The Centers for Disease Control and Prevention (CDC) has issued guidance for employers preparing to re-open their offices, including information on how to create a COVID-19 workplace health and safety plan. The guidance can be found on the CDC’s website here.

The CARES Act includes a one-year credit against an employer’s share of Social Security payroll taxes, which is 6.2 percent. This retention credit only applies to businesses that are being forced to either suspend, or close operations completely, due to COVID-19, but are continuing to pay their employees wages and/or health benefits. 

If a business meets the eligibility requirements, it is entitled to an employee retention credit for each quarter until gross receipts exceed 80 percent of what they were for the same quarter the previous year. 

Eligible businesses will receive a credit against their 6.2 percent share of Social Security payroll taxes, equal to 50 percent of the qualified wages paid to each employee for that quarter, through December 31, 2020. Qualified wages depend on a business’ size (over or under 100 employees during the 2019 calendar year) and also include any “qualified health plan expenses.” 

Employee retention credits are not available to businesses who take out a 7(a) Small Business Administration (SBA) payroll protection loan. 

The CARES Act allows employers to defer their share of the 6.2 percent Social Security tax from the date of enactment through the end of the 2020. The bill allows for half of that deferred tax to be paid on December 31, 2021 and the other half to be paid December 31, 2022.

Those that are self-employed can defer paying 50 percent of their self-employment tax and would have to pay that back under the same parameters above. 

Social Security Trust Funds are also held harmless under this section. 

The CARES Act temporarily increases the amount of interest that businesses are allowed to deduct on their tax returns. The bill increases the 30 percent limitation to 50 percent of taxable interest. These changes will apply to taxable years beginning after December 31, 2018. 

The CARES Act established a new $349 billion Paycheck Protection Program which provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed. All loans will be forgiven so long as the funds are used to keep employees on the payroll and for certain other expenses. Treasury Department guidance on the Paycheck Protection Program can be found here.

This will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. 

The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees. The original application deadline of June 30, 2020 has been extended to August 8, 2020, allowing businesses more time to apply for the more than $130B that was not used by June 30.

Eligible businesses include all businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries. On April 21, the SBA posted a rule expanding eligibility of the PPP to individuals that are self-employed and file a Form 1040, Schedule C. The text of the rule can be found here. Starting May 4, the SBA limited the number of PPP loans a single corporate entity can receive. The full notice can be found here.

For recipients of PPP loans, on April 30, the Internal Revenue Service (IRS) issued guidance that would prevent companies from taking tax deductions for business expenses that they normally claim, such as wages, rent, certain interest and utilities, if the spending comes from loans under the PPP.

On May 19, the SBA published two new rules related to the Paycheck Protection Program including an interim final rule that allows for loan amounts to partnerships and seasonal employers found here and an interim final rule expanding eligibility to nonprofit power cooperatives that are exempt from federal income taxation under Section 501(c)(12) found here.

On Thursday, June 5, the President signed H.R. 7010, the Paycheck Protection Program (PPP) Flexibility Act, which extends the period for borrowers to spend their PPP loan to 24 weeks and decreases the amount of the loan that has to be spent on payroll from 75% to 60%.

The application for PPP loan forgiveness can be found here and SBA requirements for loan forgiveness can be found here. The maximum loan amount is $10 million.

All loans under this program have the following identical features:

• Interest rate of 0.5% 
• Maturity of 2 years 
• First payment deferred for six months 
• 100% guarantee by SBA
• No collateral
• No personal guarantees
• No borrower or lender fees payable to SBA

On June 15, the Federal Reserve announced its $600B Main Street Lending Program for midsize businesses and said that banks can now register to participate. In the program, the Federal Reserve will buy 95% of a bank loan to a company with up to 15,000 employees or up to $5B in annual revenue. The program is designed to help businesses that are too large to qualify for the PPP. On July 17, the Federal Reserve expanded eligibility of the Main Street Lending Program to include educational institutions, hospitals, and social service organizations. Additional information, including term sheets for the new organizations to participate, can be found here.

