COVID-19 INFORMATION & RESOURCES
STIMULUS RESOURCES (GRANTS, LOANS & CREDITS)
The second round of funding for this program has been exhausted. The new aid package just approved by Congress includes additional funding for the Paycheck Protection Program (PPP). The stimulus bill includes the creation of the PPP that allows eligible small and medium sized businesses to apply for an expanded SBA 7(a) loan program. The traditional 7(a) eligibility requirements will not apply. Instead, all businesses with fewer than 500 employees are eligible including self-employed individuals, sole proprietors, independent contractors, nonprofit organizations, and tribal businesses. Under this expanded program, certain 7(a) loan requirements such as personal guarantees, SBA fees and collateral requirements, will be waived.
This program is not provided through SBA directly, so the first step to qualifying for a 7(a) loan is to find an SBA approved lender in your community. Contact your local bank to inquire if they are an SBA approved lender. Your lender can guide you through the application process and determine which 7(a) loan product will work best for your business.
Allowable uses of these loans include:
- Payroll costs;
- Certain costs related to the continuation of group health care benefits;
- Employee salaries (including commissions);
- Mortgage, rent and utilities payments; and
- Interest on any other debt obligations that were incurred before the covered period.
A loan recipient may be eligible for forgiveness on a covered loan used for costs including up to eight weeks of payroll (if the employer does not release employees or reduce salaries), mortgage and rent obligations, and utility payments.
The new aid package just approved by Congress includes additional funding for the Economic Injury Disaster Loans (EIDL). If you were in the process of applying for a EIDL and have an application number that begins with the number three, you do not need to reapply for a loan. The SBA report it is continuing to process applications that were in the pipeline when funding ran out, and will reopen its application portal and accept new applications once it receives new appropriations. If you have an application number that begins with the number two, you should reapply once the application portal reopens. You will not lose your place in line because SBA can match up the new application with the date/time stamp of the original application submitted.
Small business owners in all U.S. states and territories are currently eligible to apply for low-interest EIDL of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue due to the COVID-19 response.
Applicants may request an advance in the amount of $10,000 to be delivered within three days of the request. This advance must be used to:
- Provide sick leave to employees unable to work due to the effects of COVID-19;
- Maintain payroll to retain employees;
- Cover increased costs of materials due to interrupted supply chains;
- Make rent or mortgage payments; or
- Repay other obligations that cannot be met due to revenue losses.
An applicant will not be required to repay this advance if it is used for these purposes, even if they are subsequently denied a loan under the EIDL program. Qualified businesses can apply on the SBA's website.
Appropriate eligibility requirements:
- Be a small for-profit or non-profit business as defined by SBA, but with less than 250 employees
- Physical presence in South Dakota
- Established prior to March 2020
- Provide a certification from a South Dakota banker and/or South Dakota CPA that: he/she has reviewed recent financial condition of the applicant, that the applicant’s business has incurred economic injury as a result of the COVID-19 pandemic, and the applicant needs the funds for SD operations
- Have a personal credit with a minimum score of 650; lower requires a special exception
- Demonstrate 1:1 debt coverage ratio with the new debt factored under normal circumstances
- Min: $5,000
- Max: $75,000
- Interest rate: 0%
- Fees: none
- No payments for initial 6 months
- Maximum term of 60 months (prefer shorter term for smaller loans)
- Automatic Payment Required
- No pre-payment penalty
- Personal guaranties for any owner with at least a 20% share of the business
- A blanket security agreement
- Loan over $25,000 may require additional collateral (mortgage, etc)
- Loans will be made directly to small businesses
Loan Agreement Terms:
- Proceeds from the loan must be held in a separate bank account at a bank in South Dakota.
- Applicant must provide regular expenditure reports to GOED documenting that the use of proceeds were used for normal recurring operating expenses.
- Proceeds may not be used for any distributions or dividends to owners.
- GOED makes no assurances as to how approval or denial of this application will impact the applicant’s ability to pursue other financing from the SBA or any other source.
- As a sub-fund of REDI, these loans will be subject to annual audit by Department of Legislative Audit
- Board of Economic Development will review Eligibility Requirements and Loan Terms; a public monthly report will be provided to them on loan activity.
- Loans will be approved by the Commissioner of the Governor’s Office of Economic Development*
- All application materials are confidential. Name of all loan recipients will be a public record.
