By Tim Fassbender & Renee Clough, OSBEELS Board of Directors

Recent concerns and questions raised by the professional community regarding Oregon Administrative Rule (OAR) 820-025-0010, digital seal and signature requirements, have been received by the Oregon State Board of Examiners for Engineering & Land Surveying (OSBEELS) and prompted a discussion about digital signatures and signing final documents. To address these questions and concerns, we have developed this article that will share resources and information to help professional registrants, and the users of their documents, to understand the differences between an electronic signature and a digital signature.

Relevant rules to this topic include:

1. OAR 820-025-0001 – defines digital signature and digital certificate.
2. OAR 820-025-0005(5) – specifies digital signatures as an acceptable alternative to a wet signed signature if specific criteria are met
3. OAR 820-025-0010 – outlines requirements for digital seal and signature for electronic final documents.

A digital signature in compliance with OAR 820-025-0010 utilizes a public-private digital key pair provided through the services of a certificate authority. The private key is known only to the signer and is often in the form of a password. The public key is utilized by the certificate authority to validate the document. To verify a digital signature, the verifier must have access to the signer’s public key and have assurance that it corresponds to the signer’s private key. In the case of OAR 820-025-0010 this assurance must be provided by using a certificate authority as a trusted third party to associate an identified signer with a specific public key; essentially the certificate acts like a notary. A self-signed certificate is one that is created by the individual signer without the services of a certificate authority; this is not sufficient for purposes of compliance with OAR 820-025-0010.

The term “third party” in all the above cited OAR sections requires specific discussion. Some software will allow the user to make their own digital signature certificate which is often referred to as a self-signed certificate. This is often made in the same software being used to create the particular document but could be made in some other software. The upshot though is that anyone seeking to verify the authenticity of the digital signature will be coming back to signer for that authentication. In the case of a non-self-signed certificate, an entity known as a “Certificate Authority”, has made the certificate and verified your identity as part of the process. When the digital signature is applied to the document the local software communicates with that Certificate Authority. Later when someone verifies the signature their local software also communicates with that Certificate Authority. Hence the term “third party”, that certificate authority is not you, it is not the person receiving the document - it is a third party. A “third party” Certificate Authority is equivalent to a notary.

The table and discussion below summarize the differences:

Electronic Signatures	Digital Signatures
A Functional term	A legal term
Not technically bound to a specific individual or the result of a validation process	Tied to a specific individual via a PKI-based digital certificate
Created via options such as typed names, scanned images, online tools, or a “click wrap” agreement	Created using a digital algorithm to bind the document using a certificate, resulting in a unique “fingerprint”
Legal, but not easily identifiable to one unique user and can be replicated	Easily identifiable to a unique individual, auditable, and non-replicable
Does not meet OAR 820-025-0010 requirements	Does meet OAR 820-025-0010 requirements

Numerous certificate authorities are available with the ability to interface with a variety of software. Consequently, the process of utilizing a digital signature in compliance with OAR 820-025-0010 is too variable to provide a step-by-step description here.

It should be noted that, with a digital signature, the original is the digitally signed file. Prints of that file, whether to paper or to another digital format (such as pdf), are equivalent to photocopies of a wet signed document. Those prints can be used when a photocopy would be acceptable but not when an original is required. Most software capable of opening a specific file type is also capable of confirming the validity of a digital signature when it necessary to confirm the original has been received. Some software will display this confirmation prominently at the top or side of the screen, others need the user to interact with several layers of menus.

Lastly, it is important to note that OAR 820-025-0005(e) requires a digitally signed document to have the words “digitally signed” in the location where a wet signature would traditionally be placed.

In an effort to continue to address questions from the professional community, as well as provide further direction, the Board will be reconvening the Digital Signatures Task Force. Actions taken by the Task Force may cause information within this article to become outdated. To stay up-to-date on the latest information and resources, we recommend visiting the Board website.

Please refer to the below resources for additional information on the differences between electronic and digital signatures.

