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COVID-19 TYPES OF RELIEF

dtelfer • April 6, 2020

WHAT TYPES OF RELIEF ARE AVAILABLE FOR YOU AND/OR YOUR BUSINESS

The Federal Government has enacted myriad types of COVID-19 Relief. On account of the hastily complied legislation, the guidance is changing in real time. It is important to develop a strategy for your business to make sure you maximize your benefits. Some of the relief is mutually exclusive, while other provisions are time sensitive. In fact, not only will some options expire or not be sufficiently funded, but the order in which you utilize the relief can make a substantial difference in your individual outcome. Please see below a general outline of some of the most important relief available for small businesses. Note, most of these provisions should be assessed on a case by case basis in order to maximize the benefit to your small business and avoid reductions in the amount that is forgivable.  

Please contact us to set up a consultation if you would like specific guidance

Call Us 213.674.0002

It is important to know that the sick leave provisions of the FFCRA can in fact be a key part of keeping your small business afloat in these challenging times since your business will be reimbursed for the two weeks of sick leave (and 10 weeks of family leave) via tax credits.  It is also important to understand how these benefits integrate into the larger relief options in order to provide the most relief to your small business.  Again, the FFCRA may be pivotal in helping your maintain your employees during this time via government aid, but there are a number of caveats and important guidance that must be included in the analysis.   Furthermore, there is certain evidence that employees must provide to qualify
  • 1. Major Provisions:
    • Paid Sick Leave Pursuant to the FFCRA:  If your employees cannot currently work because of a quarantine or because of COVID-19 related illness, you will be reimbursed via a dollar to dollar tax credit for up to two weeks of sick leave. 
    • Expanded Family Leave Pursuant to the FFCRA:  Furthermore, employees who cannot work because they must care for their children as a result of the current crisis, are entitled to an additional 10 weeks at 2/3 of their pay, which will also be reimbursed on a dollar to dollar basis via tax credits.
  • 2. Issues To Watch Out For:
    • Does your company qualify based on size?
    • Do your employees qualify based on time with the company, local/state orders, illness, children?
    • Are you paying the correct wages given the various caps?
    • Can your employees present the proper paperwork?
    • Will you provide your tax preparar the information required to get the payroll tax credit?
I
The CARES Act is massive and it contains myriad provisions that affect small business owners, from direct grants, to forgivable loans and mortgage relief.  Here is the current status of some of the most important provisions for small business owners.  Again, most of these provisions should be assessed on a case by case basis in order to maximize the benefit to your small business.  There are a number of provisions, but the most important aid is wrapped up in the Paycheck Protection Program Loans (PPPL) and the Economic Injury Disaster Loans (EIDL).
  • 1. Paycheck Protection Program (PPP) Loans: 
    • Value of Loan.  The PPP Loans are based on a your historical payroll (that value requires a specific analysis since it is not limited to only W-2 type pay).  The guidance on this is fairly complicated and changing by the day.  From the recent guidance, this does appear to include your distributions if you are a sole proprietor, however, not some other types of payments such as regular independent contractors. There are limits to the amount that is counted to your average monthly payroll, but the full loan is funded at 2.5 times the monthly average payroll.      
    • Forgivable.  These funds - if spent properly - are fully forgivable.  It is very important, however, to get specific analysis of your potential payroll, what counts as forgivable expenses, and when to time this and integrate it with the other relief.
    • Source of Loan.  Currently, you can apply for these loans via private banks or traditional SBA loan providers (but not directly through the SBA).
    • Current Status.  At the time of this post, it appears there is a fair amount of bureaucratic confusion regarding the issuance of these loans and no money has been released to date.  
  • 2.  Economic Injury Disaster Loan (EIDL)
    • Loan Terms.  The EIDL is a disaster loan offered by the SBA for up to $2 million, with 6 month deferment, and interest rates at 3.75%.  
    • Qualifying.  To qualify, you must have good credit history as well as less than 500 employees (or fit certain exceptions).  No collateral is required for up to the first $25,000.
    • Loan Advance.  One of the most attractive attributes is the potential $10,000 advance that your business can receive even if you do not qualify for the loan itself.  This $10,000 does not need to be paid back if spent on qualifying expenses making it a grant for all intents and purposes.
    • Source of Loan.  You can apply for these loans directly through the SBA.
    • Current Status.  At the time of this post, it does not appear that any business has received the $10,000 loan advance despite news of myriad applications.  
  • 3. Other Provisions.  There are many other small provisions that include, but are not limited to the following:
    • Retirement Accounts.  There are provisions that permit access to retirement accounts without penalty and with provisions to defer tax liability (or avoid by paying it back).
    • Filing Delays.  The non-corporate tax deadlines have been postponed until July, 2020.
    • Recovery Rebates:  An advanced tax credit refund of up to $1200.
    • Charitable Contributions.  Limitations have been lifted and these may be calculated differently for tax purposes.
III. OTHER RELIEF.
  • 1. Mortgage Deferrals:    If your ability to pay your mortgage is impacted, and your loan is owned by Fannie Mae or Freddie Mac, you may be eligible to delay making your monthly mortgage payments for a temporary period, during which: you won’t incur late fees, you won’t have delinquencies reported to the credit bureaus, and foreclosure and other legal proceedings will be suspended.  However, it is NOT clear what your liability will be at the end of that deferral period.
  • 2. Eviction Relief:  Federal eviction relief is limited to certain properties with federally backed mortgages, however, there are many local and state level regulations that may offer relief.

