SS+D COVID-19 Response Team: Federal and State Update April 23, 2020
April 23, 2020 | Sebaly Shillito + Dyer
FEDERAL – WE ADVISE CLIENTS TO CAREFULLY TRACK PPP AND OTHER CARES ACT SPENDING
We are working with clients to assist with best practices in administering and tracking CARES Act funds. The CARES Act contains broad oversight provisions for Congress to oversee spending. The Congressional Oversight Commission is charged with issuing reports that assess the impact of loan funds, and the Special Inspector General coordinates investigations related to the purchase and sale of loans, loan guarantees, and other investments made by the Secretary of the Treasury. The oversight mechanisms are aimed to prevent fraud and self-dealing. The Pandemic Response Accountability Committee conducts investigations and audits to uncover abuse and mismanagement of relief funds, among public and private entities. With strict government oversight, businesses should take adequate steps to maintain proper management, keep accurate records, and avoid misuse of funds.
If you need assistance or have any questions regarding your funds, please call us at 937-222-2500 and ask for a member of SS+D’s COVID-19 Response Team.
FEDERAL – PRESIDENT TRUMP ANNOUNCES PROCLAMATION HALTING IMMIGRATION TO THE UNITED STATES
President Trump signed a proclamation late yesterday “temporarily suspending immigration into the United States” in response to the economic crisis caused by the coronavirus pandemic. The proclamation effectively orders the following:
- Suspends immigrant aliens’ entry into the S. when all of the following apply:(1)the alien is outside the S. as of 11:59 pm on April 23, 2020; (2) the alien does not have an immigrant visa on the effective date of the proclamation; and (3) the alien does not have as of the effective date of the proclamation any other official travel document allowing entry into the U.S. Presumably, all three of these elements must be present for the exclusion order to apply to the alien.
- The proclamation does not apply to any existing lawful permanent residents of the S., aliens who are healthcare professionals, an alien spouse of a U.S. citizen, or the alien children (under age 21) of a U.S. citizen, among others.
- The proclamation expires 60 days after April 23, 2020, but the Department of Labor, Department of Homeland Security, and the State Department will make a recommendation whether the order should be extended.
There is nothing in the President’s proclamation that otherwise affects existing or pending applications, although pending applications may be delayed for other reasons.
The proclamation may be accessed in its entirety HERE.
FEDERAL – MORE PPP LOAN FUNDS HOPEFULLY AVAILABLE SOON
The Senate recently passed a new $484 billion coronavirus relief package, including more than $300 billion in additional funds for the Paycheck Protection Program (PPP) designed to bail out small- and medium-sized businesses. The package also includes
$60 billion in disaster relief loans, $75 billion for hospitals, and $25 billion to boost coronavirus testing. The new relief package is expected to be approved by the House of Representatives this week.
FEDERAL – ADDITIONAL RELIEF FOR TAXPAYERS
The IRS has postponed the filing and payment deadline for Federal gift and generation-skipping transfer tax returns to July 15, 2020. Taxpayers are automatically granted this relief without any additional interest or penalties.
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.