• Digital Signature for Engineering Documents – Ranvir Singh, PLS, 2008
• Understanding Digital Signature – Jason Kent, PE, and Ranvir Singh, PLS, 2017

Dear Corporate Activity Tax stakeholder:

The Oregon Department of Revenue is adjusting requirements of businesses making estimated quarterly payments of the Corporate Activity Tax.

Beginning immediately, Revenue has revised OAR 150-317-1300, dated April 27, 2020, to reflect a change in the threshold for making estimated tax payments from $5,000 of annual tax liability to $10,000 of annual tax liability for the first year of the tax. This means businesses that will owe less than $10,000 are not required to make quarterly estimated tax payments during 2020.

Revenue also won’t assess penalties for underestimated quarterly payments or for not making a quarterly payment, if businesses don’t have the financial ability to make the estimated payment.

If businesses know they’ll owe $10,000 or more in annual Corporate Activity Tax in 2020 and can pay, they should make estimated quarterly payments and comply with the law to the fullest extent possible.

Information and a worksheet for calculating quarterly payments can be found on the CAT page of the agency website under the Beyond the FAQ “When are estimated payments required?” The information has recently been updated to reflect the higher threshold of $10,000 or more.

The Department of Revenue will honor a business taxpayer’s good-faith efforts to comply and not assess penalties if they document their efforts to comply, including how COVID-19 has impacted their business.

If businesses have been impacted by COVID-19 and are finding it difficult to calculate or pay an estimated quarterly payment, they should keep documentation showing:

• Their inability to pay a quarterly payment because of insufficient funds due to COVID-19.
• Their inability to reasonably calculate a quarterly payment or annual tax liability due to their business being impacted by COVID-19.
• That the taxpayer is unclear at this time whether the business will owe Corporate Activity Tax in April 2020 due to COVID-19 impacts, after taking into consideration exclusions and subtractions in the law.

Businesses uncertain about their economic future due to the COVID-19 crisis, or those that have been closed during this crisis and have no ability to determine that they will owe a tax this year, won’t be penalized.

Stakeholders can direct questions or comments about the CAT via email to cat.help.dor@oregon.gov or call 503-945-8005.

Thank you.

 

Corporate Activity Tax Policy Team

Oregon Department of Revenue

cat.help.dor@Oregon.gov

 

First quarter 2020 estimated payments for Oregon’s new Corporate Activity Tax are due by April 30. Taxpayers expecting more than $5,000 of Corporate Activity Tax liability for the calendar year must make estimated payments.

The department understands that the COVID-19 pandemic may impact commercial activity, up or down, to an extent that makes it difficult for businesses to estimate their first payment. The department will not assess underpayment penalties to taxpayers making a good faith effort to estimate their first quarter payments for the CAT.

Taxpayers may demonstrate good faith effort by using the best information available to them at the time to estimate their payment. Taxpayers should document and retain the information they used to estimate their commercial activity as well as documentation used to show how they calculated their estimated payments. Taxpayers will not be required to submit this information to the department when they file their return or make estimated payments, but should keep the information in their records.

Guidance about making CAT quarterly payments can be found on the CAT page of the Department of Revenue website: https://www.oregon.gov/dor/programs/businesses/Pages/corporate-activity-tax.aspx

Information available by following the Beyond the FAQ link includes answers to the questions:

• How to calculate CAT liability?
• When are estimated payments required?
• How do I pay my estimated taxes?

The CAT page also includes links to a video of the presentation made by CAT policy staff during the March CAT update tour, which was cut short by concerns about the spread of the novel coronavirus, or COVID-19, and a PDF file of the PowerPoint presentation used during the tour. Guidance and examples of how to calculate CAT liability can be found in slides 30–38.

Additionally, taxpayers can access a PDF of a PowerPoint presentation on “How to make a CAT payment” and links to register and make payments for the CAT through Revenue Online.

The CAT webpage also includes a link to the administrative rules for the CAT.

The 2019 Legislature created the CAT to boost funding for public schools. The CAT is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon. It’s measured on a business’s commercial activity—the total amount a business realizes from activity in Oregon.

Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The tax is $250 plus 0.57% of gross receipts greater than $1 million after subtractions.

