The CARES Act Officially PASSED!: COVID-19 Transportation Update - Friday, March 27, 2020
Transportation Companies Receive Federal, State, and Local Help to Deal with the COVID-19 Crisis!
The CARES Act is Law
Earlier today, President Trump signed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act into law. As we previously reported, the transportation industry did not receive any special consideration in the law, but will generally benefit from The CARES Act. The CARES Act provides relief and assistance to small businesses, sole proprietors, independent contractors and self-employed individuals. The CARES Act allocates $350 billion to the Paycheck Protection Plan, which is intended to aid small businesses with under 500 employees make payroll and cover expenses from February 15 to June 30. Small businesses may qualify for up to $10 million in loans. These loans may be used for payroll, rent, utilities, interest payments on mortgages and debt obligations. The U.S. Small Business Administration (“SBA”) is required to enact these programs no later than 15 days after The CARES Act is signed into law.
The CARES Act includes tax benefits to provide relief for businesses that have been impacted by the spread of COVID-19, including a decrease in gross receipts of 50% or more (compared to the same quarter of the prior year); these businesses may receive a 50% refundable payroll tax credit on wages paid up to $10,000. Social Security payroll tax payments paid by employers can now be delayed until January 1, 2021.
Insurance Relief at the State and Local Levels for Transportation Companies
The transportation industry in New York received good news today concerning payments due for a variety of insurance bills. As part of continuing actions to address the COVID-19 crisis, New York Governor Andrew Cuomo announced that consumers and small businesses experiencing financial hardship due to COVID-19 may defer paying premiums for property and casualty insurance, including auto, homeowners, renters, workers comp, medical malpractice, livery and taxi. The period for the deferment is 60 days. In addition, no late fees will be assessed and no negative data will be reported to credit bureaus during this time, and late payments will be payable over a one-year period.
FHV License Storage To Be Done Remotely
For-hire vehicle (“FHV”) owners received good news from the NYC Taxi & Limousine Commission (the “TLC”) as well. Late yesterday, the TLC updated and modified its storage policy to allow FHV owners to place the FHV license in storage via electronic means. As a result of the ongoing pandemic and the closure of NYS Department of Motor Vehicles (the “DMV”) during the COVID-19 crisis, the FHV owner will not be required to personally appear at the DMV or TLC. Any FHV owner seeking to utilize this option may complete the registration form and send it to the TLC via email. A vehicle license cannot remain in storage for more than ninety (90) days. The TLC will allow vehicle owners to retain their TLC-issued DMV plates until such time as the DMV re-opens its offices and owners may surrender and obtain passenger plates for their vehicles.
If you would like to learn more about the CARES Act or have additional questions, please contact Matt Daus at email@example.com or (212) 237-1106.