GOED expects high demand for these loans, and applications will be evaluated on a “first come, first served” basis.
*after consultation with the Credit Review Committee
The tax-related centerpiece of the third economic stimulus bill consists of “recovery rebates” — a $1,200 one-time payment (plus $500 per child) — mailed (or direct deposited) to every eligible taxpayer in the coming weeks.
Eligible recipients include taxpayers with adjusted gross income up to $75,000 (single)/$112,500 (head of household)/$150,000 (joint filers). Joint filers will receive $2,400. The rebate is phased out for taxpayers with higher incomes and is completely phased out for single filers, heads of household, and joint filers with incomes above $99,000, $136,500, and $198,000, respectively.
All eligible taxpayers will receive a check, which will be processed automatically based on the taxpayers’ 2019 tax returns. If the taxpayer has not yet filed a 2019 tax return, the IRS will use their 2018 tax return.
Eligible employers are allowed a credit equal to 50% of qualified wages with respect to each employee, on a quarterly basis. An eligible employer means any employer carrying on a trade or business in 2020 during which in any calendar quarter:
- The operation of the trade or business is fully or partially suspended during the appropriate calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings due to COVID-19; or
- The trade or business experiences a significant decline in gross receipts, with a 50% decline in gross receipts when compared to the same quarter in the prior year. Businesses remain eligible until their gross receipts recover to 80% when compared to the same quarter in the previous year.
Maximum wages, including health insurance benefits, eligible for the credit for all calendar quarters is $10,000. For businesses with 100 or fewer employees, generally all wages of full-time employees are eligible. For larger businesses, only those wages paid to full-time employees who are not providing services due to a suspension of business operations or reduction in gross receipts are eligible. Wages may also include an employer’s qualified health plan expenses allowable to the employee. Credit is refundable to the extent it exceeds payroll taxes.
Employers receiving a loan under section 7(a) of the Small Business Act are not eligible for the employee retention credit.
Congress has adopted a new mandate on all employers requiring 10-days of paid sick leave for employees affected by COVID-19. In addition, employees may be eligible for 12-weeks of paid leave under the Family and Medical Leave Act if their son or daughter’s school closes or they otherwise have child care issues due to COVID-19. These mandates took effect on April 1. To offset these costs, businesses can claim a tax credit to fully offset all wages, including employer-paid health insurance costs, paid out under this new mandate. To speed up delivery of the credits, Congress has recently added the ability for employers to get an advance refund on these credits.
Detailed information on these new requirements, as well as the tax credits, can be found here.
Employers and self-employed individuals may defer payment of the employer share of Social Security taxes they are responsible for paying.
This allows employers and self-employed individuals to save temporarily on the 6.2% Social Security tax on wages.
This is not a payroll tax holiday.
These deferred taxes must be repaid over the following two years. Half of the amount will be due by Dec. 31, 2021 and the other half by Dec. 31, 2022.
Taxpayers will not have to pay the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts.
Taxpayers will have three years to pay taxes on income from such a distribution, and the taxpayer may re-contribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions.
This provision is only applicable for coronavirus-related purposes.
To qualify, the taxpayer must:
- Be diagnosed with COVID-19;
- Have a spouse or dependent diagnosed with COVID-19; or
- Experience adverse financial consequences as a result of:
- Being quarantined, furloughed, laid off, having work hours reduced;
- Being unable to work due to COVID-19 related child care issues;
- Closing or reducing hours of a business operated by the taxpayer; or
- Other factors as determined by the Secretary of Treasury.
For income tax purposes, NOLs arise when allowable deductions of a business exceed their taxable income. Under current law, businesses can carry forward NOLs indefinitely to offset against future taxable income, but losses may not exceed 80% of taxable income in any tax period. NOLs may no longer be carried back and used to offset tax liability in prior years.
Congress has temporarily modified these rules so that losses from 2018, 2019 and 2020 may be carried back five years from the year in which the loss was incurred. This will allow businesses with NOLs to amend prior year tax returns and obtain refunds to provide additional liquidity.
For businesses subject to the 30% of income limitation on deducting business interest expenses, Congress increased the limit to 50% for 2019 and 2020.
Congress has enacted legislation to permit anyone with a loan backed by Fannie Mae, Freddie Mac, FHA, VA or Rural Housing to receive forbearance up to one year on their mortgage by calling their servicer and reporting that they have a COVID-19 related financial hardship.
