Small Business Thread - Advice for Navigating Covid-19

Discussion in 'The Mainboard' started by dallasdawg, Mar 18, 2020.

  1. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    and for how long?
     
  2. NYGator

    NYGator Degen from Upcountry
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    don't know but it appears the term is defined as 2020. Still trying to get a summary because the bill itself is over 500 pages and it is confusing as fuck.
     
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  3. gowolverines8

    gowolverines8 Well-Known Member

    Thing is I don't think a lot of business owners try to fuck it up. My brother and I were each 780+ before starting our business but pretty much the only debt options you have for a startup is personal loans and credit cards. My brother and I's credit on transunion has went all the way down to 615ish despite perfect payment history because our credit usage is so high because of business debt. SBA and banks should truly evaluate personal credit and learn why it is where it is, just not go by a number.
     
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  4. Wendel Clark

    Wendel Clark Gambling God
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    No no no. Didn’t mean about business owners at all. You’re going to have credit issues when you’re a small business.

    My point is the 18 year old graduating high school signing up for every credit card. Some people fuck their credit up in their 20s and can never get it back
     
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  5. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    yeah my credit has been getting hammered because of my business credit card. when we first opened, production got interrupted and there was a massive shortage of infusion bags. cost per unit went up like 700% and it was hard to find any cases. bought as much as i could to keep the doors open and have only been able to pay down about 20%. keeping me right below 700
     
  6. Wendel Clark

    Wendel Clark Gambling God
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    yeah I’m just paying everyone and adding up the days off. And see where it goes.
     
  7. gowolverines8

    gowolverines8 Well-Known Member

    Last year I had a website build out that was around 15k and put it on one of my personal cards and it absolutely tanked my credit. A few days ago I ran a credit simulator and if I paid that off it would bring my credit back up to 780. Yesterday, I was going back and forth with a banker about credit scores and finally said so basically I should just take a big draw out pay off the business debt on my personal credit cards. That would then choke my business financially for a few months but increase my personal credit score so I could get a sba. He was speechless and started mumbling, they won't say it but that's basically what they want you to do.
     
  8. NYGator

    NYGator Degen from Upcountry
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    same, i was going to fire 4 big time under performers, but waiting now to see the terms of these grants.
     
  9. Iron Mickey

    Iron Mickey is this thing on?
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    Making it rain on my favorite locals as much as we can afford. Hope y'all stay afloat.
     
  10. Oranjello

    Oranjello Well-Known Member
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  11. NYGator

    NYGator Degen from Upcountry
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    I am not sure what a tax credit does this year considering most companies will be in the red.
     
  12. gowolverines8

    gowolverines8 Well-Known Member

    yeah thats beyond retarded plan, thats not going encourage businesses to keep employees at all
     
  13. Wendel Clark

    Wendel Clark Gambling God
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    3-4 days of back and forth bullshit to get this. LOL

    Other than me being a decent person, whats to make me want to pay my sick people that dont have the time off available.
     
  14. NYGator

    NYGator Degen from Upcountry
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    I suspect it is more than that still. At least I hope so.
     
  15. Oranjello

    Oranjello Well-Known Member
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    You realize there will be multiple means used to help businesses, right? The text of the bill hasn't been released yet, so no one really knows what it contains.
     
  16. NYGator

    NYGator Degen from Upcountry
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    Yes, that is what I just posted above this.
     
  17. Oranjello

    Oranjello Well-Known Member
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    100% will be
     
  18. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    wonder if that extends to 1099 payroll too (the grant, not the tax cut)

    edit: nvm i read something wrong
     
  19. NYGator

    NYGator Degen from Upcountry
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    This is from March 21st, but it was a solid summary of what was available through then.

    Economic Relief for Businesses Impacted by Coronavirus (COVID-19)
    Saturday, March 21, 2020
    In response to the Coronavirus (COVID-19) outbreak, the federal government and many states have developed paths towards economic relief for small businesses. Below is a summary of such programs at the federal level and in New York, Connecticut, and New Jersey.