The CAT applies to all business entity types, such as C and S corporations, partnerships, sole proprietorships, and other entities. Businesses with more than $750,000 in Oregon commercial activity are required to register for the CAT.

Taxpayers can email questions about the CAT to cat.help.dor@oregon.gov or call 503-945-8005.

Thank you.

Corporate Activity Tax Policy Team
Oregon Department of Revenue
cat.help.dor@Oregon.gov

Coronavirus, Your Business and Drinking from a Fire Hydrant

By:       Darrell W. Fuller, PLSO Lobbyist*

You will find more information on the CARES ACT and other state and federal update summaries (as well as a PDF of this article) here: www.plso.org/COVID-19

Staying up-to-date on COVID-19 is like drinking from a fire hose. Information changes daily — sometimes hourly. In terms of managing your business, your best resources are your tax adviser, your attorney and your banker.

This update aggregates some information from reliable sources. I’m here to help if you have any questions, especially with how state government is handling COVID-19. Just send your emails to fuller_darrell@yahoo.com or call 971-388-1786.

We’re all in this together – six feet apart.

FEDERAL

Applications Now Open for Federal Paycheck Protection Program:

Starting Friday, April 3, businesses can apply through their local lender for the Paycheck Protection loan program that will provide businesses with up to eight weeks of funding to keep employees on the payroll. The Treasury Department released useful information for lenders and borrowers, just click here.

(As you might expect, early feedback is that banks are understaffed, underinformed and overwhelmed. Don’t expect a quick and simple process. Websites will crash or freeze and phone lines will be busy or hold times will be extraordinarily long. It is also possible some applications will be put on hold as the Federal government runs out of money allocated for this program. It is expected additional funds will be provided soon.)

SBA COVID-19 Economic Injury Disaster Loan Application SBA is collecting the requested information in order to make a loan under SBA’s Economic Injury Disaster Loan Program to the qualified entities listed in this application that are impacted by the Coronavirus (COVID-19). The information will be used in determining whether the applicant is eligible for an economic injury loan. If you do not submit all the information requested, your loan cannot be fully processed. For the online application click here.

Members of Congress are already talking about what comes next

Lawmakers are already publicly floating ideas for a fourth coronovirus relief bill only days after Congress passed a massive $2.2 trillion package. The talks are in their preliminary stages, and any bill is unlikely to come together before both chambers return to DC as soon as April 20…

The Hill - Five Things Being Discussed For The Next Relief Bill

STATE

Oregon COVID-19 Small Business Navigator

Business Oregon, alongside the Oregon Employment Department, the Oregon Secretary of State, and the Oregon Department of Consumer and Business Services has compiled information to assist Oregon small businesses dealing with the impacts of COVID-19. Click here or call the Business Navigator hotline

at 833-604-0880.

Moratorium on Commercial Evictions

Governor Brown has issued an Executive Order creating a 90-day moratorium on commercial evictions. For an article on OregonLive, click here. To read Governor Brown’s Executive Order 20-13 click here.

Complaints against employers flooding in

Since announcing her Executive Order shuttering specific “non-essential” businesses, but allowing most others to stay open, state regulators have been flooded with employee complaints. And it isn’t surprising considering the Governor tweeted out a request for employees to file a complaint. For a couple of news articles about what YOUR business could face, click here or here.

OHSA Complaint Form

If an employee files a complaint against their employer, click here to see the form they will complete.

Governor Kate Brown’s Coronavirus page

The Governor has her own dedicated COVID-19 page. You can read all of her several Executive Orders and find links to useful tools here.

Legislature hot and cold on Special Session for Cornoavirus

Legislative leadership hastily assembled a joint committee to address COVID-19. It met all day, for several days, forwarding emergency recommendations to the Senate President and Speaker of the House. Everyone was set for an urgent and quick Special Session. Then it just didn’t happen. Click here for a recent story on the legislative soap opera. The latest rumor is leadership wants to hold off until after the next quarterly state revenue forecast, coming in early May, so they can make adjustments to the state budget based on falling taxes. Another hot topic will be whether the Special Session is limited to just COVID-19, or will they take up other issues which died when the Republicans walked out of the February session to stop passage of a Cap and Trade bill. Senator Betsy Johnson (D-Scappoose) suggested other items were on the table in an article here.

