5 Ways to save your business during the Coronavirus Pandemic
What is the government doing for YOU during a world pandemic?
Frankly, not a whole lot. There are no experts when it comes to an unprecedented event that is affecting the entire world. However, there are experts in health and business who are helping to inform and create programs that could potentially save you and your business. Because these programs are being tested and changed every day, they're not perfect. But here are some of your options:
Paid sick and family leave
Paycheck Protection Program
Employee Retention Credits
SBA Serviced Distaster Loans
Net Operating Loss Provisions
Wondering where your stimulus check is? Click here.
1. Uncle Sam will help you pay your employees sick and family leave
The Coronavirus Aid Relief and Economic Security Act (or CARES Act) covers paid sick and family leave wages for employees affected by COVID-19
Watch our videos on how your can get sick or family leave for your employees, or as a self-employed business owner.
Paid Sick leave and Family Medical Leave Assistance
Self-Employed - Paid Sick leave and Family Medical Leave Assistance
2. Get 10 weeks of wages paid by the government
The CARES Act includes the Paycheck Protection Program (or PPP) loan. This allows businesses to potentially pay their employee wages and business utilities with a 100% forgivable loan (as long as you meet the loan requirements)
Requirements include, but are not limited to,
making sure your employee wages and hours do not get reduced
using 60% or more of entire loan towards wages
having the same number of Full-Time Equivalent employees working as you did in the 1st quarter of 2020
For more details on the PPP loan and how to apply for loan forgiveness, watch our videos.
How the Paycheck Protection Program Works
How to Apply for Loan Forgiveness
3. The IRS will pay 50% of your employee wages until the end of the pandemic. No application/approval required.
The Employee Retention Credit is a tax credit available if your revenue drops below 50%; come time to file your 2020 tax return, the IRS will reimburse you 50% of your employee wages (with some limits). They will also spot you the 50% in advance if you cannot pay your employees now.
Watch for more information on the ERC
Employee Retention Credit
4. The Small Business Association will pay your interest and loan fees.
The SBA is providing Serviced Disaster Loans (for home and business). The SBA will pay 6 months of principal, interest, and associated fees if you cannot pay your loans. If your loan has been deferred, they will start making payments after the deferral is over.
You can see if your area has been declared a disaster zone, apply, and check y our status directly from the SBA website.
5. Eviction Protection by the IRS
If you have been affected by COVID-19, you may request a deferment of rent/mortagage for up to 180 days.
If you live in government backed housing or a subsidized-property then you are protected from eviction if you can't pay a mortgage or rent due to COVID-19. This will also protect business evictions. Please note that this does not protect tenants from evictions due to other violations of the lease.
If you are in a covered property:
your landlord cannot file an eviction proceeding for 120 days after you are unable to pay rent/mortgage
Eviction proceedings that were already filed are not affected
Landlords may not charge fees, penalties, or other charges for nonpayment of rent
After moratorium period, the landlord must provide 30 days' notice prior to eviction
National Law Review has a detailed summary of what the CARES Act covers.