COVID-192020-06-04T18:57:44+00:00

Coronavirus (COVID-19) Resource Center

Small businesses are facing unprecedented challenges amid the coronavirus (COVID-19) pandemic. We’ve created this resource hub to help you get the most updated news, information, and advice as you navigate this difficult time.

NEWS

FEDERAL SMALL BUSINESS RESOURCES

Program Overview

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

How to Apply

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union,  and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020.

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of .5%.

If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

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 will not have to be repaid.

How to apply: COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION

EMERGENCY PAID SICK LEAVE

Businesses with under 500 employees are required to provide emergency paid sick leave. During COVID-19, employees can use emergency paid sick leave if they are:

  1. observing a federal, state or local isolation/quarantine order
  2. advised by a healthcare provider to self-quarantine
  3. experiencing symptoms and seeking medical care
  4. caring for a family member under a federal/state/local order or medical recommendation to quarantine/isolate
  5. caring for a child whose school or daycare has been closed
  6. experiencing any other substantially similar conditions specified by the Secretary of Health and Human Services

Emergency paid sick leave becomes effective on April 1, 2020 and there is no waiting period for new employees to use it.

Employees taking leave to care for or isolate themselves (i.e. reasons 1, 2, or 3 above) are entitled to 100% of their regular wages up to $511/day

Employees taking leave to care for a family member (i.e. reasons 4, 5, or 6 above) get two thirds of their regular wages up to $200/day.

Full-time employees can take up to 80 hours of leave, whether caring for themselves or for others. Part-time employees can take up to the average number of hours they would work over a two-week period. Employees who make more than the limits listed above can be paid their full wages if the employer is able to cover these costs, but employers will only receive a tax credit up to those limits

If your employees take emergency paid sick leave, you can receive a tax credit up to the limits listed above to cover the wages you paid them. This credit covers 80 hours of paid sick leave for full-time employees, or the average number of hours worked over a two-week period for part-time employees.

The credit will be applied to an employer’s Social Security taxes (this reduces the federal tax payments Gusto makes on your behalf).

  • For time an employee takes to care for or isolate themselves, the credit is capped at $511 per day and $5,110 total per employee.
  • For time an employee takes to care for a family member, the credit is capped at $200 per day and $2,000 total per employee.

Employers are required to grant emergency paid sick leave due to COVID-19 starting April 1, 2020.

Contact your payroll service provider for guidance.

EMERGENCY FMLA

Emergency family and medical leave of absence (FMLA) is an amendment to existing FMLA regulations to help employees during COVID-19.

Under the amended FMLA, businesses with under 500 employees are required to provide job protected emergency FMLA leave for employees. Businesses with under 50 employees may be exempted by the Department of Labor from these requirements if the DOL decides that they would jeopardize their business.

Emergency FMLA can be used by employees who are unable to work (or work remotely) while caring for a child under 18 because the child’s school/daycare is closed or unavailable due to the COVID-19 public health emergency.

First 10 days are unpaid

New employees qualify for emergency FMLA coverage after 30 days of employment. The first 10 working days taken off are unpaid. They may be covered with accrued paid time off, sick leave, or emergency paid sick leave.

Employees receive two thirds of pay after 10 days unpaid

After the first 10 days, employers must pay employees two thirds of their normal rate of pay up to $200 per day or the aggregate of $10,000. For employees with varying work hours, take the average number of hours they were scheduled to work in the six months prior to the start of their leave (or if a recent hire, then the reasonable average hours expected at the time of hire).

Employees who make more than the amounts listed above can be paid their full wages if the employer is able to cover these costs, but employers will only receive a tax credit up to those amounts.

As with traditional FMLA leave, this leave is job protected and employees are generally entitled to return to their same or equivalent position. However, employers with less than 25 employees are exempt from this requirement if they can show that the position no longer exists due to economic conditions caused by COVID-19, and the employer took reasonable efforts to restore the employee to an equivalent position with equivalent compensation and benefits.

Businesses can receive tax credit for wages paid towards this benefit up to $200 per day and $10,000 total per employee over the course of the COVID-19 pandemic. Credit is applied to an employer’s Social Security taxes (this reduces the federal tax payments Gusto makes on your behalf). Credit amounts that exceed social security liabilities will be refunded after the quarter ends.

Employers are required to grant emergency FMLA leave due to COVID-19 starting April 1, 2020.

Contact your payroll service provider for guidance