The Wage and Hour Division within the Department of Labor issued a temporary rule promulgating temporary regulations to implement public health emergency leave under Title I of the Family and Medical Leave Act (FMLA), and emergency paid sick leave to assist working families facing public health emergencies arising out of Coronavirus Disease 2019 (COVID-19) global pandemic. That notice can be found here.

The U.S. Chamber of Commerce, the world’s largest business organization, recently put together a State-by-State Guide to Coronavirus Financial Assistance, outlining state and local resources for small businesses who need financial assistance during this time. For more information and to view the state-by-state guide, please visit their website here.

The CARES Act allows a taxpayer to take a “coronavirus-related distribution” of up to $100,000 in 2020 with no penalty.

This would only apply to those taking a coronavirus-related distribution due to: 

1. Being diagnosed with COVID-19 by a Centers for Disease Control (CDC) approved test, 
2. If a spouse or dependent is diagnosed with COVID-19, 
3. Due to experiencing adverse financial consequences as a result of being laid off, furloughed, having businesses hours reduced, or 
4. Being unable to work due to childcare issues

Income tax on the distribution still applies and the effective date is the date of enactment and applies to the rest of the calendar year. 

The CARES Act allows an individual, or a corporation, to make a cash contribution of up to $300 to certain qualifying charities and allows them to deduct the contribution “above the line” when computing adjusted gross income. 

This above the line deduction is only available to those taxpayers and corporations who do not itemize their deductions. 

With respect to those who do itemize their deductions, the CARES Act temporarily lifts the limits on charitable giving for the remainder of 2020. 

For individuals, 50 percent of adjusted gross income limitation is suspended for 2020 and the 10 percent limitation for corporations is increased to 25 percent of taxable income. These changes will apply to taxable years beginning after December 31, 2019. 

The Wage and Hour Division within the Department of Labor issued a temporary rule promulgating temporary regulations to implement public health emergency leave under Title I of the Family and Medical Leave Act (FMLA), and emergency paid sick leave to assist working families facing public health emergencies arising out of Coronavirus Disease 2019 (COVID-19) global pandemic. That notice can be found here.

In April, the Internal Revenue Service (IRS) began distributing Economic Impact Payments of up to $1,200 for individuals and $2,400 for married couples, dependent on their income. If you are eligible for a payment and still have not received one, you can check the status of your payment via the IRS webpage “Get My Payment.” More information can be found here.

• Treasury Department page containing all CARES Act resources can be found here. 
• Glenn Fine, the acting inspector general of the Pentagon, has been was selected to oversee the management and spending of the CARES Act. Mr. Fine will serves as Chair of the Pandemic Response Accountability Committee, made up of agency inspector generals from across the administration, which was established by the CARES Act.
• On April 21, the Senate passed additional funding for CARES Act programs including an addition $100 billion for the Department of Health and Human Services. Included in this $100 billion of additional funds is $75 billion for hospitals to cover unanticipated expenses and $25 billion for COVID-19 testing. The bill also includes $1 billion for the Centers for Disease Control and Prevention (CDC), $1.8 billion for the National Institutes of Health, $22 million for the Food and Drug Administration (FDA), $825 million for community health centers and rural health clinics, and $1 billion to cover testing costs for the uninsured. More information on these additional funds can be found

• President Trump invoked the Defense Production Act on March 27, directing General Motors (GM) to manufacture ventilators amid the COVID-19 pandemic. GM, and Ford, have both partnered with medical device suppliers to produce the ventilators, but have indicated plans are still “in the early stages.”

