Important Updates Archive
May 26
House Set to Vote on PPP Fix Legislation:
Potentially tomorrow night, the House of Representatives is expected to vote on legislation to fix the small business loan program known as the Paycheck Protection Program . Introduced by Reps. Chip Roy (R-Texas) and Dean Phillips (D-Minn.), H.R. 6886, the Paycheck Protection Flexibility Act , is a bipartisan measure that addresses concerns such as eliminating restrictions on non-payroll expenses, extending loan forgiveness beyond the 8-week covered period and extending the rehiring deadline for employers. ABC will be sending out an Action Alert in support of this bill tomorrow morning.
Late last week, the Senate attempted to pass similar legislation to fix outstanding issues with the PPP but was unable to obtain unanimous consent to move the bill forward. ABC has vocalized its support for similar actions, joining more than 120 organizations in a business coalition letter addressed to Congressional leadership and Trump Administration officials requesting similar fixes.
SBA and Treasury Release IFR on Loan Forgiveness:
On Friday night before the long weekend, the Trump administration released long-awaited rules on how government-backed PPP small business loans can be forgiven, but the guidance falls far short of what employers and lawmakers have pushed for in the popular program and shows a need for the legislation mentioned above to implement necessary flexibility and resources for small businesses.
The administration released two new rules specifying what qualifies as payroll expenses and detailing limits on the amount of loan forgiveness available for owner-employees. One added details on the requirements for loan forgiveness. The other outlined lenders' responsibilities in the forgiveness process and SBA's procedures for reviewing loans to determine borrower eligibility.
May 13th
CT-N.com. As hospitalizations in Connecticut have steadily declined, we are still on target to begin reopening closed portions of the state economy on May 20 th.
New PPP Guidance Provides Additional Clarification on Good-faith Certification:
Ahead of tomorrow’s safe harbor date for returning PPP loan funds,
a new PPP FAQ was released on the good-faith certification, which clarifies that borrowers with loans of less than $2 million are deemed to have made the certification in good faith, and provides additional guidance on SBA reviews for borrowers with loans of more than $2 million. Full FAQ is also below. ABC recently released
a statement calling for additional clarification and consistent guidance from the SBA to provide certainty for employers.
ABC Responds to HEROES Act Tax Hike for Small Construction Businesses:
ABC responded to House Democrat’s proposal that would raise taxes on small construction businesses through the repeal of the bipartisan supported net operating loss carryback and loss limitation provisions previously included in the CARES Act. The CARES Act included a 5-year carryback for losses incurred in 2018, 2019, and 2020, and suspended the loss limitation rules for those years to provide critical relief for pass-through businesses with large losses. ABC previously joined over one hundred national business trade groups in a
letter of support for t his provision, and calls on Congress to keep this important relief intact as it considers additional responses to COVID-19.
1,815 page bill is largely a messaging bill, ABC will continue to provide updates on its progress through the House and further negotiations on additional relief funding.
IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans:
released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. The guidance issued addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided temporary relief for high deductible health plans may be applied retroactively to January 1, 2020, and it also increases for inflation the $500 permitted carryover amount for health FSAs to $550.
If you have any questions please don’t hesitate to reach out.
April 30th
First, this evening Governor Ned Lamont delivered a press briefing in which he discussed Connecticut’s ongoing plans to reopen the economy amid the positive news that statewide Covid-19 hospitalizations continue to decline. Attached you will find a Powerpoint presentation discussed during the briefing. In the briefing Governor Lamont revealed seven criteria for reopening businesses: a two-week decline in hospitalizations, substantially increased testing, sufficient contact tracing, adequate health care capacity, adequate supply of personal protective equipment, the ability to protect high-risk populations and the implementation of physical distancing rules in public places. Aside from the essential businesses operating now the plan envisions a gradual opening of the economy beginning roughly May 20 th- though that date is subject to change. This Hartford Courant article is a good summary of the outline and the press conference. Despite the gradual reopening of the economy it is envisioned that social-distancing, avoiding large public gatherings and safety measures such as the wearing of masks will continue well in to the future.
In unrelated state news- Connecticut businesses have begun to receive approval notifications for the CT DECD Bridge Loan Program. If you are one of the applicants you will hopefully hear the news soon, if not already. The HBJ has an article on the news here.
