July 9, 2020

Washington Wire: SBA PPP Loan Forgiveness Application Form Released

05/18/2020

SBA PPP Loan Forgiveness Application Form Released  

 
Following weeks of delay, the Small Business Administration (SBA) released the Paycheck Protection Program (PPP) loan forgiveness application form. One Voice has been lobbying the administration to release the forgiveness guidelines to allow manufacturers the ability to understand the terms of loans already awarded. A recent survey in May of NTMA and PMA members showed 91% of respondents applied for and received a PPP loan.
 
Under the CARES Act passed in March, following completion of the eight-week covered period, the Borrowers may request to have portions of the loan forgiven, including interest, if they meet certain spending criteria. The lender submits the application, with any additional information they require of the Borrower, to the SBA. The lender must report back to the Borrower within sixty days as to the decision on their application for forgiveness.
 
A few notable items in the Application:
    • For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the eight-week (56-day) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the “Alternative Payroll Covered Period”).
  • For example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20.
  • Payroll costs are considered paid on the day that paychecks are distributed, or the Borrower originates an ACH credit transaction.
  • Payroll costs are considered incurred on the day that the employee’s pay is earned.
  • For the nonpayroll costs eligible for forgiveness, covered utility payments include: electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020.
  • Caps total eight-week compensation for any individual employee or owner at $15,385 per individual
  • Forgiveness amount lowered if pay reduced by more than 25% 
  • Must maintain documentation for six years
 
One Voice is actively lobbying the Trump administration and Congress to make changes to the PPP loans to remove the 75% spent on payroll threshold, extend the 8-week covered period, and including 501(c)(6) non-profit trade associations as eligible Borrowers, among other fixes.
 
For more resources on COVID-19 from One Voice, visit www.onevoiceinfo.org to find recordings of the weekly One Voice COVID-19 webinars, the latest on state re-opening guidelines, and OSHA, CDC, and Labor Department directives.

 

 

 
House Democrats Pass COVID-19 Bill
 
On Friday, May 15, by a vote of 208-199, the U.S. House of Representatives passed a $3 trillion COVID-19 bill that included $1 trillion for state and local governments. Fourteen Democrats voted against the bill with only one Republican, who is retiring, voting in favor. The bill is not expected to become law and the Senate will not take it up, but the legislation is an effort by House Speaker Pelosi to jumpstart negotiations over the next COVID-19 relief bill.
 
Senate Republicans are beginning to formulate some of their proposals, but Senate Majority Leader McConnell indicated he wants more time to see how the previous spending bills have impacted the economy. Most expect negotiations to begin in earnest towards the end of May and early June with the hope of moving a final bill prior to July 4.
 
PMA and NTMA are lobbying the White House and Congress to include in the next bill changes to the PPP loan program, business liability protection, establishing new and making permanent existing business investment provisions, incentives for onshoring and reshoring manufacturing work, and funding for career and technical training.

 

 

 
 Industry Recognized Apprenticeship Program Applications Being Accepted
 
On May 11, the U.S. Department of Labor began accepting applications to recognize associations and other organizations as Standards Recognition Entities (SREs) for the newly created Industry-Recognized Apprenticeship Program (IRAP). The IRAP is intended to provide individuals with opportunities to obtain workplace-relevant knowledge and progressively advancing skills in a nonregistered apprenticeship process. IRAPs include a paid-work component and an educational component and result in an industry-recognized credential.
 
SREs will provide structured mentorship opportunities for apprentices throughout the duration of the apprenticeship that involve ongoing, focused supervision and training by experienced instructors and employees.
 
Types of entities that can become SREs include, but are not limited to, trade, industry, and employer groups or associations; corporations and other organized entities; educational institutions, such as universities and community colleges; state and local government agencies or entities; non-profit organizations; unions; joint labor-management organizations; certification and accreditation bodies or entities for a profession or industry; or a consortium or partnership of entities such as those above.
 
The Department of Labor will accept applications for this initial cycle through 11:59 PM on Friday, June 12, 2020. They will make determinations within approximately 90 days with additional applications reviewed on a quarterly basis. Applications submitted between June 13 - August 31 will be reviewed in the subsequent review cycle and determinations will be made in late 2020.

 

 

 
EEOC Component Report 1 May 31 Filing Delayed to March 2021
 
On May 7, the Equal Employment Opportunity Commission (EEOC) announced that it will delay until March 2021, the annual filing of the EEO-1 Component 1 Report due May 31, 2020. Next March, covered employers will be required to file both the 2019 and 2020 EEO-1 Component 1 Reports.
 
The EEO-1 is an annual survey requiring all private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a federal contract, sub-contract or purchase order amounting to $50,000 or more to file the EEO-1 report. Originally, the EEO-1 form collected company employment data categorized by race/ethnicity, gender, and job category. In 2016, the Obama administration changed this EEO-1 reporting requirement into “Component 1” and added “Component 2,” which would include an employee’s W-2 compensation.