Congress also temporarily barred foreclosures on government-backed mortgages for not less than 60 days beginning March 18, 2020.
Congress has allowed multifamily mortgage forbearance for all federally backed mortgages (Fannie Mae, Freddie Mac or FHA).
Owners may request forbearance for 30 days, with the option of two additional 30 days as needed for a total of 90 days. During that time frame (by the end of the termination of the national emergency or Dec. 31, 2020, whichever comes first) owners will be unable to evict tenants or charge late fees.
Congress has also imposed an immediate 120-day moratorium on evictions and associated fees for non-payment of rent for all properties insured, guaranteed, supplemented, protected or assisted in anyway by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act. After the 120 days, owners must give 30 days written notice of an eviction. The eviction is specifically only for non-payment. At the end of this period, the tenants will be required to pay all rent due.
Congress has appropriated $1 billion for multifamily developers who currently have PBS8 projects to help maintain and run operations of these properties.
Congress enacted a significant expansion of unemployment benefits to support workers who have lost their jobs as a result of the COVID-19 health pandemic. Specifically, the measure:
• Creates a temporary Pandemic Unemployment Assistance (PUA) program to provide payment to those not traditionally eligible for unemployment benefits — such as the self-employed and independent contractors — who are unable to work as a direct
result of the coronavirus pandemic. Payments through the PUA program are authorized for a maximum of 39 weeks, ending Dec. 31, 2020.
• Extends traditional unemployment insurance (UI) benefits for another 13 weeks and provides for an additional $600 per week for each recipient of traditional UI or PUA for up to four months.
• Authorizes federal funds to cover the usual one-week waiting period before an individual gets their first unemployment benefits so that they can start receiving payments immediately.
• Funds short-term compensation (STC) programs that allow states to create new programs for employers that are having to choose between laying off or furloughing their employees to receive funding to keep those workers on their payroll. The STC
program funding will be available for coverage during the weeks of unemployment through Dec. 31, 2020. Temporary, seasonal or intermittent workers are not eligible for those types of benefits.
• Authorizes payments to states to reimburse government agencies, tribes and nonprofits for half the payments they are required to make into the state unemployment fund.
JOBSITE SAFETY & RECORDKEEPING GUIDANCE
On March 28, the Department of Homeland Security (DHS) designated construction of single-family and multifamily housing as an “Essential Infrastructure Business.” The DHS states that its “designation is advisory in nature. It is not, nor should it be considered, a federal directive or standard. Additionally, this advisory list is not intended to be the exclusive list of critical infrastructure sectors, workers, and functions that should continue during the COVID-19 response across all jurisdictions. Individual jurisdictions should add or subtract essential workforce categories based on their own requirements and discretion.”
Below is a preparedness and response plan template for companies to base their own from which provides the steps that every employer and employee can take to reduce the risk of exposure to COVID-19. The plan describes how to prevent worker exposure to coronavirus, protective measures to be taken on the jobsite, personal protective equipment and work practice controls to be used, cleaning and disinfecting procedures, and OSHA guidance on what to do if a worker becomes sick, including recordkeeping requirements.
- CISC Coronavirus Preparedness and Response Plan for Construction (updated 4/20/20 for new CDC guidelines)
- OSHA: COVID-19 Guidance for the Construction Workforce (updated 4/22/20)
- Jobsite safety poster (updated 4/26/20)
- Jobsite safety poster (Large - 11x17) (updated 4/26/20)
Updated May 27, 2020 - - -
The U.S. Occupational Safety and Health Administration announced a significant reversal of previous policy on an employer’s obligation to record work-related cases of COVID-19 on OSHA injury and illness logs. The new requirements go into effect Tuesday, May 26.
As with the previous guidance, OSHA acknowledged that it will be difficult to establish that a particular COVID-19 case is “work-related.” But the new guidance does place additional obligations on most employers to conduct an investigation and to make a reasonable determination as to whether the illness was transmitted on the job.
It should be noted that the new guidance applies only to employers currently subject to OSHA’s recordkeeping requirements. Due to employee size limitations, many home builders are exempt from most of the new requirements.
Employers who are subject to OSHA’s recordkeeping requirements must record a case of COVID-19 as job-related if:
- It is a confirmed case of the virus (a positive test),
- It is “work-related” in that an event or exposure in the work environment either contributed to or caused an employee to contract the virus, and
- It results in death, days away from work, restricted work or transfer, or medical treatment beyond first aid.