• On May 12, Democrats in the House of Representatives introduced the HEROES Act, a $3 trillion coronavirus relief package aimed at helping individuals and businesses impacted by the pandemic. Among other things, the bill includes additional funds for economic impact payments to individuals and households and it enhances the employee retention tax credit and expands the Payroll Protection Program (PPP). A one page summary of the legislation released by House Democrats can be found here. The legislation was passed by the House of Representatives on May 15 but is not expected to be taken up by the Senate.

On July 28, Senate Republicans unveiled their proposal for the next COVID-19 relief package, the Health, Economic Assistance, Liability protection, and Schools (HEALS) Act. The legislation includes a topline number of $1 trillion for COVID-19 relief and includes, among other things, additional emergency appropriations funding, liability protections for businesses and additional funding for businesses and employees affected by the COVID-19 pandemic. The plan is for the legislation to pass through both chambers of Congress by August 7, a timeline that is subject to change depending on the progress of negotiations.

• National Emergency Authority To Order the Selected Reserve and Certain Members of the Individual Ready Reserve of the Armed Forces to Active Duty
  • This Executive Order gives additional authority to the Secretaries of Defense and Homeland Security to activate reserve forces of each branch of the military.
• Delegating Additional Authority Under the Defense Production Act With Respect to Health and Medical Resources To Respond to the Spread of COVID-19
  • This Executive Order allows for the financial support and guarantee of the production of personal protective equipment, ventilators, and other medical equipment to support the American medical system.
• Providing Federal Support for Governors' Use of the National Guard To Respond to COVID-19
  • This Executive Order allows for the National Guard to be put under State control, but funded by FEMA, to help facilitate the transfers of medical equipment.
  • Connecticut, Illinois, and Michigan are included in this executive order.
• Providing Federal Support for Governors' Use of the National Guard To Respond to COVID-19
  • This Executive Order allows for the National Guard to be put under State control, but funded by FEMA, to help facilitate the transfers of medical equipment.
  • Florida, Louisiana, Maryland, Massachusetts, New Jersey, Guam, and Puerto Rico are included in this executive order.
• Express Bridge Loan Pilot Program; Modification of Eligibility and Loan Approval Deadline and Extension of Pilot Program
  • The modification of eligibility criteria and program requirements will allow small businesses adversely impacted by the COVID-19 emergency to qualify for loans through the Express Bridge Pilot. Finally, SBA is extending the term of the Express Bridge Pilot from September 30, 2020 to March 13, 2021, to assist small businesses that may experience delayed effects resulting from the COVID-19 emergency to benefit from the Express Bridge Pilot and to allow SBA to continue its evaluation of the program.
• Suspending Entry of Immigrants Who Present Risk to the U.S. Labor Market During the Economic Recovery Following the COVID-19 Outbreak
  • This Executive Order put a 60-day pause on immigrants seeking entry into the United States who:
    • Are currently outside the United States;
    • Do not have a valid immigrant visa; or
    • Do not have an official travel document other than a visa (such as a transportation letter, or boarding foil).
      • Further details, including exceptions, can be found within the full order here.
• National Emergency Authority To Temporarily Extend Deadlines for Certain Estimated Payments
  • • This Executive Order temporarily extends deadlines for importers suffering significant financial hardship because of COVID-19 to make import tariff payments.
• Executive Order on Securing the United States Bulk-Power System
  • This Executive Order prohibits U.S. electric utilities from installing grid devices from foreign manufacturers that could threaten national security. The White House said this Executive Order is designed to prevent U.S. adversaries from embedding software in grid devices that could surveil or disrupt power delivery.
    • Based on further guidance on the Executive Order released by the Administration on May 6, the Department of Energy will release a rulemaking within 150 days that details which devices will be singled out for bans or increased oversight.
    • On May 12, Secretary of Energy Dan Brouillette asserted the order would target equipment used in large-scale power generation and transmission lines and will not include devices like rooftop arrays or home batteries on smaller-scale local utility systems.
    • On July 21, The Department of Energy announced it will be extending the public comment period for its Request for Information (RFI) regarding Executive Order 13920. The notice can be found here.
• Executive Order on Regulatory Relief to Support Economic Recovery
  • On May 19, President Trump signed an Executive Order (EO) tasking agencies with making additional regulatory rollbacks, which the Administration claims will spur economic growth during the pandemic. The full EO can be found
• Executive Order on Accelerating the Nation’s Economic Recovery from the COVID-19 Emergency by Expediting Infrastructure Investments and Other Activities
  • On June 4, President Trump signed an Executive Order (EO) directing federal agencies to use their authorities to push through infrastructure, energy and environmental projects to help the economy recover. Additionally, the Executive Order authorizes waivers on environmental reviews typically required under the Endangered Species Act and the National Environmental Policy Act.
• Executive Order on Hong Kong Normalization 
  • On July 14, President Trump signed an Executive Order (EO) on the normalization of U.S. treatment of Hong Kong. The EO eliminates Hong Kong’s special and preferential status under various U.S. laws and authorizes broad sanctions against various persons and entities relations to actions taken under the National Security Law.

