Paycheck Protection Program

Mar 29, 2020

Paycheck Protection Program (Section 1102)

The Small Business Administration (SBA) requires lenders to provide complete payment deferment relief (including payment of principal, interest, and fees) for impacted borrowers with covered loans for a period of at least six months, but not more for one year 

Loan Forgiveness  (Section 1106)

Emergency EIDC Grants (Section 1110)

Subsidy for Certain Loan Payments (Section 1112)

Unemployment Insurance Provisions

Enhancement of Benefits and Covered Individuals (Sections 2101-2116)

Title II, Subtitle A of CARES provides an estimated $260 billion in enhanced and expanded unemployment insurance benefits to millions of workers throughout the country who are unemployed or underemployed because of the COVID-19 pandemic. Below is a summary of the expanded benefits and coverage requirements.

Individuals are not eligible if they are able to work remotely

Retirement Plans

Greater Access to Distributions (Section 2202(a))

Greater Loan Flexibility (Section 2202(b))

Relaxed Rule on Required Minimum Distributions (Section 2203)

Special Business Provisions

Social Security Tax Credit for Employers Subject to Full or Partial Suspension of Business Due to COVID-19 (Section 2301)

Delayed Payment of Employer Social Security Taxes (Section 2302)

DOL Authority to Relax Filing Deadlines (Section 3607)

Single-Employer Funding Rules (Section 3608)

Tax-Free Employer Payment of Student Loans (Section 2206)

All of the Section 127 requirements for tax-free payments continue to apply.

Executive Compensation

Executive Compensation Limitations (Section 4004) 

Special Executive Compensation Limitations for Officers and Employees of Air Carriers or Contractors (Section 4016)

Posted by: Pat Monks