    I. Federal - U.S. Small Business Administration (the “SBA”)
    In response to the Coronavirus (COVID-19) outbreak, the SBA has made Economic Injury Disaster Loans (“EID Loans”) available for qualifying businesses that have suffered economic injury as a result of the epidemic. Below is a summary of the SBA’s eligibility requirements, application procedures, and general loan terms for the EID Loans.

    SBA EID Loan Eligibility
    In order to be eligible for an EID Loan a business must first be located in a geographic area that is a declared disaster area recognized by the SBA. Recognized Declared Disaster Areas are listed on the SBA’s website. As of March 17, 2020, the following areas are approved for disaster loan assistance due to the Coronavirus (COVID-19): California, Connecticut, Idaho, Maine, Massachusetts, New Hampshire, New York, Oregon, Rhode Island, and Washington. The entire State of Connecticut was declared a federal state of disaster due to the Coronavirus outbreak effective as of January 31, 2020. Many other states are currently in the process of submitting requests to the SBA for an economic injury disaster declaration as a result of the virus and should be eligible for EID loans in the coming days and weeks.

    The SBA further requires that a business qualify as a small business to be eligible for an EID Loan. The definition of a “small business” varies by industry but generally is based on the number of employees a business has or the amount of revenue a business generates annually. The SBA has an interactive website to help companies determine whether or not they qualify as a “small business” under the SBA’s regulations. Generally, a full-service restaurant qualifies as a “small business” so long as it has less than $8,000,000 in annual revenue. Private and nonprofit organizations may also qualify for EID Loans.

    Finally, a business must demonstrate that it has suffered “substantial economic injury” as a direct result of the disaster, in this case the Coronavirus outbreak, in order to qualify for an EID Loan. For the SBA’s purposes a “substantial economic injury” generally means a decrease in income from operations or working capital with the result that the business is unable to meet its obligations and pay ordinary and necessary operating expenses in the normal course of business.

    Ultimately, an applicant’s eligibility for an EID Loan will be determined by the SBA based on the applicant’s type of business, available financial resources, and its demonstration of substantial economic injury.

    EID Loan Application Process
    An EID Loan, and all other SBA disaster assistance loans, can be applied for by an (1) online application or (2) by a paper form, using SBA Form 5. The SBA has suggested that online applications will be processed more quickly than applications submitted on a physical form.

    In addition to the EID Loan application form, an applicant must submit the following documentation to the SBA –

    1. Tax Information Authorization (IRS Form 4506T), completed and signed by each principal owning 20% or more of applicant business, general partner, general manager or owner who has 50% ownership interest in affiliate business. (Affiliates include, but are not limited to business parents, subsidiaries, and/or other businesses with common ownership or management with applicant business.)
    2. Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; if unavailable a written explanation must be submitted in lieu
    3. Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant and each principal, general partner or managing member.
    4. Schedule of Liabilities listing all fixed debts (SBA Form 2202)
    Following the submission of a complete loan application, the SBA will conduct a credit check of the applicant and verify the business’ financial information. The SBA may request additional financial information including tax returns for principals, general partners and managing members of the business, as well as a current profit-and-loss statements, and balance sheets for the business. The SBA’s stated goal is to review an application and decide on a business’ eligibility for the EID loan program within 2-3 weeks. Given the anticipated high volume of applications to this program as a result of the Coronavirus, it is likely that the application and review process will take longer. Once an application is fully accepted and approved, the applicant will need to sign the applicable EID Loan documents and return them to the SBA. The applicant can expect to receive a disbursement of the EID Loan funds within one week from the SBA’s receipt of the fully executed loan documents.

    The EID loan amount awarded by the SBA will be based off an applicant’s actual economic injury and the business’ financial needs, as determined by the SBA. The SBA will factor in the availability of other potential sources of financial contribution and business interruption insurance when determining an EID loan amount to be awarded to a small business.