NFIB

The National Federation of Independent Business has created a “Guide to New Federal Lending Options” webpage here. They also have “Small Business Resources in Response to Coronavirus” page here.

OTHER

Experts suggest Oregon cases will peak around April 24 or 25 (meaning it’s not even half time yet)

Oregon’s hospitals aren’t filled to capacity now. The governor’s stay-at-home order and social distancing has helped. According to the latest model, the state is expected to reach its peak of cases around April 24 or 25. To read the entire article on OregonLive, click here.

The estimated “peak” date changes frequently, however The new forecast from the Institute for Health Metrics and Evaluation shows Oregon’s hospital system is capable of handling coronavirus patients. But it still predicts 171 Oregonians will die by May 27. It projects a peak on April 20, with about five deaths. Because of uncertainties inherent in modeling, the peak could see as many as 10 deaths in a day -- and potentially more. Between 145 and 209 could die. Read the article here.

Not everyone agrees with the experts

An anonymous blogger calling himself “Professor Hinkley”, to protect his employment, suggests the surge has already peaked. He writes, “it’s mathematically impossible that the surge happens here in Oregon 16 days from now, and I will lay it out for you…” To read his take, click here. Only time will tell who is correct.

* Disclaimer: Darrell Fuller is not an attorney or tax advisor and this is not intended to offer legal or financial advice. Contact your attorney or tax advisor.

Federal and State Coronavirus Update

By:       Darrell W. Fuller, PLSO Lobbyist*

You will find more information on the CARES ACT and other state and federal update summaries (as well as a PDF of this article) here: www.plso.org/COVID-19

FEDERAL UPDATE

Congress has passed, and the President will sign (or has signed), the Federal Stimulus package. Many benefits from the package will likely not be available for 2-3 months. In the meantime, I will try to find the best links and resources to explain benefits, requirements and processes once they are available. Stay tuned.

__________

The National Federation of Independent Business (NFIB) is an outstanding resource for information. NFIB has scheduled a webinar open to nonmembers. It is scheduled for 9:00 AM on Monday, March 30. To learn more and register for the NFIB webinar, click here.

If you are not a member of NFIB, this would be a good time join. They will be able to provide you with crucial information and access during the COVID-19 pandemic.

__________

Getting updated and accurate information may be difficult. So, going straight to the source of Federal legislation may be helpful.

• For links on information and benefits through the White House, click here.
• For links on information and benefits through Senator Ron Wyden’s office, click here.
• For links on information and benefits through Congressman Kurt Schrader, click here.
• For links and information and benefits through Congressman Greg Walden, click here.

STATE UPDATE

On Monday, March 23, Governor Brown issued Executive Order 20-12 and launched the "Stay Home. Stay Safe" informational campaign to help prevent the spread of COVID-19. 

An Oregonian article explains Executive Order 20-12 and how citizens and businesses are affected by the directive.

On Friday, March 27, Governor Brown issued a news release to clarify certain points of Executive Order 20-12. To read this guidance, click here.

Executive Order 20-12 is not the Governor’s first EO related to COVID-19. EOs 20-03 through 20-12 are all COVID-19 related. To read the other COVID-19 EOs, just click here.

Helpful information from the Corporation Division is found here.

Other Resources /Stay informed about COVID-19:

Oregon response: The Oregon Health Authority and Oregon Office of Emergency Management lead the state response.

United States response: The Centers for Disease Control and Prevention leads the U.S. response.

Global response: The World Health Organization guides the global response.

General Resources

211info connects people with health and social service organizations. At our heart is our core Community Information Center, supported by Resource Database team. We’ve expanded to include enhanced information & referral and assistance programs that target specific services.  Call 211 or 1-866-698-6155

Employment

For information about unemployment benefits & COVID-19, please visit

• https://www.oregon.gov/employ/Pages/COVID-19.aspx​
• https://www.oregon.gov/employ/Documents/OAR%20471-030-0070temporaryrule.pdf
• https://secure.emp.state.or.us/ocs4/index.cfmu=F20200322A142415B10724131.5902&lang=E
• https://www.oregon.gov/employ/Unemployment/Claimant_Handbook/Pages/default.aspx

Bureau of Labor and Industries website for Additional Information 

• https://www.oregon.gov/BOLI/Pages/index.aspx
• https://www.oregon.gov/boli/pages/coronavirus-and-workplace-laws.aspx

Business Assistance - Federal guidance for small businesses, including information on the Economic Injury Disaster Loan Program. 

