COVID-19 Related Assistance for U.S. Organizations

Providing updated assistance information for U.S. organizations during the COVID-19 pandemic. This reference guide offers valuable resources and support to help navigate the challenges faced by businesses and institutions in these unprecedented times. Stay informed and prepared with the latest guidelines and recommendations to mitigate the impact of COVID-19 on your organization.

• COVID-19
• U.S. Organizations
• Assistance
• Reference Guide
• Pandemic

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1. COVID-19 Related Assistance for U.S. Organizations Reference Guide Revised June 15, 2020

2. Table of Contents 3 Paycheck Protection Program (PPP) 10 Economic Injury Disaster Loan (EIDL) 11 Main Street Lending Program Payroll Tax Deferral 15 Employee Retention Credit 16 Paid Sick Leave Refundable Credit 18 Corporation Tax Opportunities 21 Economic Impact Payments 23 Individual Tax Opportunities 24 Federal Tax Deadlines 25 Disclaimer 26 www.pkfod.com 2

3. Paycheck Protection Program (PPP) Generally, any business with not more than 500 employees whose principal place of residence is in the United States (some exceptions apply) Businesses that qualified under SBA industry size standards or alternative size standard Sole proprietorships, independent contractors and self-employed individuals. 501(c)(3) Not-for-Profit Organizations 501(c)(19) Veteran Organizations Entities with NAICS codes beginning with 72 (essentially hotels and restaurants) are exempt from affiliation rules Tribal business concern described in section 31(b)(2)(C) Eligible Organizations Companies under common control must be aggregated for purposes of determining whether a business meets the size standards. The key factor is control, which can be achieved through: Majority voting control Optional or convertible securities Ownership Managerial control Economic control Significant influence, but less than majority control Close family member holdings Affiliation Rules www.pkfod.com 3

4. Paycheck Protection Program (PPP) A faith-based organization s relationship to another organization is not considered an affiliation if that relationship is based on religious teachings or beliefs or is part of the exercise of religion. The entity applying for the PPP Loan claims the exemption by adding an addendum to the application. Although SBA regulations explicitly states entities principally engaged in teaching, instructing, counseling or indoctrinating religious beliefs are ineligible for SBA programs, the SBA has issued guidance that it will decline to enforce those regulations Religious Affiliation Exemption The following entities are not eligible to receive PPP or EIDL: Those engaged in lending, multi-level sales distribution, speculation or investment (except for certain real estate investments) A consumer or marketing cooperative Certain types of agri-businesses Businesses not qualifying as small per the SBA guidelines Entities deriving more than one-third of its revenue from gambling activities Entities principally engaged in political or lobbying activities Engaged in an activity that is illegal under Federal, state, or local law Household employer 20% or more owner of the business is incarcerated, on probation, on parole, subject to federal charges, or has been convicted of a felony in last 5 years. The entity or the owner is currently delinquent or has defaulted within the last 7 years on a direct or guaranteed loan from SBA or any other Federal agency Ineligible Entities www.pkfod.com 4

5. Paycheck Protection Program (PPP) Although SBA regulations explicitly states entities principally engaged in teaching, instructing, counseling or indoctrinating religious beliefs are ineligible for SBA programs, the SBA has issued guidance that it will decline to enforce those regulations. Religious Affiliation Exemption Lesser of $10 million or 2.5x average monthly payroll costs for the 1-year period prior to the loan date. Loan Amount Length of loan 2 years for loans issued prior to June 5, 2020 (may request lender to extend to 5 years) 5 years for loans issued after June 5, 2020 Interest rate 1.0% Length and Interest rate Under PPP Flexibility Act allows payments to be deferred until the lender receives the notification from SBA of loan forgiveness If no loan forgiveness requested, payments begin in 10 months after end of covered period Payments Apply through authorized banks. Due to Know Your Client rules (KYC) applicants should first apply at the bank they have a preexisting relationship with. Application for Loan Application period ends on the earlier of August 8, 2020 or until available funds have been used. Loan Application Period www.pkfod.com 5