    EID Loan Use and General Terms
    The funds from an EID loan may be used by the small business to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The terms of an EID Loan shall be determined by the SBA on a case-by-case basis, based upon each applicant’s needs and ability to repay. Generally, the maximum amount of an EID loan for the Coronavirus disaster is $2 million with an interest rate of 3.75% for small businesses or 2.75% for non-profits. The maximum repayment term of an EID loan is 30 years. There are no pre-payment penalties imposed by the SBA on an EID loan.

    Alternatives to EID Loans
    Small businesses that do not qualify for EID loans or have alternative needs may still be eligible for financial assistance from one of the SBA’s alternative loan programs.

    The SBA has an 7(a) Loan Guarantee Program involves loans for small businesses in an amount up to $5,000,000 made by private lenders that are guaranteed by the SBA (“SBA 7(a) Loan”). An SBA 7(a) Loan is made directly by a private lender, who also handles the application and loan process, but is subject to the SBA’s terms and guidelines. To encourage private lenders to make these loans, the SBA guarantees a certain percentage of the SBA 7(a) Loan amount. Small businesses looking for an acceptable lender for a SBA 7(a) Loan can use the SBA’s lender matching tool or contact their local SBA office for recommendations. The local Connecticut SBA office can be reached at 860-240-4700. The general timeline for the approval of an SBA 7(a) Loan application is 5 to 10 business days.

    In order for a business to qualify for a SBA 7(a) Loan, it must qualify as a “small business” under the SBA’s regulations, operate for profit, be engaged in, or propose to do business in, the U.S., have reasonable owner equity and resources to invest in business, and be for a sound business purposes. The acceptable use of the 7(a) Loan funds is generally less restrictive than that of the EID loans and permissible uses include use for working capital, expansion or renovations, new construction, the purchase of land or buildings, the purchase of equipment or fixtures, lease-hold improvements, the refinancing of existing debt for compelling reasons, seasonal line of credit, inventory, or starting a business. The proceeds from an SBA 7(a) Loan may not be used for the reimbursement of an owner for previous personal investments toward the business, the repayment of any delinquent withholding taxes, or anything not deemed a “sound business purpose” as determined by the SBA. Interest rates for SBA 7(a) Loans are determined by the private lender and generally based off the prime rate or LIBOR rate at the time of the loan but are subject to interest rate caps set by the SBA.

    For businesses that need loan funds in a shorter period of time, the SBA offers a SBAExpress loan program which provides term loans and line of credits in amounts up to $350,000. The approval process for an SBAExpress loan is generally completed within 36 hours of receipt of an application. A SBAExpress loan must also be obtained through a private lender and may be used for the same general purposes as an SBA 7(a) Loan.

    II. New Federal Legislation
    Emergency Family and Medical Leave Expansion Act and Emergency Paid Sick Leave Act
    On March 18, the United States Senate approved a relief package to provide sick leave, unemployment benefits, free coronavirus testing, and food and medical aid to people impacted by the pandemic. The legislation was passed by the House on March 14, and was signed by President Trump on the evening of March 18. The legislation contains provisions that require immediate review and action for employers with fewer than 500 employees.

    Both the Emergency Family and Medical Leave Expansion Act and the Emergency Paid Sick Leave Act will take effect 15 days after enactment, i.e. April 2, 2020. These provisions expire on December 31, 2020.

    Covered employers (i.e., private employers with fewer than 500 employees) will be provided payroll tax credits to cover the wages and health care contributions paid to employees under the sick leave and family medical leave programs, up to the specified caps.