Employers who have no recordkeeping obligations need only report work-related COVID-19 illnesses resulting in an employee’s death or in-patient hospitalization, amputation, or loss of an eye. But those employers must still investigate positive tests to determine if the case is work-related.
OSHA will consider the “reasonableness” of an employer’s investigation when determining compliance. The new guidance concedes that employers are not expected to undertake extensive medical inquiries, given privacy concerns and most employers’ lack of medical expertise. However, in most circumstances, employers should complete the following steps when they learn of a COVID-19 case:
- Ask the employee how they believe they contracted the illness.
- Discuss with the employee, while respecting privacy concerns, the activities both inside and outside of work that may have led to the illness.
- Review the employee’s work environment for potential COVID-19 exposure.
OSHA recognizes that determining the work-relatedness of a COVID-19 diagnosis is difficult for most employers, and noted that it would consider certain types of evidence that weigh in favor or against work-relatedness. For example, it is likely the virus was contracted at work if several cases develop among workers who work closely together and there is no alternative explanation. Conversely, if only one worker at a site tests positive, it is likely not work-related.
The U.S. Department of Labor Issues Guidance for Respiratory Protection During N95 Shortage Due to COVID-19 Pandemic
The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued interim enforcement guidance to help combat supply shortages of disposable N95 filtering face piece respirators (N95 FFRs). The action marks the department’s latest step to ensure the availability of respirators and follows President Donald J. Trump’s Memorandum on Making General Use Respirators Available.
Due to the impact on workplace conditions caused by limited supplies of N95 FFRs, employers should reassess their engineering controls, work practices and administrative controls to identify any changes they can make to decrease the need for N95 respirators.
If respiratory protection must be used, employers may consider use of alternative classes of respirators that provide equal or greater protection compared to an N95 FFR, such as National Institute for Occupational Safety and Health (NIOSH)-approved, non-disposable, elastomeric respirators or powered, air-purifying respirators.
When these alternatives are not available, or where their use creates additional safety or health hazards, employers may consider the extended use or reuse of N95 FFRs, or use of N95 FFRs that were approved but have since passed the manufacturer’s recommended shelf life, under specified conditions.
This interim guidance will take effect immediately and remain in effect until further notice. This guidance is intended to be time-limited to the current public health crisis. Visit OSHA’s Coronavirus webpage regularly for updates.
For further information about COVID-19, please visit the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.
The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.
Date: April 3, 2020
Release Number: 20-572-NAT
Contact: Department of Labor National Contact Center
WEBINARS FOR MEMBERS
Click here to view past webinars held by NAHB regarding COVID-19.
List of webinars currently available:
- COVID-19 Update for Your Workplace
- Keep Your Traffic Flowing: A Marketing Playbook for COVID-19 (Part 1 & 2)
- COVID-19 Safety Update
- Cash Management During COVID-19
- COVID-19 Jobsite Safety Stand Down
- Coronavirus & Jobsite Safety: What Home Builders Need to Know
- Small Business Administration Loans
- Tax Relief Provisions in CARES Act
HELP FOR BUSINESSES
Information below was received from the Department of Labor at this link
- Understanding the Key Provisions of the Families First Coronavirus Response Act
- Webinar Replay: COVID-19 Update for Your Workplace
Temporary Rule: Paid Leave under the Families First Coronavirus Response Act
On April 1, 2020, the U.S. Department of Labor announced new action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA). The Department’s Wage and Hour Division (WHD) posted a temporary rule issuing regulations pursuant to this new law, effective April 1, 2020.
For more information, see https://www.dol.gov/agencies/whd/ffcra.
- Families First Coronavirus Response Act: Employee Paid Leave Rights (PDF)
- Spanish (PDF)
- Families First Coronavirus Response Act: Employer Paid Leave Requirements (PDF)
- Spanish (PDF)
Questions and Answers
- Families First Coronavirus Response Act: Questions and Answers
- COVID-19 and the Fair Labor Standards Act: Questions and Answers
- COVID-19 and the Family and Medical Leave Act: Questions and Answers
- Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
- Federal Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
- Families First Coronavirus Response Act Notice – Frequently Asked Questions
Builders should review their contracts with their attorney to determine whether they include a force majeure clause or a similar clause dealing with the concept of delays and extensions of time for performance. To avail itself of a force majeure provision, the builder may need to comply with other relevant contractual provisions, such as one requiring the giving of notice to the other party. Failure to provide such notice may constitute a breach of the agreement.
