COVID-19 Dai­ly Communications

Infor­ma­tion accu­rate as of 04/21/20


PPP & EIDL Loan Update

Con­gress appears to of passed a new $450 bil­lion stim­u­lus deal–with anoth­er $370 bil­lion ear­marked for pop­u­lar small busi­ness fund­ing pro­grams.  The new pack­age is expect­ed to add about $310 bil­lion to the Pay­check Pro­tec­tion Pro­gram (PPP). The pro­gram’s ini­tial $349 bil­lion allot­ment was exhaust­ed after just 14 days. The new round of fund­ing would also add $60 bil­lion the Eco­nom­ic injury Dis­as­ter Loan pro­gram (EIDL). While the replen­ished funds undoubt­ed­ly will be help­ful for busi­ness­es that have been hard hit by the pan­dem­ic and unable to secure Covid-19 finan­cial relief, this next tranche is expect­ed to go quickly–perhaps even out­pac­ing the first round.

IRS Employ­ee Reten­tion Credit

  • The Employ­ee Reten­tion Cred­it is a ful­ly refund­able tax cred­it for employ­ers equal to 50 per­cent of qual­i­fied wages (includ­ing allo­ca­ble qual­i­fied health plan expens­es) that Eli­gi­ble Employ­ers pay their employ­ees. This Employ­ee Reten­tion Cred­it applies to qual­i­fied wages paid after March 12, 2020, and before Jan­u­ary 1, 2021.  The max­i­mum amount of qual­i­fied wages tak­en into account with respect to each employ­ee for all cal­en­dar quar­ters is $10,000, so that the max­i­mum cred­it for an eli­gi­ble employ­er for qual­i­fied wages paid to any employ­ee is $5,000.


  • Eli­gi­ble Employ­ers for the pur­pos­es of the Employ­ee Reten­tion Cred­it are those that car­ry on a trade or busi­ness dur­ing cal­en­dar year 2020, includ­ing a tax-exempt orga­ni­za­tion, that either:


  • Ful­ly or par­tial­ly sus­pends oper­a­tion dur­ing any cal­en­dar quar­ter in 2020 due to orders from an appro­pri­ate gov­ern­men­tal author­i­ty lim­it­ing com­merce, trav­el, or group meet­ings due to COVID-19 or;
  • Expe­ri­ences a sig­nif­i­cant decline in gross receipts dur­ing the cal­en­dar quar­ter. A sig­nif­i­cant decline in gross receipts begins with the first quar­ter in which an employer’s gross receipts for a cal­en­dar quar­ter in 2020 are less than 50 per­cent of its gross receipts for the same cal­en­dar quar­ter in 2019.


  • Eli­gi­ble employ­ers will report their total qual­i­fied wages and the relat­ed health insur­ance costs for each quar­ter on their quar­ter­ly employ­ment tax returns, which will be Form 941 for most employ­ers, begin­ning with the sec­ond quar­ter. The cred­it is tak­en against the employ­er’s share of social secu­ri­ty tax, but the excess is refund­able under nor­mal pro­ce­dures. In antic­i­pa­tion of claim­ing the cred­it, employ­ers can retain a cor­re­spond­ing amount of the employ­ment tax­es that oth­er­wise would have been deposit­ed, includ­ing fed­er­al income tax with­hold­ing, the employ­ees’ share of Social Secu­ri­ty and Medicare tax­es, and the employ­er’s share of Social Secu­ri­ty and Medicare tax­es for all employ­ees, up to the amount of the cred­it, with­out penal­ty, tak­ing into account any reduc­tion for deposits in antic­i­pa­tion of the paid sick and fam­i­ly leave cred­it pro­vid­ed in the Fam­i­lies First Coro­n­avirus Response Act


Main Street Lend­ing Program

  • The Fed­er­al Reserve has not yet released full details about its Main Street Lend­ing Pro­gram, under which the Reserve Bank will set up a pro­gram to pur­chase 95 per­cent par­tic­i­pa­tions in loans orig­i­nat­ed by eli­gi­ble lenders. Lenders will retain 5 per­cent of the loans. U.S. busi­ness­es are eli­gi­ble for loans if they meet either of the fol­low­ing con­di­tions: (1) the busi­ness has 10,000 employ­ees or few­er; or (2) the busi­ness had 2019 rev­enues of $2.5 bil­lion or less. Loans would have a four-year matu­ri­ty, and prin­ci­pal and inter­est pay­ments on the loans will be deferred for one year.



State and Local:

Cities Offer­ing Emer­gency Busi­ness Relief Programs



Busi­ness help­ing Business:


The U.S. Cham­ber has launched the Save Small Busi­ness Fund, a pil­lar of the Save Small Busi­ness Ini­tia­tive. The pro­gram pro­vides $5,000 sup­ple­men­tal grants to small employ­ers in eco­nom­i­cal­ly vul­ner­a­ble communities.



NKY Cham­ber Dai­ly:


US Cham­ber of Com­merce: