Top 10 Checklist for Businesses in Response to COVID-19

Updated: April 2, 2020

1. Establish leadership response teams and policy makers
   1. Focal point for new information and policies
   2. Contact person for employees
   3. Continue to send positive messages to your team
2. Evaluate operations to comply with stay at home orders and exclusions
   1. Know your state, county, and local requirements
   2. Determine need for remote working employment agreements
   3. Have CDC compliance policies, even if exempt
3. Evaluate government stimulus options (CARES Act)
   1. Paycheck Protection Program: SBA bank loans to be used for certain operational costs with no collateral or personal guarantee: https://www.sba.gov/funding-programs/loans/paycheck-protection-program
   2. Economic Injury Disaster Loans: SBA disaster assistance for actual, demonstrated injury including quick advance and applicable to the self-employed https://www.sba.gov/funding-programs/disaster-assistance
   3. Express Bridge Loan: access to up to $25,000 for a business with an existing relationship with an SBA Express Lender: https://www.sba.gov/document/support--express-bridge-loan-pilot-program-guide
   4. SBA summary of resources to review, including debt relief eligibility: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
   5. Research and identify any state, county, or local options, including community foundations or other community support mechanisms. Colorado information can be found at: https://choosecolorado.com/covid19/
4. Employee benefits and policies (Families First Coronavirus Response Act)
   1. Paid Leave: 80 hours of paid leave or partially paid leave for those quarantined by government or doctor’s order, seeking a diagnosis for the virus, caring for someone who is quarantined, or caring for child whose school has closed: https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
   2. FMLA: 10 weeks of partially paid leave for caring for a child whose school has closed: https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
   3. Any existing benefits at the business remain in effect
   4. Post (workplace or website), mail, or email the required notices and update policy manuals:
      1. notice: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf
      2. DOL notice FAQ: https://www.dol.gov/agencies/whd/pandemic/ffcra-poster-questions
5. Discuss with your CPA any tax opportunities
   1. Credit from Family First Act payments: includes tax credits for self-employed individuals
   2. Payroll tax credit for 50% of wages paid by employers during COVID-19 crisis
   3. Increase of interest expense deductions
   4. Allowances to defer payments of Social Security tax
6. Evaluate need for employee furloughs, layoffs, and terminations
   1. Identify and confirm employees at will
   2. Do not violate any other protections (protected classes, assertion of rights, etc.)
7. Review and anticipate force majeure (disaster) contract clauses to excuse performance; more of an explanation is found here: https://www.lathropgpm.com/newsletter-72492.html
8. Review insurance policy language for business interruption coverage; more of an explanation is found here: https://www.roadtoinsurancerecovery.com/2020/03/coverage-for-coronavirus-claims/#more-2207
9. Design any business closure measures, if necessary
10. Unemployment benefits
    1. State terms still apply, e.g. Colorado at: https://www.colorado.gov/pacific/cdle/information-and-resourcescoronavirus
    2. Extended by 13 weeks with additional federal amounts
    3. Now available to the self-employed
    4. Employers should evaluate work share programs, e.g. Colorado: https://www.colorado.gov/pacific/cdle/layoffassistance

Inquiries or requests for information can be directed to Justin Vaughn, Esq., justin.vaughn@lathropgpm.com, 720-288-1870