PHASE III ECONOMIC RELIEF PACKAGE
We are pleased to report that – as you likely have heard – the President just signed into law the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Earlier today, the House passed the bill without any amendments to the version approved by the Senate Wednesday night in a vote of 96-0. This is the largest economic rescue package in American history. The official version of the legislation is found HERE.
Small Business Paycheck Protection Program
Yesterday, we drew your attention to key provisions in the legislation that could have an immediate impact on your business. In particular, we highlighted the roughly $350 billion in small business lending that is available to businesses with not more than 500 employees from traditional lenders approved by the Small Business Administration (“SBA”). Companies may borrow up to 2.5 times their average monthly payroll over a 12-month historical measuring period, subject to a $10 million limit. These “Paycheck Protection Loans” do not require security and have very few underwriting requirements. Moreover, as we reported yesterday, the amount of a Paycheck Protection Loan that is used, prior to June 30, 2020, to pay payroll costs, interest on mortgage debt, rent, or utilities will be forgiven.
Our attorneys have reviewed the legislation in depth and have been speaking with banks about the procedures they are implementing to process these SBA loans quickly. We encourage you to reach out to us for guidance on how you most effectively can obtain financial assistance for your business’ emergency cash flow needs.
Cook County Relief Package
Cook County President Toni Preckwinkle announced a relief package that could collectively save local businesses as much as $35 million. Cook County will be waiving a number of fines and fees for local businesses. Cook County will also be deferring Home Rule taxes until May 1, 2020. Internal debt collection on outstanding liabilities and referrals to collection firms will be suspended until after April 30, 2020. The Department of Administrative Hearings will also postpone the adjudication of cases until at least April 15, 2020.
All currently County-certified Minority/Women/Veteran/Service-Disabled Veteran/Person with Disability owned businesses (“M/W/V businesses”) have the option of having their 2020 renewal date extended by 6 months with recertification fees waived. M/W/V businesses with renewal dates in April, May, June or July of 2020 will automatically have their renewal date extended by 6 months and will have recertification fees waived. For a complete list of all Cook County waivers, extensions and deferrals click HERE.
We will continue to send periodic updates on topics that may be helpful to your businesses. If you have a particular issue that you’d like us to address, please let us know.