COVID-19 Federal Funding is Available for Small Businesses!
What is the Family First Corona Virus Response Act or FFCRA?
To all the small business owners, we are here to break it down the “Family First” for you!
Whew! Times are tough, am I right? Store fronts are closed, everyone is working from home with their kids (which is totally a recipe for success, IMHO), yet the bills still come, the rent is still owed, and we somehow need to also help our employees. Oh, and pay our personal bills. Oh, and stay sane. (FYI, I am writing this post with a three-year old at my feet. Sane is my middle name…)
Enter: The Federal Government. It has put together some pretty great programs to aid small businesses. Although you’ve probably heard of most of these, I wanted to put together a very succinct list, along with web addresses on where to find more information.
The Families First Coronavirus Response Act (FFCRA) was passed on March 18.
This Act’s primary focus is on providing resources to operating businesses and current employees. This Act expands the Family Medical Leave Act (FMLA) to employers with fewer than 500 employees. (Yikes… that’s us, small businesses!). Thus, it requires employers to provide paid-leave to employees that cannot work (or telework) for specified reasons. Businesses will be entitled to a tax credit in the amount paid to employees.
Here are the websites:
The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) was signed into law on March 27.
This Act offers aid to closed and closing businesses and employees that have been laid off. It also provides relief for individuals and families. It’s pretty amazing.
The Act provides many things, but here are the highlights.
- Additional unemployment funds are being sent to the states to provide terminated employees their normal wages (instead of their fractional unemployment pay).
- Economic Injury Disaster Loans (EIDL) are being made available to small businesses for payment of rent and other operating expenses. Terms are very favorable.
- An up-front grant of up to $10,000 is available in certain circumstances. (Application Here)
Paycheck Protection Program (PPP)
Additionally, Paycheck Protection Program (PPP) Loans provide small businesses with loans to continue to pay employees, employee benefits, and other qualifying expenses. The amount spent during the eight (8) weeks after the origination of the loan will be forgiven. (AMAZING!) These loans must be obtained through your bank. You have to apply “in person” but many banks are accepting phone applications.
Lastly, you may be getting a check straight from the government! Certain qualifying individuals will receive a one-time payment of $1,200 per adult and $500 per child (for people who earn no more than $75,000 as a single person or $150,000 as a couple. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds).
Read more about The CARES Act.
In addition to the government, private companies are providing assistance as well. I am told by many clients that mortgage lenders, banks, and credit cards are forgiving payments on lines of credit and loans for a period of time, reducing interest rates, and providing payment extensions or reductions. Don’t be afraid to ask for relief!
We are staying on top of these benefits and opportunities, so please don’t hesitate to reach out to us with any questions!
Stay healthy and stay safe everyone!
Kira M. Rubel
Licensed in CA and WA