COVID-19 Update: Emergency Education Funds, PPP and EIDL loans, Non-teaching staff

(From  U.S. Department of Education) On April 14, 2020,  U.S. Secretary of Education Betsy DeVos announced that nearly $3 billion will quickly be made available to governors to ensure education continues for students of all ages impacted by the coronavirus through the The Governor's Emergency Education Relief (GEER) Fund. The "extraordinarily flexible emergency block grant" is designed to enable governors to decide how best to meet the needs of students, public and non-public schools, postsecondary institutions and other education-related organizations during the widespread shutdown schools. The application and instructions on how to apply are available on the department's website.

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(From Venable LLP) Many independent schools are considering a range of issues related to paid sick leave, stay-at-home orders, Paycheck Protection Program and/or Economic Injury Disaster loans under the CARES Act. Some of the questions to consider:

• Does your school qualify for exemptions under the the FFCRA?
• Does your state's stay-at-home order include exceptions that would allow certain school employees to continue to work on campus while the order is in effect?
• Should schools issue written permission for employees to leave home?
• How does the employee retention tax credit apply for qualified wages?
• How does the CARES Act affect my school's unemployment insurance premiums?

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(From The 74 Million) Across the U.S., schools are considering how to support the non-teaching staff — from building custodians to classroom aides to school psychologists — that represent half of all K-12 employees. While some schools are extending emergency leave for non-teaching employees, others have already been forced to temporarily cut staff positions. Experts warn, however, that mass layoffs would be counterproductive, as unfilled jobs would ultimately generate unforeseen costs for schools.

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(From FEI)  Schools should evaluate their current approach to negotiating contracts, particularly as it relates to the force majeure provision in such contracts, to include protections from disruptions caused by pandemics and determine how the COVID-19 pandemic may affect the obligations and performance. When reviewing existing contracts, schools should ascertain whether an event qualifies as a force majeure event under the contract, what notice is required to be given and when, and the effect of providing notice on each party’s performance. If the relevant contract does not include a force majeure provision or if a pandemic such as COVID-19 does not qualify as a force majeure event, the school should determine whether any other contractual or common law defenses to performance may apply. 

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