• Emergency Use Authorization Declaration (HHS)
  • States that the HHS Secretary has declared that circumstances exist justifying the authorization of emergency use of drugs and biological products during the COVID-19 pandemic, pursuant to section 564 of the FD&C Act, subject to the terms of any authorization issued under that section.

• The United States-Mexico-Canada trade agreement (USMCA) went into effect July 1, 2020. More information can be found here.
• On April 18, President Trump signed issued an Executive Order to delay tariff payments for some goods up to 90 days. More information on what is included in the order can be found

• On April 27, the Office of the US Trade Representative (USTR) issued further tariff exemptions for 108 items from Chinese import tariffs under section 301. These items include many medical-related goods in addition to other products. The exclusions will apply retroactively to September 24, 2018 and until August 7, 2020. The full list can be found here.

• On May 12, the Chinese Ministry of Finance published 79 additional U.S. products that are eligible for tariff waivers including rare earth mineral ores, aircraft radar equipment, semiconductor parts, medical disinfectants, and a range of precious metals, chemical and petrochemical products. Importers in China must apply to the General Administration of Customs within six months of the announcement to be considered for waivers. The waivers are effective May 19.

• Intended to help state and local governments determine the essential workforce, the Cybersecurity and Infrastructure Security Agency (CISA) released an Essential Critical Infrastructure Workforce advisory list.
• Those deemed essential include maintenance and repair for critical infrastructure, call center operations, construction, and supply chain support.
• Industries represented include medical and healthcare, telecommunications, IT, defense, food and agriculture, transportation, energy, water, law enforcement, and public works.