    III. New York
    New York State is currently assessing options to mitigate hardships to NYS businesses. As of March 19, 2020, the following orders and programs have been established in New York State in response to the COVID-19 outbreak:

    Work From Home
    On March 18, Governor Cuomo announced he will issue an executive order directing non-essential businesses to implement work-from-home policies effective Friday, March 20, to help reduce density as a social responsibility to protect their workforce. He also announced that businesses that rely on in-office personnel must decrease their in-office workforce by 50%. Exceptions will be made for essential service industries, including shipping, warehousing, grocery and food production, pharmacies, healthcare providers, utilities, media, banks and related financial institutions and other businesses that are essential to the supply chain.

    Paid Sick Leave
    On March 18, Governor Cuomo signed legislation to provide the following:

    • Employers with 10 or fewer employees and a net income less than $1 million will provide job protection for the duration of the quarantine order and guarantee their workers access to Paid Family Leave and disability benefits (short-term disability) for the period of quarantine including wage replacement for their salaries up to $150,000.
    • Employers with 11-99 employees and employers with 10 or fewer employees and a net income greater than $1 million will provide at least 5 days of paid sick leave, job protection for the duration of the quarantine order, and guarantee their workers access to Paid Family Leave and disability benefits (short-term disability) for the period of quarantine including wage replacement for their salaries up to $150,000.
    • Employers with 100 or more employees, as well as all public employers (regardless of number of employees), will provide at least 14 days of paid sick leave and guarantee job protection for the duration of the quarantine order.
    Shared Work Program
    The New York State Department of Labor (NYSDOL) Shared Work Program allows businesses to manage business cycles and seasonal adjustments while retaining trained staff and avoiding layoffs. Employees can receive partial Unemployment Insurance benefits while working reduced hours. Full-time, part-time and seasonal employees are eligible.

    IV. Connecticut
    Connecticut has provided a number of resources, in addition to the SBA, for Connecticut businesses including the following:

    DECD's COVID-19 Business Emergency Response Unit
    The Connecticut Department of Economic and Community Development has created a COVID-19 Business Emergency Response Unit dedicated to assisting businesses navigate resources and develop new resources. A dedicated phone line is has been set up at 860-500-2333 to provide assistance to Connecticut's small businesses for this purpose.

    Unemployment Assistance
    Workers directly impacted by the coronavirus pandemic no longer must be actively searching for work to qualify for unemployment assistance. And employers who are furloughing workers can use the Department of Labor’s shared work program, which allows businesses to reduce working hours and have those wages supplemented with unemployment insurance. Further information can be found here.

    Tax Filing Extensions
    The Department of Revenue Services has extended deadlines for filing and payments associated with certain state business tax returns. Effective immediately, the filing deadlines for certain annual tax returns due on or after March 15, 2020, and before June 1, 2020, are extended by at least 30 days. In addition, the payments associated with these returns are also extended to the corresponding due date in June.

    The impacted returns and the associated filing dates and payment deadlines are set forth below:

    • 2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return: Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020
    • 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
    • 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
    Business Interruption Insurance
    A business interruption insurance policy should list or describe the types of events it covers. Events that are not described in the policy are typically not covered. It is important to review the policy exclusions, coverage limits, and applicable deductibles with your agent, broker or insurer. The Connecticut Insurance Department has an FAQ that provides more information.

    V. New Jersey
    New Jersey has not yet released any official assistance programs for businesses impacted by COVID-19. Several State agencies are currently engaging with local business leaders, local financial institutions, and business advocacy groups to better understand what supports would be most impactful to ensure business and employment continuity. While businesses await direction, the New Jersey Economic Development Authority (NJEDA) has a portfolio of loan, financing, and technical assistance programs available to support small and medium-sized businesses.
     
  20. Wendel Clark

    Wendel Clark Gambling God
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    Best day Ive had in the past 10 today. Feels good to have a little stress relief. Basically doubled my normal daily goal
     
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  21. NYGator

    NYGator Degen from Upcountry
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    Yes, we got $180k order from one of the VA Medical Centers. Only makes a dent in our forecast, but knowing that someone can cut us an order outside of our existing subscriptions is uplifting.
     
