Below is recap of the available relief programs for you to review.
As the country heads into week three of the COVID-19 crisis, we wanted to provide you an update on the $2.2 trillion relief package (allocation below) and how your business can ascertain funding to avoid closure or layoffs:
$510 Billion - Lending For Large Businesses, Governments
$377 Billion - Small Business Loans And Grants
$290 Billion - Direct Payments To Most Americans
$280 Billion - Cuts To Business Taxes
$260 Billion - Expanded Unemployment Benefits
Five (5) Options Available For Most Businesses And Employees:
#1: Unemployment - You can layoff your employees so they can collect unemployment. This option will be the most beneficial if your cash flow is tight due to limited or no sales; however, there are several options to consider before you layoff staff (see below).
#2: Families First Coronavirus Response Act (FFCRA) -Starting April 1, 2020, you can utilize the FFCRA as this legislation provides payroll tax credits for employees who cannot work due to qualifying reasons. This option would be helpful if you have some employees working and others who are not. The Act provides that employees of covered employers are eligible for:
Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay.
Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay.
Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay.
#3: Paycheck Protection Program (PPP) -This legislation provides a business with 2.5 months of payroll cost and related expenses (possibly as a forgivable loan).
You can apply for the PPP at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury.
The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements.
#4: Small Business Administration Disaster Loan Assistance - In response to the Coronavirus (COVID-19) pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three (3) days of a successful application. This loan advance will NOT have to be repaid.
#5: Facebook Is Offering $100 Million In Cash Grants -Facebook is offering $100 million in grants and ad credits for up to 30,000 eligible small businesses in over 30 countries.
Although we are unable to advise you on what’s best for you and your business, we are here to help. If we can provide you with any payroll-related information for reporting, just ask for our help.
Please stay safe and support your local small business as we will get through this crisis together.
