Quick answers! Do you need:
• Money to retain employees and operations? The Paycheck Protection Program just got an extra $300b boost
• A quick infusion of a smaller amount of cash to cover you right now?
Read about EIDLs.
• Versatile financing options? Small Business Debt Relief may be right for you.
Insurance and Tax Questions
• Does your business insurance cover financial losses due to COVID-19? And what about tax filings?
• What does the Families First Act require of employers?
Reopening: How to Handle the Human Side
• Supporting employee mental health when reopening the workplace (article from the American Psychological Association)
Paycheck Protection Program (PPP):
What Does It Mean For You?
April 20 update:
Congress Approves Additional $300 billion for the PPP
The Paycheck Protection Program in the CARES Act creates a type of emergency loan for businesses under 500 employees. This is designed to keep your workers employed and business afloat during the crisis, and applies to contractors or the self-employed. Loans may be 100% forgiven (minus interest), provided employers keep their workers on at their current salary levels through the end of June.
Contact your bank or credit union, as they are the only ones able to issue these funds.
PPP and EIDL Daily Webinar
The Vermont District SBA Office is conducting free daily webinars, Monday-Friday at 9 am, to discuss the PPP and EIDLs. Learn what they are, how they work, and the difference between them.
Join by phone: (202) 765-1264; access code 470177937#
Emergency Economic Injury Disaster Loans (EIDLs)
Quick Influx of Cash may be Available to you
Emergency Economic Injury Grants: These grants will provide small businesses and nonprofits applying for SBA’s EIDL program with an advance of $10,000. The money will be provided within three days of applying for the loan, and businesses will not have to repay the $10k grant, even if they are denied for an EIDL.
SBA Economic injury disaster loans (EIDLs). Generally, EIDLs provide up to $2 million to cover a businesses operation costs.
Organizations can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses.
Note: a borrower who has a current EIDL loan unrelated to COVID-19 may apply for a Paycheck Protection Plan loan (with an option to refinance the EIDL loan into the Paycheck Protection loan).
Debt Relief Program
Non-disaster SBA loans
This program will provide immediate relief to small businesses through non-disaster SBA loans, in particular 7(a), 504, and microloans.
Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law
Business Income Insurance Q & A
Does your business insurance cover pandemic losses?
The Department of Financial Regulation has developed a guidance overview of whether business insurance will cover loss of income and other issues caused by COVID-19. The NAIC has also posted an Insurance Brief (COVID-19 and Insurance) that provides a good overview of how different types of policies respond to losses related to COVID-19, including Travel, Health, Life, Annuities, Business Interruption, Workers' Compensation, and other insurance.
Tax Deadline Relief
The Department of Taxes is providing temporary relief to Vermont businesses who owe Meals and Rooms Tax or Sales and Use Tax. Businesses that are unable to meet the April 25th filing deadline will not be charged any penalty or interest for late payment. It is important to note this is not an abatement of the tax, but instead a waiving of any interest or penalty for late payments.
Under the new federal plan, eligible workers will get an extra $600 per week on top of their state benefit, and an additional 13 weeks of eligibility on top of the existing 26 weeks.
Pandemic Unemployment Assistance (PUA) System Now Accepting Applications
Vermonters who are self-employed, independent contractors, and other individuals who are not eligible for traditional unemployment insurance benefits may now apply online for the new Pandemic Unemployment Assistance (PUA) program.
Families First Coronavirus Response Act (FFCRA)
The Families First Coronavirus Response Act (FFCRA) requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from the effective date through December 31, 2020.
What does it mean for employers?