6. Paycheck Protection Program (PPP) Payroll costs include: Salaries, wages, commissions or similar compensation Cash tips Payment for vacation, parental, family, medical or sick leave Healthcare and retirement benefits (not included in $100,000 compensation limit) State and local taxes on wages charged to employers (i.e. unemployment taxes) Partners, sole proprietors, and independent contractors self employment income is includable in qualified payroll costs up to the $100,000 limit. Payroll costs exclude: Compensation of an individual employee in excess of $100,000 a year Compensation paid to employees outside of the U.S Employer s share of Medicare, Social Security, and Federal unemployment tax Qualified sick leave wages under FFCRA Qualified family leave wages under FFCRA Qualified Payroll Costs No. Independent contractors can apply for a PPP loan on their own. So, they should not be included for purposes of a borrower's PPP loan calculation. Do Independent Contractors Count as Employees? Borrowers in business for all of 2019 can calculate their payroll costs using data from 2019 to determine their average monthly payroll costs for determining the loan amount Seasonal businesses may use their average monthly payroll costs for the period February 15, 2019 or March 1, 2019 though June 30, 2019 Businesses not in business from February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the period January 1, 2020 through February 20, 2020 Calculating Loan Amount www.pkfod.com 6

7. Paycheck Protection Program (PPP) Qualified users that qualify for loan forgiveness Salaries, commissions, or similar compensations and other qualified payroll costs Healthcare benefits Rent on real and personal property used in business Utilities used in business Interest on mortgage obligations for rent and personal property incurred before February 15, 2020 Refinancing an EIDL loan made between January 31, 2020 and April 3, 2020 Qualified Uses of Proceeds Qualified uses not eligible for loan forgiveness Interest on debt incurred before February 15, 2020 Application for forgiveness must be submitted within 10 months from the end of Covered Period Forgiveness Application Period www.pkfod.com 7

8. Paycheck Protection Program (PPP) For loans issued prior to June 5, 2020, borrower has option to elect to use an eight week or twenty-four week Covered Period. Loans issued after June 5, 2020 must use a twenty-four week Covered Period. The Covered Period can not extend beyond December 31, 2020. Covered Period starting from the date the loan proceeds are received. Forgiveness of Debt and Accrued Interest The amount of principal forgiven is limited to the smallest of the following: o The loan amount o Qualified payroll cost incurred during the Covered Period divided by .6 o Total qualified costs incurred during the Covered Period reduced for Certain employees whose salary or wages are reduced by more than 25 percent but whose reduction is not related to reduction in FTE status and; the ratio of the average monthly # of full time equivalent employees employed during the Covered Period following receipt of loan proceeds to the average monthly # of full time equivalent employees employed during either a) the period February 15, 2019 to June 30, 2019, or b) the period January 1, 2020 to February 29, 2020 c) The proportional reduction in loan forgiveness based on a reduction in employees is eliminated if the Borrower is able to document that they were unable to rehire terminated employees or replace unfilled positions, or is unable to return to the pre-pandemic level of business activity due to compliance with the guidance established by HHS, CDC or OSHA. The amounts forgiven are excluded from gross income for federal income tax purposes. Expenditures related to forgiveness are not eligible to be deductible for tax purposes. Taxability www.pkfod.com 8

9. Paycheck Protection Program (PPP) Borrowers must certify in good faith that current economic uncertainty make the loan request necessary to support the ongoing operations of the borrower. In making this certification, borrowers should assess their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the borrower. Any Borrower, along with Affiliates, that receive PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification in good faith. Certification No collateral required No personal guarantees required No application fees Waivers If an EIDL was awarded between January 31, 2020 AND April 3, 2020, it can be converted to a PPP loan if that loan is approved later If your EIDL loan awarded between January 31, 2020 AND April 3, 2020 and was used for payroll costs your PPP loan must be used to refinance your EIDL loan Proceeds of an EIDL loan up to $10,000 will be deducted from the loan forgiveness of the PPP loan Conversion If entity lays people off between 2/15/20 and 4/26/20, the 25% salary reduction rule will be ignored with regard to the people that were laid off (e.g., it won t be considered a salary reduction) as long as those people are rehired by December 31. Rehiring employees www.pkfod.com 9

