This Analysis of COVID-19 Financial Advice is effective as of 5PM on Friday, April 3, 2020.  THE INFORMATION SET FORTH BELOW IS SUBJECT TO CHANGE as Treasury Guidelines and other authorities emerge from the Federal Government.  We intend to provide updates as necessary. If you wish to receive automatic updates to this Analysis send a request to Amber Mann.

During this crisis, Preti Flaherty remains focused on our many clients affected by new COVID-19 laws. A large number of these clients are trying to understand the financial assistance currently available under Federal  law.  Broadly speaking, clients can choose from among several Federal Government Assistance Options.  We have developed a useful comparison tool for evaluating these options, and we are offering this tool to anyone who might find it helpful. 

The tool consists of two spreadsheets (to see the two spreadsheets, click on the links below).

The first spreadsheet analyzes the following:

• The Qualified Sick Leave Credit,
• The Qualified Family Medical Leave Credit,
• The Employee Retention Credit,
• Deferral of Payroll Tax,
• Small Business Administration Payroll Protection Program Loans,
• Small Business Administration Payroll Protection Program Loan Forgiveness, and
• Economic Injury Disaster Loans (“EIDL Loans”).

The second spreadsheet describes how each of the options for relief affects the availability of the other options. Some forms of relief make the others unavailable. Most, but not all, are for smaller employers (generally 500 employees or less) and most, though not all, have a connection to payroll.

While the tool currently does not address relief offered to Maine entities under the Finance Authority of Maine (FAME) and does not include large employer loans and certain other prospective relief that is being rolled out under to-be-issued rules and guidance, the tool will be updated regularly as new opportunities are put into effect by the Federal Government.

These spreadsheets analyze a very new and very complex set of laws. They represent our best understanding of the laws based on the information available at present, but they do not represent our advice and do not constitute an opinion on the law. The various federal departments will continue to issue guidance on these laws and the practical application thereof. We will update this guidance as quickly as possible to include such new information, however, ANYONE USING THIS TOOL MUST RELY ON SUITABLE FINANCIAL AND LEGAL COUNSEL IN MAKING ANY FINAL CHOICES.

If you have any questions concerning the choices described above, you may contact Emily White, Steve Bachelder, Martha Fox, or Mariana Baron.

If you have other legal questions about COVID-19, reach out to a member of our COVID-19 task force:

Construction
Kenneth E. Rubinstein

Debt Relief/Bankruptcy
Gregory A. Moffett

Education
Daniel W. Walker

Employment
Matthew J. LaMourie

Energy
Todd J. Griset
Steven A. Hudson

Environmental
Sharon G. Newman
David B. Van Slyke

Health Care
John P. Doyle, Jr.

Municipal
Stephen E.F. Langsdorf
Kristin M. Collins

Other Loans (4003) for Mid-Sized & Larger Businesses
Eric P. Stauffer
Bonnie L. Martinolich

Small Business Loans (SBA)
John M. Sullivan
Sara N. Moppin