Banking & Finance Law Report

Financial relief for small businesses under the CARES Act & eligibility FAQs

The third phase of COVID-19 legislation was signed into law on Friday, March 27, 2020, and has been named the Coronavirus Aid, Relief and Economic Security Act (CARES Act). For small businesses, this legislation means that $349 billion in stimulus dollars is heading out to eligible small businesses, sole proprietors, ESOPs, non-profits, veterans organizations, and other tribal business concerns, to provide assistance maintaining payroll and employee benefits, along with overhead costs. My colleague Cassandra Rice detailed the options in this Law Alert.

Eligible businesses should carefully review the Small Business Administration’s (SBA) eligibility requirements for each program, which our colleague Jack Meadows laid out in this Law Alert.

Ohio extends income tax filing and payment deadline

The Ohio Department of Taxation announced on March 27, 2020 that Ohio will be following the federal government and IRS in extending the deadline to file and pay state income tax. Please refer to our prior post for more information on the federal deadline change.

The Ohio deadline for state income taxes is now July 15, 2020, rather than April 15. This extension is intended to help taxpayers deal with the economic impact of COVID-19 and the public safety measures that have been adopted.

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IRS clarifies information about delayed federal tax filing and payment deadlines

In response to the COVID-19 pandemic and the increased strain placed on individuals and business taxpayers during this time, the IRS has pushed back certain payment and filing deadlines to ease the burden on taxpayers. The Treasury Department and Internal Revenue Service (IRS) announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

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Tax credits available under the Families First Coronavirus Response Act

The Families First Coronavirus Response Act (FFCRA) requires employers with fewer than 500 employees to make payments for COVID-19 related FMLA leave and paid sick leave required by the act. To lessen this financial burden to employers, the act provides for refundable tax credits to offset payroll taxes. My colleague Victoria Hanohano-hong details the credits in her post on the Employee Benefits Law Report Blog.

Financial institutions encouraged to work with borrowers affected by COVID-19

Several governmental agencies have issued a statement encouraging financial institutions to work with borrowers affected by the COVID-19 pandemic. The Board of Governors of the Federal Reserve System, Conference of State Bank Supervisors, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation,  National Credit Union Administration, and Office of the Comptroller of the Currency issued a press release on March 22, 2020.

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Financial services sector classified as critical infrastructure

On March 22, 2020, Steve Mnuchin, Secretary of the Treasury, released a memorandum providing that the financial services sector is identified as Critical Infrastructure Sector by the Department of Homeland Security. This means that despite the restrictions put in place to slow the spread of COVID-19, essential workers in the financial services sector must maintain their operations and work schedules.

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Ohio “Stay at Home” order limits business operations to slow spread of COVID-19

The director of the Ohio Department of Health signed a “Stay at Home” order on March 22, 2020, calling on all Ohioans to stay at home or at their place of residence unless conducting or participating in essential activities, essential governmental functions, or essential businesses and operations. Our colleague, Adam Bennett, lays out what this order means for Ohio businesses.

Read the full post on the Employer Law Report Blog.

Banks, credit unions, non-depository licensees remain open in PA

On Thursday, March 19, 2020, Pennsylvania’s Governor Tom Wolf ordered all “non-life sustaining businesses” in the state to close their physical locations in an attempt to slow the spread of COVID-19.

According to the Department of Banking & Securities, this order does not pertain to banks, credit unions or non-depository licensees. These institutions will remain open.

Businesses can apply for a waiver to the order by emailing or calling 877-PA-HEALTH.

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