Chamber Connections BLOG
Chamber Connections BLOG
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Fully Forgiven Funds are provided in the form of loans that will be fully forgiven when 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. Must Keep Employees on the Payroll—or Rehire Quickly 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. All Small Businesses Eligible Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries. When to Apply Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap. 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. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov. The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.
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TOWN OF WARREN, RHODE ISLAND Office of Planning & Community Development 514 Main Street, Warren, Rhode Island 02885-4369 (401) 289-0529 Brulli@townofwarren-ri.gov MEMORANDUM From: Bob Rulli, Director Re: MicroEnterprise Grant Program and Small Business Assistance Date: April 1, 2020 The Town of Warren has submitted an application to the State’s Office of Housing and Community Development for MicroEnterprise funding through the Community Development Block Grant (CDBG) program. If approved on a first come basis, businesses with less than 5 employees with the business owner being one of the 5 and with a median household income below 80% of the area median income, would be eligible for a grant up to $10,000. Home based businesses would be eligible for up to $5000. The below information illustrates income limits based on size of household. Evidence of income would be verified by income tax returns. I expect that we will have program regulations and applications available beginning on April 8, 2020. I will add that this program is not connected to the economic stimulus plan associated with COVID-19 which was passed by Congress last week. If you have additional questions, please do not hesitate to contact me via email. Additional Small Business Assistance If you do not qualify for the above program you may be eligible for others, including SBA’s coming loan forgiveness program https://covid19relief.sba.gov/#/ . For links to multiple small business assistance programs, I refer you to CommerceRI https://commerceri.com/emergency-grants-and-funding/. Additionally, Local Initiatives Support Corporation (LISC) just launched a program that is accepting applications only through April 4, 2020. See https://www.lisc.org/covid-19/verizon-small-business-recovery-fund/ for details. Rhode Island Department of Business Regulation
In accordance with Governor Raimondo’s March 28, 2020 executive order, the Department of Business Regulation is providing the following list of critical and non-critical retail businesses. For questions on these guidelines, please submit your questions online to the Department of Business Regulation using the web form available at https://dbr.ri.gov/critical/. You may also call the Department of Business Regulation at 401-889-5550. Critical retail businesses include: - Food and beverage stores (e.g. supermarkets; liquor, specialty food, bodega and convenience stores; farmers’ markets; food banks and pantries) - Pharmacies and medical supply stores, compassion centers - Pet supply stores - Printing shops, mail and delivery stores and operations, office supply - Gas stations - Laundromats - Electronics and telecommunications stores - Industrial, construction, agricultural/seafood equipment and supply stores, hardware stores, general power equipment - Funeral homes - Auto repair and supply - Banks and credit unions - Firearms stores - Healthcare and public safety professional uniform stores - And other stores and businesses identified as critical by the Department of Business Regulation. Non-critical retail businesses include: - Arts & crafts stores - Florists - Furniture stores (by appointment only) - Car and other motor vehicle dealerships (except for auto repair and by appointment only) - Music stores - Billiard stores - Sporting goods stores - Home furnishings stores - Lawn/garden supply stores (note that agricultural/seafood supply would be allowed to be open) - Book stores - Departments stores - Gift stores - Beauty supply stores - Second-hand/consignment stores - Shoe stores - Clothing stores - Jewelry stores Additional guidance: - Restaurants and bars may continue to operate only for pickup, drive-through, and delivery as per the Governor’s Executive Order 20-04. - All critical retail employers are required to implement social distancing and to work from home to the extent possible. - Financial services offered by pawn shops and payday lenders would be allowed to continue. In-person retail at pawn shops would be considered non-critical and closed. - For stores that are mixed retail and service, general retail with customers coming in and out of your store is not permitted. - For non-critical retail stores, although in-person retail sales are not allowed, retailers may continue to receive and ship orders made by phone or online. SBA – Status of Availability
Answer: “The health and safety of our employees is our number one priority. SBA has deployed technology solutions to assist small businesses with any of their needs while also ensuring the safety of our staff and adhering to the CDC guidelines. ” General: Economic Injury Disaster Loans How can I get information on SBA’s disaster loan program? Answer: Small businesses can visit our website at www.sba.gov/disaster, call us at (800) 659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov. Also, local district offices are having Webinar’s to cover the essentials of applying for loans. When can I apply for an economic injury disaster loan? Answer: Now ! All of southern New England has been approved for SBA disaster loans: Rhode Island, Connecticut, Massachusetts. Now a business owner can access the application online at www.sba.gov/disaster. How do I apply for an Economic Injury Disaster Loan? Answer: Visit SBA at www.sba.gov/disaster and apply online using SBA’s Electronic Loan Application. I have questions about the application, is there someone I can speak with to help me? Answer: Yes. Please contact our disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov. or reach to your local SBA district office. What documents will I need to submit my application? Answer: Depending on a small businesses specific situation, we may need different documentation to capture the business’s information, liabilities, and other important financial information. Examples of the type of documents you may be asked for are: signed and completed SBA application form 5, an IRS Tax Authorization, copies of your most recent federal tax return, a personal financial statement and a schedule of liabilities. Some documents my not be required, EIDL applications less than $500k, they are waiving the submittal of business tax returns. How much can I borrow? Answer: The maximum loan amount is up to $2 million. The loan amount is based on the working capital needs caused by the coronavirus so the business can meet its ongoing obligations. What are the terms of the Economic Injury Disaster Loan? Answer: The interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition. How long will it take to know if I am approved for a loan? Answer: We are processing applications as soon as possible. Some are even processed as fast as within a few days. Does SBA have any grants available to small businesses? Answer: No. Our disaster assistance is in the form of federal low-interest, long term loans. Does SBA require collateral? Answer: It’s important to note that for the first $25,000 no collateral is required. Over $25,000 you may be required to pledge available collateral. Can SBA refinance my loans or mortgages? Answer: SBA economic injury disaster loan funds cannot be used to refinance pre-existing debt. What can I use the SBA Economic Injury Disaster Loan for? Answer: Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Does the SBA have a seat on the federal coronavirus task force? Answer: All federal agencies are working together in a whole-of-government approach to protect public health, including the SBA. The Agency’s major focus is to provide assistance to small businesses impacted by this health emergency with Economic Injury Disaster Loans, counseling, mentoring, and preparedness services across the country. The President mentioned he wanted to limit the damage to people and our country; how is the SBA helping to limit the damage to small businesses? Answer: The SBA is offering Economic Injury Disaster Loans of up to $2 million per small business, in addition to accessing other loan resources for working capital and offering all of our counseling, mentoring, and preparedness services across the country. Information on these resources can all be found at www.SBA.gov. The Emergency Paid Sick Leave Act
In response to the coronavirus (COVID-19) pandemic, on March 18, 2020, Congress enacted a bill providing various forms of relief, including two separate laws mandating that employers give employees paid leave for specified purposes related to COVID-19. The two leave laws are the Emergency Family and Medical Leave Expansion Act, and the Emergency Paid Sick Leave Act. The leave mandates take effect no later than 15 days after passage (April 2, 2020) and sunset on Dec. 31, 2020. This page highlights key requirements of the Emergency Paid Sick Leave Act (the Act). Covered Employers The Act applies to all private employers with fewer than 500 employees, and all government employers. Covered Employees All employees are covered, regardless of the length of their employment with their current employer. However, employers may choose not to provide paid sick leave to employees who are health care providers or emergency responders. Paid Sick Leave All full-time employees, regardless of the length of time they have worked for their employer, are entitled to 80 hours of paid sick time, available for immediate use. Part-time employees are entitled to an amount of paid sick time equal to the average number of hours they work over a two-week period. Paid sick time may be taken when the employee:
An employer may require an employee to follow reasonable notice procedures after taking leave the first time. Compensation Under the Act, employers must pay employees at their regular rate of pay if the employee is taking leave for a reason related to their own symptoms of COVID-19 or exposure to the illness (reasons 1-3 in the list above). Compensation for these workers is capped at $511 per day and $5,100 per month. Employees who are taking leave to care for family members (reasons 4 and 5 in the list above), and employees whose leave falls under reason 6 in the list above are only entitled to be paid at two-thirds of their regular rate. Employer Notice Requirements The Department of Labor is charged with making a required employer notice available within one week of the law’s passage. Employers must post the notice in conspicuous places on their premises, where notices to employees are customarily posted. Enforcement Employers who violate the new paid sick leave law will be subject to penalties under the federal Fair Labor Standards Act. Tax Credit Employers are entitled to a credit against the tax imposed by section 3111(a) or 3221(a) of the IRS Code for each calendar quarter of an amount equal to 100% of qualified sick leave wages paid. Tax credits are also available for the self-employed. We want to assure you that we take the health and well-being of our community, customers, and associates very seriously. Like you, we're closely monitoring the quickly developing effects of the Coronavirus (COVID-19) pandemic We are all in this together. We will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our customers and communities as needed. See below for list of businesses open! Emergency Loans Now Available for R.I. Small Businesses
Yesterday the U.S. Small Business Administration approved Governor Raimondo's application for assistance and will offer low-interest federal disaster loans for working capital up to $2 million to Rhode Island small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Applicants may apply online, receive additional disaster assistance information, and download applications at: https://disasterloan.sba.gov/ela [r20.rs6.net]. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. If a paper forms are preferred, they can be accessed here [r20.rs6.net]. If your business has questions regarding SBA loans and access to capital, please call RI Commerce's Small Business Hotline at (401) 521-HELP or e-mail info@commerceri.com. Free Digital Tools including Video Conferencing for R.I. Businesses Microsoft has agreed to provide their Office 365 E1 program for free for six months to all R.I. employers. That includes web-based Microsoft Office applications, resources to support telecommuting such as meetings and instant messaging, as well as remote file sharing. This offer extends to businesses of all sizes — whether you have one employee or one thousand employees To learn more on how to access these offerings, visit the dedicated webpage here [r20.rs6.net]. Other companies have also made a number of tools available: · Cisco is offering free WebEx video conferencing [r20.rs6.net] and a remote-work adoption toolkit to help guide businesses in their transition to working at home. · Google is offering free access to their Hangouts Meet [r20.rs6.net], another video conferencing system, for all of their GSuite and GSuite education customers. · Schools and school districts can contact Zoom [r20.rs6.net] and the company will lift their 40-minute meeting limit on their free basic accounts. SBA Disaster Assistance in Response to the Coronavirus
• The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration. • Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19). • SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance. • Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster. • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. • SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible. • For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov. • Visit SBA.gov/disaster for more information. |
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