10. Paycheck Protection Program (PPP) All loans in excess of $2 million and a portion of loans under $2 million will be reviewed by the SBA to determine that loans were limited to eligible borrowers. Auditing A borrower s PPP loan forgiveness amount will not be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer The offer must be a food faith written offer to rehire The offer must be for the same salary/wages and same number of hours the employee s rejection must be documented by the borrower Employees who reject offers of reemployment may forfeit eligibility for continued unemployment compensation Employees who decline offer to return to work Nonprofit hospitals that have If a nonprofit hospital otherwise meets the description of an organization that qualifies as a 501(c)(3) but not been recognized by the IRS as a 501(c)(3) because they are tax-exempt under a different provision of the IRC are eligible for PPP loans. The nonprofit hospital must maintain a written record that the hospital is an organization described in 501(c)(3) Nonprofit Hospitals Any employer that receives an SBA Paycheck Protection Program loan is not eligible for the Employee Retention Credit. Payroll Tax Credits www.pkfod.com 10

11. Economic Injury Disaster Loan (EIDL) Generally, any business with not more than 500 employees (some exceptions apply), Businesses that qualified under SBA size standards. Sole proprietorships, independent contractors and self-employed individuals. 501(c), 501(d), and 501(e) Private Not-for-Profit Organizations Small Agricultural cooperatives Agricultural businesses with 500 or fewer employees Cooperatives with 500 or fewer employees ESOP with 500 or fewer employees Eligible Organizations Companies under common control must be aggregated for purposes of determining whether a business meets the size standards. The key factor is control, which can be achieved through: Majority voting control Managerial control Economic control Significant influence, but less than majority control Close family member holdings Affiliation Rules www.pkfod.com 11

12. Economic Injury Disaster Loan (EIDL) The following entities are not eligible to receive PPP or EIDL Those engaged in lending, multi-level sales distribution, speculation or investment (except for certain real estate investments) A consumer or marketing cooperative Certain types of agri-businesses with more than 500 employees Businesses not qualifying as small Entities deriving more than one-third of its revenue from gambling activities Entities principally engaged in political or lobbying activities Ineligible entities Up to $2 million and determined by SBA Loan Amount Up to a 30-year amortization as determined by the SBA Interest rate 3.75% for businesses, and 2.75% for not-for-profits Length and Interest rate Ordinary and necessary business expenses Excluded uses: Refinancing existing debt Paying other federal agency loans Paying federal, state or local tax penalties or fines Repairing physical damage Making distributions to owners other than reasonable remuneration Qualified Uses of Proceeds www.pkfod.com 12

13. Economic Injury Disaster Loan (EIDL) The following EIDL loan requirements are waived through December 31, 2020. Personal guarantees on loans up to $200,000 1-year in business requirement Ability to obtain credit elsewhere Waivers Applicants can be approved based on credit score alone without the need to submit tax returns. Any entity that is otherwise qualified to receive an EIDL, will be given a $10,000 grant within 3 days when they apply, regardless of if they are ultimately approved for the EIDL. The grant can be used for any EIDL qualified use. The grant does not need to be repaid. Advance Applications are submitted directly to the SBA: https://disasterloan.sba.gov/ela/ Application Open as long as funds available Application Period If EIDL awarded between January 31, 2020 and April 3, 2020, it can be converted to a PPP loan if that loan is approved later Conversion The following is a list of items that may be needed during application process Last 3 years of financials Internal financial information since end of last fiscal year Last 3 years of tax returns Current list of payables and debt Personal financial statement Information required www.pkfod.com 13

14. Main Street Lending Program All companies employing up to 15,000 workers, or with 2019 annual revenues up to $5 billion, are eligible for the program. A business that is created or organized in the U.S. or under the laws of the U.S. Significant operations or majority of employees based in the U.S. Only patriciate in one of the Main Street Facilities Can not participate in the Primary Market Corporate Credit Facility (PMCCF) Did not receive assistance pursuant to section 4003(b)(1)-(3) of the CARES Act No more than 49% participation by foreign business entities or a tribal business concern As of June 15, 2020 Not-For-Profits currently not eligible for the program Existing loans as of 12/31/19 must have an internal risk rating of pass in the financial institutions examination council s supervisory rating system Borrower must attest to: o Financing required due to circumstances caused by COVID-19 pandemic o Make reasonable efforts to maintain payroll and retain their employees Eligibility Section 4003(b)(1)-(3) of the CARES Act sets aside specific aid for passenger air carriers, cargo air carriers, and businesses critical to maintaining national security. Section 4003(b)(1)-(3) of the CARES Act End date September 30, 2020 End Date U.S. insured depository institutions, U.S. bank holding companies, U.S. savings and loan holding companies Lenders Five-year term loan (Principal amortization 15% at end of 3rd and 4th year, 70% at end of fifth year, one-year deferral of interest payments, and unpaid interest capitalized) Interest Rate LIBOR (1 or 3 month) plus 300 basis points Origination fee 100 basis points of the principal amount of the eligible loan Can not be subordinate to any other borrowers debt Universal Terms for all loan facilities under program www.pkfod.com 14

