CARES Act – Page 6 – Coronavirus (COVID-19)

March 30, 2020August 31, 2020 by Duane Morris

CARES Act Offers Employers Aid with Some Strings Attached

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) is now law, having been enacted the same day Congress passed the bill. The Act is unprecedented in many ways, including the protections it affords various nonemployee segments of the workforce, such as gig-economy workers, sole proprietors, independent contractors and the self-employed, who have never had many of the protections afforded employees. Equally significant is the relief immediately available to employers to incentivize employee retention, but they must act quickly and decisively. For larger employers, the employee-retention incentives are welcomed relief, but they should be aware of the onerous obligations and stringent restrictions attached.

To read the full text of this Duane Morris Alert, please visit the firm website.

March 30, 2020August 31, 2020 by Duane Morris

CARES ACT Creates New Opportunities for Companies That Can Supply PPE and Other Essential Medical Products

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law. The CARES Act will provide federal agencies with nearly $100 billion to address the supply chain breakdowns in medical products needed to combat the COVID-19 pandemic. The rapid influx of funding creates new opportunities for companies that can manufacture or supply essential personal protective equipment (PPE) and other key medical products.

To read the full text of this Duane Morris Alert, please visit the firm website.

March 28, 2020August 31, 2020 by Duane Morris

REAL ID Compliance Deadline Postponed Due to COVID-19

By Jose Aquino

On March 23, 2020, President Trump announced that he would extend the October 1, 2020 deadline for compliance with the REAL ID Act of 2005. Under the REAL ID Act, federal agencies cannot accept state driver’s licenses or identification cards for “official purposes.” Implementation of the REAL ID Act would prohibit the use of a state ID to enter federal buildings or pass through TSA security checkpoints to board domestic flights, unless the propounded ID meets certain minimum requirements. The stated goal for extending the compliance date is to avoid potential disruption of air travel.

On March 26, 2020, the acting Secretary U.S. Department of Homeland Security (DHS) Chad Wolf announced the extension of the compliance deadline by one year, until October 1, 2021. The directive to DHS to delay the Real ID rollout until at least Sept. 30, 2021, was part of the $2 trillion stimulus package passed by Congress. A Real ID is obtainable only in-person at a state DMV office. DHS had to avoid applicants rushing to obtain compliant identification at a time of social distancing and government closure due to the nationwide outbreak of COVID-19.

Congress first enacted the Real ID Act in 2005 in response to the September 11, 2001, terrorist attacks. The goal was to have secure and consistent identification documents across the nation. The original deadline, however, had to be extended for years because non-compliance by most states.

March 27, 2020August 31, 2020 by Duane Morris

Historic CARES Act Puts $2 Trillion Toward COVID-19 Response Efforts

Enacted on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) is the largest economic stimulus package in American history, providing $2 trillion in essential financial, medical and economic assistance to industries, businesses and individuals affected by this global health and financial crisis. Since the early stages, the Duane Morris COVID-19 Strategy Team has been closely monitoring developments and advising clients on the complex legal issues and far-reaching implications of the pandemic. Our attorneys have reviewed the key provisions of the CARES Act and have summarized the significant benefits, resources and opportunities that may be available to you.

To read the full text of this Duane Morris Alert, please visit the firm website.

March 27, 2020August 31, 2020 by Duane Morris

CARES Act Changes to Retirement Plans and Executive Compensation

On March 27, 2020, the House of Representatives passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Senate passed the Act on March 25, 2020, and the president is expected to sign the Act into law shortly. The Act is the largest stimulus bill in American history and contains a number of provisions that affect an employer’s retirement plans and executive compensation arrangements.

To read the full text of this Duane Morris Alert summarizing these provisions, please visit the firm website.

March 27, 2020August 31, 2020 by Duane Morris

COVID-19 CARES Act and Notice 2020-18: Tax Effects on Private Equity Firms and Portfolio Companies

As the outbreak of the coronavirus (COVID-19) continues to plague the United States, on March 27, 2020, the U.S. House of Representatives passed the previously approved U.S. Senate version of the much anticipated Coronavirus Aid, Relief and Economic Security Act (CARES Act), providing a needed $2 trillion in relief to the U.S. economy that is teetering on the border of a recession. The CARES Act is the largest of its kind in U.S. history and will provide $500 billion to distressed companies, $350 billion in small business loans and $250 billion in direct payments to individuals and families.

This Alert serves as a brief overview of a few of the important provisions of the CARES Act and IRS Notice 2020-18 that will have a significant impact on private equity funds and their portfolio companies moving forward.

To read the full text of this Duane Morris Alert, please visit the firm website.

March 27, 2020September 1, 2020 by Duane Morris

CARES Act Offers Small Businesses Relief Through Paycheck Protection Program

On the evening of March 25, 2020, the Senate approved the Coronavirus Aid, Relief and Economic Security Act legislation (CARES Act), providing over $2 trillion of relief designed to ease some of the economic hardship caused by the COVID-19 outbreak. This legislation still requires approval from both the House and president, which is expected over the next few days. The relief package is the largest in history and includes relief for businesses and individuals.

This Alert highlights the small-business section of the CARES Act and the creation of the Paycheck Protection Program, which provides cash flow and liquidity through loan opportunities for small businesses, sole proprietors and independent contractors across various industries. Additional detail will be provided as the Small Business Administration drafts implementing regulations, which is required to occur within 15 days once the CARES Act becomes effective.

To read the full text of this Duane Morris Alert, please visit the firm website.