• https://www.sba.gov/funding-programs/disaster-assistance
• https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Oregon Work-share Program - Work Share provides an alternative for employers and workers who may be facing the prospect of a lay off situation. With Work Share, instead of reducing staff, an employer reduces the hours of work for a group of workers. Partial Unemployment Insurance benefits are then paid to supplement workers' reduced wages.  

• https://www.oregon.gov/employ/Unemployment/Pages/Work-Share-Program.aspx

Business Organizations links for assistance and information

• Business Oregon https://www.oregon4biz.com/Coronavirus-Information/

Rental, Mortgage or Housing Assistance

The Federal government announced yesterday that HUD has authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days.

211.org and Community Action may be able to direct you to resources for payment assistance.

Food Assistance

• 211 is a statewide resource:
• • Call 211 or 1-866-698-6155
  • Text your zip code to 898211 (TXT211)
  • EMAIL help@211info.org
• Partners for a Hunger Free Oregon https://oregonhunger.org/covid-19/
• Marion Polk Food Share Covid-19 Info https://www.marionpolkfoodshare.org/covid-19-update/

Insurance

If Oregonians have questions or concerns about their insurance company or agent, they can contact the department’s advocacy team at 888-877-4894 (toll free) or visit dfr.oregon.gov for more information or to file a complaint.

For insurance and financial services information related to COVID-19, visit the department’s website:  https://dfr.oregon.gov/insure/health/understand/Pages/coronavirus.aspx.

General Health Information

How to protect yourself:
https://www.cdc.gov/coronavirus/2019-ncov/prepare/prevention.html
https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public

What to do if you're sick:
https://www.cdc.gov/coronavirus/2019-ncov/if-you-are-sick/steps-when-sick.html

Mental Health Resources

• Lines for Life https://www.linesforlife.org/blog/lines-for-life-is-with-you-24-7/
• Marion County numbers for mental health outreach if an individual is seeking services in our community:
• • Adult Behavioral Health program -503-588-5351
  • Crisis Services -503-585-4949

*  Disclaimer: Darrell Fuller is not an attorney and this memorandum does not offer legal advice. Contact an attorney for legal advice.  Darrell Fuller is a lobbyist with more than 30 years of experience at the Capitol in Salem, Oregon. But no one living in Oregon has experience in advising businesses on surviving a pandemic.

Coronavirus, your business and complying with the Governor’s new Executive Order

By: Darrell W. Fuller*, PLSO Lobbyist   
You will find more information and a PDF of this article here: www.plso.org/COVID-19

On Monday, March 23^rd, Governor Kate Brown issued an Executive Order (EO) immediately shutting down many Oregon businesses in an effort to slow the spread of Coronavirus. (To read the order, click here).

Governor Brown’s Executive Order is unlike the EOs issued by every other Governor. In other states, Governors issued Executive Orders shutting down businesses, except those considered “essential”. Their EOs included detailed lists of which businesses are deemed essential. Some referenced a Department of Homeland Security document issued March 19^th. (To read the DHS advisory, click here.)

Governor Brown flipped this concept on its head and issued an Executive Order specifically listing which businesses are not essential, shutting them down. Businesses not on her list are allowed to continue operating with some new rules. Governor Brown’s Executive Order requires the following businesses to close immediately:

Closure of Certain Businesses

(Executive Order 20-12, Page Four)

2. …Amusement parks; aquariums; arcades; art galleries (to the extent that they are open without appointment); barber shops and hair salons; bowling alleys; cosmetic stores; dance studios; esthetician practices; fraternal organization facilities; furniture stores; gyms and fitness studios (including climbing gyms); hookah bars; indoor and outdoor malls (i.e., all portions of a retail complex containing stores and restaurants in a single area); indoor party places (including jumping gyms and laser tag); jewelry shops and boutiques (unless they provide goods exclusively through pick-up or delivery services); medical spas; facial spas; day spas; and non-medical massage therapy services; museums; nail and tanning salons; non-tribal card rooms; skating rinks; senior activity centers; ski resorts; social and private clubs; tattoo/piercing parlors; tennis clubs; theaters; yoga studios; and youth clubs.

