The Coronavirus Relief Bill—The CARES Act

Entrepreneurs and small business owners have been among the hardest hit by this new economic reality.  You are the heart and soul of the business community and survival is a must. We are here to be by your side and help you through this perilous time.  Navigating all of the risks is not going to be easy, but we are going to stay on top of what is happening and do all we can to help you take the right risks to ensure that you not only survive, but position yourself to thrive once this storm passes!

Gratefully, some financial help appears to be on the way and there are many questions and uncertainty about what it really means. This is what we know now. 

CARES ACT. The Senate and House have just passed a roughly $2 trillion coronavirus response bill (the "CARES Act") as a life preserver for the American economy to keep both individuals and businesses from drowning during this crazy time during which much of American life has halted. Now that President Trump has signed the CARES Act, below is what we can expect.  

RELIEF FOR SMALL BUSINESS . In addition to the benefits to individuals, $377 billion dollars of the aid package is dedicated to small businesses which is going to be broken up in the following ways.

Paycheck Protection Program (PPP) Loans. 

Amounts and Forgiveness. $350 billion of the $377 billion dollars will be used for potentially forgivable small business loans.  Borrowers can borrower 2.5 times their monthly payroll expenses, up to $10 million. The amount of loan forgiveness may be modified or reduced if the employer decreases the number of employees as compared to the prior year, or if the employer reduces the pay of any employee by more than 25% as of the last calendar quarter. Employers who re-hire workers previously laid off as a result of the COVID-19 crisis will not be penalized for having a reduced payroll for the beginning of the relevant period.

Repayment Terms. Payments of principal, interest, and fees will be deferred for at least 6 months, but not more than 1 year. Interest rates are capped at 4%. 

Limitations on Uses. Any portion of the loan that is used to keep workers on payroll for up to 8 weeks or pay rent, mortgage and existing debt could be forgiven, as long as the workers stay employed through the end of June. However a salary cap of $100,000 applies. These loans cannot be used for leave pay that is already covered under the Families First Coronavirus Response Act. 

How Loans Will Be Distributed. These loans will be distributed through approved banks, credit unions and other lenders. It is unclear which lenders those will be and when they will start taking applications, but expect to see the common players in the SBA lending world being involved given the incentives that the government is giving to lenders to process and originate these loans. 

Personal Guarantees and Collateral No personal guarantees or collateral are going to be required for these loans.

ECONOMIC INJURY DISASTER LOANS (EIDLs).

The CARES Act is also expanding the eligibility requirements of small businesses and adding funding to the EIDLs program administered by the SBA. EIDL loans can be up to $2 million, have low interest rates, and long repayments terms. 

There are EIDL grants as well.  $10 billion of the $377 billion is dedicated for small business grants through the EIDL program of up to $10,000 to cover immediate operating costs. These grants are forgivable. 

As long as you are not using the EIDL loan or grant proceeds for the same expenses as PPP loans, there is no restriction on getting both loan types. 

You can apply for an EIDL by clicking here to get started.

EXISTING SBA LOAN RELIEF. $17 billion of that $377 billion will be dedicated to providing relief to small businesses that already have SBA loans. These funds will be used to cover 6 months worth of principal and interest payments. So if you have an existing SBA Loan, you may be in luck.

RELIEF FOR SOLO-ENTREPRENEURS AND FREELANCERS. In the past, self-employed people, freelancers, and independent contractors could not apply for unemployment. To account for those individuals, the bill adds a temporary Pandemic Unemployment Assistance program to help people who lose work as a direct result of the public health emergency through the end of this year.

REFUNDABLE TAX CREDITS.   Employers are eligible for a 50% refundable payroll tax credit on wages paid up to $10,000 during the crisis. The credit will be available to employers whose businesses were disrupted and those that had a decrease in gross receipts of 50% or more when compared to the same quarter last year. This credit can also be claimed for employees who are retained but not currently working due to the crisis for all employee wages for firms with 100 or fewer employees.

CONCLUSION. We are watching these developments closely and want you to be aware of all the opportunities that are available to help you weather this storm. If you have any questions about this, you can reach out to any of our business attorneys. This summary has been compiled and prepared by Josh Freeman, Esq., who can be reached at josh@freemanlovell.com

Stay healthy and strong! We’re here to help and guide you through!

