President Trump Signs Bill Amending PPP Into Law

Since being established as part of the Coronavirus Aid, Relief and Economic Security Act in March 2020, the Paycheck Protection Program (PPP) has been the subject of additional stimulus bills, legal guidance and interim final rules. In the latest development, Congress passed the Paycheck Protection Program Flexibility Act of 2020, which is a bill that provides borrowers with greater flexibility in spending PPP funds without compromising forgiveness eligibility. President Donald Trump signed the bill into law on Friday, June 5, 2020.  

What is included in the bill?

The bill, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers:

·         Loan repayment terms—The bill extends the minimum loan term for unforgiven PPP loans from two years to five years.

·         Payroll costs vs. nonpayroll costs— For forgiveness eligibility, the bill reduces the portion of PPP funds that must be spent on payroll costs from 75% to 60%, and raises the nonpayroll cost limitation from 25% to 40%.

·         Covered period extension—The bill extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from eight weeks to 24 weeks from the date of origination of the loan.

·         Payroll tax deferment—The bill permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.

·         Extension of rehiring safe harbor—The bill extends the rehiring safe harbor by six months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. The original date was June 30, 2020, and the new date is Dec. 31, 2020.

In addition to the provisions above, the bill provides loan forgiveness eligibility exemptions for borrowers that are not able to rehire an employee or a replacement. There are also exemptions for loan forgiveness eligibility for borrowers that are not able to return to the same level of business due to complying with COVID-19-related orders or circumstances.

What’s next?

Borrowers should review the bill carefully and speak to their lender should they have any questions. In addition, borrowers should direct any questions regarding their PPP loan to their lender.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information about the PPP, contact Coffman Insurance Agency, Inc..

California Issues Statewide Order to Wear Face Coverings in Public or High-risk settings

On June 18, 2020, California Gov. Gavin Newsom issued an order requiring Californians to wear face coverings while in various public or high-risk settings—including when shopping, taking public transit or seeking medical care.

The order comes following growing concerns from public health officials that recent spikes in COVID-19 cases are related to residents not taking the proper precautions to help limit the spread of the coronavirus.

Review the following guidance for further information on when face coverings are required and exemptions to the order.

When Are Face Coverings Required?

The order requires Californians to wear face coverings in the following public or high-risk settings:

• When congregating in outdoor spaces with members of the public and social distancing is not feasible

• While inside of or in line to enter any indoor public space (e.g., a shopping mall)

• When obtaining medical services

• While waiting for or riding public transportation—including taxis, private car services and ride-sharing vehicles

• When operating any public transportation vehicle while passengers are present

• While conducting work-related activities, such as the following:

  • o    Interacting with members of the public for work purposes

o    Working in a space that members of the public visit—even if no one is present at the time

o    Working in any area where food is prepared or packaged for sale or distribution

o    Working within or walking through common areas (e.g., hallways, stairwells, elevators or parking facilities)

o    Working within a room or enclosed space where other people (with the exception of members from the individual’s household) are present and not able to social distance

Exemptions to the Order

Californians are exempt from the order in the following circumstances:

• If the individual is under the age of 2

• If the individual has a medical condition, mental health concern or disability that prevents them from being able to wear a face covering

• If the individual is hearing-impaired, communicating with a person who is hearing-impaired or in any other circumstance where seeing the individual’s mouth is essential for communication purposes

• If wearing the face covering would create additional risks related to the individual’s work (based on local, state and federal workplace health and safety guidelines)

• If the individual is obtaining a service involving the face or nose and temporary removal of their face covering is needed to perform the service

• If the individual is dining at a restaurant or other establishment that offers food or drink services and is able to socially distance from members of public

• If the individual is engaged in outdoor work or recreational activities and is able to socially distance from members of the public

• If the individual is incarcerated (prisons and jails will utilize specific guidance on face-covering requirements for inmates)

Newsom emphasized that this order is not a substitute for existing COVID-19 prevention guidance, such as social distancing and hand-washing. Newsom’s administration has not yet addressed how the order will be enforced or whether Californians who disobey the order will face citations or other penalties. 

For additional COVID-19 updates and resources, contact Coffman Insurance Agency, Inc. today.

UnitedHealth Customers Will See a Discount on Next Month's Bill

The insurer has seen its earnings rise during the pandemic, so it’s awarding premium credits to people enrolled in its plans.

With so many of its customers struggling during the pandemic, UnitedHealth Group, one of the nation’s largest health insurers whose profits have not suffered during the crisis, is offering modest relief. On Thursday it said it would make $1.5 billion worth of premium credits and fees for doctor’s visits available to people enrolled in its plans.