On the Federal front I want to raise awareness of a couple of items-
ABC Addresses New SBA and Treasury Guidance on PPP for Publicly Traded Companies:
In response to larger public companies gaining access to PPP loans, the SBA and Treasury issued new guidance in a supplemental Interim Final Rule reminding borrowers to “carefully review the required certification on the Paycheck Protection Program Borrower Application . . . stating that ‘[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.’”
In a related FAQ document , the SBA stated that borrowers “must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.” And “that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”
Further, Treasury Sec. Steve Mnuchin stated all loans of more than $2 million in a government relief program for small businesses will be audited to ensure they were justified after large public companies and big chains sparked outrage by taking funds. It is also important to note that the SBA has provided companies concerned about the accuracy of the certification a safe harbor: if they pay the loan back in full by May 7 the certification will be deemed to have been made in good faith.
Understandably, this new guidance raised concerns, but ABC believes that this guidance and action are geared towards publicly traded companies with access to capital markets. That being said, companies that received PPP loans should have a basis for their certification and need for the loan. Additional information is below and updates can be viewed at SBA.gov/PaycheckProtection and Treasury.gov/CARES, and ABC will continue to provide updates on any additional guidance.
Employee Retention Tax Credit Guidance:
The IRS recently released additional guidance for the employee retention tax credit authorized under the CARES Act, which can be viewed here. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. NOTE: an Eligible Employer may not receive the Employee Retention Credit if the Eligible Employer receives a PPP loan that is authorized under the CARES Act.
The Federal Reserve Releases New Guidance on Planned Main Street Lending Program:
Today, the Federal Reserve Board announced it is expanding the scope and eligibility for the Main Street Lending Program. The changes include:
- Creating a third loan option, with increased risk sharing by lenders for borrowers with greater leverage;
- Lowering the minimum loan size for certain loans to $500,000; and
- Expanding the pool of businesses eligible to borrow.
The Fed also announced that a start date for the program will be announced soon. Additional PPP and Main Street Lending Program resources can be found on ABC’s new and improved Coronavirus webpage for members and their employees. You can view additional information and guidance on the program below:
Term sheet: Main Street New Loan Facility (PDF)
Term sheet: Main Street Priority Loan Facility (PDF)
Term sheet: Main Street Expanded Loan Facility (PDF)
Main Street Lending Program Frequently Asked Questions (PDF)
April 28th
CDC Drafts Plan for Reopening U.S. Economy:
White House officials and coronavirus task force members received draft guidelines late last week on a phased reopening of schools and camps, child-care programs, some workplaces, houses of worship, restaurants, and mass transit, Washington Post reports, citing unnamed Trump administration officials.
- The CDC-written guidance, which could still change, is likely to be released within next seven days
- The 17-page proposal says all decisions should be made locally
- Contentious issues include guidelines for religious communities and restaurants
April 27th
$310 Billion for Paycheck Protection Program Loans Starts Today:
Last week, additional guidance was issued by the SBA and Treasury on the second round of funding for the popular program:
The Small Business Administration has also limited how much individual banks can lend under the PPP due to the program's high demand among businesses seeking relief from effects of the coronavirus pandemic. Individual banks and lenders will now be limited to 10 percent of the program's overall funding, or $60 billion. The cap is intended is to help all lenders have equal access for their small business clients, the SBA said.
For more information and updates, visit Treasury.gov/CARES and SBA.gov/PaycheckProtection
April 26th
On Sunday, New York Governor Andrew Cuomo said that construction and manufacturing could be the first industries allowed to resume as part of a phased approach to opening sectors of New York’s economy. The governor said the plan will be implemented in phases and will be based on regional analysis and determinations. The phased reopening could begin as soon as the state’s stay at home order expires on May 15.
April 20th
I want to clarify questions about Executive Order 7BB signed by Governor Lamont last week after receiving some questions from members. The order takes effect at 8pm Tonight (Monday) . While the order requires masks for members of the public when social distancing is not possible- the legally binding guidance from DECD requires masks or face cloth coverings be worn by all employees at all times they are in the workplace . Further, employers are required to issue masks or cloth face coverings to employees. Below is the excerpt from the guidelines but I encourage you to read the full list of guidelines from DECD here- https://www.cbia.com/resources/coronavirus/coronavirus-workplace-health-safety/ct-safe-workplace-rules/.