15. Main Street Lending Program o Minimum size of loan - $250,000 o Maximum size of loan lesser of $35 million or four times borrowers adjusted 2019 EBITDA less borrowers existing outstanding and undrawn available debt Main Street New Loan Facility (MSNLF) o Minimum size of loan - $10 million o Maximum size of loan - the lesser of $300 Million or six times borrowers 2019 EBITDA less borrowers existing outstanding and undrawn available debt Main Street Expanded Loan Facility (MSELF) o Minimum size of loan - $250,000 o Maximum size of loan - lesser of $50 Million or six times borrowers adjusted 2019 EBITDA less borrower s existing outstanding and undrawn bank debt Main Street Priority Loan Facility (MSPLF) An entity entering into the loan, any officer or employee of the business whose total compensation exceeded $425,000 in 2019: will not be allowed to receive an increase over the 2019 compensation for a 2 year period beginning on March 1, 2020 and ending on March 1, 2022 Any severance for said employee will not exceed 2 times the 2019 compensation Exception for compensation determined by a collective bargaining agreement Compensation Limitations Until 12 months after the loan is no longer outstanding, a borrower can not: Make a dividend or other capital distribution Make a stock repurchase of the borrow or any parent company on a national securities exchange Equity activity limitations Entities that have taken advantage of the Paycheck Protection Program may also take advantage of the Main Street Lending Program. Paycheck Protection Program (PPP) www.pkfod.com 15

16. Payroll Tax Deferral (Employer) Defer payment of employer payroll taxes and self-employment taxes incurred between March 27, 2020 and December 31, 2020 Description All employers and self-employed individuals (including partners in partnerships) Eligibility The deferral relates to the employers 6.2% social security tax or the equivalent amount for a self-employed individual. No Maximum. Amounts Amounts will be considered timely paid if 50% paid of the deferred amount paid by December 31, 2021 and the remainder by December 31, 2022. Deferred Payment Dates www.pkfod.com 16

17. Payroll Tax Deferral (Employee) Defer payment of employee payroll taxes incurred between September 1, 2020 and December 31, 2020 Description Employees with less than $4,000 in pre-tax income per paycheck (approximately $104,000 annually) Employers may elect whether they wish to participate in the program. Electing employers may provide employees the option of whether they wish to opt in or out. Eligibility The deferral relates to the employers 6.2% social security tax or the equivalent amount for a self-employed individual. No Maximum. Amount is deferred without interest or penalty. Amounts Repayment required ratably over the period of January 1, 2021 through April 30, 2021. The executive order announcing the deferral indicates that forgiveness of the amount will be sought. Deferred Payment Dates Given the mechanism of repayment (withholding ratably over a four month period), it is unclear how employers would recover amounts from employees who are terminated or on leave during that period. CAUTION www.pkfod.com 17

18. Employee Retention Credit Employee retention credit for wages paid from March 13, 2020 to December 31, 2020 that are subject to closure or significant economic downturn due to Covid-19 Description Operations were fully or partially suspended on orders from a governmental authority due to COVID-19 (COVID-19 Shutdown), or The business experienced a 50% reduction in gross receipts for a calendar quarter as compared to the same calendar quarter in the prior year (Gross Receipts Decline). The eligibility period ends when the business gross receipts for a calendar quarter are 80% of the gross receipts in the same calendar quarter in the prior year. This test requires employers to analyze gross receipts among all aggregated entities Eligibility Any employer that receives an SBA Paycheck Protection Program loan is not eligible for the Credit Ineligibility The credit amount takes into account up to 50% of qualified wages, which are capped at $10,000. Thus, the maximum credit is $5,000 per employee. Amount Qualified wages include qualified health plan expenses paid or incurred by the employer for health coverage excludable under IRC Section 106(a). For employers with an average of more than 100 employees in 2019, qualified wages are wages paid to an employee who is not providing services due to a COVID-19 Shutdown or Gross Receipts Decline. Entities with MoreThan 100 Employees www.pkfod.com 18

