SS+D COVID-19 Response Team: Federal and State Update April 2, 2020
April 2, 2020 | Sebaly Shillito + Dyer
FEDERAL – PPP LOANS APPLICATIONS CAN BE SUBMITTED STARTING APRIL 3, 2020
Applying for Paycheck Protection Program (PPP) loans can be done through an existing SBA lender or any federally insured depository, credit union, or participating Farm Credit System. Small businesses and sole proprietors should be able to apply for PPP loans beginning April 3, 2020, but there is some uncertainty around this date. Independent contractors and self-employed individuals should be able to apply beginning April 10, 2020, but, again, there is uncertainty about this start date. As of now, PPP loans will be available until June 30, 2020 and are to be funded on a first come, first served basis. For a list of approved SBA lenders, please visit: www.sba.gov.
FEDERAL – PRESIDENT TRUMP APPROVES OHIO DISASTER DECLARATION.
Yesterday, President Trump declared a major disaster for Ohio and ordered federal assistance to supplement state and local recovery efforts in the areas affected by coronavirus. As a result of the declaration, funding will now be made available to the state, eligible local governments, and certain private nonprofit organizations for emergency protective measures.
STATE – OHIO EXTENDS THE STAY HOME AND ESSENTIAL BUSINESS ORDER TO MAY 1
Today, state officials extended the stay at home and essential business order to May 1. The extension has new provisions, however. One is a dispute resolution panel to evaluate how different public health departments around the state determine which businesses are essential. The panel is charged with verifying the stay at home order is enforced fairly. Today’s order also requires retail businesses to establish a set number of people allowed in at one time. No standard number was established because of the varying sizes and store layouts. Retailers must conspicuously post the number and regulate their own premises.
STATE – OHIO AG TAKES ENFORCEMENT ACTION AGAINST BUSINESSES ACCUSED OF VIOLATING THE “STAY HOME” ORDER
Yesterday, Ohio Attorney General Dave Yost sent a cease and desist letter to Hobby Lobby regarding its alleged violation of the “Stay Home” order. The letter gives Hobby Lobby just 24 hours to respond and explain why it thinks it is an essential business. The letter also reminds Hobby Lobby that a failure to comply with the “Stay Home” order is a crime. All businesses continuing to operate in Ohio should be prepared to explain why they believe they are essential businesses. SS+D is available to help analyze whether or not your business is essential under the “Stay Home” order.
STATE – DEWINE ISSUES ORDER URGING LANDLORDS AND LENDERS TO SUSPEND PAYMENTS FOR NINETY 9O DAYS.
Governor DeWine issued an Executive Order yesterday requesting landlords suspend rental payments for small business commercial tenants for 90 days. DeWine’s order also requests lenders provide commercial real estate borrowers a 90 day forbearance period for commercial mortgages. Landlords and lenders are also requested to resist instituting eviction proceedings or enforcing any remedies for default during the same 90 day period. Payments coming due during this suspension period are not negated and the order advises that landlords and lenders can still recover overdue payments in the future. As of now, DeWine’s order is only a recommendation; there is no mandated suspension period.
STATE – DEWINE CREATES THE OHIO MANUFACTURING ALLIANCE TO FIGHT COVID-19
Governor DeWine also announced yesterday the formation of the Ohio Manufacturing Alliance (OMA) to Fight COVID-19. The OMA will provide both technical and financial support to strengthen the production of medical and personal protective equipment in Ohio. This collaborative includes various entities, such as the Ohio Manufacturers’ Association, Ohio Hospital Association, Ohio Manufacturing Extension Program, JobsOhio, the Manufacturing Advocacy and Growth Network, and state nursing homes.
STATE – THE OHIO DEPT. OF HEALTH ISSUES ORDER FOR TRACKING VENTILATORS
Ohio is now tracking ventilators within the state by means of a new database on the Ohio Department of Health’s website. As of April 1, entities in the ventilator supply chain must now report the number of ventilators at their locations every Wednesday by 5 pm. The entities expected to comply include, among others, manufacturers, distributors, retailers, physicians, clinics, and hospitals.
ABOUT THE SS+D COVID-19 RESPONSE TEAM
The SS+D COVID-19 Response Team was formed to provide clients, colleagues, and friends of the Firm updates for the foreseeable future on COVID-19 issues facing businesses, executives, and employees. Please let us know if there are any items/issues you would like for us to track or summarize.