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Jessica Schwartz
Getting An SBA Economic Injury Disaster Loan (EIDL)
Update On Thursday, April 16, 2020, the SBA announced a lapse in appropriations for the EIDL program related to COVID-19. From its website: “SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.” ——— Signed into law on March 6, the Coronavirus Preparedness and Response Supplemental Appropriations Act (CARES) expands the U.S. Small Business Administration’s (SBA) existing Economic Injury Disaster Loans, or EIDL program, to offer $7 billion in loans to small businesses impacted by COVID-19. The U.S. Chamber of Commerce offers the following guidance on the loan. General parameters for eligibility include: businesses with fewer than 500 employees; sole proprietors; independent contractors; cooperatives, ESOPs, and tribal small businesses; and most private non-profits. These loans may be used by small businesses to pay fixed debts, payroll, accounts payable, and additional bills that can’t be paid because of COVID-19’s impact. To provide immediate relief, SBA offers a $10,000 emergency grant designed to be available within three days of applying. (It should be noted: according to articles from Fast Company and The Wall Street Journal published April 7 and 8 respectively, of those who applied early last week when the application went live, many are still awaiting funds.) There is no obligation to repay the grant and it is not necessary to have an approved EIDL loan. ...
Will Federal Aid Be Enough To Save Your Small Business?
Update On April 16, 2020, the U.S. Small Business Administration (SBA) announced it had exhausted allotted funds for the Paycheck Protection Program (PPP). SBA, which administers the PPP, shut down its application and ceased enrolling new lenders into the program. _______ Will federal aid programs be enough to help small businesses, such as landscapers, get through the COVID-19 pandemic? The U.S. Chamber of Commerce (USCOC) is concerned. While the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program (PPP) provides $349 billion for small businesses to continue to pay their employees and other bills, loan commitments reportedly already exceed the available funds by 10%, according to the USCOC. And the PPP just began accepting applications for small businesses and sole proprietors on April 3. Independent contractors and self-employed individuals can apply beginning on April 10. The program is open until June 30, 2020. Additionally, an upgraded Economic Injury Disaster Loan (EIDL) program at the Small Business Administration has a $10 billion cap on disaster relief grants, which will support only 1 million businesses and non-profits, says the USCOC. As a result, USCOC Executive Vice President and Chief Policy Officer Neil Bradley sent a letter yesterday to congressional leaders urging quick action for American small businesses should Coronavirus Aid, Relief, and Economic Security (CARES) Act funding not be sufficient after surging demand for those programs. “The U.S. Chamber of Commerce thanks you and the entire Congress for quick action to pass the Coronavirus Aid, Relief, and Economic Security (CARES) ...
PPP (Paycheck Protection Program) Loans For Small Businesses Affected By Pandemic
Last week, the U.S. Small Business Administration (SBA) launched the Paycheck Protection Program, or PPP, a $349 billion emergency loan program created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES). The PPP provides forgivable loans up to $10 million to small businesses left financially distressed by the COVID-19 pandemic and are administered at the local level by a national network of banks and credit unions. To find a lender, click here. The loans, which are 100% backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses with fewer than 500 employees, self-employed individuals, independent contractors, certain non-profits, veterans’ organizations, and other businesses meeting size standards based on their North American Industry Classification System code. The PPP will be available through June 30, 2020, though the government is advising borrowers to apply as soon as possible due to a loan cap. (As of this writing, the PPP loan commitments reportedly already exceed the available funds by 10%, according to the U.S. Chamber Of Commerce. On the same day, President Trump addressed the issue at a briefing with members of the White House Coronavirus Task Force and said he is asking Congress to provide an additional $250 billion for the PPP, reported the USCOC.) “We urge every struggling small business to take advantage of this unprecedented federal resource – their viability is critically important to their employees, their community, and ...
Do New Pandemic Unemployment Benefits Apply To You or Your Employees?
Think you or your employees don’t qualify for unemployment during the pandemic? You might want to think again. Congress has greatly expanded its eligibility requirements for such benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The new pandemic unemployment benefits cover individuals who would not otherwise be eligible – the self-employed, independent contractors, gig workers, part-time employment seekers, those who lack sufficient work history, and those who have already exhausted their unemployment benefits — provided they cannot work as a result of the coronavirus pandemic. However, those who can do paid telework or have received paid sick leave or other paid leave benefits cannot collect. Pandemic benefit amounts equal the standard unemployment benefit an individual would normally be entitled to under Federal or State law plus an additional $600 per week. Assistance can be received for a maximum of 39 weeks, including any weeks in which “regular” unemployment benefits were provided. Additionally, any waiting periods established by state unemployment laws are waived and the pandemic unemployment benefits do not count as income toward eligibility for Medicaid or the State Children’s Health Insurance Program (CHIP). Pandemic Unemployment Assistance is effective from January 27, 2020 until the end of this year. Applicants must be able to self-certify that they are unemployed, partially unemployed, or unable or unavailable to work due to one of the reasons listed below. They have been diagnosed with COVID-19 or are experiencing symptoms of COVID-19 that require a medical diagnosis. A member of their household ...
