CARES Act Paycheck Protection Program (PPP) or IRS Employee Retention Tax Credit?

The SBA Paycheck Protection Program (PPP) is still accepting applications for eligible small businesses working through lenders. For more information on the PPP program, please see the SBA website. If the PPP program is not quite the right fit for your business, another alternative to the PPP to consider may be the IRS Employee Retention Tax Credit. The provision provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the crisis. The credit is available to employers whose operations were fully or partially suspended, due to a coronavirus-related shut-down order, or gross receipts declined by more than 50% when compared to the same quarter in the prior year. Further information on this credit is available here:  https://www.irs.gov/coronavirus/employee-retention-credit . This Tax Credit may not be combined with the PPP program.

Please note that the Economic Injury Disaster Loan Program is now taking new applications for agricultural businesses!

New Guidelines on Non-Essential Businesses

On May 4, the Baker Administration issued new guidance on non-essential businesses to allow a limited number of employees within workplaces to fulfill phone and online orders only. Florists, for example, may prepare deliveries of floral arrangements at their store premises while it is not open to customers. Businesses must adhere to the guidance provided on the Mass.gov FAQs website including measures limiting number of employees, social distancing, sanitation, health checks, and other operational details at https://www.mass.gov/info-details/covid-19-essential-services-faqs .

Pandemic Unemployment Insurance Now Available

Pandemic Unemployment Assistance (PUA) provides up to 39 weeks of unemployment benefits to individuals who are unable to work because of a COVID-19-related reason but are not eligible for regular or extended unemployment benefits, such as self-employed, independent contractors, workers with limited work history, and others. More information here: https://www.mass.gov/how-to/apply-for-pandemic-unemployment-assistance

Moratorium on Evictions and Foreclosure During COVID-19

Governor Baker recently signed a bill establishing a moratorium on non-essential evictions and residential foreclosures. This law provides temporary protections for both residential tenants and small businesses that are unable to pay rent, in an effort to stabilize homes and commercial spaces during the COVID-19 crisis. The law also prohibits proceedings on residential foreclosures during the COVID-19 crisis. 

·         While this bill does not relieve a residential or commercial tenant of their responsibility to pay their rent or mortgage, it does offer protection for those who are unable to make these payments as result of the economic hardships caused by the COVID-19 crisis.

·         Under this legislation, a landlord cannot file a complaint in court to evict an eligible small business for a non-essential purpose (i.e. a purpose that does not pose a health or safety risk). Eligible small businesses are businesses which operate only in Massachusetts, have 150 or fewer employees, and are not publicly traded. This moratorium will last for either four months following the bill’s signing on April 20, 2020, or until 45 days after the emergency declaration expires (whichever is sooner, and unless extended by the Governor).

·         The new law does not eliminate or reduce an obligation to pay rent. Businesses that are able to pay rent should continue to do so, and should work collaboratively with their landlords when they are unable to pay rent due.

·         Under this legislation, landlords may not apply late fees or negatively report to credit bureaus if the tenant sends a timely notice that the non-payment of rent was the result of a financial hardship caused by COVID-19. Evictions may still proceed when a tenant’s lease violation creates a health or safety risk for others.

Eligible small businesses can use the Form of Notice – COVID-19 Hardship – Small Business Tenant and the Documentation of Financial Hardship – Small Business Tenant forms to provide the required notice to their landlord of their inability to pay rent. Access these forms and Emergency Regulations here.

It's Take Out Tuesday!

Many restaurants in Bedford have adapted swiftly to the new dining landscape to offer many take out and delivery options including wine and beer, family meal trays, and meal kits. You can support local restaurants by ordering food or purchasing a gift certificate for yourself or someone else. Many restaurants are also offering Take Out Tuesday deals through the Bedford Chamber of Commerce. We have updated the current list of Bedford’s open restaurants to include wine and beer takeout as well as other options at www.bedfordtakeout.com