A Message for Our Clients
Throughout the evolving circumstances related to COVID-19, Kemp Klein’s priority remains focused on the well-being of our employees, colleagues, and clients, while continuing to serve those who face the same challenges we do. Following recommendations from our government and local health officials, our employees will continue to prioritize client matters while working remotely. Currently, our office remains open… read more.
IRS Notice 2021-20 Provides Clarity for the Employee Retention Tax Credit – March 16, 2021
In response to uncertainty about the implementation of the employee retention tax credit ( the “ERTC”) following a variety of revisions to the ERTC since its creation under the CARES Act, the Internal Revenue Service (“IRS”) issued Notice 2021-20 providing guidance regarding the ERTC… read more.
New MDHHS Order Relaxes COVID-19 Restrictions on In-Person Activities – March 3, 2021
On Tuesday, March 2, 2021, Governor Gretchen Whitmer, through the Michigan Department of Health and Human Services (“MDHHS”), announced that COVID-19 restrictions related to in-person activities will be partially eased for restaurants, nursing homes, gyms, recreational facilities and private events. These changes will take effect on March 5, 2021…. read more.
SBA and Biden Administration make additional changes to PPP, and provide 2-week application period exclusive to businesses with fewer than 20 employees – February 25, 2021
On Monday, February 22, President Biden announced changes to the PPP loan program, which has been a critical tool of the United States Federal Government in helping businesses stay open during the COVID-19 Pandemic. Starting Wednesday, February 24, 2021 at 9 am, the SBA established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. SBA also announced four additional changes to open the PPP to more underserved small businesses than ever before… read more.
Applications Open for Michigan Grant Programs Aiding Businesses Impacted by COVID-19 – January 21, 2021
The State of Michigan is currently providing assistance to businesses that have been hit hardest during the COVID-19 pandemic. The application period for these programs is brief, and a few of them started today. Moreover, the assistance is given on a first-come first-serve basis, so potential applicants should move quickly if they want to receive assistance. The assistance programs and links to the applications for them are provided below…. read more.
MDHHS Relaxes Quarantine Restrictions But Also Extends Current Shutdown until December 20 – December 7, 2020
On December 7, 2020, the Michigan Department of Health and Human Services (MDHHS) announced that it has adopted new CDC recommendations providing asymptomatic persons an earlier release from quarantine after close contact with infected or symptomatic persons. The MDHHS also issued a new Epidemic Order that extends through December 20, 2020 the existing partial shutdown of Michigan’s economy that was scheduled to end on December 8, 2020… read more.
Michigan Department of Health and Human Services November 15, 2020 Emergency Gatherings and Face Mask Order – November 16, 2020
On Sunday evening, Governor Whitmer announced new restrictions limiting gatherings at high schools, colleges and restaurants to address a severe increase in positive cases of and hospitalizations from COVID-19. Every region in Michigan has been deemed ‘at-risk’… read more.
Michigan Immunizes Individuals and Businesses from Claims and Retaliation for Complying with COVID-19 Laws – October 28, 2020
On October 22, 2020, the State of Michigan adopted public acts that are geared toward reopening the economy and encouraging employers, employees, and other businesses to comply with CDC, OSHA, and other laws and regulations for curtailing the spread of COVID-19. These new laws provide immunity from legal claims related to COVID-19 and protect employees from retaliation for staying home pursuant to government directives regarding exposure to the virus… read more.
MDHHS Issues “Epidemic Orders” After Executive Orders Overturned – October 12, 2020
On October 2, 2020, the Michigan Supreme Court issued an opinion that overturned Governor Whitmer’s numerous executive orders issued in response to the pandemic. Despite the ruling, employers and businesses operating during the pandemic should not assume that this decision eliminated all restrictions on their operations. For instance, the opinion had no effect on CDC recommendations or state and federal OSHA regulations, the latter of which still have the force of law and are very similar to the executive orders. Moreover, other state and local health and safety agencies have authority to impose restrictions to control spread of COVID-19 and have issued orders to fill in some of the void that some believe the court created, which are the subject of this article… read more.
SBA Adopts Procedures Regarding Ownership Changes by PPP Borrowers – October 8, 2020
On October 2, 2020, the Small Business Administration (SBA) issued a Procedural Notice regarding ownership changes by Payroll Protection Program (PPP) loan borrowers. The procedure essentially requires SBA approval prior to closing of a transaction involving a change in ownership if 50% or more of a PPP borrower’s common stock or assets are sold unless the PPP borrower pays off the PPP loan or applies for forgiveness and sets up an escrow account to cover the loan… read more.