Force majeure events and circumstances may be either:
- Natural occurrences
- Man-made events or circumstances
What types of events constitute force majeure depend on the specific language included in the clause itself.
Common examples of force majeure events include:
- Unavailability of materials
- Inclement weather
- Changes in government regulations
- Acts of government agencies or their employees
- Acts of God
- Any event reasonably beyond the Builder’s control but not caused by the Purchaser
A party seeking to rely on a force majeure clause must first establish that the intervening event falls within the contract’s definition of force majeure. Most force majeure clauses provide a list of triggering events. Where coronavirus, or COVID-19, is not captured by a specific or analogous term, it may nevertheless be covered by broader language in the contract. It remains to be seen how courts, arbitration panels, and other tribunals will resolve the issue of whether COVID-19 and the associated impacts, such as quarantine, constitute a force majeure event.
It is critical to understand how your contractual rights can protect your company – now is the time to review key contract and insurance policies, and if you have questions or need advice, contact your local attorney.
This Employee Rights: Paid Sick Leave & Expanded Family & Medical Leave under The Families First Coronavirus Response Act (FFCRA) poster is required by law to be displayed in a conspicuous place on your company's premises if the company has under 500 employees.
LOCAL BUILDING OFFICE UPDATES
Permit/inspections with cities and counties
Listed below is a brief summary of city and counties in the Sioux Empire regarding issuance of building permits and inspections.
The situation is evolving and changing, the best practice is to call the government entity you are working with regarding questions on permits, plan submittals and inspections.
A note from the City of Sioux Falls:
On May 18, we started with a soft reopening of City Hall and the City Center with limited staff. This does not mean business as usual or that we will be fully staffed in each department, so we ask that only those customers with essential items physically visit our building for the time being. We will continue to have staff working remotely to quickly process permits and inspections through the CSS portal.
Important items to know for our soft opening on May 18th:
- Please continue to utilize the CSS portal for your permits and inspections if at all possible at https://css.siouxfalls.org
- Please know that we will have limited staff available so there may be a considerable wait time at some times.
- We are asking you to wear a mask into the building, is strongly recommended for your safety, the safety of our employees and the safety of other customers in the building.
- Only a limited number of customers will be allowed in our lobby area at a time, so you may be asked to wait outside if we have reached our temporary capacity.
- Inspections are being completed on a daily basis
- City office is open and issuing permits
- Inspections are being completed on a daily basis
Paul J. Clarke
City of Brandon, South Dakota
304 Main Avenue
Brandon, SD 57005
- City offices are closed but staff are working - contact city hall for permit questions or payment
- Builders can submit applications by email or mail
- Inspections are still being completed
City of Harrisburg
Planning & Zoning Administrator
- The city offices are closed but work continues
- Contact the city for best methods for permits applications
- Inspections are still being completed
Hartford City Administrator
- City offices are closed but continues to work
- City staff will meet with builders and issue permits by appointment only
- Can contact staff for further instruction on submitting plans
- Payments can be dropped off at the utility drop box
City of Tea Planning & Zoning
600 E. 1st Street
Tea, SD 57064
- Access to the County’s Administrative Building is restricted
- Inspections are being completed as usual.
- Builders can also utilize the permit application https://lincolncountysd.org/Page.cfm/Departments/1200/Planning-&-Zoning and submit to the County
All Planning and Zoning application forms can be completed online and emailed to email@example.com.
Lincoln County Planning & Zoning
104 N. Main St. Suite 220
Canton, SD 57013
- The County non-essential buildings are closed
- Contact the Planning & Zoning Department for submitting permits and inspection requests
Minnehaha County Planning & Zoning
415 N. Dakota Ave
Sioux Falls, SD 57104
What additional information and/or resources can the Home Builders Association of the Sioux Empire provide for you and your company during the COVID-19 pandemic (OSHA regulations, insurance, legal, financial, etc...)? Fill out this quick form.
Do you have additional questions or are looking for additional resources? Contact us today.
- Call us at (605) 361-8322
- Email us
The information being provided is for general information only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such.