Insights

Title II of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides a number of tax relief provisions for businesses. The provisions are aimed at increasing liquidity and reducing costs of capital, so that businesses can continue operating and keep employees on payroll.

The Families First Coronavirus Response Act (“FFCRA”) sets a 500-employee threshold for purposes of the emergency paid sick leave and family medical leave expansion provisions. Many employers raise the question of whether that 500-employee threshold is met by combining employees from multiple subsidiaries or other related entities, or whether such entities remain distinct for purposes of employee count.

With countless businesses having either temporarily closed or significantly reduced operations during the coronavirus pandemic, many businesses are rightfully concerned about their ability to meet obligations, and, relatedly, the prospect of their customers being unable to pay their bills. While legislation enacted in response to the pandemic as well as other government-sponsored resources for small businesses have been extensively covered, in this unprecedented business environment, your business should consider all options available to it to ensure its continued success.