If your business is not on the Governor’s list above, then good news -- you can stay open (for now). But there are new rules you must follow:

Required Social Distancing for Other Retail Businesses

(Executive Order 20-12, Page Five)

6. …I prohibit the operation of any other retail business not subject to paragraph 2 of this Executive Order, unless the business designates an employee or officer to establish, implement, and enforce social distancing policies, consistent with guidance from the Oregon Health Authority.

7. Retail businesses that fail to comply with paragraph 6 of this Executive Order will be closed until they demonstrate compliance.

So, if you are a retail business, which means you sell something -- including services -- and your employees interact with members of the public, you need to:

(a)        Designate – in writing -- an employee or officer to establish, implement and enforce social distancing policies;

(b)        Establish, implement and enforce written social distancing policies for all employees and customers, indicating that everyone must maintain six feet of separation from one another while at the business and on any jobsite;

(c)        Ensure all employees receive a copy of the written policies and acknowledge that they have received it, read it, and will comply with it. An initial or signature is preferable;

(d)        Make copies of the policies available to all customers, whether they visit your place of business or employees travel to their location;

(e)        Require your manager of social distancing policies to indicate, in writing, who is responsible for enforcing the social distancing policies during all hours that your business is open, or when an employee is on a jobsite;

This can be as simple as designating the manager on duty as the responsible person, or designating each field tech as responsible when they are in the field. Businesses need a paper trail showing a good faith effort to comply with establishing, implementing and enforcing social distancing policies;

(f)         Your written social distancing policies should include explicit instructions to employees that they are not to use company time or vehicles to travel for any nonessential, non-work related purposes, to the maximum extent possible; and

(g)        Use this link to download specific advice for employers from the Oregon Health Authority on social distancing policies.

Workspace Restrictions

(Executive Order 20-12, Page Five)

9. …Facilitate telework and work-at-home by employees, to the maximum extent possible. Work in offices is prohibited whenever telework and work-at-home options are available, in light of position duties, availability of teleworking equipment, and network adequacy.

10.  When telework and work-from-home options are not available, businesses and non-profits must designate an employee or officer to establish, implement, and enforce social distancing policies, consistent with guidance from the Oregon Health Authority. Such policies also must address how the business or non-profit will maintain social distancing protocols for business-critical visitors.

11. Businesses and non-profits that fail to comply with paragraph 9 and 10 of this Executive Order will be closed until they demonstrate compliance.

So, if you plan to keep your business open, you need to:

(a)        Comply with everything listed above; and

(b)        Create written protocols facilitating, to the maximum extent possible, which employees, if any, can telework or work-at-home. Document in writing specific reasons why employees (especially office employees) cannot telework or work-at-home. If nothing else, allow office employees to work from home for part of the day or part of the week, if at all possible.

Everything about Coronavirus and Executive Order 20-12 is new. The paint just isn’t dry, yet. That being said, I hope this information is helpful as you try to understand and comply with the new rules. If you have any questions, please let me know. I cannot guarantee a quick answer or an answer at all, but I will do my best. (I am volunteering at the Office of Emergency Management’s Emergency Coordination Center in Salem representing the Red Cross.) You can reach me at fuller_darrell@yahoo.com, or my mobile number is 971-388-1786.

*  Disclaimer: Darrell Fuller is not an attorney and this memorandum does not offer legal advice. Contact an attorney for legal advice.  Darrell Fuller is a lobbyist with more than 30 years of experience at the Capitol in Salem, Oregon. But no one living in Oregon has experience in advising businesses on surviving a pandemic.

