As your trusted guide to insurance, part of being the integral part of your business we strive to be involves connecting you to resources available to help your business obtain the funds needed to stay in business, keep your employees on the payroll, and cover key operating expenses during this temporary period of emergency we are all facing.
Coronavirus Aid, Relief and Economic Security Act (CARES)
We have been closely following the “Coronavirus Aid, Relief and Economic Security Act”, also known as CARES, since President Trump signed it on March 27, 2020. Below are some of the highlights and links to connect you to resources available to assist your business during these worrisome times. Included in the economic relief package is the Paycheck Protection Program that provides $350 billion of assistance to small businesses to help them keep their employees on payroll and cover important expenses through a forgivable loan program. Highlights of that program include:
- Companies with less than 500 employees can be eligible for loans of up to $10 million, with the size of the loan based on a business’s average monthly payroll for 2.5 months.
- Businesses such as hotels, casino hotels, restaurants and bars – with less than 500 employees per location can also be eligible for this program.
- The loans can be used to cover payroll, employee benefits, mortgage expenses, rent and utilities.
- Self-employed individuals and independent contractors can also take advantage of this program.
- The total amount spent on payroll costs, benefits, mortgage interest payments, rent and utilities between February 15 and June 30 can be forgiven from the loan.
- The loans are guaranteed 100% by the Small Business Association (SBA).
These loans can be accessed through any bank or credit union participating in the program, it is recommended to contact your local bank as the first step in obtaining additional information on how to get started. This loan program is expected to be up and running by the end of the week and is designed to provide same day turnaround on loan requests, per Treasury Secretary Steve Mnuchin.
Additional Information can be found on the SBA’s website.
For businesses that do not qualify for the Paycheck Protection Program, there is additional information regarding other forms of available disaster relief also located on the SBA’s website.
Families First Coronavirus Response Act (FFCRA)
The Department of Labor has recently enacted the Families First Coronavirus Response Act (FFCRA) which will, in most cases, require employers with less than 500 employees to provide their employees with paid sick leave and expanded family and medical leave for causes related to COVID-19. These provisions apply from April 1, 2020 through December 31, 2020.
Information related to FFCRA can be found on the DOL’s website:
EMPLOYER PAID LEAVE
FREQUENTLY ASKED QUESTIONS
Lastly, employers with less than 500 employees are required to place the following notice from the DOL in a common break area with other required workplace posters.
If you have any questions on the above information or if there is anything we can do to help connect you with the appropriate resources, please don’t hesitate to reach out as we are all in this together.