On March 17th , the Council of the District of Columbia unanimously passed a consensus
emergency bill in response to the COVID-19 pandemic currently impacting the nation. The
“COVID-19 Response Emergency Amendment Act of 2020” is emergency legislation, and thus
will immediately become law with the Mayor’s signature. It will remain in effect for 90 days,
though a Temporary bill, which will require a second Council vote, will ensure it remains in
effect for 270 days.
The most important measures passed in this legislation for employers and business/non-
profit operators are:
- A Small Business Grant Program to specifically assist nonprofit organizations and
small contractors who do not qualify for unemployment insurance. The grant/loan money
may be used for employee wages and benefits, operating costs, and repayment of USSBA
obtained loans. - Extension of deadlines/expirations for corporate tax filings to June 1, 2020.
- Delays retail sales tax payments by waiving the interest and late fees for any taxes not
filed by periods ending March 31, 2020, provided the taxes are paid in full on or before
July 20, 2020.
The Small Business Grant Program, titled the “Public Health Emergency Grant Program”, will
be grants or loans issued at the sole discretion of the Mayor, likely through a third-party. Each
small business may be awarded multiple grants at the discretion of the Mayor and the Mayor’s
third-party grant managing entity.
Eligible small business, defined as “a business enterprise eligible for certification under section
2332, a non-profit entity, or an independent contractor or self-employed individual determined
ineligible for Unemployment Insurance by the Director of the Department of Employment
Services” will have to submit a grant application and demonstrate financial distress.
Our read of the law is that this means that any D.C. Certified Business Entity (“CBE”), or any
business that is not currently certified but otherwise meets the eligibility criteria for certification,
may apply. Our firm is itself a CBE, and regularly assists other businesses with CBE
certification matters, so please contact us should you have any questions regarding eligibility.
You can reach Anthony Marchese or Carol O’Riordan at amarchese@oriordanbethel.com,
coriordan@oriordanbethel.com, or (202) 822-1720.
The grant/loan money awarded may be used for employee wages and benefits, operating costs,
and repayment of USSBA obtained loans. Employee benefits include health insurance.
While the new law references a deadline of June 1 for the Mayor to post a list of awarded funds
online, our understanding is that this reporting requirement does not limit the release of funds
until June 1 or later. Funds should be releasable to applicants at any time after approval of
applications.
We will be continuing to monitor this critical new assistance program closely. Please do not
hesitate to contact us if you have any questions about eligibility for your business.
