Welcome to the SIG University Webinar Series What Comes Next: Re-Opening the Workplace after COVID-19 Douglas Desmarais, Esq., Smith & Downey May 14, 2020
QUESTIONS? During the webinar if you have any questions please feel free to… • Text Richard: (443) 250-8606 • Email Richard: richard@silbs.com • Zoom Chat: Enter questions via the “Chat” feature in the Zoom meeting
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MAY 14 TH , 12 PM – 1 PM EST HCM Trends: COVID-19 Next Steps in Workforce Dynamics Presenter(s): Bobbi Kloss, Director of HCM Services Shannon Uecker, PHR, Human Resources Consultant Diana Gaking, PHR, SHRM-CP , Benefits Consultant Karin Tierney, PHR, Director of Strategic HR Services Stacy Barrow, Esq., Compliance & Legal Director MAY 14 TH , 1 PM – 2 PM EST Remaining Resilient: Facing Today’s Mental Health Challenges Presenter: Mike Blanche, MSS, LCSW MAY 20 TH , 12 PM – 1 PM EST Building a Global Mental Health Strategy for Multinationals Presenter: Petra Velzeboer, Global Mental Health UPCOMING Consultant WEBINARS
SAVE THE DATE MAY 21 ST , 1 PM EST Roundtable Working Session – HR Strategy and Tactical Considerations Presenter: Sarah Sheckells, HR Executive www.silbs.com/sig-university VIRTUAL ROUNDTABLES
PODCAST Our New Normal: Creating a Lifestyle that Helps People Work on Building Healthy Immune RECORDINGS Systems Presenter : Dr. William S. Queale, MD, Johns Hopkins Opening the Doors: Return to Workplace Considerations and Potential Screening Measures for Employees Returning to the Workplace Presenter(s): Ellen Lindahl, Director of Clinical Review, Relph Benefit Advisors Post-COVID: Health Plan Data is More Important than Ever Presenter : Rod Reason, Co-Founder/CEO , Springbuk www.silbs.com/sig-university
Keep things light-hearted with SIG’s weekly mini publication focused on working from home, mental health, staying fit, & having fun with family! THE QUARANTINE ZINE Download all editions HERE
MENTAL HEALTH RESOURCES CENTER FOR WORKPLACE MENTAL HEALTH Powered by the American Psychiatric Association Foundation, the Center is the leading resource for workplace mental health. MENTAL HEALTH FIRST AID Skills-based training course that teaches participants about mental health and substance-use issues. Virtual classes provided during COVID-19 pandemic. NATIONAL ALLIANCE ON MENTAL ILLNESS (NAMI) The nation's largest grassroots mental health organization dedicated to building better lives for the millions of Americans affected by mental illness. COVID-19 Resource Guide
Whatever your reaction is as a leader will be contagious among your employees . The Anxious Achiever: Rethink mental health and work, with candid stories from leaders who’ve been there. The John Maxwell Leadership Podcast: Examination of what it means to be a transformational leader—someone who daily influences people to think, speak, and act to make a positive difference in their lives and in the lives of others. LEADERSHIP PODCASTS
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During the webinar if you have any QUESTIONS? questions please feel free to… • Text Richard: (443) 250-8606 • Email Richard: richard@silbs.com • Zoom Chat: Enter questions via the “Chat” feature in the Zoom meeting
What Comes Next: Re-Opening the Workplace After COVID-19 May 14, 2020 Doug Desmarais, Esq. – (410) 321-9348 ddesmarais@smithdowney.com
Note that this presentation is intended as a general discussion of the law and is not intended as legal advice for any particular situation.
Question #1 – PPP Update How will the SBA and Dep’t of Treasury review a borrower’s required good-faith certification concerning the necessity of the loan request?
Answer #1 – PPP Update • Each PPP loan borrower is required to make a good-faith certification that the PPP loan is necessary due to economic uncertainty. • The SBA has stated that it will be reviewing certain loan application files to determine whether the borrower made the certification of necessity in good faith. • The SBA updated the PPP FAQs yesterday (5/13/2020) to reflect the position that borrowers of loans of less than $2 million will be “deemed to have made the required certification concerning the necessity of the loan request in good faith.” • The safe harbor applies if the borrower, together with all of its affiliates , received the PPP loan(s) with an original principal amount of less than $2 million. • Reasoning: if a borrower receives less than $2 million from the PPP, the borrower is less likely to have had access to adequate sources of liquidity in this environment.
Question #2 – PPP Update Will the SBA and Dep’t of Treasury automatically audit loans of more than $2 million?
Answer #2 – PPP Update • The SBA previously announced that it would automatically review individual PPP loan files for every loan in excess of $2 million. • The review will take place after the lender submits the borrower’s loan forgiveness application. • The review of the loan file will likely include the initial application, the forgiveness application, and all supporting documents. • The SBA will be determining if the loan was actually necessary given the business’s economic uncertainty and access to adequate liquidity.
Question #3 – Economic Uncertainty What does it mean that a business has economic uncertainty and needs a loan?
Answer #3 – Economic Uncertainty • Loan applicants must certify that “current economic uncertainty makes [the] loan request necessary to support the ongoing operations of the Applicant.” • Whether a business has economic uncertainty when submitting the loan application will be based on the business’s revenue and whether it has access to any other capital. • This means fewer customers, lost contracts, failure of customers to pay outstanding invoices, loss of credit lines, etc. • Large businesses with an ability to access other sources of liquidity sufficient to support ongoing operations will likely be scrutinized and required to show that access to that other source of liquidity would be significantly detrimental to the business.
Question #4 – Economic Uncertainty What if it is determined that the business did not have economic uncertainty?
Answer #4 – Economic Uncertainty • If a business determines after submitting a loan application that it does not have any economic uncertainty, perhaps because it has access to necessary liquidity without detrimentally impacting its business, the loan can be repaid in full by May 18. • If repaid by May 14, the economic uncertainty certification will be deemed to be made in good faith. • The good-faith repayment date was recently changed from May 7 to May 14 to May 18. • If the SBA determines that the business did not have economic uncertainty, the SBA will seek repayment of the outstanding PPP loan balance and will deem the business unqualified for loan forgiveness. • If the borrower repays the loan in full after receiving notification from the SBA, there will be no administrative enforcement pursued and no referrals made to other agencies.
Question #5 – Documenting Uncertainty What is the best way to show that a business has current economic uncertainty?
Answer #5 – Documenting Uncertainty • Businesses should memorialize all circumstances of their economic uncertainty as soon as possible. • This would include documenting lost contracts, customers’ failure to pay invoices, losses of credit lines, etc., including: • Balance sheets, income statements, historical tax returns, expense reports, etc.; • Projections regarding impact of the virus on the particular industry; and • Increases in accounts payable and decreases in accounts receivable. • This would also include internal discussions related to the mindset of why there is economic uncertainty, including: • Internal emails and correspondence regarding financial needs and access to credit. • The documentation could later form the basis of an internal, notarized affidavit memorializing what the business was thinking in “real time” as it assessed its eligibility for a PPP loan and why it chose not to repay the PPP loan prior to the May 14, 2020 good-faith repayment date.
Question #6 – Other PPP Documents Will a PPP audit be limited to “economic uncertainty”?
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