Information Regarding COVID-19 – March 30

I would like to provide you with the latest updates from the federal and state level government regarding COVID-19.

Travel Advisory for New York, New Jersey and Connecticut

Over the weekend, the Centers for Disease Control and Prevention (CDC) has issued a travel advisory for New York, New Jersey and Connecticut. Below is more information from the White House Office of Intergovernmental Affairs that will provide further detail.

This evening, the Centers for Disease Control and Prevention issued a travel advisory for New York, New Jersey, and Connecticut urging residents to refrain from non-essential domestic travel for 14 days effective immediately. The Domestic Travel Advisory does not apply to employees of critical infrastructure industries, including but not limited to trucking, public health professionals, financial services, and food supply. These employees of critical infrastructure, as defined by the Department of Homeland Security (here) have a special responsibility to maintain normal work schedule. The Governors of New York, New Jersey, and Connecticut will have full discretion to implement this Domestic Travel Advisory. Learn more here.

The White House Office of Intergovernmental Affairs (WH IGA) will continue to share pertinent information as it becomes available. Please do not hesitate to reach out to our office if we can be of assistance. As a reminder, WH IGA is the primary liaison between the White House and the country’s State and local elected officials and Tribal Governments.

Additionally, Governor Lamont’s office has sent out the following information regarding steps taken on the state level here in Connecticut. Below is information covered in last night’s update. The full update can be viewed here.

• Data updates on testing in Connecticut
• Major disaster declaration approved for Connecticut
• Orders for 100 ventilators with Guilford manufacturing company Bio-Med Devices
• Department of Public Health commissioner orders homeless population moved into less congested housing, directs development of temporary housing for certain first responders and health care workers

The Coronavirus Aid, Relief, and Economic Security Act (CARES)

CARES was passed by Congress last Friday and is intended to assist business owners with whatever needs they have right now. Here is the DECD Small Business Owner’s Guide which includes information such as:

• Paycheck Protection Program (PPP) Loans
• Small Business Debt Relief Program
• Economic Injury Disaster Loans & Emergency Economic Injury Grants
• Counseling & Training
• Contracting
• Small Business Tax Provisions

Additionally, U.S. Chamber of Commerce has released this Small Business Owner’s Guide for loan eligibility and the types of loans provided.

Please see the full statement from the Commissioner David Lehman below:

We know and appreciate that businesses and nonprofits want to not only preserve their bottom line, but to stand by the employees they have depended on in the past and will need again as Connecticut recovers from this emergency. There are a variety of federal and state programs that may allow you to continue making payroll and providing health benefits with substantial outside funding. We encourage you to consider these programs as alternatives to immediate layoffs, and as a source of subsidies that will allow you to rehire your staff.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed by the President on Friday includes several important benefits for small businesses and nonprofits in Connecticut:​

• Paycheck Protection Program (PPP) Loans: Provide cash-flow assistance through federally-guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans will be forgiven.
• Economic Injury Disaster Loans & Emergency Injury Grants: An emergency advance of up to $10,000 to small businesses and private nonprofits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). Grants and loans may be used to keep employees on payroll, pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
• Small Business Debt Relief Program: Provides immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under this program, the SBA will cover all loan payments on previously secured SBA loans, including principal, interest, and fees, for six months.
• Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship: A refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis.
• Delay of Payment of Employer Payroll Taxes: Allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022.
• Counseling and Training: Local resource partners can be found here.

For more details on the CARES Act visit Connecticut’s COVID-19 Business Resource Portal.

In addition to the above initiatives, employers should also be aware of the following programs:

·         Federal Emergency Paid Leave Program: Through the end of 2020, employers with fewer than 500 employees must provide 80 hours of paid sick leave and 10 weeks of paid family leave. Note that employers will be reimbursed by the IRS for 100% of the paid leave in 2 weeks or less. They will also be reimbursed for employees’ health care premiums during leave. The current IRS guidance can be found here.

·         CT DOL’s Shared Work Program: Allows employers to reduce employees’ hours by up to 60% and DOL will step in to provide unemployment insurance (UI) benefits that help offset the lost wages, as well as the new federal UI supplement. More information about the program can be found here.

Many of these programs are also open to self-employed individuals. I encourage Connecticut businesses to act quickly to take advantage of the many resources being provided by the state and federal government during this crisis. Businesses should review these resources and reach out to lenders, landlords, and others as you consider making difficult decisions at this time.