• The Treasury Department issued “Guidelines and Application Procedures for Payroll Support to Air Carriers and Contractors and Procedures and Minimum Requirements for Loans to Air Carriers and Eligible Businesses and National Security Businesses” with respect to the $58 billion ($25 billion in grants and $25 billion in loans for passenger air carriers and $4 billion in grants and $4 billion in loans for cargo air carriers) in relief that was provided in the CARES Act. That guidance and the corresponding press release can be found here.
• On April 20, Senate Commerce Committee Chairman Roger Wicker (R-MS) wrote to industry trade groups, as well as the National Governors’ Association, to solicit feedback on how the one-year REAL ID deadline extension can be utilized to improve readiness for REAL ID compliance. In late March, DHS extended the deadline for REAL ID enforcement until October 2021, one year after the previous deadline of October 2020. A copy of Sen. Wicker’s letter can be found here.
• Customs and Border Protection (CBP) extended the closure of its Trusted Traveler Enrollment centers until at least July 6 due to the pandemic. This move will further delay pending applications since part of the application process is an in-person interview at one of the centers.
• Major U.S. airlines now require passengers wear a cloth face covering or mask throughout their entire journey – including check-in, boarding, in-flight and deplaning. Participating airlines include Alaska Airlines, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, United Airlines and Air Canada. The full announcement can be found here.
• Frontier Airlines is checking the temperatures of passengers and employees before they board using touch-free thermometers and denying boarding to a person with a temperature 100.4 degrees or higher.
• TSA is expected to start checking passengers’ temperatures at 12 airports, however this program does not yet have a start date.
• On May 20, TSA announced changes to their security procedures which are meant to reduce the amount of contact between passengers and TSA agents. The changes include having the passengers hold onto their tickets, putting all food products in clear plastic bags and have passengers dispose of prohibited items themselves, rather than having the agents do it.
• The U.S. and Mexico and Canada have extended their travel restrictions until July 21.
• The European Union agreed to open their borders to non-EU citizens from certain countries beginning July 1. The United States is still subject to a travel ban.
• On June 15, the Department of Transportation announced that the United States could begin resuming flights to China after the Chinese government reversed their order to allow flights into the United States. Both are capping the amount of flights between the countries at four a week.
• On July 2, the Department of Transportation, the Department of Homeland Security, and the Department of Health and Human Services released new guidance for airlines and airports to help combat the spread of COVID-19 as air travel continues to increase. The guidance, entitled Runway to Recovery, can be found here. The guidance also includes recommendations related to face coverings, social distancing, temperature checks, health self-declarations, testing for COVID-19 and more.
• Though previously barred in February, residents of New York state are once again able to enroll in the U.S. Customs and Border Protection (CBP) trusted traveler programs like Global Entry and NEXUS.
• U.S. airlines have become increasingly vocal about newly implemented procedures to mitigate passengers’ chances of contracting COVID-19 when traveling.
  • Delta Airlines CEO noted that the airline is blocking middle seats and sanitizing all surface areas of the plane prior to passenger boarding.
  • United Airlines announced they will require their passengers to wear a face covering at the airport while they are waiting for their flight, in baggage claims and at airport kiosks, in addition to on the aircraft. The airline said that United employees will verbally remind passengers of the requirement but those who do not comply may be denied boarding and temporarily banned from flying with United.

• Shortly after United’s announcement, both Southwest and American Airlines announced that any individual over two years old will have to wear a face covering in the airport terminal and on their flight.

• On April 16, the Administration rolled out their plan to reopen the country and economy, entitled “Opening Up America Again,” which outlines the phased approach the federal government will be taking. A copy of the guidelines released by the White House Task Force can be found here.
  • The Administration indicated that their approach is based on up-to-date data and readiness and is focused on the mitigation of a resurgence of COVID-19. The guidelines set benchmarks for declines in reported symptoms, cases and hospital visits over 14-day periods for states to enter into each phase of their plan.
  • The Administration also emphasized the importance of finding, isolating and contact tracing asymptomatic individuals, especially in vulnerable populations like nursing homes. The guidelines continued to emphasize the importance of simple hygiene and protective actions.
• On April 20, the Office of Management and Budget (OMB) released new guidance for federal agencies on reimbursing federal contractors that are paying employees who cannot work during the pandemic. That guidance can be found
• On April 22, the National Governors Association released a comprehensive plan for reopening the economy. The plan encourages a cautious approach to ensure proper testing capabilities and public health measures are in place before people are allowed to reduce social distancing. The full plan can be found
• The U.S. Census Bureau released its Data Hub resource page on Census.gov to help federal agencies, businesses, and communities make decisions related to the COVID-19 pandemic. The Data Hub can be found here.
• The FAA is launching a national survey of drone users to help develop national forecasts of drone activity and eventually, aid in the implementation of a nationwide UAS traffic management (UTM) service. More information can be found in a federal register notice here.
• On May 14, the Trump Administration unveiled plans to expand the Strategic National Stockpile. The Administration plans to enter into contracts with manufacturers to rotate supplies into the Strategic National Stockpile on a continuous basis to avoid having to use the Defense Production Act in a future health emergency by keeping manufacturing capacity continuously available.
• On June 12, the FAA announced the charter renewal of the Drone Advisory Committee (DAC). The notice can be found here.
• On June 18, the FAA posted a solicitation for nominations for appointments to the Drone Advisory Committee (DAC). Nominations must be made no later than 6 a.m. ET on August 18, 2020. The notice can be found here.
• FAA Administrator Steve Dickson announced the FAA will issue a final rule on remote ID this December. In addition, Jay Merkle, head of the FAA’s UAS Integration Office, announced the FAA will finalize its rule on drone flights over people this December as well.
• The FAA will hold a virtual-only meeting for the NextGen Advisory Committee on August 6, 2020 from 1 p.m. – 4 p.m. EST. Requests to attend the meeting virtually, a written copy of any public statements and any written materials to be reviewed by the committee must be submitted before July 23, 2020. More information can be found here.
• On July 24, the State Department announced a relaxation on export controls on certain Unmanned Aerial Systems (UAS). Specifically, the decision changed the International Missile Technology Regime and certain UAS systems will no longer be subject to a presumption of denial when classified for export. 
• DOT issued a request for comments on a new guidance document from the Non-Traditional and Emerging Transportation Technology (NETT) Council. The notice can be found here. 