Masks or cloth face coverings required
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Each employee shall be required to wear a mask or other cloth material that covers their mouth and nose at all times while in the workplace. Employers shall issue such masks or cloth face coverings to their employees. In the event an employer is unable to provide masks or cloth face coverings to employees because of shortages or supply chain difficulties, employers must provide the materials and CDC tutorial about how to create a cloth face covering, or compensate employees for the reasonable and necessary costs employees expend on such materials to make their own masks or cloth face covering.
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Nothing in these rules shall require the use of a mask or cloth face covering by anyone for whom doing so would be contrary to their health or safety because of a medical condition.
· If a person declines to wear a mask or cloth face covering because of a medical condition as described above, such person shall not be required to produce medical documentation verifying the stated condition.
April 10th
The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued interim guidance for enforcing OSHA’s recordkeeping requirements (29 CFR Part 1904) as it relates to recording cases of COVID-19.
Under OSHA’s recordkeeping requirements, COVID-19 is a recordable illness, and employers are responsible for recording cases of COVID-19, if the case:
- Is confirmed as a COVID-19 illness;
- Is work-related as defined by 29 CFR 1904.5; and
- Involves one or more of the general recording criteria in 29 CFR 1904.7, such as medical treatment beyond first aid or days away from work.
In areas where there is ongoing community transmission, employers other than those in the healthcare industry, emergency response organizations (e.g., emergency medical, firefighting and law enforcement services), and correctional institutions may have difficulty making determinations about whether workers who contracted COVID-19 did so due to exposures at work. Accordingly, until further notice, OSHA will not enforce its recordkeeping requirements to require these employers to make work-relatedness determinations for COVID-19 cases, except where: (1) There is objective evidence that a COVID-19 case may be work-related; and (2) The evidence was reasonably available to the employer. Employers of workers in the healthcare industry, emergency response organizations and correctional institutions must continue to make work-relatedness determinations pursuant to 29 CFR Part 1904.
OSHA’s enforcement policy will provide certainty to the regulated community and help employers focus their response efforts on implementing good hygiene practices in their workplaces and otherwise mitigating COVID-19’s effects.
For further information and resources about the coronavirus disease, please visit OSHA’s COVID-19 webpage.
April 7th
This evening Governor Lamont provided an update on the state’s actions to combat the spread of COVID-19 and signed another executive order which you can read here . One edict of the Executive Order pertains to safe workplaces in essential businesses. Specifically the order dictates that every workplace shall take additional protective measures to reduce the risk of transmission of COVID-19.
Additional legally binding guidance was released along with the order which outlines specific actions employers MUST take in order to ensure the safety of their workplaces. That guidance can be found here . PLEASE NOTE- within the guidance there is specific rules for construction sites. While I urge you to read and adhere to all of the guidance released tonight, here are the items listed specifically for construction:
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Clean portable bathrooms no less than every 2 days.
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Require employees to travel separately to and from, and within, worksites.
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Reschedule work to maximize the amount of work being performed outdoors, limit indoor or work lacking significant fresh air.
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Shift work to limit the size of the crews on the jobsite, especially indoors.
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Rotate lunch and coffee break shifts, requiring workers to follow the CDC social distancing guidelines during meals or breaks.
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Follow all safety and health protocols when using an elevator.
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Provide an adequate supply of PPE, including but not limited to masks, gloves, hand sanitizer.
ABC members have a proud history of leading the way in the construction industry when it comes to safety. If you are continuing to operate a construction site please take the necessary steps to protect the integrity and safety of the site. State officials have indicated that they will be doing roving checks to ensure proper safety precautions are being take and will reserve the right to shut down jobsites that are not taking the proper precautions.
Second, I would like to make sure you are aware that the Governor is holding a conference call for Employers this Thursday, April 9 th from 1pm to 2pm. The topics will include the Federal Paycheck Protection Program, Economic Injury Disaster Loans and Grants, Connecticut initiatives to assist businesses and residents, Mortgage deferment and assistance and the health insurance grace period. Here is the call-in information:
Call Number: 888-456-0356
Passcode: 2802806#
Lastly, I want to follow up on information regarding eligibility for the PPP loan. Although ABC determined that the Interim Final Rule for the Paycheck Protection Program did not exclude construction companies with 500 or fewer employees from eligibility, we were seeking clarification on PPP eligibility from the U.S. Treasury and the U.S. Small Business Administration to assure members of the bill’s intent.
