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!

Scaling Your Startup: Is Your Next Hire a Contractor or an Employee?

By Adrienne Langmo • February 18, 2026
For small business owners in Utah, growing the team is an exciting milestone and you’ve likely faced the classic question: Should I hire an actual employee, or can I just find a "guy who knows a guy" and pay him via Venmo? While it might be tempting to treat an employee (W-2) and an independent contractor (1099) as interchangeable based on your budget, the IRS and the Utah Labor Commission see things very differently. Misclassifying a worker isn't just a clerical error; it can lead to significant back taxes and penalties. Here is a practical look at the differences to help you stay compliant while you scale. The Independent Contractor (1099) Think of a contractor as a separate business entity that you have hired to perform a specific project or attain a specific result. They are specialists who bring their own "secret sauce" to the table. Autonomy : They generally use their own equipment, set their own hours, and work from their own locations. The "What" Not the "How" : You have the right to control the result of the work, but not the specific methods used to achieve it. Financial Independence : They pay their own self-employment taxes, health insurance, overhead, and will typically invoice you for their services. They may have other clients besides your business. The Employee (W-2) An employee is someone who is fully integrated into your business operations. They are part of the daily rhythm of your company and are under your direct supervision. Direction and Control : You dictate when they work, where they work, and the specific sequence of their tasks. You provide the equipment to complete those tasks. Business Integration : Their services are usually a "key aspect" of your regular business activity. If your business is a bakery, the person baking the bread is likely an employee; the person fixing the oven is likely a contractor. Employer Obligations : You are responsible for withholding income taxes and paying a share of Social Security and Medicare. In Utah, you’ll also need to ensure you're covered for Workers' Compensation and Unemployment Insurance. The Bottom Line: Control The government looks closely at the reality of the working relationship , not just the title you put on a contract. Your degree of control , or lack thereof, is key. Ultimately, if it looks like a duck and quacks like a duck, they’re going to treat it like a duck. Taking the time to classify correctly now prevents headaches down the road. We are here to help you craft, review, and amend employment and contractor agreements and navigate any other issues that may arise as you scale your workforce.

Is Your Team Oversharing With AI?

By Adrienne Langmo • January 8, 2026
AI is undoubtedly amazing. On one single platform I can direct it to, for example, “write me a 400-word blog post about the legal risks of private employees use of AI directed at Utah small to medium-sized businesses.” And then ask it to illustrate that post with an image of a robot in a skirt suit. (And now you’ll wonder if I even wrote this post myself…. I did. But I did not sketch the image myself.) And we all know AI has real limitations. We’ve heard the stories about AI hallucinations, where it simply invents an answer. And often AI simply gets it wrong. For example, I often use AI to pull up the citation to a statute and often it produces a link to a bill that hasn’t been enacted, a bill that’s been repealed, or a similar statute that’s applicable to a different industry than the one I asked it to find. But there’s also legal risks in using “Open Access” or “Free Tier” AI versus “Enterprise” or “Business” AI. Open access/free tier AI is the version you can use for free on a web browser or on app on your computer or smart phone. With many of these tools, user inputs may be stored or used to improve the model. Enterprise or business AI, by contrast, is a commercial‑grade system that typically offers encryption, enhanced privacy controls, and contractual data‑security commitments. If you do not have the latter­­—enterprise AI— then you really may want to find out what your employees are inputting into an unsecured AI tool. Is it client or employee information, like personally identifiable information? Medical information? Company trade secrets? Financial information? Depending on your company size and the type of information input into an unsecured AI tool, employees may be creating legal risk under Utah’s data breach notification law, the Utah Consumer Privacy Act (for businesses that meet its thresholds), federal privacy laws, even anti-discrimination laws and contractual confidentiality obligations you have made directly with your clients. The New Year is a great time to review old policies, create new ones, and train staff on these concerns. We are here to help you navigate these emerging issues! -By Adrienne Langmo

RIFs and Furloughs, the Federal Way

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