News

The flurry of mergers and acquisitions deals in the banking industry over the past several years has created an active market for bankers seeking a better fit at another institution. Anyone changing jobs accepts some risk that the new position will not be as ideal as hoped. While that risk is inherent in any move, bankers and their new employers should consider a few steps to mitigate other risks accompanying the change.

While Coronavirus is not an accidental injury as contemplated in the Workers’ Compensation Act, it may be considered an “occupational disease” if it meets the statutory definition for a compensable claim. In Ark. Code Ann. 11-9-601(e)(1)(A), “Occupational disease” is defined as “any disease that results in disability or death and arises out of and in the course of the occupation or employment of the employee or naturally follows or unavoidably results from an injury as that term is defined in this chapter.”

The Small Business Administration (SBA) recently released a supplement to the Interim Final Rule issued on April 3, 2020, along with an update to its Frequently Asked Questions. The supplemental rule provides guidance for self-employed individuals as well as addressing certain eligibility requirements. This alert contains a review of several pertinent points in the rule and updated FAQs.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides expanded unemployment benefits for those individuals affected by the COVID-19 pandemic. In particular, the CARES Act creates three unemployment programs: (i) Pandemic Unemployment Assistance; (ii) Pandemic Emergency Unemployment Compensation; and (iii) Federal Pandemic Unemployment Compensation. These programs work alongside state unemployment benefits and are fully funded by the federal government.

Last month, the IRS announced that certain taxpayers generally have until July 15, 2020, to file and pay federal income taxes originally due on April 15. The IRS has extended this relief to additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. The extensions apply to many forms and tax payments made by tax-exempt organizations, including: 

The Coronavirus Aid, Relief, and Economic Security Act (CARES) includes several changes to bankruptcy law, including an amendment to the Small Business Reorganization Act (SBRA), which took effect earlier this year. (Read full article here) These temporary modifications are designed to benefit small businesses and individuals who have sought, or plan to seek, relief under the provisions of the U.S. Bankruptcy Code. As many debtors seek payment deferments, these provisions will be important in evaluating the rights and benefits of debtors and creditors this year.

This guidance reviews several of the more significant provisions of the PPP Frequently Asked Questions issued Monday, April 6, 2020. Lender’s responsibility with respect to borrower’s payroll calculation (Question 1) The FAQ confirms that lenders are not required to recalculate every aspect of borrower’s payroll cost calculation. Lenders will be protected provided that they “perform a good faith review, in reasonable time, of borrower’s calculations.” The level of investigation by the lender should be determined based upon the quality of documentation submitted by the borrower. We believe that reports, forms and other information filed with a governmental agency (IRS, State) would carry the most weight in this regard.