19. Employee Retention Credit For employers of 100 or fewer employees, qualified wages are wages paid to any employee without regard to whether the employee is providing services. Entities with 100 or less employees The credit is refundable. However, it is subject to a number of rules to prevent double- dipping. For example, an employer s deduction for wages must be reduced by the amount of the credit. Refunds An entity that utilizes the credit can still utilize the payroll tax deferral program. Payroll Tax Deferral Employers can reduce their required deposits of payroll taxes. Eligible employers will report their qualified wages and health insurance costs on their quarterly employment tax returns. Reporting Applying for Refund or Advance If employer s employment tax deposits are not sufficient to cover the credit or if employer wants advance of the credit, the employer may receive a refund or an advance payment from the IRS by submitting Form 7200, Advance payment of Employer Credits Due to Covid-19. www.pkfod.com 19

20. Paid Sick Leave Refundable Credit Terms The Families First Coronavirus Response Act (the "FFCRA ) the Emergency Paid Sick Leave Act (EPSLA) the Emergency Family and Medical Leave Expansion Act (Expanded FMLA) Businesses with less than 500 Employees (Eligible Employers) The EPSLA requires Eligible Employers to provide employees with paid sick leave if the employee is unable to work (including telework) due to any of the following: the employee is under a Federal, State, or local quarantine or isolation order related to COVID-19; the employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; the employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis; the employee is caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, or has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; the employee is caring for the child of such employee if the school or place of care of the child has been closed, or the child care provider of such child is unavailable, due to COVID 19 precautions; the employee is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services. Requirements www.pkfod.com 20

21. Paid Sick Leave Refundable Credit An employee who is unable to work for reasons due to a COVID-19 circumstance described in 1, 2 or 3 above is entitled to paid sick leave for up to two weeks (up to 80 hours) at the employee s regular rate of pay, or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $511 per day and $5,110 in the aggregate. An employee who is unable to work due to a COVID-19 circumstance described in 4, 5 or 6 above is entitled to paid sick leave for up to two weeks (up to 80 hours) at 2/3 the employee s regular rate of pay or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $200 per day and $2,000 in the aggregate. Required Pay Employers are entitled to receive a credit in the full amount of the qualified sick leave wages and qualified family leave wages, plus allocable qualified health plan expenses and employers share of Medicare tax, paid for the leave between April 1, 2020 and December 31, 2020 Credit The Employer is not subject to the employer portion of social security tax imposed on the qualified pay. Social Security Tax www.pkfod.com 21

22. Paid Sick Leave Refundable Credit Eligible employers that pay qualified leave wages will be able to retain an amount of all federal employment taxes equal to the amount of the qualified leave wages paid, plus the allocable qualified health plan expenses and the amount of the employer s share of Medicare tax imposed on those wages, rather than depositing them with the IRS. Claiming Credit Claiming Refunds If employer s employment tax deposits are not sufficient to cover the credit, the employer may receive a refund from the IRS by submitting Form 7200, Advance payment of Employer Credits Due to Covid-19. www.pkfod.com 22

23. Corporation Tax Opportunities Quick Refund of Corporation Overpayments A corporation that overpaid its estimated 2019 Federal tax by either At least 10% of the 2019 expected tax liability and At least $500 Eligibility The quick refund is the excess of the estimated Federal income tax the corporation paid during the tax year over the final Federal income tax liability expected for the year at the time the application is filed Calculation Deadline After the end of the corporation s tax but not later than the original due date of the tax return (not including extensions (April 15, 2020 for calendar year 2019) Form 4466 Corporation Application for Quick Refund of Overpayment of Estimated Tax Form www.pkfod.com 23

24. Corporation Tax Opportunities Potential Taxable Income Reduction Opportunities 2018 and 2019 Federal net operating loss (NOL) carryforward available to offset 2019 and 2020 taxable income increased from 80% to 100% NOLs originating for tax years beginning after December 31, 2017 and before January 1, 2021 can be carried back 5 years from the year the NOL originated Subject to certain rules and limitations Deadline to file Form 1139, Corporation Application for Tentative Refund, for calendar year 2018 is extended to June 30, 2020 To maximize tax efficiency, corporations can waive the carryback of NOLs originating in 2018 or 2019 and elect to exclude certain foreign income from carryback period Corporations with tax years beginning before 1/1/2018 and ending after 12/31/2017 have been provided an extension to file form 1139 to claim an NOL carryback and to revoke or elect to forego an NOL carryback, and to reduce the NOL carryback period Net Operating Losses Qualified improvement property eligible for bonus depreciation for 2019 and retroactively for 2018. Entities would have to amend their 2018 return to take advantage of the increased depreciation for 2018 resulting in either tax refunds and/or net operating losses to carryforward to 2019. Bonus Depreciation The interest expense deduction limitation is increased from 30% to 50% for 2019 and 2020. Interest Expense Limitation www.pkfod.com 24

