At 880 pages, the Coronavirus Aid, Relief, and Economic Security (CARES) Act covers a lot of ground, offering COVID-19 relief and benefits to a broad swath of the population. Among its significant provisions are those related to workers’ retirement funds. Specifically, the CARES Act makes employee-favorable changes to existing law regarding:

1. Early Withdrawals;
2. Loans; and
3. Required Mandatory Distributions (RMDs)

While a detailed analysis of prior law and all changes made by virtue of the CARES Act is beyond the scope of this blog post, in general terms, the prior guidance and the newly enacted changes are summarized below.» Read More

In addition to any defenses to performance that may exist under force majeure provisions contained in a contract, Pennsylvania courts recognize impracticability of performance and frustration of purpose as defenses to breach of contract claims. However, the availability of impracticability and frustration of purposes defenses in any particular case is dependent upon the language of the contract and the facts and circumstances of the case.» Read More

Businesses actively awaiting guidance from the Small Business Administration (SBA) regarding the process for application to the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program were given some guidance yesterday evening. The SBA released a Sample Application for the Paycheck Protection Program.» Read More

In response to the substantial financial effects of COVID-19 on individuals, Congress, through the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), created a form of relief through tax rebates for qualifying taxpayer individuals.» Read More

As a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Small Business Administration (SBA) loan program has been expanded for qualifying businesses and qualifying self-employed individuals. The CARES Act’s “Paycheck Protection Program” provides 100% federally backed SBA loans to cover operational costs like rent, payroll, employee health benefits, interest on other debt obligations, insurance, and utilities, among others.» Read More

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) relaxes the limitations on a company’s use of losses. Under the current rules amended by the 2017 Tax Cuts and Jobs Act (“TCJA”), net operating losses (“NOLs”) are subject to a taxable-income limitation and cannot be carried back to reduce income in a prior tax year.» Read More

The Coronavirus Aid, Relief, and Economic Security (CARES) Act makes important revisions to the United States Bankruptcy Code. The most remarkable change is that it has opened the doors to the Bankruptcy Court for many small businesses.» Read More

In addition to the expansion of the Small Business Act’s (“SBA”) business loan program and the SBA’s disaster loan program, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) authorizes loan payment subsidies for certain loans.» Read More

Emergency grants from the Small Business Administration (SBA) included as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 provide for immediate grants within three days of submitting the application of up to $10,000 for eligible entities.» Read More

Section 1106 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides loan forgiveness for certain qualifying Small Business Administration (SBA) loans. A “covered loan” is a loan added under new Section 7(a)(36) of the Small Business Act, which was added by the CARES Act itself.» Read More