April 2020 Archives

The CARES Act - PPP Eligibility, "Economic Uncertainty" Certification, and the Safe Harbor Provision

By: Kyle D. Kring

On April 24, 2020, the President signed a bill that gave the Paycheck Protection Program ("PPP") an additional $310 billion in funding over the previous $349 billion authorized by Congress last month. As you probably know by now, there has been tremendous demand for the PPP loans. This significant demand has led to some strict scrutiny of larger businesses that applied for and received loan funds. Some of these large companies have recently rejected or returned loans they received in the PPP's initial offering, including the Los Angeles Lakers, Ruth's Chris Steakhouse, and Shake Shack.

City of L.A. Mandates Supplemental Paid Sick Leave to Fill Gaps in FFCRA

By: Kyle D. Kring and Kerri N. Polizzi

On Tuesday, April 7, 2020, Los Angeles Mayor Eric Garcetti issued an emergency Public Order regarding Supplemental Paid Sick Leave Due to COVID-19 taking immediate effect and requiring covered employers (more than 500 employees within the City of Los Angeles or more than 2,000 in the U.S.) to provide eligible employees with paid sick leave benefits during the public health emergency surrounding the COVID-19 pandemic. The Order amends the Los Angeles Municipal Code in what appears to be an attempt to fill gaps in the coverage afforded by the federal Families First Coronavirus Response Act ("FFCRA"), which went into effect earlier this month.1

Maximizing Forgiveness of Paycheck Protection Program Loans

By: Kyle D. Kring and Kerri N. Polizzi

On March 27, 2020, the federal Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law. Among a number of other stimulus programs, described in greater detail in our CARES Act overview, the law provided funding for federally-backed, partially-forgivable Paycheck Protection Program ("PPP") loans administered by the U.S. Small Business Administration ("SBA") to provide much-needed cash-flow assistance to employers who maintain their payroll during the coronavirus pandemic.

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