Several pieces of legislation have been passed federally to provide emergency financial relief for businesses of all sizes, navigating the COVID-19 pandemic.
Phase 1: March 6
- $8 Billion for Public Health Agencies including the Center for Disease Control (CDC) to ramp up and focus resources on earlier stricken communities.
- Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) - $10,000 loan advance to small businesses which will not have to be paid back.
As of mid-April funding has run out of the SBA’s EIDL program, however, Congress is expected to pass a bill this week that would provide another $60 billion for EIDL loans.
Phase 2: Family First Coronavirus Response Act – March 18
- Emergency Paid Sick Leave Act:
- Employers with fewer than 500 employees are required to pay two weeks of sick leave to their employees who are quarantined or experiencing symptoms, caring for a quarantined individual or caring for a child whose school/daycare is closed because of COVID-19.
- Employers are reimbursed.
- Emergency Family & Medical Leave Expansion Act:
- 10 weeks of paid expanded family and medical leave.
- Guarantees COVID-19 testing is free to everyone regardless of health insurance.
- Expands federal funding of Medicaid.
Phase 3: Coronavirus Aid Relief & Economic Security Act (CARES Act) – March 27th
- $2 trillion Package.
- Unemployment assistance.
- $500 billion loans/grants programs for large companies.
- Delay of payroll tax payments for six months to a year.
- $350 billion to help small businesses.
- ELIGIBLE BUSINESSES: Fewer than 500 employees, nonprofits, self-employed, 1099 workers.
- 2-year term loan with 1% interest rate, 100% federally guaranteed loans.
- AMOUNT: Average monthly payroll for 2.5 months (8 weeks), rent or mortgage payment, utilities up to $10 million.
- Full loan converts to grant if employer maintains current employees on the payroll or brings them back by June 30 and maintains their salaries. If not, the amount forgiven decreases.
- A list of the banks/lenders in Irving-Las Colinas who are participating in the Paycheck Protection Program can be found here.
- On April 24, Congress added an additional $310 billion to the program after the funds were depleted in two weeks.
- Allows business to postpone paying the employer portion of Social Security taxes due in 2020.
- Half of those taxes are due at the end of 2021 and the other half at the end of 2022.
- Helps employers suffering financial losses but continue to pay workers who are unable to perform their duties.
- Tax credit, not deferral, against federal employer taxes, up to $5,000 per full-time employee.
- Loan program for businesses with fewer than 10,000 employees. Business goes to a bank and borrow additional funding to help with expenses during the pandemic.
- Minimum loan is $1 million. All currently being discussed to see if can lower the minimum loan amount to help small businesses and start-ups, so they aren’t left behind.
- This program will likely not be available until May 1.
For additional resources and information on relief opportunities, click here.