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  22. Wendel Clark

    Wendel Clark Gambling God
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    Yep so true. I had my Japanese Government client order 500. An Army Hospital and CDC ordered big orders. So It feels a little relaxing. Im holding my hope to this being done by May after seeing the other international companies start back up here after 2-3 months of being shut down.
     
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  23. NYGator

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    Our problem is we have been sitting on $2.8 million of committed orders (contracts are signed by us waiting for execution by them) that were supposed to close in February and the hospitals have gone radio silent, which is understandable.
     
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  24. Funshot Residue

    Funshot Residue Keep your dick in a vise
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    My skeleton crew had a productive day in the field (vacant residence, and they are working on different tasks) and I spent the day in the office. Took the time needed to make meaningful progress on 2 big projects we are bidding. Vendors who owe me quotes are basically working remotely and still handling their shit too. I expect things to take a little longer to bring together, but still moving, which is encouraging. Was my best day in about two weeks from a mental standpoint. Two other surprises:
    -The phone has rung off the hook. People being at home realize they want stuff done.
    -All current customers, even a couple that we had to leave in the lurch, have been really understanding and sympathetic. May be short lived, but an ounce of appreciation goes a long ways.
     
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  25. NYGator

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    Another real good summary of info. Sounds like you can deduct paid family leave from payroll taxes.


    NYS and Federal COVID-19 Response — WHAT WE KNOW TODAY

    Last Updated March 25, 2020 2:00 PM EST

    New York State Paid Sick and Family Leave for COVID-19

    The NYS law only provides paid sick and family leave to employees who are “subject to a mandatory or precautionary order of quarantine or isolation that is issued by the state of New York, the department of health, local board of health, or any governmental entity duly authorized to issue such order due to COVID-19.” It does not cover employees directed to quarantine by their doctor or those who choose to self-quarantine because of suspected exposure. Likewise, Governor Cuomo’s executive order directing the closure of all non-essential businesses is most likely considered to be a “preventative” order which would not be covered by the law.

    Thus, the application of the NYS law is rather limited in its scope and, therefore, we believe it is more important to focus on what employers will be required to provide under the federal law, which takes effect on April 1st.

    Families First Coronavirus Response Act (FFCRA)

    At the outset, it is important to note that this federal law was hastily written and passed without the normal time for considering all of the potential nuances and, therefore, some of the language is vague and certain key details are not addressed. It is our hope that the U.S. Department of Labor (“DOL”) and other agencies tasked with issuing regulations interpreting the law will provide clarity when those regulations are issued within the next week.

    In the meantime, this is what we know about the law’s requirements as of today, March 25, 2020. Please note that this is just a summary of the key points of the law for informational purposes, rather than a complete summary of all of its provisions.

    The law, which covers all employers with less than 500 employees, has two parts: Emergency Paid Sick Leave (EPSL) and changes to the existing Family and Medical Leave Act, which we will refer to as FMLA+.

