COVID-19 Business Continuity Bulletin
April 3, 2020
Coats Rose is monitoring the CARES Act and all related regulations and guidance to provide clients with swift and comprehensive advice on the stimulus.
UPDATE: CARES ACT SIGNED INTO LAW

The U.S. House and Senate have approved a $2.2 trillion stimulus package referred to as the CARES Act, and it has been signed into law by the President. The Act provides economic assistance to businesses of all types (including nonprofits) and public entities. The Act also provides monetary assistance and other forms of relief for qualifying individuals. A summary of the stimulus package is below.
STIMULUS
SBA Issues Rules for Paycheck Protection Program: The SBA released its Interim Final Rule (IFR) implementing the Paycheck Protection Program created by the stimulus package recently signed into law. The IFR clarifies certain program requirements, including that although certain non-payroll expenses are eligible uses of loan proceeds, at least 75% of the loan proceeds must be used for payroll costs. The program requirements identified in this IFR temporarily supersede any conflicting loan program requirements for other SBA loan programs authorized under Section 7(a) of the Small Business Administration Act. The full text of the rule is available at the following link.
U.S. Treasury Releases Initial Guidance on the Paycheck Protection Program:
U.S. Department of Treasury has released fact sheets about the Paycheck Protection Program and a form of the loan application. Beginning on April 3, small businesses and sole proprietorships can apply for the funds, and beginning on April 10, independent contractors and self-employed individuals can apply. 
IRS Launches Form 7200 to Claim Advances of COVID-19 Employer Tax Credits: The IRS has released guidance for employers seeking advance payment of the tax credits for qualified sick and qualified family leave wages and the Employee Retention Credit, equal to 50% of up to $10,000 in wages paid by certain eligible employers whose business has been financially impacted by COVID-19. The form, instructions and a summary of the tax credits are available at the IRS website.
USDA : In addition to stimulus resources available through the Federal Reserve, SBA and other federal agencies, the U.S. Department of Agriculture (USDA) has been provided with additional resources that may be available to farmers and rural businesses. A brief description of some of the resources available to USDA can be found on the Coats Rose website .
NEW MARKETS TAX CREDITS

The CDFI Fund released a statement on April 1, 2020, addressing questions it has received regarding application and compliance deadlines. The CDFI Fund is not currently making changes to its application timelines but will issue an announcement if any application deadlines are adjusted. The CDFI Fund is reviewing issues related to short-term compliance reporting on a case-by-case basis. Organizations experiencing an issue related to reporting are encouraged to submit an AMIS Service Request to the Certification, Compliance Monitoring and Evaluation team. The full text of the statement is available here.
STATE SPECIFIC NEWS
Louisiana Stay-at-Home Order Extended: Governor Jon Bel Edwards extends stay-at-home order requiring closure of certain non-essential businesses through April 30, 2020.  The Order permits certain businesses to remain open that are consistent with guidance from the Cyber and Infrastructure Security Agency (CISA), provided that they must operate in a manner designed to facilitate only minimal contact among the public and essential employees.  Examples of other Louisiana businesses permitted to remain open can be found at the following link .
Louisiana Extends Deadline for Transferable Tax Credits: In order for a taxpayer who purchases a transferable tax credit to use the credit on an income or franchise tax return, Louisiana requires that either (1) the effective date of the transfer or (2) the execution of a binding agreement to transfer the credit must occur on or before the due date of that return, without regard to any extension granted. The Louisiana Department of Revenue has issued Revenue Ruling 20‐002, extending the deadline by 30 days. For 2019 calendar year filers of individual, corporate, composite partnership and fiduciary income tax returns, the new deadline will be June 15, 2020. For fiscal year filers with a return due date falling between March 1 and May 30, the new deadline is 30 days from the original due date of the return. The Revenue Ruling provided for certain other tax deadline extensions, as set forth in the full text of the order available here.
Louisiana Loan Portfolio Guaranty Program : Louisiana offers a new guaranteed loan program for small businesses domiciled in the state that employ less than 100 employees and have been impacted by COVID-19, including farmers, fishermen and main street businesses, e.g., restaurants. The maximum loan amount is $100,000, and the Louisiana Department of Economic Development will guarantee a portion of each participating bank’s loan. Applications are currently being accepted through April 30, 2020. 
Louisiana Land Records Update: Louisiana land records offices are either currently closed to the public or have limited their hours of operations in response to the public health emergency. However, many offices have made available one or more types of alternative means for accepting the filing of instruments by mail, overnight courier, facsimile or electronic recording (or some combination of the foregoing). The filing methods currently available vary from parish to parish and are subject to change as the crisis evolves.
Louisiana Authorizes Remote Notarization: Governor Jon Bel Edwards issued Proclamation Number 37 JBE 2020, which provides for the following temporary changes during the emergency, among others:
  • Permits a Louisiana notary to perform remote notarization as long as the notary, the individual and any witnesses can communicate simultaneously by sight and sound through electronic device at the time of the notarization.  Additional requirements that are set forth in Section 6 of the Proclamation. 
  • Suspends certain provisions of the Louisiana Business Corporation Act so that shareholder meetings are no longer required to be held in person
  • Suspends certain provisions that would have the effect of limiting the re-hiring of certain public employees
Louisiana Courts Update: Louisiana courts have issued various orders in response to the pandemic, including temporarily continuing all jury trials, both civil and criminal, and all civil proceedings, other than certain family and emergency matters. Essential state court functions shall be conducted via teleconference whenever possible. A list of court orders and announcements issued by each civil district court, court of appeal, and the Louisiana Supreme Court is available at the Supreme Court’s website.
CONTACT
Kelly Longwell
504.299.3075
Ben Guider, III
504.299.3084
Megan Riess
504.299.3072
Christopher Wootten
504.299.3073
Molly Stanga
504.299.3081
Laura Carroll
504.299.3086
Sarah Yednock
504.299.4006
Elizabeth Haecker
Ryan
504.299.3085
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