Late last night, the SBA and Treasury confirmed ABC’s interpretation of the IFR and addressed this issue in a release of FAQs for lenders and borrowers . The FAQs further state that borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule . The U.S. government will not challenge lender PPP actions that conform to this guidance, and to the PPP Interim Final Rule and any subsequent rulemaking in effect at the time.
Importantly in this document, it clarifies that businesses do not have to qualify as both a small business concern AND have 500 or fewer employees. ABC continues to urge eligible members in need to apply for PPP loans.
April 7th
Gov. Lamont is hosting a statewide conference call for employers on Thursday, featuring officials from the U.S. Small Business Administration and the departments of Economic and Community Development, Banking, and Insurance
When: Thursday, April 9, 2020
Time: 1:00 - 2:00 p.m.
Call: 888.456.0356
Passcode: 2802806#
Topics include:
• Federal Paycheck Protection Program, Economic Injury Disaster Loans and Grants
• Connecticut initiatives to assist businesses and residents
• Mortgage deferment and assistance
• Health insurance grace period
April 3rd
The U.S. Small Business Administration on Thursday issued an interim final rule for the Paycheck Protection Program (PPP), which is offering $349 billion in forgivable loans that small businesses impacted by the coronavirus pandemic can use to cover costs including payroll and rent. Read MORE HERE.
April 2nd
Governor Lamont Announces Bond Commission to Hold Special Meeting on April 8th
Governor Ned Lamont, chairman of the State Bond Commission, today announced that the Bond Commission will hold a special meeting at 1:00 p.m. on Wednesday, April 8, 2020, to act on a number of critical items. Due to the extraordinary circumstances surrounding the COVID-19 public health and civil preparedness emergency and the necessity to practice social distancing in order to ensure the safety of everybody involved, and in accordance with the open meeting requirements of Executive Order No. 7B, this meeting will be conducted via teleconference and there will be no in-person attendance permitted.Click here for a MEETING AGENDA.
March 31st
I want to address a comment Governor Lamont made during his press conference earlier today. A reporter asked the governor if there should be a limit to the number of people on a construction site and whether the size of a job should have bearing on whether or not it is essential. The Governor responded that sites can stay open “if you can work safely.” He then went on to say that the big outside projects where safe distancing can be practiced should continue but the tighter areas “maybe inside construction work” where safe distancing isn’t possible, those sites are dangerous and should stop.
Importantly, his executive order and the accompanying guidance on what is considered essential business has not changed, it was not amended. Further, his comments do not have the effect of shutting down inside construction. What we should take them to mean is that if you are unable to properly protect the safety of workers on a job then that job should not continue. ABC takes safety seriously and we always believe a job must ensure proper safety measures- today, the analysis of what is considered “safe” is somewhat different due to the concerns of spreading COVID-19. If proper safety is not possible given the added threats related to COVID-19 then the government may not deem your site to be essential. If you have questions related to this please feel free to reach out to me and, as always, we encourage you to speak with your attorney if you have serious concerns.
Second, Governor Lamont announced today the availability of mortgage relief for individuals and businesses who face hardship caused by the COVID-19 pandemic. The agreement was reached with over 50 banks and credit unions to provide a 90 day grace period for all mortgage payments including relief from fees and charges with no effect on credit score. The governor’s press release with additional information can be found here and the Department of Banking website has additional FAQs and a list of participating institutions which can be found here.
March 29th
March 27th
There are two specific updates we would like to communicate to you all.
First- earlier this week we told you we’ve been following New York and the possibility that they would further restrict Construction. That order has come through as New York has narrowed the definition of "essential" construction, closing most projects in the state following concerns about worker safety as numbers rise related to cases and deaths. Sites including, transportation, hospitals, affordable housing, homeless shelters and utilities are allowed to stay open.
"All non-essential construction must shut down except emergency construction," the Empire State Development Corp. said in guidelines issued on March 27 following a revised Executive Order from Gov. Andrew Cuomo.
The shutdown will be in effect statewide until April 21.