Please contact us to set up a consultation if you would like specific guidance

Call Us 213.674.0002

News

By dtelfer November 10, 2020
WHAT DOES BIDEN MEAN FOR IMMIGRATION? ***Important Caveat - we cannot predict the future - these are our best predictions based on what we have seen from the Obama administration, what has changed with the Trump administration, and what the Biden transition team has said thus far.*** 1. General Changes. USCIS during the Trump administration has been marked by grave incompetence and sometimes outright violation of law. As a result, we have seen the beginning of an exodus of companies and projects to Canada and a preference for remote-only work in order to avoid a draconian and xenophobic immigration system. It is our hope that a more competent, fair, and just immigration system will bring that work and those tax dollars back to the US at a time when our country most needs it. Here are the general changes we expect to see during the Biden administration (but keep in mind a change in culture can take time): A return to transparency , open communication , and intention to follow the law ; Less baseless Requests for Evidence and Denials; Easier access to Infopass appointments and USCIS agents by phone; Greater communication between USCIS and the public, including a return to certain liaison meetings; More flexibility for individuals in removal hearings who have US family and have spent many years in the US; Generally more c ompetence , organization , and modernization. 2. Specific Changes Travel Bans: We expect the Biden administration to reverse most if not all of the travel bans. We know they plan to reverse the "Muslim Ban" on Day 1. We do expect them to also reverse travel bans from Europe to the US in short order given that we have higher levels of COVID than Europe, and given that it makes little public health sense to send someone from a country with low COVID rates (like Greece) to a country with high rates (like Mexico) for 14 days in order to enter the US. Embassy and Consulate Openings: We expect the Biden administration to hasten the reopening of US Embassies and Consulates abroad providing easier access to obtaining new visas. DACA: We expect the Biden administration to reinstate DACA to its former status. Because the Trump administration failed to show it was unconstitutional, DACA may even be expanded under the Biden administration. TPS: We expect the Biden administration to reinstate TPS for most holders. Public Charge Additions: We also expect the Biden administration to reverse the new public charge requirements the Trump administration added to nearly all immigration processes. These additions have been stuck down on several occasions by federal courts. The public charge rule still stands, but it should revert to its prior incarnation relieving applicants of overly burdensome disclosures and requirements. Refugees: We also expect the Biden administration to increase the number of refugees the US accepts back to historic levels.
By dtelfer September 27, 2020
Here are a summary of some of the most common fees: Business Immigration O-1/P-1 Petition: now $705 (previously $460) O-2/P-1S Petition: now $705 (previously $460) [note, up to 25 x O-2 and P-1S beneficiaries can still go in one petition] H-1B Petition: $555 (previously $460) L-1 Petition: $805 (previously $460) I-140 Petition: $555 (went down - previously $700) Family Immigration 1st Green Card Petition inside US: $1690 + $590 travel permit + $550 work permit (used to be $1760 for everything) Removal of Conditions on Green Card: $760 (previously $595) Citizenship: $1,170 (previously $725) 601A Waiver: $960 (previously $630)
By dtelfer July 20, 2020
As we know, the Supreme Court sided with DACA holders against the Trump administration. On account of the Supreme Court decision, USCIS is finally accepting new applications (not just renewals) and travel permit applications (advance parole). Although USCIS illegally rejected some applications post the Supreme Court decision (and subsequently lied about the reasoning), a federal court has now ordered them to follow the law. WHAT THIS CHANGES 1. We can now apply for brand new DACA applicants; and 2. For those who already have DACA, we can apply for a travel permit (also known as Advance Parole). WHY A TRAVEL PERMIT IS SO IMPORTANT (AND URGENT) The travel permit can make a huge difference for DACA holders. If you did not enter the US on a visa and you are married to a US citizen (or you have a US citizen child who is 21 or older), you have to obtain a pardon (waiver) and travel out of the United States to get your green card. This is not only an expensive and time consuming process, but also discretionary and has gotten only harder under this administration. However, if you obtain a travel permit and you travel outside of the US and come back on your permit, you no longer need a waiver ("pardon") if you apply for a green card through an immediate US relative (spouse or child who is 21 years old or above). We highly encourage you to now apply for the travel permit if you qualify/have need. Here are the reasons for travel that are permitted (and that we will need to prove): Humanitarian: For example: travel to obtain medical treatment, attend funeral services for a family member, or visit a sick or elderly relative. Educational: For example: semester abroad programs or academic research. Employment: For example: overseas assignments, interviews, conferences, training, or meetings for work If you would like to apply, please let us know right away, we do not know how long this opportunity will last.
