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Keeping Workers Paid and Employment Act

Chris Cruger Chris Cruger


In the interest of sharing information from the pending Third Stimulus Bill – Coronavirus Aid, Relief , and Economic Security (“CARES” Act), we wanted to share some of the relevant developments that will affect the Funeral and Cemetery industry. Part of this plan includes the Keeping Workers Paid and Employment Act; this act will likely relevant to us all in the Funeral and Cemetery Industry.

The plan would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers to remain employed and affected small businesses and our economy to quickly snap-back after the crisis. This proposal would be retroactive to March 1, 2020, to help bring workers who may have already been laid off back onto payrolls.

Small Business Assistance

  • Small businesses with less than 500 employees will be eligible to apply for the loans.
  • Loans would be immediately available through existing Small Business Administration-certified lenders and SBA would be required to streamline the process to bring additional lenders into the program.
  • The size of the loans would be tied to the average monthly payroll; mortgage, rent, and utility payments; and other debt obligations over the previous year. The maximum loan amount would be $10 million.
  • Conditional upon business retaining their employees and payroll levels between March 1, 2020, through June 30, 2020, the portion of the loan used to cover payroll and payments on pre-existing debt would be forgiven.

Loan Guaranty Program

  • The bill would expand the allowable uses for the existing 7(a) Small Business Administration loan program to permit payroll support, including paid sick leave, supply chain disruptions, employee salaries, mortgage payments, and other debt obligations to provide immediate access to capital for affected small businesses.
  • The maximum loan amount for SBA Express loans would be increased from $350,000 to $1 million (Essentially known as Working Capital Loans). These loans provide borrowers with revolving lines of credit for working capital purposes.
  • The regulations surrounding SBA lending will also be greatly relaxed for both Borrowers and Lenders.  Included in these provisions are the following –
    • Waivers of fees
    • Automatic deferments of payments for one year
    • No prepayment penalties

As the final bill and details emerge, we will provide insights as appropriate. Please feel free to contact us if you have you any questions, concerns or you require any assistance.

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