Federal Aid Package Update

As most of you are aware, Congress is currently negotiating the terms of Phase III of the federal aid package, designed to assist American families and businesses navigating the impact of COVID-19. The package is still being adjusted and developed. However, after a conversation with Congressman Bradley Byrne, earlier today, we have some information that should help you understand what Congress is anticipating.

  • Due to increased testing, over the coming days, it is widely expected that Alabama's total number of COVID-19 cases will increase dramatically, this week. This increase should not incite panic, as these are simply unidentified cases of the past week or two, rather than new cases and increased outbreak.
  • Nationally, 13% of people tested have tested positive. In Alabama, only 8% of those tested have tested positive.
  • Social distancing is decreasing the impact of the virus, but we will need to maintain these practices in the weeks to come.
  • Despite rumors, the federal government did not re-distribute any COVID tests that were intended for Mobile/Baldwin or anywhere in Alabama. 500,000 tests were delivered to Memphis, last week, to be regionally distributed.
  • The CDC is distributing tests to the state departments of health. Private labs are also distributing the tests to local doctors offices.
  • Once the Senate does pass the anticipated legislation, Congress is on 24 hours notice to return to Washington to vote and send the bill to the President.
  • If your business has already taken action to let workers go, those employees should file for unemployment, until the federal legislation has passed. Once the legislation passes, the incentives in the bill will encourage businesses to rehire any workers who were let go by April 1st. All SBA loan money that is used to cover payroll expenses will be forgiven, as long as the business does not lay off any workers.

In the coming days, we will continue to share more information on the federal aid package, as it becomes available.
Alabama Unemployment Changes and Information

The Alabama Department of Labor has made the following adjustments to their existing unemployment laws, in response to COVID-19:

  • Displaced workers will be eligible for unemployment benefits, if:
  • They have been medically diagnosed with COVID-19
  • They are caring for a family member with a COVID-19 diagnosis
  • They are in a forced quarantine, because of COVID-19
  • They have been sent home (furloughed) from work because of COVID-19
  • ADOL is encouraging all employers to file for unemployment benefits on the employee's behalf, though partial claims.
  • Currently, non-profits and churches do not qualify for unemployment benefits. Once President Trump signs off on the state of disaster declaration for Alabama, they will be eligible.
  • ADOL has waived the following requirements for unemployment benefits:
  • "willing and able" requirement
  • one week waiting period
  • work search proof
  • employer's charges
  • ADOL has closed their career centers and central office, and ADOL employees are working remotely, answering emails and phones.
  • ADOL has made improvements to their website to take on the surge in new requests.

On March 12, the U.S. Department of Labor announced  expanded flexibility and new guidance for states on how to administer unemployment benefits for workers affected by COVID-19. The new guidelines for states include but are not limited to:

  • An employee can be eligible if an employer temporarily ceases operations due to COVID-19, preventing employees from coming to work.
  • Employees can be eligible if they are quarantined with the expectation of returning to work after the quarantine is over.
  • Employees can also be eligible if they leave employment due to a risk of exposure or infection or to care for a family member.
  • States are encouraged to waive the weeklong waiting period, which is not required by federal law.
  • In addition, federal law does not require an employee to quit to receive benefits due to the impact of COVID-19.
  • Employees who are currently receiving paid sick leave or family leave are, however, considered employed and therefore not eligible.

Eligible laid-off workers can receive regular unemployment benefits for as long as 26 weeks in most states.
After exhausting those benefits, individuals in states with rising unemployment can qualify for an additional 13 weeks of benefits—or 20 weeks in some states through the  Extended Benefits (EB) program .

If you need to provide someone with resources to make an unemployment claim or need additional information on unemployment specifics, please visit the Alabama Department of Labor's website.
U.S. Department of Labor Information

Over the past week, the U.S. Department of Labor has announced several programs that will aid dislocated workers across the country. See below for an outline of these programs:


Entities eligible to apply for Disaster Recovery DWGs are states, outlying areas and Indian Tribal Governments as defined in the Stafford Act (42 U.S.C. 5122(6)). Disaster Recovery DWGs will provide eligible participants with both disaster-relief employment and employment and training activities. These participants can include dislocated workers, workers who were laid-off as a result of the disaster, self-employed individuals who are unemployed or underemployed as a result of the disaster, and long-term unemployed individuals. 

Eligible entities can also apply for Employment Recovery DWGs in response to layoffs caused by cancellations or shutdowns caused by coronavirus. Employment Recovery DWGs will provide employment and training services to reintegrate eligible individuals back into the workforce. States can apply for Employment Recovery DWGs if 50 or more individuals are laid off by one employer or if there are significant layoffs that significantly increase unemployment in a given community, even if the total layoffs are fewer than 50 individuals. 


The U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.

To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.

For additional resources from the U.S. Department of Labor, visit https://www.dol.gov/coronavirus.

In addition to these new programs, the Department of Labor also released unemployment data for the week ending March 14, 2020. Initial unemployment claims are up 70,000 compared to the week prior. The chart, below, shows the spike in unemployment claims from the week ending March 14. Click the graphic for the entire report.

A panel of economists surveyed by The Wall Street Journal projected that 875,000 new jobless claims would be filed for the week ending Saturday. That would easily exceed the record 695,000 claims filed in the week ended Oct. 2, 1982. Claims had been trending near a 50-year low for the past 12 months.
All Alabama Counties Now Eligible for SBA Loan Program

On Saturday, Governor Ivey announced that every county in Alabama is now eligible for SBA's EIDL loan program. To read more about Governor Ivey's announcement, CLICK HERE.

Alabama's SBDC has put together a number of great resources to assist with your loan application, including a step-by-step presentation of the application process. To view the presentation and a recording of last week's webinar, CLICK HERE.

Business owners can reach out to the SBA for more information about this program by calling 1-800-659-2955 or emailing  disastercustomerservice@sba.gov . SBA is anticipating application approval to take approximately 30-60 days.

To learn more about the program and apply for a loan visit the SBA website.
Governor Ivey Extends Alabama Tax Filing Date

Governor Kay Ivey and the Alabama Department of Revenue announced today that the state income tax filing due date is extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer state income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers.

To read the remainder for he release from the Governor's office, CLICK HERE.