commerce for their strong efforts and leadership, which led to this important legislation passing both chambers of the Legislature.


Summary of the legislation

The legislation (HB 6030) specifies a person who acts in compliance with all federal, state, and local statutes, rules, regulations, executive orders and agency orders related to COVID-19 in effect at the time of the conduct or risk that allegedly caused harm is immune from liability for a COVID-19 claim.  The bill defines “person” as an individual, partnership, corporation, association, governmental entity or other legal entity, including, but not limited to, a school, a college or university, an institution of higher education and a nonprofit charitable organization. It also includes an employee, agent or independent contractor of the person, regardless of whether the individual is paid or an unpaid volunteer.

Another bill (HB 6031) in the bill package makes similar changes to the Michigan Occupational Safety and Health Act and another (HB 6032) codifies the Governor’s Executive Order that prohibits discharge, discipline, or retaliation against employees who stay home because they test positive, display the principal symptoms or have had close contact with an individual who tests positive or displays the principal symptoms.

The bills do not include added protections for companies that stepped up to make or donate personal protection equipment (PPE) in response to the pandemic. According to negotiators and business advocates on Tuesday night, the Governor’s office took the position that providing these protections to businesses which donated and provided PPE in response to the pandemic were not to be included in these bills. The bills provide protections retroactive to March 1, 2020. 
October 14, 2020: LEGISLATURE PASSES BILL CODIFYING UNEMPLOYMENT BENEFITS AND PREVENTS EMPLOYERS FROM BEING CHARGED FOR UI PROVIDED IN PREVIOUS EXECUTIVE ORDER
Legislation (Senate Bill 0886) to continue “non-charging” employers for COVID-19 related UI benefits, authorize increased flexibility for employers participating in the WorkShare program, and ensure individuals filing an initial state claim for UI benefits could receive up to 26 weeks of benefits, is on its way to the Governor’s desk. The bill specifies these provisions would apply through December 31, 2020. The legislature could pass legislation at a future date to continue these provisions further.

The UI legislation is needed after the Michigan Supreme Court issued a decision on October 2 finding Governor Whitmer lacks the power to issue executive orders in response to COVID-19 without consent from the Legislature.

A summary of the legislation is located HERE.
MIOSHA LAUNCHES NEW WEBSITE FOR COVID-19 WORKPLACE SAFETY GUIDANCE - "ONE-STOP-SHOP" FOR BUSINESS
The Michigan Occupational Safety and Health Administration (MIOSHA) within the Dept. of Labor and Economic Opportunity (LEO) launched a new online COVID-19 Workplace Safety site – Michigan.gov/COVIDWorkplaceSafety – the site provides guidance and a toolkit of resources to keep workplaces safe as sectors of the state’s economy reopen. 

With the continued risk of COVID-19 spread, everyone in the workplace must take necessary precautions. The site includes MIOSHA issued guidelines, posters for employees and customers, factsheets, educational videos and a reopening checklist – all of which will help businesses safely reopening their doors. 

In addition to the general workplace guidelines for employer and employees, MIOSHA provided further clarification on necessary steps several other sectors must take when reopening, including: 

The site also provides guidance on how employers create and make available to employees and customers, a written exposure control plan which includes exposure determination and outlines measures that will be taken to prevent employee exposure to COVID-19, including as appropriate:
  • Engineering controls
  • Administrative controls
  • Hand hygiene and environmental surface disinfection
  • Personal protective equipment
  • Health surveillance
  • Training
  • Incorporating the latest guidance for COVID-19 from the U.S. Centers for Disease Control and Prevention (CDC), U.S. Occupational Safety and Health Administration (OSHA) and the Governor’s Executive Orders 
UPDATED: MEDC COVID-19 RESOURCES & WORKSHARE INFORMATION
Provided on the MEDC page is a list of resources and information for Michigan businesses during the COVID-19 outbreak from the Michigan Economic Development Corporation. Programs include capital loans, PPE sources, Main Street and community programs, and more.

The Governor’s Unemployment Insurance (UI) Executive Order expands the State’s Work Share program. With the plan, rather than being laid off, eligible employees work a reduced number of hours in the work week and receive a portion of weekly unemployment benefits. Employers are encouraged to implement the program that permits employers to maintain operational productivity during declines in regular business activity instead of laying off workers. More information and guidance about Work Share can be found HERE.
JULY 1, 2020: GOVERNOR WHITMER SIGNS TRIO OF BILLS EXPANDING "SOCIAL DISTRICTS" FOR CONSUMPTION OF ALCOHOL, DISCOUNT FOR ESTABLISHMENTS ON PURCHASE OF SPIRITS, AND PERMITTING THE SELLING OF COCKTAILS TO-GO
On July 1, the Governor signed several bills into law allowing the selling of cocktails to-go over the next 5 years, a discount for establishments on liquor purchased from the State, and the expansion of "social districts" by local governments to allow for more outdoor restaurant seating and drinking districts, where patrons can safely congregate with social distancing in place. With the State already allowing the sale of beer and wine to-go, the new law permits bars and restaurants to sell sealed containers of cocktails or mixed drinks to-go until December 31, 2025. The law further permits licensed establishments to hold two-for-one specials. Additionally, Governor Whitmer signed a bill providing establishments with the opportunity to receive a 23% discount on spirits purchased from the State over the next 12 months under certain rules.
MICHIGAN TREASURY ALLOWS FOR SALES, USE AND WITHHOLDING TAX PAYMENT INSTALLMENT PLAN
Recently, the Michigan Department of Treasury announced business taxpayers who have deferred paying their Sales, Use and Withholding (SUW) taxes due to the COVID-19 pandemic can now participate in an installment payment option to satisfy their outstanding tax balance.
 
