Federal Emergency Loans, Tax Relief and Other Programs
Families First Coronavirus Response Act
This legislation does two things. First, it requires employers with fewer than 500 employees to grant up to 10 weeks paid leave. The first two weeks of the FMLA 12-week leave provision can be unpaid. The second provision requires employers with fewer than 500 employees to provide up to 80 hours of paid leave to full-time employees who miss work due to coronavirus-related issues.
- US Chamber of Commerce - Families First Coronavirus Response Act: What Businesses Need to Know
Overview of Federal Emergency Loan Programs
There are several new programs recently passed by Congress to help small businesses and their employees cope with the fallout from the Coronavirus oubreak. A bit of important advice: Apply early and expect delays.
You should plan to apply as soon as possible, as there is are caps on the amount of money available in various programs. You should also be prepared to be patient and persistent. Most of the groups responsible for providing funding – your local bank, state unemployment offices, the Small Business Administration, and FEMA – are going to be overwhelmed trying to process record numbers of applications and supporting documents. It’s not unreasonable to expect long wait times, crashed websites, and very slow processing of successful applications.
General Relief Program Information
- CARES Act Language - This is the actual legislative language for the Coronavirus Aid, Relief and Economic Security Act
- Small Business Administration - Disaster Assistance in Response to the Coronavirus
- US Chamber of Commerce - Coronavirus Emergency Loan: Small Business Guide and Checklist
- National Federation of Independent Business - Coronavirus Small Business Guidance & Loan Resources
Paycheck Protection Program
This is the primary source of relief for small businesses. Apply early! Funding has a cap.
- US Treasury Paycheck Protection Program - Application
- US Treasury Paycheck Protection Program - Overview for small businesses
- US Chamber of Commerce - Paycheck Protection Program overview
- National Federation of independent Business - Good overview of features and requirements of Paycheck Protection Program and other SBA loan programs
Economic Injury Disaster Loans
Some NOWRA members may be able to secure assistance under SBA’s Economic Injury Disaster Loan (EIDL) Program. There are more restrictions on access to funds, but it may still be applicable to your business.
- US Chamber of Commerce - How to apply for EIDLs
- NFIB - A good side-by-side chart which explains the differences between Economic Injury Disaster Loans and the Payroll Protection Program
- Small Business Administration - COVID-19 Economic Disaster Loan Application