Third Phase of Federal Relief for Coronavirus: What Details We Know Right Now About the Legislation

While some companies have already begun to apply for relief from the Small Business Administration (SBA) and other government entities, others are waiting to see what additional programs may be on the horizon. While we do not know all the details of Phase III legislation in Congress, we do know it will include: Support for Businesses $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs $17 billion for SBA to cover six months of payments for small businesses with existing SBA loans A retention tax credit for employers to encourage businesses to keep workers on payroll during the crisis SBA loan forgiveness eligibility for rent, mortgage, and utility costs Support for State and Local Government $150 billion for a state, tribal, and local Coronavirus Relief Fund $30 billion for the Disaster Relief Fund to provide financial assistance to state, local, tribal, and territorial governments, as well as private nonprofits providing critical and essential services $10 billion for the Indian Health Services and other tribal programs Support for Industries $150 billion increase in the Marshall Plan for our healthcare system $30 billion in emergency education funding $25 billion in emergency transit...

Economic Loss Recovery/Minimization with State and Federal Programs

As it has successfully done for its clients in prior emergencies (e.g., Superstorm Sandy), a Gibbons interdisciplinary team will work with you to coordinate securing available assistance from state and federal sources. In doing so, Gibbons will also review with you any relevant insurance policies for coverage of any expenses or business income losses that may be sustained/incurred as a result of the COVID-19 national emergency. The Gibbons interdisciplinary team will advise you on the full range of state and federal programs being authorized by law, established, or expanded to assist businesses with losses related to the coronavirus (COVID-19) crisis. Working with clients’ senior management teams, Gibbons will provide strategic advice on the internal measures to be initiated immediately in order to qualify and begin preparing applications for financial assistance from government agencies, including: U.S. Small Business Administration (SBA) The federal government’s $8.3 billion Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 includes certain provisions that allow the SBA to administer loans connected with this crisis. In addition, the SBA is authorized to offer an additional $50 billion in low-interest loans to address losses caused by the pandemic and the response thereto. A maximum of $2 million can be...

New Jersey State Pay-to-Play Rules and Federal Elections

New Jersey has its own individual pay-to-play rules that do not apply to federal candidates regardless of the state office that the candidate holds. The two sets of New Jersey pay-to-play rules (“Pay to Play Rules”) of concern are: (i) New Jersey statutory rules for state contracts under N.J.S.A. 19:44A-20.13-20.25, and (ii) New Jersey regulations of the New Jersey State Investment Council (“SIC”) pursuant to N.J.A.C. 17:16-4.1 to 4.11. The New Jersey Election Law Enforcement Commission (“ELEC”) and the New Jersey State Treasurer have stated that contributions to a federal account that are to be used only in federal elections will not trigger the New Jersey pay-to-play rules. See Advisory Opinion No. 03-2006; Letter of Bradley I. Abelow, New Jersey State Treasurer, June 23, 2006. The SIC regulations are applicable to political contributions and payments to political parties. See N.J.A.C. 17:16-4.2. Political contribution is defined as a contribution for the purpose of influencing any election for New Jersey state office, and under certain circumstances, any election for New Jersey local office. Since candidate committee for President is a candidate committee for a federal office, contributions to the committee are not political contributions. The SIC regulations define a “political party” as...