    • Employer Reimbursement for Providing Paid Leave
      • Employers will receive 100% reimbursement for paid leave provided pursuant to the FFCRA.
      • Health insurance costs are also included in the credit.
      • To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes, including social security and Medicare taxes.
      • If those amounts are insufficient to cover the cost of the paid leave provided, employers can seek an expedited monetary advance from the IRS by submitting a streamlined claim form that will be released next week. The IRS expects to process these requests in two weeks or less.
    • Key points about EPSL:
      • Covers first two weeks (10 days) of leave if the employee:
        • is subject to a quarantine or isolation order related to COVID-19;
        • has been advised by a health care provider to self-quarantine due to COVID-19;
        • is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
        • is caring for an individual who is subject to a quarantine order or has been advised to self-quarantine;
        • is caring for their child as a result of childcare or school closures or if the childcare provider is unavailable due to COVID-19 precautions; or
        • is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services.
      • Provides full pay (up to a maximum of $511 per day and $5,110 total) or 2/3 pay (up to a maximum of $200 per day and $2,000 total), depending on reason for leave.
      • Any employee is eligible for EPSL on day one of employment, including part-time, temporary and seasonal employees.
      • Employee must be unable to work OR to telework because of one of the six listed reasons. It is unclear at this point who makes the determination about whether or not an employee is unable to telework.
    • Key points about FMLA+:
      • All employees who have been on the payroll for 30 days are eligible for up to 12 weeks of leave.
      • FMLA+ is only available to employees who are unable to work OR telework because they have to care for a minor child whose school is closed or for whom childcare is unavailable due to the crisis.
      • Technically, the first two weeks of FMLA+ are unpaid and then the remaining 10 weeks are paid but, because an employee can take EPSL at 2/3 pay for two weeks due to a child unable to go to school or lack of childcare, and that leave will run concurrent with the first two weeks of FMLA+ leave, in reality the entire 12 weeks of FMLA+ is paid to some extent.
      • It is not clear if employers can count other FMLA leave that employees have taken in the past 12 months will count against their FMLA+ entitlement, but it may be possible. Hopefully the regulations will clarify.
      • It is also not clear whether FMLA+ can be taken intermittently but, based on the fact that prior drafts of the law required FMLA+ to be taken as one block and that there is no such requirement in the final bill, there is a good likelihood that intermittent FMLA+ will be allowed.
      • Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or childcare is unavailable in cases where the viability of the business would be threatened by doing so. The DOL will provide emergency guidance and rule making to clearly articulate this standard.
      • Employers with less than 25 employees do not have to reinstate an employee whose position is eliminated for business reasons related to the crisis but, if that or an equivalent position becomes available within one year of the employee’s leave, the employer must contact the employee to offer the employee the position.
    • Effect of furloughs or layoffs on eligibility for these benefits:
      • Not addressed by the law, but hopefully the regulations will address.
      • Best guess – laid off employees will not be entitled to EPSL or FMLA+ leave, but furloughed employees will be.
      • However, laying off employees just to avoid paying these benefits could result in retaliation claims and would violate the spirit of the law.
      • Employers who are considering layoffs should be able to articulate and document legitimate reasons for the layoffs due to economic conditions affecting the business rather than just avoiding compliance with this law.
    • Other general points:
      • Each covered employer must post in a conspicuous place on its premises a notice of FFCRA requirements. According to the DOL, an employer may satisfy this requirement by emailing this notice to employees or posting this notice on an employee information internal or external website. Here is a link to the notice: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf
      • The law’s requirements will be subject to a 30-day non-enforcement period for good faith compliance efforts by employers.
      • It is important that employers keep detailed records of paid leave provided to employees pursuant to this law so that they can reconcile it with their tax credits.
      • Healthcare workers can be excluded from the definition of “employee” under this law.
      • The law does not provide any guidance on what types of documentation can be required by employers to support the need for leave. Hopefully that will be provided in the regulations, but employers should be lenient.
      • The law says that employers must comply by April 2nd, which means some employers may choose to start granting EPSL or FMLA+ sooner, but employers who do so will probably not be eligible for the tax credit for that leave.
      • Employees can choose to augment partial pay provided pursuant to FFCRA with available PTO, but employers cannot require employees to substitute PTO for the legally mandated paid leave.
      • An employer’s current policies regarding leave and use of PTO can continue to apply until April 1st, when the FFCRA requirements will pre-empt those policies.
      • It is important to note that an employee may also be eligible for “regular” FMLA leave due to the employee’s own serious health condition or to care for a family member with a serious health condition, which would include having COVID-19, in accordance with the existing FMLA regulations.
    Federal Economic Stimulus Bill

    Congress reached an agreement on a COVID-19 economic stimulus package early this morning. It is likely to be finalized and signed into law within the next few days. We know that the legislation will provide direct economic relief to individuals and families, as well as small businesses, but we are still waiting for all the details to be made available. What we do know from news reports is that:

