Dear Small Business Owners & Employees,
We are facing uncertain times and a nation, and with the support of the US Government plan to continue “business as usual” for as long as possible. We are closely following and adhering to safety guidelines set out by WHO, US Surgeon General, and our local Government.
Below is a brief summary of the new State and Federal relief programs, to help those in need of a financial boost to stay afloat for the near future. We have worked so hard to build our business, and know you have as well. Hang in there, we’ve got this.
Unemployment has been expanded to include self-employed individuals who are unable to operate their business because of the COVID-19.
Please visit your State Board of Employment Security or call for additional info.
SBA Economic Injury Disaster Loan & Loan Advance in response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance of $10,000 will not have to be repaid. (Please see attachment for more information)
The CARES Act builds on two former pieces of legislation by providing more robust support to both individuals and businesses, including changes to tax policy. The bill includes:
Expanded unemployment insurance (UI) for workers, including a $600 per week increase in benefits for up to four months and federal funding of UI benefits provided to those not usually eligible for UI, such as the self-employed, independent contractors, and those with limited work history.
$350 billion allocated for the Paycheck Protection Program, which is meant to help small businesses (fewer than 500 employees) impacted by the pandemic and economic downturn to make payroll and cover other expenses from February 15 to June 30.
Notably, small businesses may take out loans up to $10 million—limited to a formula tied to payroll costs—and can cover employees making up to $100,000 per year. Loans may be forgiven if the business uses the loan for payroll, interest payments on mortgages, rent, and utilities and would be reduced proportionally by any reduction in employees retained compared to the prior year and a 25 percent or greater reduction in employee compensation. (Additional Information Pending)
Wishing you health, happiness, and continued success,
CEO at Career Sparks