COVID – 19 CRISIS

WORKING TOGETHER

Town Hall Meeting:

April 7, 2020 5:00pm PDT | 7 PM CDT | 8 PM EDT

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Presenters

Mina M. Larson, M.S., MBA, CAEChief Executive Officer (NCCAOM)®

Bill EgloffPresident, Crane Herb Co., Crane Herb Pharmacy, Crane-West Herb Pharmacy

Michael McGuffinPresident, American Herbal Products Association

Molly Giammarco, MPPSenior Manager, Policy & Government Relations

Michael McGuffin

President, American Herbal

Products Association

Bill Egloff

President, Crane Herb Co.,

Crane Herb Pharmacy,

Crane-West Herb

Pharmacy

Molly Giammarco, MPP

Senior Manager, Policy &

Government Relations

The CARES Act Top 10

Individual Rebates

Unemployment Insurance

Paid Sick & Family Leave

Retirement Fund Withdrawals

Paycheck Protection Program

Economic Injury Disaster Loans

Federal Student Loans

Federal-Backed Rent/Mortgage

Federal Tax Modifications

Phase Four

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Direct Payments

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Expanded Unemployment

Benefits

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Expanded Unemployment Insurance

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Paid Sick & Family Leave

Provides small business employees 10 days sick leave.

Grants small-business employees up 50 days of partially-paid family leave.

• Counts employee or family member must be affected by COVID-19 illness. • Includes employees caring for children/dependents, or elderly family due

to school and day-care closures.

Employers can reclaim paid sick and family leave.

Retirement Account Withdrawals

Suspends IRA minimum-distribution requirements.1.

Suspends account-withdrawals penalties (up to $100k)*2.

Waives borrowing penalties for workplace retirement plans 3.

Extends December 31, 2020 repayment deadline by one year. 4.

• May borrow from current plans – 401(k), etc.• Eligible for 180 days from March 27, 2020.• May borrow up to twice usual amount.

*Withdrawals must relate to COVID-19

• Business with fewer than 500

employees

• Sole Proprietors

• Independent Contractors

• Self-Employed

• Private non-profits or

501(c)(19) veteran

organizations

Paycheck Protection Program

Maintain payrolls and current salary levels.

Can pay interest on mortgages, rent, and utilities.

Loan Max: lesser of $10 million or 2.5x avg. monthly payroll.

Eligible

New program; run through existing SBA lenders.

Eligible:

Paycheck Protection Program

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Economic Injury Disaster Loan

(EIDL)

Assist small businesses affected by COVID-19 with overhead and existing business costs.

EIDL Advance

• Up to $10k

• Immediate relief (within days of approval)

• Forgiven if used for intended purpose

EIDL Traditional

• Up to $2m

• Not forgivable

• Up to $2m (30-yr repayment w/3.37%)

• Businesses with fewer than 500

full/part-time employees

• Sole proprietors, independent

contractors, self-employed

• Private non-profits – 501(c)(19)

veteran organizations

• Resides in a state that has

declared a COIVD-19 emergency

Economic Injury Disaster Loan

Eligible

Existing program; SBA-Administered

Small businesses can apply to PPP and EIDL

PPP amount will be less if borrower received EIDL

Small businesses cannot receive PPP/EIDL and unemployment insurance

Eligible:

Federal Student Loans

Suspends payment until September 30 (no interest accrued)

Retroactive to March 13, 2020

Eligible: Federal direct-loan borrowers

Not Eligible: Perkins and Federal Family Educational Loans

Not Eligible: State-agency loans; private loans (Sallie Mae, Wells Fargo)*

Federal Student Loans

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Federal-Backed Mortgage/Rent

Homeowners with Federally Backed Mortgages

• Suspends foreclosures.• Provides forbearance options to homeowners with

COVID-19-related financial hardships

Renters

• Prevents landlords with federally backed

mortgages evicting tenants.

• Prevents landlords from charging nonpayment

fees or penalties through July 2020.

Contact your state and/or mortgage servicer for information on non-federally back mortgages

Other Tax Modifications

• Delays 2019 income-tax filings to July 15, 2020.

• Defers 2020 employer payroll taxes to 2021/2022

• Permits employers to carry back Net Operating Losses five years; 80% offset cap removed.

• Increases 2020 business-interest deductions from 30% to 50%.

• Increases “above-the-line” charitable deductions to $300.

• SB owners who don’t receive PPP or EIDL funds can claim 50% of qualified wages (Mar. 12-Dec. 31 2020)

Phase Four

Congress is working on a fourth stimulus package.

Phase Four will likely extend or enhance CARES Act provisions.

Members of Congress will try to keep Phase Four provisions related to COVID-19.

Expected timeline: late April.

Situation fluid; it’s not final until the bill is signed.

Final Thoughts

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COVID – 19

HELPFUL RESOURCES

COVID – 19

HELPFUL RESOURCES

The ASA would like to thank the 34-

member state associations who are

working around the clock to ensure their

members are getting not just national

updates but also state specific

information.

It’s because of the state associations that

the ASA is able to exist, grow and prosper.

So please support your state organization

with dollars, time or a simple thank you.

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Thank you!Questions and Answers

townhall@thenccaom.org