Taxpayers scheduled to make SUW tax payments for the February, March, April and May tax periods on June 20, 2020 – including quarterly filers – can either pay their outstanding balance in its entirety or pay their outstanding balance in monthly payments over the next six months. Penalties and interest will be waived on those deferred payments.
WEBINARS TO HELP OUR MEMBERSHIP PLAN FOR REOPENING
Many employers are thinking about reopening their businesses after the “Stay Home” Order is lifted. But there are many things to think through in advance, including staffing, legal concerns and more. There are several webinars on demand to help employers to prepare, such as:  

-Returning to Work: Best Practices for Employers in a COVID-19 World
Federal Level Information & Resources
CONGRESS PASSES PPP FLEXIBILITY ACT WHICH WOULD INCREASE FORGIVABLE LOAN PERIOD TO 24 WEEKS OF QUALIFYING EXPENSES - US CHAMBER RELEASES PPP LOAN FORGIVENESS GUIDANCE - U.S. TREASURY & SBA ISSUE PPP LOAN FORGIVENESS GUIDANCE, INCLUDING EMPLOYEE REFUSALS TO RETURN TO WORK
Paycheck Protection Program Flexibility Act Approved by Congress: On June 3, 2020, Congress passed and sent to President Trump new reforms to the PPP loan, known as the Paycheck Protection Program Flexibility Act. The legislation has since been signed into law by the President. PPP information is located on the SBA's website HERE, and the bill can be viewed HERE. Provisions within the legislation include funding from the PPP loan being forgivable on qualifying expenses for up to 24 weeks, up from the original 8 week period. Also, the Act reduces the percentage of a PPP forgivable loan that must be applied toward payroll to 60 percent, down from the original 75 percent. The other 40 percent of the loan can be used on expenses such as mortgage interest, utilities and rent. Further, the Act also allows the loan period to be extended. Under the initial plan, the loan would have been a 2-year loan at 1% interest rate. This has been extended to up to 5 years. Further, the Act allows borrowers to defer the employer share of Social Security taxes (6.2%), regardless of whether the borrower receives forgiveness or not. 50% of deferred Social Security tax would be due in 2021, with the other 50% due in 2022.

US Chamber PPP Loan Forgiveness Guidance: Under the Paycheck Protection Program (PPP), loans may be forgiven if borrowers use the funds to maintain their payrolls and pay other specified expenses.  Click here to download a step-by-step guide from the U.S. Chamber of Commerce to calculate your loan forgiveness amount, navigate record-keeping requirements, and determine repayment terms on amounts not forgiven. Also, click HERE to view the recent step-by-step video guidance from the U.S. Chamber. Further, the U.S. Chamber of Commerce has launched a new digital resource center , providing at a national level industry specific guidelines to reopening and a small business reopening "playbook."

SBA & Treasury Guidance: The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, released an application form for Paycheck Protection Program (PPP) loan forgiveness along with instructions for completing the form. This form is provided for informational purposes. Businesses should consult with their CPA when preparing the PPP loan forgiveness application. View the sample form and instructions HERE . Note: Your lender will have specific documents and instructions for the PPP loan forgiveness application.


PPP Fraud Concerns and Required Certification: In recent weeks, and in response to significant public pressure, the SBA and Treasury have determined that certain companies should not receive the benefits of PPP loans for which they qualified under the law. As a result, the SBA has advised that “all borrowers should review carefully the required certification” that current economic uncertainty makes the loan necessary after taking into account their current business activity and access to other sources of liquidity. As an incentive for companies who are unable to make the good faith certification of necessity to repay the loans, the SBA created a “safe harbor” to provide that borrowers would be deemed to have met the necessity certification requirements if the loans were repaid in full on or before May 7, 2020, and the deadline for the repayment safe harbor was subsequently extended to May 14, 2020. As additional incentive for companies to repay PPP loans during the safe harbor, the federal government has indicated that it will investigate PPP borrowers and may pursue criminal investigations in cases in which certifications on the loan application are determined to be fraudulent. On April 29, 2020, more than one month after the CARES Act was signed into law, the SBA announced that it intends to review (i.e., “audit”) all PPP loans of more than $2M, along with other loans, “as appropriate.” One key motivation for such audits is the government’s view that the benefits of the PPP should not be afforded to companies that have alternative sources of liquidity to fund ongoing operations “in a manner that is not significantly detrimental to the business.”