25. Economic Impact Payments Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child. Program Tax filers with adjusted gross income up to $75,000 for individuals /$150,000 for married couples filing joint returns. Eligibility For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. Delivery Individuals who receive Forms SSA-1099 or Form RRB-1099 will receive the economic impact payments without having to file tax return. However, their dependents will not automatically receive a payment. Individuals Who Typically Do Not File Returns Other Persons not mentioned above who do not typically file a return will be required to file a return to receive the economic relief payment. Economic Impact Payments will be available through 2020 Period www.pkfod.com 25

26. Individual Tax Opportunities Individuals utilizing the standard deduction can claim an addition deduction of up to $300 for charitable contributions made in 2020. Except for contributions to donor advised funds, the adjusted gross income limit on charitable contributions is removed for 2020. Charitable Contributions Self-employed individuals can utilize the payroll tax deferral program to defer payment of the 2020 social security portion of the deductible portion of the self-employment tax into two equal installments due by December 31, 2021 and 2022. Self-Employment Tax No RMD is required for 2020 for defined contribution plans [401(k), 403(b), 457(b), and IRAs]. Additional persons who deferred their 2019 distributions to 2020 based on required beginning date is not required to take that distribution in 2020. Required Minimum Distributions (RMD) Distributions up to $100,000 taken by persons before they obtain the age of 59.5 during 2020 for Coronavirus related reasons will not be subject to the 10% early distribution penalty. Individuals who take such distributions can elect to include the distribution in income over 3 years beginning with 2020. Such distributions can be contributed back to the plan within the 3 year period and be treated as a tax-free rollover. Early Retirement Distributions Plans can lend Individuals directly impacted by the coronavirus, either by economically or medically, up to $100,000. Payments due between March 27, 2020 and December 31, 2020 on loans outstanding on or before March 27, 2020 are delayed one year. Defined Contribution Plan Loans www.pkfod.com 26

27. Federal Tax Deadlines Federal tax returns, tax payments, and estimate payments due between April 15, 2020 and July 15, 2020 are automatically extended to July 15, 2020 Deadline Extensions Individuals (Form 1040, including 1040NR) Corporations (Form 1120) Partnerships (Form 1065) Estate, Gift and Trust returns (Form 1041, 706, 8971) Non-profits (Form 990-T, 990-PF, 4720, 990-W) Forms 3520, 5471, 5472, 8621, 8858, 8865, and 8938 Installment payments due under 965 Due date for time sensitive elections (i.e., accounting method changes and similar elections made on returns) Estate tax payments under installment agreements for estates Extensions of time to pay previously granted by the IRS Extensions of time to pay estate tax on reversionary or remainder interests in property Covered Returns and Entity Types www.pkfod.com 27

28. FEMA Public Assistance Program Costs related to emergency protective measures conducted as a result of the COVID- 19 pandemic. Emergency protective measures are activities conducted to address immediate threats to life, public health, and safety. Purpose State, local, tribal and territorial governments Eligible private nonprofits who provide emergency protective measures pursuant to government agreements Eligibility For the COVID-19 pandemic incident only, a Private Nonprofit may be eligible for assistance even if less than 50 percent of its facility is used for eligible services. Waiver of Private Nonprofit Primary Use Policies www.pkfod.com 28

29. New York Forward Loan Fund Working capital loans supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak Purpose Businesses with 20 or fewer full-time equivalent (FTE) employees Nonprofits Residential landlords with of buildings with 50 units or less (priority for landlords whose properties are in low and moderate income census tracts or who serve low to moderate income tenants) Must not have received an SBA PPP or EIDL Loan Priority will be given to industries and regions that have been reopened. Eligibility 5 year term with interest Not forgivable in whole or in part Terms www.pkfod.com 29