Governor Whitmer Expands Public Gatherings and Reopens Cinemas and Other Entertainment Venues – September 28, 2020
Last Friday, September 24, 2020, Governor Whitmer issued three executive orders that will reopen more of Michigan’s economy and impose additional restrictions on resumption of public and private education… read more.
Pools and Gyms Reopen and Organized Sports Resume in New Safe Start Order – September 4, 2020
On September 3, 2020, Governor Whitmer issued three executive orders resuming organized sports and reopening indoor gyms and swimming pools subject to new workplace protections and extending the State of Emergency through October 1, 2020… read more.
Federal Moratorium on Evictions Until December 31, 2020 – September 3, 2020
In a surprise move earlier this week, the CDC issued an executive order prohibiting residential lease evictions until December 31, 2020 to prevent the spread of COVID-19. The moratorium goes into effect when the order is published in the Federal Register (which is expected to happen on Friday, September 4, 2020). The order applies to any state or territory in the U.S. affected by COVID-19… read more.
Important Implications for Businesses Regarding New Michigan Executive Orders 160 and 161 – July 30, 2020
On July 29th, 2020, Governor Gretchen Whitmer signed two new Executive Orders that reimpose certain public health policies that restrict business operations. The two orders effectively require businesses to resume limited operations, just as businesses were required as of June 1, 2020. Executive Order 160 and Executive Order 161 apply to businesses statewide… read more.
President Trump Signs Bill to Change PPP – June 5, 2020
The president has signed the Paycheck Protection Program Flexibility Act of 2020 (“PPPFA”), which makes significant changes to the Payroll Protection Program (“PPP”). The changes contained within the PPPFA should provide more flexibility to businesses to fully utilize their PPP funds which will increase the likelihood of the PPP loan being forgiven… read more.
Bonuses and Commissions May be Forgiven Under PPP Program – May 29, 2020
On May 22nd, the SBA and Treasury Department answered several questions that had lingered regarding what kinds of compensation are forgivable under the PPP program. One important unanswered question was the extent that commissions or bonuses paid by a borrower during the covered period were eligible for loan forgiveness…. read more.
Developments Regarding the Loan Forgiveness Application – May 29, 2020
Since the passage of the CARES Act, Kemp Klein has been happy to provide general information regarding the development of the law as regulations continue to roll out, especially as these regulations pertain to small businesses. In the past, we have provided general information respecting various parts of the Paycheck Protection Program (PPP) and this article is intended to supplement that information. Specifically, this article addresses the developments in the PPP as they relate to the loan forgiveness process… read more.
Treasury Released PPP Loan Forgiveness Application – May 19, 2020
Yesterday, the Treasury released additional guidance on PPP loan forgiveness calculations with their Loan Forgiveness Application. PPP borrowers should review the application and included instructions… read more.
The SBA Adopts a $2 Million Safe Harbor for PPP Loan Certifications – May 14, 2020
An issue of uncertainty for many businesses who acquired loans under the Paycheck Protection Program (PPP) is whether the Small Business Administration (SBA) would ultimately accept that they made their certifications that the loan was necessary to support their ongoing operations in good faith. On May 13, 2020, however, the SBA laid the concerns of many borrowers to rest by adopting a safe harbor in a new FAQ… read more.
What Congress Giveth with One Hand the IRS Taketh Away with the Other – May 8, 2020
Last week the IRS issued Notice 2020-32, in which it determined that that business expenses paid with forgivable funds from Paycheck Protection Program (PPP) loans may not be deducted as business expenses… read more.
SBA Releases New Guidance on How Workers Who Refuse to Come to Work Will Be Treated in Relation to PPP Loan Forgiveness – May 8, 2020
The Cares Act has created some atypical incentives for employers and employees. For example, the unemployment provisions in the Cares Act have allowed some individuals to make more money on unemployment than they did while they were working. This has led to some unusual situations as employers attempt to recall their workers… read more.
PPP Loans are Dominating the Public Discourse, but there are Some Great Alternatives – May 8, 2020
Since the passage of the CARES Act on March 27th, 2020 the Payroll Protection Program (PPP) has been an extremely popular topic amongst business owners. Millions of businesses across the country have applied for PPP loans, and many have received loan funding. However, while the PPP program is a great option for many small businesses, this doesn’t mean it is a perfect fit for all business owners… read more.
Returning to Work – COVID-19 Preparedness and Response Plan – May 1, 2020
While we don’t know when the Stay at Home Order will be lifted, now is the time to start planning for businesses to return to work, as there are numerous issues to consider. First, every business should create a COVID-19 Preparedness and Response Plan… read more.