• Both the Senate and the House have passed their versions of the FY2021 National Defense Authorization Act (NDAA). Conference negotiations on the NDAA are expected to begin soon at the staff level but formal conferees may not be named until after the August recess given current negotiations on the next round of COVID-19-related stimulus legislation.

• The House of Representatives passed H.R. 2, also known as the Moving Forward Act, on July 1. However, Senate Majority Leader Mitch McConnell has commented that the Senate will not consider H.R. 2 and the House Democrats are currently debating H.R. 2, the Moving Forward Act. The House plans to pass the bill on July 1 with little to no Republican support, and the White House has issued a Statement of Administration Policy (SAP), indicating plans to veto H.R. 2 in its current form.
• Despite previous reports that the next relief package from the House of Representatives would include plans for infrastructure improvements related to the COVID-19 pandemic, the HEROES Act does not include significant infrastructure funding. However, the bill does include increased funding for broadband. Highlights of the broadband funding include:
  • $5B aimed at closing the digital Homework Gap by funding Wi-Fi hotspots and other connected devices, set to be administered through the Federal Communications Commission’s (FCC) E-rate program.
  • $8.8B for a new FCC Emergency Broadband Connectivity Fund to provide $50 per month reimbursements to low-income families on their internet bills.
  • $2B to temporarily expand the FCC's Rural Health Care program, which helps subsidize digital connectivity for health care providers.
  • $24M for the FCC to implement the recent Broadband DATA Act.

• The House is slated to vote on their Water Resources Development Act under suspensions of the rules on July 30, meaning that no amendments will be allowed to the legislation and it must pass by a two-thirds majority. The Senate passed its version of the WRDA, split into the America’s Water Infrastructure Act and the Drinking Water Infrastructure Act, unanimously out of the Environment and Public Works Committee in May but the timing on floor action is unclear.

• On July 24, the House passed the first FY 2021 appropriations minibus, H.R. 7608, which included the Agriculture-Food and Drug Administration, Interior-Environment, Military-Construction-Veterans Affairs and State-Foreign Operations spending bills. More than 100 amendments were added to the bill.
• The second minibus, H.R. 7617, includes the Defense, Commerce-Justice-Science, Energy and Water Development, Financial Services and General Government, Labor-Health and Human Services-Education, and Transportation-Housing and Urban Development appropriations. The package is set to be considered on the floor starting July 29 and is expected to pass by July 31.

• Matt Gaetz (R-FL) sent a letter to Attorney General William Barr calling on the Justice Department to ground the DJI drones that are flown by federal, state, and local governments, citing cybersecurity concerns and concern that DJI had given out drones to local public safety agencies to help with COVID-19 response.