The Oregon State Board of Examiners for Engineering & Land Surveying (OSBEELS) would like to provide our registrants and stakeholders with an update as a result of the recent news and uncertainty surrounding COVID-19. We are actively monitoring the situation around COVID-19 and how it may affect the status of our agency and it processes. As of March 18, the agency and staff are maintaining normal business operations and will continue to adhere to the direction provided by the State of Oregon Governor’s office. Please review the below sections for information pertaining to specific Board services and meetings. [Continue Reading]

American Council of Engineering Comanies' advocacy team has assembled information below on recent federal actions in response to the coronavirus as they may impact firms.  Throughout the week ACEC will be posting new information through their various communication portals to provide you with the latest information. PLSO will do the best it can at sharing them.

Small Business Assistance

As part of the Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020, cleared by Congress the first week of March, SBA can offer qualifying small businesses loans of up to $2 million to pay fixed debts, payroll, and other bills that cannot be paid because of the disaster’s impact. According to the agency, the interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.  Click here for more information.

Family/Sick Leave and Assistance to Employers

On March 14, 2020, the House passed the Families First Coronavirus Response Act (H.R. 6201) by a vote of 363-40.  The House is working on technical corrections that it intends to pass by voice vote as they are not in session this week.  Once the House approves the technical fixes, the Senate will consider the legislation this week.  There are some concerns among Senators that H.R. 6021 requires employers to provide paid leave up front and then apply for tax credits, which could cause cash flow problems.  ACEC is coordinating with other business association stakeholders to look for solutions as lawmakers move forward with this latest legislative response to COVID-19.

Employer-related provisions in the House-passed bill include:

• Testing: Insurers would be required to cover testing for COVID-19 without cost-sharing or prior authorization requirements.
• Emergency paid leave: Private sector employers with fewer than 500 employees and government entities would have to provide 12 weeks of job-protected leave under the Family Medical Leave Act (FMLA) to employees who have to quarantine, care for a family member in quarantine, or care for a child under 18 whose school or day care has closed.
• • The first 14 days of leave could be unpaid, although employees could use accrued PTO during this period.
  • Following the first 14 days, employees must be paid at least two-thirds of their normal pay.
  • DOL would be authorized to exempt businesses with fewer than 50 employees from the paid leave provisions.
• Emergency sick leave: Private sector employers with fewer than 500 employees and government entities would have to provide paid sick leave to self-quarantine, get a diagnosis for COVID-19, or provide care for a family member in quarantine or a child whose school has closed.
• • 80 hours of paid sick leave for full-time employees.
  • Paid sick leave for part-time employees based on their work hours over a two-week period.
  • The emergency sick leave is on top of any other paid leave provided by the employer.
• Employer tax credits: The bill would provide payroll tax credits to employers to cover wages paid while employees are using the emergency paid leave and sick leave established by the legislation.
• • Sick leave credit of as much as $511 per day if the employee is caring for themselves, and as much as $200 per day if the employee is caring for a family member.
  • Family leave credit of as much as $200 per day, or an aggregate of $10,000.
  • Employers could receive the tax credit even if the credit exceeds the amount the employer owes in payroll tax.

More detailed information can be found here and here.  Also, please note that we expect additional congressional assistance packages in the coming days and weeks to respond to specific challenges, and we will keep you posted as these new initiatives develop.

FHWA/State DOT Coordination

ACEC staff participated in a call last week with U.S. DOT representatives and officials from the modal administrations, e.g. FHWA, FTA, FRA.  They made clear they are focused on unified federal government response actions to protect at-risk populations, in conjunction with CDC and HHS; state and local transportation agencies should follow guidance from local public health authorities on specific operational guidelines for mitigating the spread of the virus.  The modal administrations are tracking the economic impact of the disruptions and providing guidance to their grantees and partners on federal funding eligibility and flexibilities for emergency response costs, operating expenses, etc.  Of interest to some ACEC member firms, FHWA is reviewing NEPA regulations to determine whether virtual public meetings can satisfy the existing legal requirements for public engagement.

The FEMA Elevation Certificate has been updated. You may find the updated form and instructions here.