Blog Viewer

COVID-19 Update: PPP Loan Forgiveness, Fall Learning Complications, CDC Guidance, ERC Guidance

By Net Assets posted 05-15-2020 03:19 PM

  

(from Ellin & Tucker) One of the major unknowns of the SBA's PPP program for independent schools was whether loan forgiveness would constitute federal financial assistance and subject the school to the Uniform Guidance single audit requirements, which would add additional unforeseen compliance costs. The AICPA contacted the SBA and was informed that the PPP loans are administered under the 7(a) guaranty loan program and will NOT subject recipients to the single audit requirements. 

More from Ellin & Tucker

(from the New York Times) The Centers for Disease Control and Prevention on Thursday released six flow charts meant to help schools, restaurants, transit systems and other businesses decide when to reopen during the coronavirus pandemic, the agency’s first release of such guidance after a more comprehensive draft was rejected by the White House. The decision trees are mostly composed of basic tips that can serve as a checklist for organizations before they reopen. The recommendations mirror the advice that health officials have been preaching for months: the value of handwashing and social distancing, the need to protect more vulnerable populations, and the importance of regularly monitoring one’s health. It is also less specific than the guidance the C.D.C. had proposed in April.

More from the New York Times and the Centers for Disease Control and Prevention

(from multiple sources) The Cal State system, California's largest group of universities, announced that it would definitely move all classes online for the fall. The chancellor explained they will use the next few months to refine virtual learning, and that enrollment has not been impacted. NPR reports that Cal State will not lower tuition or fees, because costs have actually increased due to increased need for technology. Meanwhile, other colleges are worried they will be sued if they open in the fall and their campuses have outbreaks. University presidents lobbied Vice President Pence for legal protections earlier this week, reports Inside Higher Ed. Regardless of whether schools teach in-person or virtually, they should be prepared that when teachers get sick with COVID-19, the effects can last weeks. The Chronicle of Higher Education reports on the experience of one professor as well as questions from faculty about the ability to teach effectively with requirements to wear masks and physically distance. 

(from SHRM) The IRS has changed its position in regards to CARES Act regulations and will allow employers to receive a tax credit for paying health care plan premiums for employees on furlough. The CARES Act created an employee retention credit (ERC) that allows employers to claim a credit against up to $10,000 it pays in "qualified wages." Before reversing course on May 11, the IRS said that employers that furloughed employees, paid no cash wages but continued to pay their employees' health plan premiums, could not claim the ERC. 

More from SHRM

Sign in to leave a comment