How can cash-strapped companies quickly and effectively resolve their business disputes in the wake of this global pandemic? One promising option – if both parties will agree to it – is expedited remote arbitration.
While the Stabilization Act prohibits the forgiveness of any principal amount of a loan to a State or municipality, it ties the interest rate on such loans to “the risk [related to such debt] and the current average yield on outstanding marketable obligations of the United States of comparable maturity.” This provision could serve to calm the recent volatility in the relationship between U.S. Treasury yields and that of State and municipal debt.
The Act expands employee benefit plan opportunities through the relaxation of certain requirements (including under the Internal Revenue Code and the Employee Retirement Income Security Act (“ERISA”) for retirement plans, health plans and certain medical reimbursement accounts. Plan sponsors should carefully review plan documentation to consider implications on their benefit offerings and administration.
The CARES Act clarifies that a covered employer is not required to pay more than $200 per day and $10,000 in the aggregate for each eligible employee who takes leave provided by the Emergency Family and Medical Leave Expansion Act (i.e., leave to care for children due to school closures or unavailability of childcare as a result of COVID-19).
A significant feature of the CARES Act is the loan program known as the Paycheck Protection Program. Applicants can receive loan proceeds to be used for the payment of compensation, commissions, health care costs, interest on debt obligations, rent and utilities as well as other traditionally allowable uses.
During the ongoing pandemic, businesses and individuals should be wary of social engineering cyber-attacks designed to exploit confusion and anxiety in this especially stressful time.