Borrowers with loans of or under $2 Million: As of May 27, 2020, the U.S. Treasury has released new guidance via FAQ. Under the new FAQ, borrowers of $2 million or less will be deemed to have made in good faith the required certification concerning the necessity of this loan. In Question #46, the FAQ specifically spell out that most businesses with loans below this level are “less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans.”

It is important for PPP borrowers to review this new guidance in preparation for loan forgiveness. Potential for Fraud: For small businesses that borrowed funds under the PPP, if the federal government determines that there has been a false certification, the company or individual signing the certification could face serious civil and, potentially, criminal charges related to this “fraud.”

Documentation of Necessity or Repayment of PPP Loan: Any business that borrowed PPP loan funds should consider whether, and how, it can document compliance with the CARES Act necessity “certification” requirements. A meaningful review of necessity for PPP loans is recommended for all borrowers, and could prove to be absolutely critical for any borrower that: is publicly traded; is a United States subsidiary of a foreign parent; has access to other sources of liquidity; or is a borrower of more than $2M. Unless the full loan is repaid by May 14, every such borrower should be prepared for an SBA audit of both its PPP loan application, and its uses of PPP loan funds.

*Key source along with Treasury FAQ: Bodman Law article

PPP loan forgiveness guidance on employees refusing offer of work: What happens if you call back laid-off employees and they are reluctant or refuse to return to work?

The Small Business Administration (SBA) and Department of Treasury recently answered this question in their PPP Frequently Asked Questions. While promising to issue a formal rule, the FAQ states the following:

Question 40: Will a borrower’s PPP loan forgiveness amount (pursuant to section 1106 of the CARES Act and SBA’s implementing rules and guidance) be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

Answer: No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.
CDC RELEASES NEW TOOLS TO HELP SPECIFIC INDUSTRIES REOPEN. EPA AND CDC ISSUE JOINT GUIDANCE FOR ALL BUSINESSES REGARDING CLEANING & SANITATION
The CDC introduced new industry specific guidance, including 1 page tools designed to guide general workplaces and restaurants/bars as they plan to safely reopen. Please review these valuable tools, including guidance for community events, churches and community organizations, recreational facilities, educational institutions and more HERE.

The CDC and EPA have released guidance for all businesses for cleaning and sanitizing the workplace as businesses begin to reopen safely. The Guidance is based on the President's Open Up America Again plan, and is intended for all Americans, whether they own a business, run a school, or want to ensure the cleanliness and safety of their home. The Guidance can be viewed HERE.

Business must begin to plan and execute safety practices to protect the workforce and community. Below are links that provide resources and guidance from the CDC, U.S. Occupational Safety & Health Administration (OSHA) and MIOSHA. Further, the following section provides templates for Preparedness and Response Plans. These templates are for information purposes only and not for the purpose of providing legal advice. You should contact legal counsel to obtain advice with respect to your individual workplace.   

The MIOSHA website includes guidance on an interim COVID-19 complaint enforcement plan, FAQs, and guidance for businesses on who can perform in-person work under the current executive order.

Businesses must abide by and regularly check updated CDC, State, OSHA, and local guidelines as information is rapidly changing. At this time, there are no protections in place for employers who are operating under this guidance or that open too soon.
#SupportDownriver & #SupportSouthernWayneCounty CAMPAIGN
Together as one community, we are launching a unified regional campaign to support our local businesses, and to revitalize our local economy in a safe, responsible, and effective way. The campaign is called #SupportDownriver, and #SupportSouthernWayneCounty for municipalities represented by the Downriver Community Conference and Southern Wayne County Regional Chamber who count themselves as outside of the traditionally recognized "Downriver" communities. As one united community, we will save lives, businesses and jobs. While we do everything that is necessary to protect the health and well-being of our community, we cannot standby as our region's job providers and entrepreneurs lose everything they have worked so hard to gain not only for themselves, but for the people of our region. We are asking all of our communities, members and the entire Downriver business community to participate in this positive and encouraging messaging. Use the graphics, posting and tagging as many local businesses as often as possible. NOW MORE THAN EVER, it is vital that we support our Downriver and southern Wayne County job providers, entrepreneurs and workforce. Campaign graphics and more information can be found by clicking the below link.
SWCRC RESOURCE PAGE - INFORMATION ON LOANS, GRANTS AND MORE
The SWCRC's resource page provides PPP loan forgiveness guidance from the U.S. Treasury, guidance on the Federal Reserve's Main Street Lending Program, and information on existing loans, grants and other guidance including the PPP and SBA EIDL programs.