COVID-19 March 27 Update

Federal Government Stimulus Highlights (CARES ACT)

• Creates a $150 billion Coronavirus Relief Fund for state, local and tribal governments.
• Mississippi’s portion is estimated to be $1.3 billion. Can be used for:
  • school districts and institutions of higher education for costs related to the COVID-19
  • state, local, tribal and territorial governments to protect citizens and help them respond and recover from the overwhelming effects of COVID-19.
  • costs related to the deployments of the National Guard.
  • support for federal, state and local public health agencies to prevent, prepare for, and respond to the COVID-19.

• Extends Real ID deadline for full implementation by states from Oct. 1, 2020, to Sept. 30, 2021.
• Expands unemployment insurance from three to four months, and provides temporary unemployment compensation of $600 per week, which is in addition to and the same time as regular state and federal UI benefits.
• Establishes a $500 billion lending fund for businesses, cities and states.
• Provides a $1,200 direct payment to many Americans and $500 for each dependent child.
• Small Business Paycheck Protection Program
  • The CARES Act includes a $325 billion small business loan program designed for businesses having fewer than 500 employees to be administered through the Small Business Administration (SBA).
  • The maximum amount of the loan is the lesser of a multiple of 2.5x payroll or $10 million.
  • Under certain conditions, there are aspects of the loan that qualify for forgiveness.
  • The deadline to apply for the small business loan program is June 30, 2020, and details are expected to be issued soon and accessible at SBA.gov.

• Large Business Loan Program and Credit Facility
  • A second loan program has been established for larger businesses that do not otherwise qualify for the small business offering.
  • While the total value of this program is $500 billion, after the deduction for amounts directed to airlines and industries designated for national security, there is $425 billion available. It is expected that this amount will be leveraged significantly and potentially provide up to $4 trillion in financial support.
  • Loans must be secured, for a term of not more than 5 years, and subject to an annualized interest rate that is not higher than 2 percent per annum. For the first six months after any direct loan is made, there is no principal or interest due or payable. That may be extended at the Treasury Secretary’s discretion.

• Corporate Tax Provisions
  • There are a number of provisions providing corporate tax relief. These include extension of NOL carrybacks for five years, delay of employer payroll taxes, correction of qualified improvement property depreciation back to 15 years, employee retention credits, relaxation of business interest deductions and employee retention credits.
• Individual Tax Relief
  • Recovery rebates of up to $1,200 for individuals (phase out beginning at $75,000 annual income) or $2,400 for married couples (phase out beginning at $150,000 annual income), each increased by $500 for every child.
• Enhanced Unemployment Benefits
  • Unemployment benefits by adding a $600/week across-the-board payment increase through the end of July, 2020.
  • In addition, for those who need it, the bill provides an additional 13 weeks of benefits beyond what states typically allow.
  • The expansion in unemployment benefits expires at the end of 2020 in recognition of the temporary nature of this challenge.
  • Benefits should be accessible via a state’s unemployment insurance website.
• Banking Provisions
  • The Federal Deposit Insurance Corp (FDIC) has provided expanded authority to guarantee bank accounts and ease lending regulations.
  • The Act also allows banks to postpone compliance with the Current Expected Credit Losses standard and ease accounting rules to make it easier for banks to restructure Troubled Debt Ratio without taking a hit to capital and regulatory relief from accounting standards for loan modifications.

Update on number of cases.

• 94 new cases reported yesterday.
• Total cases statewide now number 579.
• Unfortunately, we now have 8 deaths. All of the deaths have been people 60 years of age or older.
• Four new counties reported cases yesterday – Jefferson, Kemper, Neshoba, Sharkey

Updates with MEMA

• We have regular communications with MEMA to give you up to date information. We have the ability to get answers to all of your questions from MEMA, so please do not hesitate to contact us
• if you have questions.

Updates with the Department of Health

• We also have daily updates with the Department of Health. If you have any questions from the Department of Health and cannot get answers, please contact us and we will try to get the answers for you.

Mississippi Hospital Association

• Today I participated in a one-hour conference call with the Mississippi Hospital Association. We continue to try to work with them to meet their needs so that they can service you better.

Call if you need help.

• We have had phone calls to our office forwarded to our staff. If you need any help at all, please call us at 601-359-3300. We have also set up an email address for you to ask questions or seek help. That address is [email protected].