On June 11, new guidance reflecting the Payroll Protection Program Flexibility Act was issued by the Small Business Administration and U.S. Department of Treasury.  “Interim Final Rule on Revisions to First Interim Final Rule”.

• There is no 60% “Cliff” that could have invalidated loan forgiveness
• Borrowers can choose an 8-week period (if receiving the loan before June 5) or the 24-week period
• More guidance will be coming soon on loan forgiveness

Joint Statement by Treasury Secretary Steven T. Mnuchin and SBA Administrator Jovita Carranza Regarding Enactment of the Paycheck Protection Program Flexibility Act

WASHINGTON—U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza issued the following statement today following the enactment of the Paycheck Protection Program (PPP) Flexibility Act:

“We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program.”

“We also want to express our gratitude to Chairman Rubio, Ranking Member Cardin, Senator Collins, Congressman Roy, Congressman Phillips, and other members of Congress who have helped to create and guide our implementation of this critical program that has provided over 4.5 million small business loans totaling more than $500 billion to ensure that approximately 50 million hardworking Americans stay connected to their jobs.”

“This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country.”

“We look forward to getting the American people back to work as quickly as possible.”

Upcoming Procedures

SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP.  These modifications will implement the following important changes:

• Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.  Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
• Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
• Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
• Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
• In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.

####

This week, Governor Ron DeSantis announced that Phase 2 of Re-Opening Florida would begin June 5, 2020. Issued through Executive Order 20-139, bars in all counties except for Miami-Dade, Broward, and Palm Beach are permitted to open at 50% indoor capacity and restaurants may open their indoor bars for seated service at 50% capacity.

FRLA developed FAQs to assist with member questions for re-opening in Phase 2. They are available here.

Today, President Trump signed H.R. 7010, the Paycheck Protection Flexibility Act into law. The legislation makes a number of retroactive improvements to the Paycheck Protection Program.

Components of the legislation include the following:

• Changes the forgiveness period for PPP loans from 8 weeks to 24 weeks;
• Extends the covered period for loans to December 31, 2020;
• Changes the restrictions limiting non-payroll expenses from 25% to 40%;
• Changes the loan maturity limit from 2 years to 5 years, and;
• Ensures full access to payroll tax deferment.

Please note that June 30th is still the deadline for those who have not yet had a PPP loan processed to be issued one, so speak with you lender right away if you are interested.

The National Restaurant Association has provided an analysis for how the bill would change PPP for current users, and that document can be found here.

On June 3, Governor Ron DeSantis issued Executive Order 20-139 announcing Phase 2 of Florida’s reopening plan following COVID-19: Safe. Smart. Step-by-Step.

The plan allows for further reopening of the state beginning Friday, June 5. All counties with the exception of Miami-Dade, Broward, and Palm Beach counties may move into Phase 2.

Phase 2 allows for restaurants to serve at the bar with social distancing. Bars can open at a 50% capacity indoors with recommended social distancing. There will be no limit on capacity for outdoor seating as long as social distancing guidelines are followed. Entertainment business including movie theaters and bowling alleys can also operate at a 50% capacity.

Watch the announcement here.

Executive Order 20-139 is available here.

The U.S Department of Treasury and the Small Business Administration have released guidance on PPP Loan Forgiveness. Below, please find links to the guidance on how PPP borrowers can apply for loan forgiveness, Interim Final Rule information, updated Frequently Asked Questions, and additional resources.

