03/20/2020
**SHARE WITH A BUSINESS OWNER ** While there is the uncertainty of how the coronavirus (COVID-19) outbreak may progress regarding the economy, we do know that business owners are pro-active and resilient.
Part of that resiliency comes from planning ahead. We plan to keep our business fully functioning which means our services will be available to you at any time.
With the Government’s attempts to shield our economy from disaster, we will see continued assistance and increased benefits to small businesses, which will be felt in both the private and public sectors. Below you will see that there are some amazing government resources to access (before it gets gobbled up or dries up). And, while reviewing these options and ideas, keep in mind that some changes actually impose immediate increased costs to employers (over 50 and under 500 employees) - that will be reimbursed eventually ... but know that it is COST TO THEM NOW... so private sources like we have access to will help them bridge that gap!!
PRIVATE:
The private sector processes are still some of the best ways to get money in your pocket, and in your clients’ pockets NOW . You have an amazing resource in Fundwise https://apply.fundwise.com/RVM - applicable now and in the future. 0% interest during this time.
PUBLIC :
Several resources for small businesses exist in times like this. Specific governmental departments are working together to offer as much as they can to lessen the blow to small businesses.
ECONOMIC INJURY DISASTER LOAN (the “EIDL”)
The Small Business Administration’s (the “SBA”) has this IMMEDIATELY accessible options! Its main Administrator, Jovita Carranza begs that entrepreneurs NOT give up on their dreams during this economy. Because of this economic situation, they have partnered even more closely with several other government departments and programs (including the Dept of Treasury, Labor, and even FEMA) to make sure that our country’s entrepreneurs succeed.
Loan Details : Low Interest, Long Term Long (can be up to $2 million), directly from the Feds. They have a one year payment deferment plan, and pride themselves in dealing with fewer underwriters to get you more money, more quickly. Use it for working capital, and business costs that are normal obligations to the business (had the disaster not occurred). Examples are lost sales/revenue, decreased contracts, or anticipated decrease, supply chain disruption, outage or workers, etc.
Qualifications : 1) a small biz (less than 500 employees), 2) certain credit score(s) - which is looser than traditional loans, and 3) repayment ability (based on pre-disaster conditions). Small businesses in nearly ALL 50 states are eligible, and the SBA is trimming red tape. More importantly, if a business is denied a loan, the SBA will reach out and help the biz owner find another route to funds through the SBA.
The SBA has district offices EVERYWHERE. Do you know where yours is? Check it out here:
https://www.sba.gov/local-assistance
More on the SBA Economic Injury Disaster Loan ( SBA.gov/Disaster )
Apply here for the EIDL https://disasterloan.sba.gov/ela/Information/EIDLLoans Also: SBA Lender Match https://www.sba.gov/funding-programs/loans/lender-match
LEGISLATION - COVID-19 RESPONSE ACT
As you may have heard, the President signed the above legislation, it is amended from the original language in HR6201, so be careful which version you read. This bill does a TON, and for our purposes, I want to explore how it expands Paid Sick Leave benefits immensely.
The Basics: This is another thing to consider if you have employees, or you are one yourself, of a small business (less than 500 employees). It grants MORE Paid Sick Leave (“Emergency PSL”), for employees that cannot come to work, or telecommute because he or she is or might be sick, then this bill ensures the employee will get 100% of its wages for its regularly scheduled time (up to 80 hours for full timers, and capped at $511 per day). If the employee misses work because he or she is acting as a caregiver, then the bill ensures payment of 2⁄3 wages (or up to $200 a day) for work as if it were their normal schedule. I believe it has the FMLA limit to $10,000 in a month. All of this leading to up to 12 weeks of paid sick leave.
Also, it expands the reasons you can take your Paid Sick Leave (or are eligible to do so).
● subject to a federal, state or local quarantine or isolation order related to COVID-19;
● advised by a health care provider to self-quarantine due to COVID-19 concerns;
● experiencing COVID-19 symptoms and seeking medical diagnosis;
● caring for an individual subject to a federal, state or local quarantine or isolation order
or advised by a health care provider to self-quarantine due to COVID-19 concerns;
● caring for the employee’s child if the child’s school or place of care is closed or the
child’s care provider is unavailable due to public health emergency; or
● experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the
Secretary of Labor.
The Kicker: Although the employer will still be the one to pay the employee (for speed and efficiency), employers aren’t totally out of luck here. The employer will receive a reimbursement for this through a refundable federal tax credit, so you get the FULL reimbursement amount, regardless of your tax liabilities - more to come as they work out the practical application of all of this.
Exemptions: Businesses with fewer than 50 employees are exempt from this expanded FMLA/PSL, along with a couple other defined types of employees.
Helpful link:
https://www.fisherphillips.com/resources-alerts-congress-finalizes-covid-19-coronavirus-response-act
.. A few other things to consider as a business owner, or an employee yourself...
UNEMPLOYMENT BENEFITS
The Department of Labor announced an Unemployment Insurance Program that loosens the guidelines for unemployment eligibility. Now, you may be eligible for unemployment if an employee:
● is asked to cease to come in to prevent the spread of illness;
● is quarantined, and yet still plans on returning to work; or
● Leaves employment due to exposure (them or their family member)
Are you eligible? https://www.benefits.gov/benefit/597
You could all use this if you are home from your 9-5. Check it out.
TAX PAYMENT DEFERRAL
It appears that you don’t need to pay your federal taxes until July 15, 2020. So, if you are going to OWE, then this is good for you. If you expect a refund, try to file on time still - and get that money back. :) Read specifics here: https://home.treasury.gov/news/press-releases/sm948
THE RESTAURANT ASSOCIATIONS
If this is your industry, or your client’s industry, more specific support is in the works - take a gander and share with your clients in this space asap! It might say Politico, but it is merely the image of the letter - this letter is a great read. https://www.politico.com/f/?id=00000170-ee3f-d588-ab77-ef7fa19d0000
Again for immediate funding at 0% applicable now, click here, https://apply.fundwise.com/RVM
Stay safe, healthy and well and let us know how we can help.