By dtelfer July 15, 2020
The Trump administration has backed off its dangerous and self-destructive student visa regulations. Foreign students will now be allowed to remain in the US in legal status on student visas while pursuing online coursework. The financial harm alone to US universities under the ban would have had dreadful lasting effects on the US education system and economy. Kudos to those universities and lawyers that stopped this needless self-infliction to the US economy and educational system.
By dtelfer June 23, 2020
Today's Executive Order Will Affect Many, But It Is Limited In Scope Who this does NOT affect: This does not affect anyone already in the US (even if changing status to an H-1B, L-1, etc); This does not affect anyone outside the US who already has their visa; This does not affect anyone applying for other visas - like O, P, B visas, etc. Who this does affect: New H-1B, H-2B, L-1, and J-1 applicants who are: 1) outside of the US and 2) do not have their actual visa yet. H ow long will this last: The proclamation is currently scheduled to end December 31, 2020. Is there a work around? It looks like yes. If you have a valid B1/B2 or other non-immigrant visa (ESTA will not work), you can enter the US and then change status here to one of the banned categories. Remember, there are still limits on travel from certain countries: The travel ban from Europe, China, Iran, and Brazil is still in place. If you need to travel to the US on a B1/B2 from one of those countries, you will need to spend at least 14 days in another country (that is not subject to the travel ban), before entering the US. Click here for all COVID updates. Click here to read the entire proclamation.
By dtelfer June 2, 2020
Quick Summary I-140 (Employment Green Card Petition) Starting immediately, you can upgrade any pending petition to Premium Processing and file a new I-140 with Premium Processing O, P, L, & E Visa Petitions: Starting June 8th, you can upgrade any pending petition to Premium Processing. Starting June 22nd, you can submit a new O and P visa concurrently with Premium Processing H-1B Visas (Non-exempt - this is most of them): Starting June 22nd, H-1B applications can upgrade to Premium Processing Detailed U.S. Citizenship and Immigration Services today announced that it will resume premium processing for Form I-129, Petition for a Nonimmigrant Worker and Form I-140, Immigrant Petition for Alien Workers, in phases over the next month. Effective June 1, 2020, USCIS will accept Form I-907, Request for Premium Processing Service for all eligible Form I-140 petitions. Effective June 8, USCIS will accept premium processing requests for: H-1B petitions filed before June 8 that are pending adjudication and are cap-exempt (for example, petitions filed by petitioners that are cap-exempt and petitions filed for beneficiaries previously counted toward the numerical allocations). All other Form I-129 petitions (non H-1B petitions) for nonimmigrant classifications eligible for premium processing filed before June 8 that are pending adjudication. Effective June 15, USCIS plans on resuming premium processing for: H-1B petitions requesting premium processing by filing an I-907 concurrently with their I-129 (or request for a petition filed on or after June 8) and are exempt from the cap because: The employer is cap-exempt or because the beneficiary will be employed at a qualifying cap-exempt institution, entity or organization (such as an institution of higher education, a nonprofit research organization or a governmental research organization); or The beneficiary is cap-exempt based on a Conrad/IGA waiver under INA section 214(l). Effective June 22, USCIS plans on resuming premium processing for all other Form I-129 petitions, including: All H-1B cap-subject petitions (including those for fiscal year 2021), including change of status from F-1 nonimmigrant status, for both premium processing upgrades and concurrently filed I-907s. All other Form I-129 petitions for nonimmigrant classifications eligible for premium processing and requesting premium processing by filing an I-907 concurrently with their I-129.
By dtelfer May 25, 2020
By dtelfer May 21, 2020
WHAT'S COMING BACK: Los Angeles City and County USCIS Offices will start Naturalization interviews on June 16 with social distancing limitations as a priority. Los Angeles City and County USCIS Offices will conduct limited Naturalization ceremonies June 27 and 28 with social distancing limitations as a priority. Los Angeles City and County USCIS Offices may be accepting emergency Infopass appointments now, but we are awaiting clarification. WHAT'S NOT READY YET No other interviews with start dates are planned or can be announced right now (this includes green card interviews) No news on biometrics appointments as of now.
By dtelfer May 20, 2020
