PPP Updates: Updated Rules and Applications Released
The Treasury and SBA released two new loan applications yesterday. The revised full-loan forgiveness application updates the 75% payroll cost mandate to the new 60% mandate under the PPP Flexibilty Act. Borrowers can view the updated full-loan application here and instructions here.
The Treasury and SBA also released a new EZ forgiveness application. The EZ application applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce salaries or wages of their employees by more than 25% and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The Treasury and SBA also released a new interim final rule that includes several updates, including capping ownership compensation at $20,833 instead of $15,385.
Borrowers can view the new rule here.
OSHA Releases Updated Coronavirus Guidance
The Occupational Safety & Health Administration (OSHA) updated its coronavirus guidance. Of note, OSHA has confirmed that most employers should encourage employees to wear face masks at work. OSHA also confirmed face masks are not a substitution for social distancing, which employers should be encouraging.
More on these recommendations can be found here.
Employers should also be aware of any additional state or local rules regarding coronavirus safety precautions. For example, the city of St. Petersburg, Florida passed an ordinance, which goes into effect this Friday, June 19th, at 5pm, requiring all businesses in the city to have their employees wear face masks when they have contact with the public. More information about that ordinance can be found here.
EEOC Releases Updated Coronavirus Guidance
The EEOC updated its guidance to clarify that employers can require employees to be tested for an active case of COVID-19, but they cannot require employees to get the antibody test before allowing employees to re-enter the workplace.
Employers can read the new guidance here.