    • It will extend the length of eligibility for unemployment insurance benefits by 13 weeks and include a four-month enhancement of benefits that would allow employees to maintain their full salaries if forced out of work as a result of the pandemic.
    • The law will establish lending programs for small businesses, but only for those who keep their payrolls steady through the crisis. Small businesses that pledge to retain their employees will also receive cash flow assistance structured as federally guaranteed loans. If the employer continues to pay its employees for the duration of the crisis, those loans will be forgiven.
    We recognize that we have provided you with a lot of information. Please feel free to contact us if you have any questions about how this applies to your particular business. We will provide additional updates as more information about these laws becomes available.










    Legislation during the COVID-19 Crisis is extremely fluid. Please check our blog frequently for additional updates as further guidance is issued by the regulators.

    This is not legal advice and will not cover all situations and circumstances.
     
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  26. NYGator

    NYGator Degen from Upcountry
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    dallasdawg can you change the thread title to something like... Small Businesses - Advice for Navigating Covid-19
     
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  27. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    yessir
     
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  28. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    i like that
     
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  29. NYGator

    NYGator Degen from Upcountry
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    Here is another good one I just received...

    $2 Trillion US Economic Rescue Package passed the Senate – and other countries are sponsoring similar rescue packages. #1 priority -- assign someone in your company the accountability to gather, track, and help employees and company get all the aid to which you’re entitled.

    Ron Lovett (Canadian entrepreneur) shot a 55 second video underpinning this point https://www.linkedin.com/posts/ron-lovett_outrageousempowerment-activity-6647866574319480832-rN-X

    Here’s a link to a section-by-section summary of the CARES Act – which includes the Payroll Protection Program (PPP). This is being streamlined through lenders. And SBA expert Ami Kassar will review key aspects on his noon ET webinar tomorrow and Friday – register here https://769yv3el.pages.infusionsoft.net/

    Anyway, the key point – someone needs accountability for this – someone detail oriented who finds “strength” in ferreting out this information and acting quickly on it (might be a different person). BTW, I won 8 international book awards because Missy Giltner on our team found and applied for these awards. In many cases, I think we won simply because we applied!!! Do the work.
     
  30. dallasdawg

    dallasdawg does the tin man have a sheet metal cock?
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    hopefully there’s a substantial part covering relief for businesses that had to close due to local and state ordinances. i don’t see much language on that besides the payroll part
     
  31. NYGator

    NYGator Degen from Upcountry
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  32. NYGator

    NYGator Degen from Upcountry
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    Mnuchin’s explanation of the payroll support loans for small businesses sounded too good to be true, but here is what I heard...

    -for those maintaining their payroll they will guarantee payroll loan for eight weeks
    -it will be one day approval and disbursement from many approved SBA banks
    -it will be converted from loan to grant for those who keep the payroll

    I did hear someone mentioned each max salary is up to $100k, but if that is true, that is still massive. It just sounds too good to be true.
     
  33. NYGator

    NYGator Degen from Upcountry
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    Another decent summary from my payroll company...

    On Tuesday, March 24, the Department of Labor (DOL) announced that the effective date of the leaves available through the Families First Coronavirus Response Act (FFCRA) will be April 1, 2020.


    We are still awaiting further clarification from the IRS with regard to the specifics of FFCRA and we will be sending out further communication as soon as the details have been released. Please see the key takeaways below.



    Paid Sick Leave for Workers

    For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable.


    Complete Coverage

    Employers receive 100% reimbursement for paid leave pursuant to the Act.

    · Health insurance costs are also included in the credit.

    · Employers face no payroll tax liability.

    · Self-employed individuals receive an equivalent credit.


    Fast Funds

    Reimbursement will be quick and easy to obtain.

