Treasury announces tax-filing deadline extended to July 15 . . . Read More
Congress passes COVID-19-related tax relief . . . Read More
COVID-19: Latest developments and where we go from here . . . Read More
*Baker Tilly is a national consulting firm with a wide band of subject matter experts. This would be a worthwhile webinar for anyone who wants to be informed.
The Small Business Owner’s Guide to the CARES Act . . . Read More
U.S. Senate Committee on Small Business & Entrepreneurship.
CARES Act for small businesses Webinar . . . Register Here
Where can I find information about Coronavirus/COVID-19?
Toledo-Lucas County Health Department has a web page with all of the guidance specific to Lucas County, including closures and information for county employees. You can find all of this and more at https://www.lucascountyhealth.com/coronavirusupdates/ .
The Ohio Department of Health (ODH) has most current information about the steps being taken in Ohio to protect the public from Coronavirus/COVID-19. Visit their website at https://coronavirus.ohio.gov/wps/portal/gov/covid-19/ or call them at 1-833-4-ASK-ODH for resources about how to keep yourself and your family safe. The OHD website also has a dashboard showing the number of suspected and confirmed cases within Ohio.
You can also visit the Center for Disease Control and Prevention (CDC)’s website at https://www.cdc.gov/coronavirus/2019-ncov/index.html for additional resources, including a map of cases throughout the world and current information about the number of cases with the United States, which can be found at https://www.cdc.gov/coronavirus/2019-ncov/cases-in-us.html.
Small Business Disaster Loans
All federal agencies are working together to protect public health, including the U.S. Small Business Administration. The SBA’s top priority is to ensure Ohio small businesses – which total nearly 950,000 – can continue their contributions to the state’s economy, and our nation.
Small Business Administration (SBA) is working directly with Governor DeWine’s office to facilitate a disaster declaration from the SBA for businesses to be eligible for Economic Injury Disaster loans. To expedite this process, we need your help in disseminating the Disaster Loan Declaration Form for businesses to fill out. Once you have done so, please email the completed forms to firstname.lastname@example.org.
Once that declaration is made and the SBA has confirmed it, the agency will be able to provide Economic Injury Disaster Loans of up to $2 million per small business to assist with economic recovery.
Please feel free to send out the attached handouts as well as the below links to disaster assistance:
The SBA will continue to support small businesses through this difficult time, and we urge them to visit www.sba.gov/coronavirus and follow @SBA_Columbus on Twitter or sign up for our newsletter for more updates.
We sincerely appreciate your help in this effort.
For detailed information on SBA programs for the coronavirus, visit www.sba.gov/coronavirus and for information on all federal programs, visit www.usa.gov/coronavirus or www.gobierno.usa.gov/coronavirus (en Español).
SharedWork Ohio is a voluntary layoff aversion program. It allows workers to remain employed and employers to retain trained staff during times of reduced business activity. Under a SharedWork Ohio plan, the participating employer reduces affected employees’ hours in a uniform manner. The participating employee works the reduced hours each week, and the Ohio Department of Jobs and Family Services (ODJFS) provides eligible individuals an unemployment insurance benefit proportionate to their reduced hours.
Interested employers provide ODJFS with a list of participating employees and specify their normal weekly hours of work, not to exceed 40 hours and not including overtime. Part-time employees may be eligible, but all employees in an affected unit must have their hours reduced by the same reduction percentage. Reduction percentages must be at least 10 percent but no more than 50 percent of the normal weekly hours of work.
Economic Injury Disaster Loan Program
On Tuesday afternoon, Governor Mike DeWine and Lt. Governor Jon Husted sent a letter and application to the U.S. Small Business Administration to qualify the State of Ohio for the Economic Injury Disaster Loan program. As we wait there are things that we can do to prepare. Business owners can begin collecting the paperwork that will be needed when the application process opens. This process could be long, its best to be prepared.
Please understand that these will be loans, requiring repayment. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Loan rates are expected to be 3.75% for businesses and 2.75% for non-profits with long-term repayments in order to keep payments affordable. Terms will be determined on a case by case basis.
Documents you need to complete application:
· Completed SBA Loan application
· Tax Information Authorization for the applicant, principals, and affiliates
· Complete copies of the most recent Federal Income Tax Return (including all schedules)
· If 2019 has not been filed, you will need a year end profit and loss statement and balance sheet.
· Schedule of Liabilities
· Personal Financial Statement
· Current Year-to-Date Profit and Loss statement
Loan applications will be evaluated by SBA loan officers. Criteria includes:
· Credit history acceptable to the SBA
· Repayment abilities
· Eligibility – businesses in a declared state/county, suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons.
· Paper application can be submitted but this will slow the process considerably
Additional information can be found at: https://www.sba.gov/funding-programs/disaster-assistance
COVID-19 Information from Eastman & Smith
Attorneys at Eastman & Smith have been actively disseminating information addressing issues arising from COVID-19 pandemic. Should you have any legal questions regarding how actions resulting from the pandemic may affect you or your business, please contact one of our attorneys.
As a legal service provider, Eastman & Smith is deemed an essential business and is able to continue to provide its legal services to its clients. Notwithstanding the foregoing, however, we have taken additional responsive steps to ensure that we can provide such legal services in a manner that maximizes our ability to protect the health of our employees, clients, business partners and communities and allow us to do our part in limiting the spread of this disease.
Our Firm has continuously provided legal services to our clients for more than 175 years, and we are committed to doing so during this challenging time. We have implemented measures in all of our Firm’s offices to ensure the safety of our employees and clients and to provide continuity of service to our clients. We take the health and safety of our employees, clients, business partners, our legal communities and the community at large very seriously.
Articles Addressing COVID-19 and the Law
The new law includes an emergency expansion of FMLA and emergency paid sick leave. It expands FMLA leave benefits to all public and private employers with fewer than 500 employees. Emergency paid leave would also apply to all public and private employers with fewer than 500 employees.
The SBA is offering low-interest loans of up to $2 million for small businesses in states affected by COVID-19. To determine which Ohio and Michigan counties are currently eligible for an EIDL, visit disasterloan.sba.gov/ela/Declarations.
Employers in nearly every industry are implementing measures to reduce the spread of the disease which, in some instances, means bringing the supply chain of goods and services to a screeching halt. While the ultimate impact and duration of the outbreak remains to be seen, one thing is certain: a spike in breach of contract claims around the country is imminent.
Since the SARS outbreak many insurers have incorporated into their commercial property policies endorsements that exclude coverage for “Loss Due to Virus or Bacteria.” However, policies may specifically include extended coverages for mitigation of communicable diseases, but only to the time necessary to detoxify from the communicable disease event.
Contractors, subcontractors and suppliers can and should be proactive in addressing COVID-19 in a few different ways things can and will change quickly as the pandemic unfolds.
Workers’ Compensation and COVID-19: What Employers Need to Know The Ohio Bureau of Workers’ Compensation (BWC) and Ohio Industrial Commission have made changes to the processing and adjudication of workers’ compensation claims in light of COVID-19 (a.k.a. coronavirus).
COVID-19 Changes Tax Deadline
The Treasury Department is deferring the filing and paying of federal taxes to July 15 for individuals and businesses. Since response to the pandemic has been so fluid, you should check with a tax professional regarding the filing and payment of federal, state, local and school taxes.
Establishments that sell liquor in the State of Ohio have stocked up in preparation for St. Patrick’s Day, and now may find themselves with an significant excess of inventory. Ohio is making economic assistance to the owners of bars, restaurants, and nonprofit organizations with temporary liquor permits.
This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.
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