COVID-19

COVID-19

Information and Resources

 
WSC is fully committed to keeping you up-to-date on developments that may impact you and your business during this difficult time. This dedicated page will be updated with new information as it becomes available.
 
Listen to our Virtual Town Hall Meeting with various water well industry members. Click the image below.
 
 
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May 29, 2020
 
PPP Flexibility Act Passes House
 
The U.S. House of Representatives passed bipartisan legislation yesterday that gives businesses more flexibility with the Paycheck Protection Program loans they received. The Paycheck Protection Program (PPP) Flexibility Act of 2020 passed with a 417-1 vote and now heads to the Senate, where it is expected to pass.
 
Key Facts
  • The bill extends the forgiveness period for PPP loans from 8 to 24 weeks.
  • It also reduces payroll spending requirements from 75% of loan funds to 60% of loan funds, giving businesses more flexibility in deciding how to allocate the emergency funds.
  • Pushes back the deadline to rehire workers from June 30 to Dec. 31, 2020.
  • Extends the 2-year term for PPP loans to 5 years.

The push for the bipartisan legislation came after widespread complaints that the PPP’s original terms were too restrictive for struggling small businesses.

Total funding allocated to the PPP jumped to $660 billion after the second round of funding was approved in late April. As of May 23, the SBA had approved $511 billion in PPP loans, leaving almost $150 billion left in the program.

 
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May 18, 2020
 
PPP Loan Forgiveness Application Released
 
The Small Business Administration (SBA), in consultation with the Department of the Treasury, has released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
 
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
 
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

The documents will help small businesses seek forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.
 
Click here to view the application and instructions.
 
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May 14, 2020
 
Payment Protection Program Loan Forgiveness UPDATE
 
The SBA announced today that as a result of an unprecedented crush of applications (and the rapid depletion of CARES Act funding allocated by Congress) that they have CLOSED their application portal and are drastically limiting the number of remaining loans they have left to offer to small businesses.

If your business is among those that have received a loan or loan advance, your next major hurdle will be to ensure the amount you receive is actually forgiven.
 
Here’s what you need to know:
  1. The CARES Act requires that you APPLY TO YOUR LENDER FOR LOAN FORGIVENESS at the end of the eight-week period following receipt of your loan. Your lender MUST make a decision on your application for forgiveness within 60 days.
  2. The IRS has ruled that any forgiven part of a PPP loan is exempt from being taxed as a “discharged debt.” This means you DO NOT have to declare the forgiven part of your loan as income when you file taxes for 2020.
  3. Your EIDL loan advance WILL be deducted from the forgivable part of any subsequent PPP loan you receive.
  4. To receive full forgiveness, you must retain (or rehire by June 30, 2020) all full-time equivalent employees (FTEEs) according to the baseline used to establish your loan, except for any fully documented instances in which an employee refuses the rehire offer.
  5. The amount forgiven will also be reduced in proportion to any reduction in employee salary or wages during the eight week forgiveness period greater than 25% of the average amount that employee made during the base period.
When applying for loan forgiveness, you must submit the following:
  1. The total amount requested to be forgiven.
  2. Verification of the number of FTEEs (full-time employee equivalents) on payroll and their pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
  3. Verification of your payments on covered mortgage interest, rent/lease obligations, and utilities.
  4. Certification from an authorized representative of your company that the supplied documentation is true and that the amount that is being forgiven complies with PPP guidelines.

It is recommended that you secure a bookkeeper who understands all the details of The CARES Act, EIDL and PPP Loan programs. You don’t have until next year’s tax season to figure this out.

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May 8, 2020
 
WHITE HOUSE MEMO on Federal Programs in Place to Assist Struggling Businesses during COVID-19 Pandemic
 
The Paycheck Protection Program is effectively providing a lifeline to America’s small businesses and their employees during the COVID-19 pandemic.
  • Since the launch of the Paycheck Protection Program, SBA has processed over 3.8 million loans for more than half a trillion dollars of economic support in less than one month.
  • Nearly 500,000 of the PPP loans were made by lenders with less than $1 billion in assets and non-bank lenders.
  • An additional $320 billion in funding has been secured to ensure a second round of PPP relief would be accessible for America’s small businesses. In the second round of the Paycheck Protection Program:
    • 2.2 million loans have been processed, worth more than $175 billion.
    • The average loan is $79,000, exhibiting that PPP is truly aiding the smallest of small businesses.

Please click here for more information: PPP Report: Second Round

SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications to provide relief to U.S. agricultural businesses. Eligible agricultural businesses may apply for the Loan Advance here.

Assistance for Small Businesses

The Paycheck Protection Program is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead.

Program Overview

For Borrowers

For Lenders

Program Rules

For more information and updates, visit Treasury.gov/CARES and SBA.gov/PayCheckProtection.

Assistance for American Workers and Families

How to Help – If you or your organization are interested in helping the effort to combat the spread of COVID-19, FEMA has established a website with more information. For additional information, please visit FEMA’s website.

Guidelines for Opening Up America Again

President Trump has unveiled Guidelines for Opening Up America Again, a three-phased approach based on the advice of public health experts. These steps will help state and local officials when reopening their economies, getting people back to work, and continuing to protect American lives. Please click here for more information: Guidelines for Opening Up America Again

  • Testing Overview (HERE)
  • Testing Blueprint (HERE)
  • Guidance for Cleaning and Disinfecting Public Spaces, Workplaces, Businesses, Schools and Homes (HERE)

What you should know:

Situation Updates:

Information for Businesses:

Information for Travel and Transportation:

Information for Families and Households:

Information for Schools and Childcare Providers:

Information for Community Events and Gatherings:

Agency Resources and Information:

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⇒Essential Work Status

The water well industry’s work has been identified as critical
and can therefore continue during this time when Americans are being told to stay home and isolate. Water well contractors fall into the “essential” category. However, WSC manufacturer and distributor members should check what the regulations are in the state(s) where they operate to determine if their operations are being deemed “essential.”

While you are also essential to our industry, please remember to follow guidance from the CDC, as well as state and local government officials, regarding strategies to limit disease spread. These are challenging times and WSC is here to help! Reach out to us with any questions you may have. Stay safe and be well.
 
For more information on essential work status view the Federal Office of Cybersecurity and Infrastructure Security Agency’s Memorandum on the Identification of Essential Critical Infrastructure Workers During the COVID-19 Response.
 
⇒Resources for Small Businesses
 
We know many in our industry are small business owners and we are thankful that our industry is still operating during this pandemic. We also understand that COVID-19 may impact your business in various ways. If you need financial assistance at this time to keep your business operating, please consider using the resources provided below.
 
Some of you may not require these loans, however, we are providing this information for you to share with those in your community who may need assistance. We know that our members are actively involved in their communities and we encourage you to share this information with others who may need it. Our COVID-19 Resources page provides additional resources for businesses, communities, and individuals.

To keep our members informed of trends in our industry during this challenging time, we will be sending out a survey periodically throughout the pandemic. To view current results, click the Survey Results image above.

We are providing additional resources for businesses, communities, and individuals on our COVID-19 Resources page. Information will be updated as it becomes available. Feel free to share!