By Adrienne Langmo September 30, 2025
As the federal fiscal year draws to a close, thousands of federal employees face an unsettling possibility if a continuing resolution is not passed: not just another shutdown and temporary furlough, but permanent layoffs through Reduction in Force (RIF) notices. This week, the Office of Management and Budget (OMB) instructed federal agencies to consider issuing RIF notices to employees (if certain conditions are met) rather than the usual temporary Furlough notices issued during shutdowns. This is a big shift. But it does not mean layoffs are guaranteed. If they occur, federal employees are protected by a robust set of legal rights. There’s still a process before a RIF can be properly issued, complete with notice rights, retention rights, appeal rights and such other rights that the OMB does not purport to usurp. That said, we understand that the anxiety of this uncertain moment is real. Here are some tips to best prepare for the unknown, come the end of the federal fiscal year: Download Your eOPF, ASAP o Your electronic Official Personnel Folder may become inaccessible during a shutdown. Download it now to preserve your employment records. Download Your last 3 Performance Appraisals, ASAP o Include mid-year reviews and commentary. These documents may affect retention rights in a RIF. Also save records of other awards, commendations, and other notable performance records. Save Key Communications o Save emails, memos, or notices from HR or supervisors about your employment status or shutdown protocols. Ask Questions o Supervisors, HR, and union reps are navigating this too. Don’t hesitate to ask questions. If you receive a RIF notice or suspect you were subject to procedural violations, don’t hesitate to reach out to us for our advice. We are here to help. Shutdowns may be political. Your livelihood is personal. Let us help you safeguard it. -Adrienne Langmo, Partner
By Adrienne Langmo September 12, 2025
If you're working for — or running — a business with under 50 employees, the Family and Medical Leave Act (FMLA) might seem like a distant federal regulation. But for eligible employees and covered employers, it’s a powerful tool for balancing work and life during major health or family events. Here's what you need to know. 🧩 The What The FMLA is a federal law that allows eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specific family or medical reasons, including: The birth or adoption of a child Caring for a spouse, child, or parent with a serious health condition Recovering from a serious health condition themselves Certain military-related family needs The leave can be taken intermittently, in blocks, or in one long swath. During FMLA leave, employers must maintain group health benefits as if the employee were still working. When the leave ends, the employee is entitled to return to the same or an equivalent position. 👥 The Who FMLA is mandatory for employers with 50 or more employees within a 75-mile radius. So, if your business has fewer than 50 employees at a given location, you’re not legally required to offer FMLA leave —but you can choose to adopt similar policies voluntarily. Employees must also meet FMLA eligibility criteria: Worked for the employer for at least 12 months Logged at least 1,250 hours in the past year Work at a location with 50+ employees within 75 miles *State employees may have additional benefits provided under state law. Here, we’re discussing private employers and employees. 🛠️ Employer Takeaways Treating employees appropriately during their FMLA leave and upon their return can present some hurdles for employers and coworkers, particularly when an employee has been on leave for some time and, e.g., projects or programs have evolved in their absence. You don’t have to navigate these situations alone; we can provide your team with the tools and information necessary to smoothly navigate the full FMLA process and avoid any sticky FMLA retaliation or interference claims. And, even if you’re not legally bound by FMLA, offering comparable leave can be a smart move. It builds trust, boosts retention, and shows you value your team’s well-being. Consider crafting a voluntary leave policy that mirrors FMLA protections, including: Clear eligibility rules Defined leave duration Job protection guarantees Coordination with paid time off or disability benefits For small businesses, this means you have flexibility—but also responsibility to communicate policies clearly. Want to overhaul those policies or craft great messaging to your team, give us a call! We’re here to make leave policies less painful and more practical. 📣 Employee Takeaways If you work for a small Utah employer, ask about your company’s leave policies. While FMLA doesn’t require you to use your accrued leave during your FMLA leave, it allows your employer to write into its policy a requirement that you do so. Make sure you read that policy! And, even if FMLA doesn’t apply, your employer may offer benefits similar to FMLA. If you’re dealing with a serious health issue or family emergency, document your situation, give notice as early as possible, and follow internal procedures. Need help understanding those procedures or your rights as an employee? We got your back! ⚖️ Final Thoughts FMLA is more than a legal acronym—it’s a lifeline for employees facing life’s biggest challenges. For Utah employers, understanding the law and choosing to offer similar protections can set your business apart. Whether you're an HR manager, CEO, or a team member, knowing your rights and responsibilities helps everyone navigate leave with clarity and compassion.
By Adrienne Langmo September 3, 2025
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