Second, and very importantly:
Following the passage of the Coronavirus Aid, Relief and Economic Security Act (CARES) and President Trump signing it into law, ABC has gathered some additional information on the bill’s small business and tax provisions.
ABC also encourages its members to consult with their tax accountants on these provisions to see what best fits their business needs.
March 26th
Specifics on the CT Recovery Bridge Loan Program referenced to yesterday are now available. See below for a press release from the Governor with more information. In short the loan will be made available for businesses with up to 100 employees and will provide non-interest loans up to $75,000 for up to 18 months. For additional requirements and to apply visit CT DECD here- https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/CT-Recovery-Bridge-Loan-Program
March 25th
Governor Ned Lamont today announced that Connecticut small businesses and nonprofits that have been negatively impacted by the global spread of the COVID-19 pandemic can now apply for one-year, no-interest loans of up to $75,000 under the launch of a new program administered by the state’s Department of Economic and Community Development (DECD).
The White House and Senate leaders announced agreement Wednesday on an unparalleled, $2 trillion emergency bill to rush aid to businesses, workers and a health care system slammed by the coronavirus pandemic.
It’s the largest economic rescue bill in history. The package is intended as a weekslong or monthslong patch for an economy spiraling into recession or worse and a nation facing a grim toll from an infection that’s killed nearly 20,000 people worldwide.
The COVID-19 pandemic has caused international shortages of critical PPE. Hartford HealthCare and Yale New Haven Health are accepting donations, including the following items:
Disposable head covers
Disposable Gowns
Disposable Gloves
N95 respirator face masks
Disposable face masks
Face-shields/goggles
Coveralls/scrubs
Shoe-covers
Disinfection wipes and liquids
General-purpose hand cleaners
Click here to make a donation to Yale New Haven Health
March 22nd
The Lamont Administration released guidance for what is considered "essential" business. The guidelines broadly deem construction to be essential. Read the guidelines here.
March 20th
Governor Lamont announced that he will soon be signing an executive order mandating workers at “non-essential” businesses to stay home. The order shall be effective 8pm on Sunday, March 22 nd. Hartford Courant Story can be found here .
During the press conference Governor Lamont said that “major construction” projects will be exempted by the order. Upon questioning from the press he specified large outdoor projects such as schools and transportation projects; however, the Commissioner of DECD is working on more specific guidance on what will and will not be exempted by the order and that should be available by Monday. Also, there will be a process put in to place for businesses to appeal to the state to make a case for being included in the exemption from the order.
We are working to get as many specifics as possible on this order but if you have questions about any specific jobs that you are working on please let me know and I will do my best to get some clarity for you from the administration.
Governor Lamont also stated that 194 residents in Connecticut are infected with the coronavirus and a fourth fatality in Fairfield County has been reported. Forty people are currently hospitalized in Connecticut with COVID-19 and the State of Connecticut is currently able to test 1,000 potential cases a day.
Thank you for all you do and be safe.
Chris Fryxell
March 19th
Governor Lamont Releases Comprehensive Document with FAQs and State Response to Covid-19
Governor Lamont issues his eight executive order shuttering some businesses including nail salons and barbers and delaying the state presidential primary to June. You can read all of the governor's executive orders here.
First State Lawmaker Tests Positive for Coronavirus
Did you miss Governor Lamont and Connecticut Department of Economic and Community Development Commissioner David Lehman’s conference call with over 2000 businesses around our state? Click here to listen to a recording of the call.
March 18th
The Department of Economic and Community Development has updated the scheduled conference call for tomorrow, Thursday, March 19th from 1:00 to 2:00 p.m., open to all businesses, chambers of commerce, stakeholders and other in-state partners. On this call, Governor Ned Lamont and DECD Commissioner David Lehman will share how the state is responding to the economic dimensions of this crisis.
Thursday, March 19, 2020
1:00 to 2:00 p.m.
Dial in: 1-888-456-0356
Passcode: 2802806#
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Additionally, all members are encouraged to take the short business survey below put together by AdvanceCT in partnership with DECD and CBIA to provide feedback to the state and policymakers regarding how Connecticut businesses are responding to the COVID-19 crisis.
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March 17th
Connecticut unemployment claims reach 30,000 since Friday.
March 16th
In what could be a sign of things to come, Boston became the first city in the nation today to shut down construction sites as a result of the virus.