30. Boost Nassau Small Business Recovery Loan Program Part of the New York Forward Loan Fund (see prior page). Working capital loans supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak Purpose Businesses with 20 or fewer full-time equivalent (FTE) employees Nonprofits Residential landlords with of buildings with 50 units or less (priority for landlords whose properties are in low and moderate income census tracts or who serve low to moderate income tenants) Must not have received an SBA PPP or EIDL Loan Priority will be given to industries and regions that have been reopened. Eligibility Maximum of $100,000 loan 5 year term with interest Not forgivable in whole or in part Terms www.pkfod.com 30

31. New Jersey Small Business Lease Emergency Assistance Grant Program A grant program with the intended use of assisting applicants in the 64 eligible New Jersey communities with business operations that were adversely impacted by the COVID-19 pandemic. Purpose Commercial tenants located in eligible communities currently leasing commercial space in mixed-use buildings, tenants leasing space in commercial buildings, and store front businesses. Non-profits entities with the following designations will also be permitted to receive grant funding: 501(c)(3), 501(c)(4), and 501(c)(7). Must not be a prohibited business (list includes gambling activities and sales of alcohol or tobacco products) Must be either be current on lease payments, or have become delinquent after March 1, 2020 Eligibility Grant not to exceed $10,000 Must be used for rent (will be paid directly to landlord) Terms www.pkfod.com 31

32. Rhode Island Microenterprise (MicroE) Stabilization Grant Program Purpose Rhode Island s microenterprise stabilization grant program is designed to assist small businesses that have been impacted by COVID-19 and left out of federal stimulus programs to-date. Must have one to five employees At least one employee must be an owner. The business owner(s) total household income must be 80% or less of their area median income, based on family size. Must be in a participating municipality. Eligibility Grant not to exceed $5,000 Must be used for working capital to cover business costs, such as rent, staffing, utilities. Terms www.pkfod.com 32

33. RESTORE Rhode Island Restore RI provides grants targeted to assist small businesses that have been most severely impacted by the COVID-19 pandemic. Purpose Must have more than one employee, not including the owner, but less than 20 employees Employee cap does not apply to restaurants or caterers Must have incurred a revenue loss of: 30% if your business is in a severely-impacted industry defined as retail trades, scenic and sightseeing transportation, arts, entertainment, recreation, accommodation and food services and personal care services, or 50% decline if in a non-severely impacted industry. Businesses with shared ownership can receive grants for up to three businesses they own and operate in the state of Rhode Island. Eligibility Based on number of employees, grant not to exceed $15,000 Must be used for costs and expenses due to the business interruption or other adverse conditions caused by the COVID-19 pandemic. Terms www.pkfod.com 33

34. Community Advantage Recovery Loan (CARL) This loan program, offered through the SBA, offers financial and technical assistance to help small businesses adapt to changing business conditions in the COVID-19 environment and strengthen their ability to manage through potential future disruptions. Purpose Must have been in business at least one year Must be located in an underserved area (as determined by SBA) Unable to access credit elsewhere No prior bankruptcies Eligibility Loan Amount: $50,000 to $250,000 Must be used for working capital, inventory, equipment, and real estate purchases Loan Term a minimum of 5 years, maximum 10 years for working capital & equipment, 25 years for real estate 10% minimum down payment Interest Rate: Maximum Prime + 6% Collateral required Have until September 27, 2020 to be approved, with a full disbursement of no later than October 1, 2020. The SBA will cover the payment of principal, interest, and other fees for the first six months. Terms www.pkfod.com 34

35. Disclaimer The CARES Act program details discussed in this presentation are current as of 9:00 a.m., June 15, 2020. Due to the current environment, the CARES Act and its interpretations are subject to change without notice. Please connect to our COVID-19 Resource Center for the most up to date information at this point in time. About PKF O Connor Davies PKF O Connor Davies is the lead North American firm in the growing global network of independent accounting and advisory firms with offices in over 400 cities, in 150 countries across five continents. We specialize in providing high- quality audit, accounting, tax and advisory services to international and domestic organizations. Our clients demand worldwide connectivity, and we have the resources for them wherever and whenever they need them. Locations Bethesda, MD | Cranford, NJ | Harrison, NY | Livingston, NJ | New York, NY | Newburgh, NY (Fostertown Road & 254 Route 17K) | Providence, RI | Shelton, CT | Stamford, CT | Wethersfield, CT | Woodcliff Lake, NJ PKF O Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. To learn more visit our COVD-19 Resource Center - www.pkfod.com/covid-19/ www.pkfod.com 35