UNEMPLOYMENT IN THE TIME OF CORONAVIRUS We are receiving a number of inquiries regarding unemployment. This is a complicated subject and each case is different, but below is some foundational information that may assist you and/or your workers in deciding the best path forward. Basics Regarding Unemployment The federal-state unemployment insurance system (UI) helps many people who have lost their jobs by temporarily replacing part of their wages while they look for work. It is a form of social insurance because employers pay into the system for their employees. Thus, it is not considered to be a "cash" or "cash equivalent" benefit, but rather, an "earned" benefit. Non-Immigrant Visa Holders (O, P, L, H) If you are a non-immigrant visa holder working in the US, it may be possible to qualify for unemployment, however, it is not recommended. It is important to remember that non-immigrant visa holders' status is dependent upon their work in the US. Thus, if they lose that job, in most cases, they have 60 days to find a new position or leave the US. Remaining in the US and living on unemployment will be evidence of falling out of status and could have long term negative consequences. What if you have to layoff a foreign worker or the foreign worker you petitioned for loses their job? In most of these cases, the petitioner and employer(s) are jointly liable to pay for that worker's transportation to return to the alien's last place of residence outside of the US. Those Seeking Permanent Residence If you are authorized to work, but find yourself unemployed (TPS holders, DACA holders, Asylum applicants and adjustment pending applicants with EADs), you should be eligible to apply for unemployment, and it should not negatively affect a future application for legal permanent residence (green card application). This is because unemployment is an insurance that your employer pays into on your behalf. Thus, it is considered an "earned" benefit, not a "cash" or "cash equivalent" benefit. However, with unemployment being extended to the self-employed, it is not guaranteed that self-employed applicants will not suffer a negative note on their future legal permanent residence applications. It seems unlikely, but it is an unknown. It is important to remember that asylees who apply for legal permanent residence are not subject to the public charge rule, so they do not need to worry about this issue. CALIFORNIA'S CORONAVIRUS RELIEF FOR UNDOCUMENTED IMMIGRANTS Starting May 18, undocumented immigrants living in California can apply for the state's $125 million Disaster Relief Assistance for Immigrants (DRAI), created to support those not eligible to receive federal assistance or apply for unemployment benefits. To apply, you must: Be an undocumented adult (over the age of 18); Be a resident of California; Have evidence that you are not eligible to receive any federal coronavirus relief such as that provided in the CARES Act; and Have evidence that you have been impacted by the economic crisis resulting from the ongoing coronavirus pandemic. The relief will be paid by order of application on a first-come, first-serve basis ($500 for individuals who qualify and a maximum of $1000 in assistance per household) and will be available until all the funds have been distributed. Individuals may apply by phone by calling the nonprofit organization assigned to their county or region of residence. Below is a link with the list of nonprofit organizations by counties/regions: https://cdss.ca.gov/inforesources/immigration/covid-19-drai Please note that while this is not a means-tested benefit and the federal government has not listed list this one-time assistance as a public benefit under the new public charge rules, USCIS has not yet issued guidelines about whether this will affect public charge in an application for legal permanent residence (green card application).
By dtelfer May 6, 2020
700,000 teenagers and adults who were brought to the U.S. as children were given some immigration relief when the Obama administration established the DACA Program (Deferred Action for Childhood Arrivals) for those individuals who arrived as children, who had been present in the U.S. for a substantial period of time, who had a high school degree or equivalent, and had no criminal history. These "Dreamers" received work permits (at an annual cost of several hundred dollars for them) and did not have to worry about being deported provided they continued to have a clean criminal record. However, they have seen their fate in turmoil since the Trump administration decided to end the program in 2017. Court battles have kept the program alive since then (for renewals - but not new applications). However, the Supreme Court is now deciding the fate of the program and whether the Trump administration terminated the program according to applicable law. We expect a decision in late June (2020). It is recommended that all DACA holders apply for renewal prior to the beginning of June in case the program cancelled on account of the Supreme Court decision. As a note, there are an estimated 27,000 doctors, nurses, pharmacists, technicians, physician assistants, and home aides assisting in the fight against the Coronavirus who are Dreamers.
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