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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?

The CARES Act provides a special distribution option for specific individuals. This coronavirus-related distribution is exempt from the prohibition on premature distributions (i.e., prior to age 59 ½ or termination of employment), and thus is exempt from the 10 percent excise tax on such distributions. The distribution is limited to $100,000 from the plans of the sponsoring employer and any member of its controlled group. This coronavirus-related distribution is available to IRAs and plans described in Internal Revenue Code (Code) sections 401(a), 401(k), 403(a), 403(b), and 457(b).

The recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act) creates an SBA loan program focused on supporting funding of payroll and other operating costs for small businesses – referred to as the Paycheck Protection Program.  These loans may be forgiven if certain criteria are satisfied.   The CARES Act authorizes the SBA to extend lending authority under the program to any financial institution that has the ability to “process, close, disburse and service loans”, meaning that even non-SBA lenders will have the opportunity to originate these loans for their customers.