INTERIM FINAL RULE ON LOAN FORGIVENESS

SBA PPP Forgiveness Application

INTERIM FINAL RULE ON SECOND EXTENSION OF LIMITED SAFE HARBOR WITH RESPECT TO CERTIFICATION CONCERNING NEED FOR PPP LOAN AND LENDER REPORTING

INTERIM FINAL RULE ON SBA LOAN REVIEW PROCEDURES AND RELATED BORROWER AND LENDER RESPONSIBILITIES

PAYCHECK PROTECTION PROGRAM LENDER PROCESSING FEE PAYMENT AND 1502 REPORTING PROCESS

###

This week, Florida’s Department of Business and Professional Regulation (DBPR) began approving vacation rentals on a county-by-county basis. Today, on May 22, DBPR approved the following counties to be approved for vacation rentals:

• Putnam
• Hernando
• Marion
• Volusia
• St. Lucie
• Lake
• Okeechobee
• Brevard
• Martin
• Orange
• Hillsborough
• Jackson

For a full list of vacation rental openings, please visit https://bit.ly/2TnOL74.

MONROE COUNTY – Monroe County plans to reopen to visitors Monday, June 1 by suspending the checkpoints on U.S. 1 and State Road 905 and allowing lodging establishments to take guests at 50 percent occupancy.

Monroe County lodging establishments, like hotels, campgrounds, vacation rentals, and other transient-licensed establishments will be required to implement sanitation procedures and follow the American Hotel and Lodging Association COVID-19 guidelines for enhanced cleaning practices (www.ahla.com). The timeline for removing the 50 percent capacity restriction for lodging will be determined at a later date.

Per Governor Executive Order 20-123, the County Administrator will submit a written request and safety plan to the Department of Business and Professional Regulation Secretary to seek approval for the operation of vacation rentals.

Airport screenings and bus restrictions will also be lifted on June 1.

This is subject to revision based on data regarding the prevalence of the virus within Monroe County, increased testing and contact tracing protocols, and the efforts in the adjacent counties to continue to control transmission of the virus. All other requirements are not lifted. Should the Florida Keys experience an increase in cases and under the advisement of the Florida Department of Health, restrictions may be heightened and/or amenities may again be closed.

Monroe County residents are urged to continue to follow directives set by the State, County, and municipalities to help prevent the spread of COVID-19, including wearing masks in public settings, limiting group sizes to 10 or less, and physically distancing from others by six feet. More information on COVID-19 efforts in Monroe County can be found at www.monroecountyem.com/covid19. Tourism-related information can be found at www.fla-keys.com.

The Florida Keys have been closed to visitors since March 22 to minimize the spread of COVID-19.

FOR IMMEDIATE RELEASE:

May 15, 2020

TALLAHASSEE – Today, Tom Bené was announced as the new President and CEO of the National Restaurant Association (NRA), the largest food service trade association in the world representing more than 500,000 restaurant businesses. He will also serve as CEO of NRA’s Educational Foundation, which works to attract, empower, and advance today’s and tomorrow’s restaurant and food service workforce.

Mr. Bené most recently served as Chairman, President, and CEO of Sysco Corporation and was previously President of PepsiCo Foodservices.

“On behalf of more than 57,000 public food service establishments across Florida, I want to extend congratulations to Tom Bené for his appointment as President and CEO of the National Restaurant Association,” said Carol Dover, President & CEO of the Florida Restaurant and Lodging Association. “Tom is known for his extraordinary leadership, character, and determination, and he is the right person to lead us through recovery. We look forward to continuing our great relationship with the NRA as we work to rebuild from the devasting impacts that COVID-19 has had on our industry.”

About FRLA: The Florida Restaurant and Lodging Association (FRLA) is Florida’s premier non-profit hospitality industry trade association. Founded in 1946 as the Florida Restaurant Association, FRLA merged with the Florida Hotel and Motel Association in 2006. FRLA’s more than 10,000 members include independent hoteliers and restaurateurs, household name franchises, theme parks and suppliers. The association’s mission is to protect, educate and promote Florida’s $111.7 billion hospitality industry which represents 1.5 million employees. Dedicated to safeguarding the needs of the membership, FRLA provides legislative advocacy to ensure the voices of its members are heard and their interests are protected. The association offers regulatory compliance and food safety training through SafeStaff® and FRLA’s subsidiary, RCS Training. The FRLA Educational Foundation provides industry-developed, career-building high school programs throughout the state.

###