“People are hurting right now,” said David S. Wichmann, UnitedHealth’s chief executive, in a call with reporters on Wednesday night. “Employers are hurting. Individual consumers are hurting.”

Employers and individuals in its commercial plans could receive credits toward their premium bills for June, ranging from 5 to 20 percent of their May bills. The credits, which would be targeted to those in areas of the country hardest hit by the virus, would not apply to the plans UnitedHealth administers for employers that are self-insured.

For people enrolled in its Medicare Advantage plans, the company said it would waive all cost-sharing for visits to primary-care physicians and specialists through at least the end of September. The company said it wanted to encourage people to get any care they need and had put off during the crisis.

“We hope seniors will get quick access to the care they need to remain healthy,” said Mr. Wichmann.

Because of the pandemic, health insurers like UnitedHealth have seen their costs for routine care fall because so many of their customers are postponing elective surgeries like knee replacements and avoiding trips to the hospital for even serious illnesses. The company hinted when it reported strong earnings last month that if these savings outweighed the cost of care for patients with Covid-19, it might offer customers some financial relief.

“These actions will help people get and pay for health care,” Mr. Wichmann said.

While Mr. Wichmann said that the company might have to issue rebates under the Affordable Care Act if its profits exceeded the law’s cap, he said that any relief from that provision could be years away.

Like other insurers, UnitedHealth has also said it has taken steps to help hospitals and doctors that are financially struggling by advancing nearly $2 billion in payments more quickly than usual.

How Much Paid Leave Can Employees Take?

Pandemic Unemployment Assistance Program

Gig workers in California can now apply for Unemployment Benefits through the Pandemic Unemployment Assistance Program.

Covered Individuals

• Independent contractors

• Self-employed

• Individuals without sufficient work history

• Individuals who have exhausted their regular and any extended UI benefits

• Must self-certify to be able and available to work except are unemployed due to COVID-19 related reason

Amount of Benefits

• Minimum weekly benefit amount of $167 (but weekly amount may be higher and equal the amount provided under regular UI, depending on proof of prior earnings)

• PLUS $600 for weeks between March 29, 2020 to July 25, 2020.**

When Benefits Start

Benefits can be retroactive to weeks starting on or after February 2, 2020, depending on your last day of work due to COVID-19 and regardless of when you submitted your claim application. The effective date of your claim will begin the Sunday of the week when you last worked and became unemployed due to reasons directly related to COVID-19.

How Long?

Up to 39 weeks (minus any weeks of regular UI and certain extended UI benefits). Last week is week ending December 26, 2020.**

** Under the CARES Act of 2020, the $600 additional benefits are available through 07/31/20. However, the U.S. DOL has issued guidance to clarify that, for most Californians, the last full week of benefits will end on 07/25/20. Similarly, the PUA program has a legislative end date of 12/31/20, but for most Californians the last full week of benefits will end on 12/26/20.

How do I know if I am eligible for PUA?

You may qualify for PUA benefits if:

• You are unemployed, partially unemployed, unable to work or unavailable to work as a direct result of a COVID-19 related reason AND:

  • You are a business owner, self-employed, independent contractor or gig worker (and are not participating in the UI Elective Coverage Program). You will be able to indicate if you have no employment wages (for example, you did not receive a W-2), solely for the purpose of applying for the PUA program (and not to be used for any other purpose).  However, you may proceed with a regular UI claim if you believe you were misclassified and have wages from an employer.

OR

• You don’t have sufficient work history. This generally means you don’t have enough wages reported as an employee during the last 18 months to establish a regular UI claim.  This could be the case if you are self-employed or an independent contractor.  But this could also be the case if you are an employee with insufficient earnings.  To qualify for PUA based on insufficient work history, you must have been recently employed, which could be satisfied if you had a bona fide offer to start working on a specific date but were unable to start as a direct result of a COVID-19 related reason;

OR

• You have collected all unemployment benefits for which you were eligible and remain unemployed or partially unemployed as a direct result of a COVID-19 reason. This means that you were qualified for regular UI but have exhausted those benefits, as well as any extended benefits.

More information is available here:

https://www.labor.ca.gov/pandemic-unemployment-assistance-pua-program/

https://edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance/faqs.htm

To file a claim online visit:

https://edd.ca.gov/Unemployment/UI_Online.htm

Mobile friendly version of UI Online is available here:

https://edd.ca.gov/Unemployment/About_UI_Online_Mobile.htm