News

The Small Business Administration issued an interim final rule that provides additional implementation guidelines and requirements for its Paycheck Protection Program. This article provides answers to frequently asked questions from lenders.

We previously reported that the Families First Coronavirus Response Act (FFCRA) requires employers with 500 or fewer employees to provide two new types of paid leave:  1) two weeks of sick leave under the Emergency Paid Sick Leave Act; and 2) twelve weeks of extended family medical leave under the Emergency Family and Medical Leave Expansion Act.  These provisions went into effect on April 1, 2020. The Department of Labor has now issued regulations providing clarification on these paid leave requirements. Below, we address some of the most common questions we have received under the new regulations.

As we enter April, most states are under some order requiring certain businesses to shutter or extensively change how they operate to stop the community spread of COVID-19. CNN reports that, as of March 30, 2020, 27 state have some shelter-in-place order, sheltering more than two-thirds of the nation’s population. [1] While Arkansas is not currently under any shelter-in-place orders, Governor Asa Hutchinson has issued multiple executive orders requiring certain businesses to close and restaurants to be take-out only. [2] The City of Little Rock is under a curfew.[3] The impact on the business community will be historical. Insureds will turn to the language of their insurance policies to determine if there is any relief to be gained. Particular clauses will come under scrutiny, in particular business interruption and civil authority clauses.

The Small Business Administration last night (Thursday, April 2, 2020) issued an interim final rule that provides additional implementation guidelines and requirements for its Paycheck Protection Program to aid small businesses hit hard by the COVID-19 crisis.

The SBA has issued limited guidance for borrowers and lenders implementing provisions of the Paycheck Protection Program (PPP) as recently enacted. This alert summarizes that guidance. The guidance includes a much-anticipated application form. Applicants are instructed to complete the form and return it to their chosen lender. The form includes basic information that any lender would request, in addition to certifications specific to the Paycheck Protection Program as well as any SBA guaranteed loan.

As a follow-up to the Families First Coronavirus Response Act (FFCRA), the CARES Act both clarifies and expands on the COVID-19 related coverage requirements applicable to group health plans (including grandfathered health plans) and health insurance issuers. The CARES Act includes key provisions impacting certain welfare and fringe benefits including HSA’s and educational assistance programs.

COVID-19 is impacting all sectors of the world, including that of civil litigation. In Arkansas, the federal and state court systems have issued blanket orders that continued civil trial settings, cancelled in-person hearings, and mandated that depositions be conducted in a way to minimize exposure to the virus. What does this mean for litigation in Arkansas now and what might it mean for future litigation?