SBA Releases Forgiveness Application

The SBA released its official application for PPP forgiveness. Click Here for the document. The application has four components with accompanying instructions:

  • Loan Forgiveness Calculation Form
  • PPP Schedule A
  • Schedule A worksheet
  • Borrower Demographic Information Form (optional)

OEPA will keep you up to date as more information becomes available.

Small Business Survival Guide to Combat COVID-19

With the ongoing Corona Virus running rampant, small business owners are being hit particularly hard. f you have been affected, here are the top 8 places to avail of financial remuneration to survive the onslaught.

  1. SBA Paycheck Protection Program
  2. SBA Economic Injury Disaster Loans
  3. SBA Express Bridge Loan
  4. SBA Debt Relief
  5. Online Business Loans for COVID-19
  6. SBA Microloan Program
  7. Business Interruption Insurance
  8. Other Forms of Corona Virus Relief

Read more details here. 

CARES Act Money Bookmarked for Oil & Gas

17 GOP senators are urging The Honorable Steven Mnuchin, Secretary of the Treasury, to ensure some of the $500 billion in Treasury loans from the CARES Act goes to oil and gas companies.

This letter was sent to Secretary Mnuchin and Chairman Powell on April 7, 2020 from 17 senators: Kevin Cramer (R-ND), James M. Inhofe (R-OK), Shelley Moore Capito (R-WV), John Barrasso (R-WY), Steve Daines (R-MT), Ted Cruz (R-TX), Dan Sullivan (R-AK), John Hoeven (R-ND), John Cornyn (R-TX), Joni Ernst (R-IA), James Lankford (R-OK), Michael Enzi (R-WY), Thom Tillis (R-NS), Bill Cassidy (R-LA), David Perdue (R-GA), Mike Braun (R-IN), and Michael Rounds (R-SD).

Interest Deductibility CARES Act

The cap was raised from allowing 30% of interest payments to be deducted in the year in which occurred to 50%. The effective date for this change means it applies to both 2019 and 2020. 

Net Operating Loss (NOL) Provisions CARES Act

There CARES Act implemented numerous changes regarding Net Operating Losses. It allows for a 5 year carry back. The effective date for this change means the change applies to the tax years 2018, 2019, and 2020.

Modification of Rules Relating to NOL Carrybacks

  • Under the CARES Act, an NOL incurred in tax years beginning after December 31, 2017, and before January 1, 2021, may be carried back to each of the five tax years preceding the tax year of such loss, including those years when the tax rates were 35%, even though the losses were generated in years when the tax rate was 21%.
  • Businesses will be able to amend or modify tax returns for tax years dating back to 2013 in order to take advantage of the carrybacks.
  • Carrybacks are not allowed to offset IRC Section 965(a) income in those taxable years. Section 965(a) relates to Subpart F income from foreign corporations.
  • C Corporations may elect to file for an accelerated refund to claim the carryback benefit.
  • If advantageous, a taxpayer can still waive the carryback and elect to carry forward an NOL to subsequent tax years.
  • As part of this provision a technical correction was made to the excess business loss provision to clarify:
    1. Net operating loss and qualified business income deduction under Section 199A are not included in calculating an excess business loss, and
    2. The extent to which capital gains are taken into account in determining the amount of an excess business loss.
      • Deductions for capital losses shall not be taken into account.
      • Any capital gains taken into account shall not exceed the lesser of:
        • Capital gain net income determined by taking into account only gains and losses attributed to a trade or business, or
        • The capital gain net income.
      • The technical correction would apply to years beginning after December 31, 2017.

Emergency Paid Leave Programs

On April 1, the U.S. Department of Labor (DOL) announced new action regarding how “American workers and employers will benefit from the protections and relief” offered by the Emergency Paid Sick Leave Act (EPSLA) and Emergency Family and Medical Leave Expansion Act (EFMLEA), bot part of the Families First Coronavirus Response Act (FFCRA), enacted on March 18. DOL’s Wage and Hour Division (WHD) posted a temporary rule issuing regulations pursuant to this new law, effective April 1, 2020, and expiring on December 31, 2020. Face sheets for both employees and employers regarding both programs are available here and here, which provide specific information on the length of leave, calculation of pay, and qualifying reasons for leave. Additionally, DOL has released several “Questions and Answers” documents, which can be found here. The National Law Review has also issued a comprehensive legal analysis of the two emergency paid leave programs.

Notably, public agencies (including local governments and other political subdivisions) are required to provide the benefits of both the EPSLA and FFCRA programs to their employees, however, these public agencies are not eligible to receive the reimbursable tax credits from the federal government to offset the costs of these paid leave programs, impacts to public agencies, and next steps.

Summary of Employer Paid Leave Requirements & Qualifying Reasons for Leave

The FFRCA provides that covered public employers must provide to all employees:

  • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.

A covered public employer must provide to employees that it has employed for at least 30 days up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.

Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to telework) due to a need for leave because the employee:

  1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  2. has been advised by a health care provider to self-quarantine related to COVID-19;
  3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
  5. is caring for a child whose school or place of care is closed (or childcare provider is unavailable) for reasons related to COVID-19; or
  6. is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

Under the FFCRA, an employee qualifies for expanded family leave if the employee is caring for a child whose school or place of care is closed (or childcare provider is unavailable) for reasons related to COVID-19.

Duration of Leave:

  • For reasons (1)-(4) and (6):A full-time employee is eligible for up to 80 hours of leave, and a part-time employee is eligible for the number of hours of leave that the employee works on average over a two-week period.
  • For reason (5):A full-time employee is eligible for up to 12 weeks of leave at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

Calculation of Pay:

  • For leave reasons (1), (2), or (3): employees taking leave shall be paid at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period).
  • For leave reasons (4) or (6): employees taking leave shall be paid at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).
  • For leave reason (5): employees taking leave shall be paid at 2/3their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period—two weeks of paid sick leave followed by up to 10 weeks of paid expanded family and medical leave).

Oklahoma COVID-19 Weekly Industry Webinars Announced

The Oklahoma Department of Commerce is holding a series of COVID-19 guidance and economic recovery webinars for Oklahoma industry sectors.

Energy webinars will be held at 9AM on Wednesdays.

Click here for more information.

Oklahoma Small Business Teleconference – SBA Economic Injury Disaster Loan Application and Program

Teleconferences are being offered for Oklahoma small businesses interested in the U.S. Small Business Administration Economic Injury Disaster Loan Program. Each meeting is free but capped at 1,000 participants. Below are the upcoming dates.

Thursday, April 2, 2020
2:00 – 3:00 PM
Register Now

Tuesday, April 7, 2020
2:00 – 3:00 PM
Register Now

Thursday, April 9, 2020
2:00 – 3:00 PM
Register Now

CARES Act Summary

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act has passed the Senate, the House, and has been signed into law by the President on March 27, 2020. The Act includes many resources for businesses.

Click here to a summary and final facts in the following categories:

  • SBA Loans
  • Real Estate
  • Tax
  • Benefits
  • Employment
  • Health Care

Click here to see the small business owner’s guide to the CARES Act.

New Paid Leave Requirements

Starting April 1, 2020, businesses with fewer than 500 employees will need to provide employees with paid time off a variety of reasons relating to the COVID-19 pandemic. This is in response to the Families First Coronavirus Response Act. Click here to read more about the U.S. Department of Labor’s employer requirements.

Also you need to post notice of these changes in a similar manner to other poster requirements. If your team is working remotely, you need to email them the notice.

Click here to read the U.S. Department of Labor’s FAQs about the new requirements.