Forgiveness Reduction under the Paycheck Protection Program – May 1, 2020
Since the passing of the CARES Act, we have provided general information regarding what the CARES Act PPP is, who qualifies under the program, the amount of funding a borrower may obtain, and how certain amounts of loan funding may be forgiven. This article explains how the amount of “loan forgiveness” for which a borrower is originally eligible under the Paycheck Protection Program may be reduced based on the borrower’s conduct… read more.
Second Round of Funding Approved for the CARES Act PPP Loans – April 24, 2020
On Thursday, April 23rd, the House passed a bill that funded an additional $320 billion for the Paycheck Protection Program, or PPP, created by the CARES Act, which was passed late last month… read more.
A Closer Look at the CARES Act PPP Loans – April 23, 2020
Last week, we explained what the CARES Act PPP loan program is and who qualifies for a PPP loan. This article focuses on how much funding a borrower can obtain through the PPP program and how loan proceeds may be forgiven… read more.
The CARES Act Expansion of EID Loans – April 23, 2020
The CARES Act expands eligibility for the Economic Injury Disaster Loan (EIDL) program to businesses employing 500 employees or less, until December 31, 2020… read more.
Main Street Lending Program: Another Funding Option for Small to Medium-Sized Businesses – April 23, 2020
For small businesses unable to secure the limited funds made available by the CARES Act through the SBA-administered Paycheck Protection Program (PPP) or medium-size businesses ineligible for a PPP loan, the Main Street Lending Program offered by the Department of Treasury is another source of funding created by the CARES Act to help whether the COVID-19 storm… read more.
My Employee Requested Leave Under the Families First Coronavirus Response Act. Do They Have to Use Existing Leave Under Company Policy? – April 23, 2020
In late April 2020, the Wage & Hour Division of the Department of Labor provided further guidance on when and how an employer may require their employee to use existing leave under company policy and when the choice belongs to the employee… read more.
My Employee Requested COVID-19 Related Leave, Now What? – April 16, 2020
The Families First Coronavirus Response Act (“Act”) was signed into law on late evening of March 18, 2020. The Act provides several emergency provisions that significantly modify the applicability of the Family and Medical Leave Act and also require employers to provide paid sick leave in certain circumstances related to COVID-19… read more.
Unemployment Status and the CARES Act
The CARES Act allowed states to enter into agreements with the federal government that provide enhanced benefits under their existing unemployment programs. Under these programs, in addition to existing unemployment compensation, qualifying individuals receive $600 per week of “Federal Pandemic Unemployment Compensation” through July 31, 2020… read more.
PPP Loan Program and the CARES Act
The Paycheck Protection Program (PPP) provides for the Small Business Administration (SBA) to guarantee 100% of loans issued to small businesses through December 31, 2020. This means that the loan money can be completely forgiven, depending on how the funds are used. Individual lenders will determine eligibility; however, generally a business is eligible if it employs 500 employees or less (not including independent contractors) and was in business on February 15, 2020. A total of $349 billion was allocated to help small businesses keep workers employed, but currently the SBA is not accepting further applications as the initial funding has run out. An additional round of funding is expected soon. If so, eligible entities should plan on applying as soon as the additional funds are authorized… read more.
OSHA Guidance on COVID-19
The Occupational Safety and Health Administration has posted Guidance on Preparing Workplaces for COVID-19 to businesses on how to prepare their worksites for COVID-19. The guidance makes clear that it is advisory in nature and not a new regulation or law that must be strictly followed.
State and Local COVID-19 Response Information
If you have personal or business connections with multiple states, the lobbying firm Multistate Associates has put together an excellent online spreadsheet of State and Local COVID-19 Response Information… read more.
The information contained within has been provided by Kemp Klein Law Firm for general information purposes. Nothing within this text or the affiliated links constitutes an offer, acceptance, agreement, or signature by Kemp Klein Law Firm and/or its attorneys or staff. Furthermore, this text does not constitute legal, accounting, tax, or other professional advice or services. Any business or individual should obtain a fact-specific analysis of the law from a legal professional prior taking any action.
While Kemp Klein Law Firm has made every attempt to ensure that the information contained is both accurate and up to date, please understand that this information is ever-changing and is subject to updated regulation coming out on a weekly basis. These are non-comprehensive pieces of information. Kemp Klein Law Firm is not responsible for any errors, omissions, or for the results obtained from the use of this information.