    · An immediate dollar-for-dollar tax offset against payroll taxes will be provided

    · Where a refund is owed, the IRS will send the refund as quickly as possible


    Small Business Protection

    Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.



    Easing Compliance

    · Requirements subject to 30-day non-enforcement period for good faith compliance efforts.


    To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.


    Background

    The Act provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the refundable paid sick leave credit and the paid child care leave credit for eligible employers. Eligible employers are businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick leave and emergency paid family and medical leave under the Act. Eligible employers will be able to claim these credits based on qualifying leave they provide between the effective date and December 31, 2020. Equivalent credits are available to self-employed individuals based on similar circumstances.


    Paid Leave

    The Act provides that employees of eligible employers can receive two weeks (up to 80 hours) of paid sick leave at 100% of the employee's pay where the employee is unable to work because the employee is quarantined, and/or experiencing COVID-19 symptoms, and seeking a medical diagnosis. An employee who is unable to work because of a need to care for an individual subject to quarantine, to care for a child whose school is closed or child care provider is unavailable for reasons related to COVID-19, and/or the employee is experiencing substantially similar conditions as specified by the U.S. Department of Health and Human Services can receive two weeks (up to 80 hours) of paid sick leave at 2/3 the employee's pay. An employee who is unable to work due to a need to care for a child whose school is closed, or child care provider is unavailable for reasons related to COVID-19, may in some instances receive up to an additional ten weeks of expanded paid family and medical leave at 2/3 the employee's pay.


    Paid Sick Leave Credit

    For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days.

    For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.


    Child Care Leave Credit

    In addition to the sick leave credit, for an employee who is unable to work because of a need to care for a child whose school or child care facility is closed or whose child care provider is unavailable due to the Coronavirus, eligible employers may receive a refundable child care leave credit. This credit is equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate. Up to 10 weeks of qualifying leave can be counted towards the child care leave credit. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.


    Prompt Payment for the Cost of Providing Leave

    When employers pay their employees, they are required to withhold from their employees' paychecks federal income taxes and the employees' share of Social Security and Medicare taxes. The employers then are required to deposit these federal taxes, along with their share of Social Security and Medicare taxes, with the IRS and file quarterly payroll tax returns (Form 941 series) with the IRS.

    Under guidance that will be released next week, eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS.

    The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

    If there are not sufficient payroll taxes to cover the cost of qualified sick and child care leave paid, employers will be able file a request for an accelerated payment from the IRS. The IRS expects to process these requests in two weeks or less. The details of this new, expedited procedure will be announced next week.

    Examples

    If an eligible employer paid $5,000 in sick leave and is otherwise required to deposit $8,000 in payroll taxes, including taxes withheld from all its employees, the employer could use up to $5,000 of the $8,000 of taxes it was going to deposit for making qualified leave payments. The employer would only be required under the law to deposit the remaining $3,000 on its next regular deposit date.

    If an eligible employer paid $10,000 in sick leave and was required to deposit $8,000 in taxes, the employer could use the entire $8,000 of taxes in order to make qualified leave payments and file a request for an accelerated credit for the remaining $2,000.

    Equivalent child care leave and sick leave credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.


    Small Business Exemption

    Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. The exemption will be available on the basis of simple and clear criteria that make it available in circumstances involving jeopardy to the viability of an employer's business as a going concern. Labor will provide emergency guidance and rulemaking to clearly articulate this standard.


    Non-Enforcement Period

    Labor will be issuing a temporary non-enforcement policy that provides a period of time for employers to come into compliance with the Act. Under this policy, Labor will not bring an enforcement action against any employer for violations of the Act so long as the employer has acted reasonably and in good faith to comply with the Act. Labor will instead focus on compliance assistance during the 30-day period.


    For More Information

    For more information about these credits and other relief, visit Coronavirus Tax Relief on IRS.gov. Information regarding the process to receive an advance payment of the credit will be posted next week.
     
  34. dblplay1212

    dblplay1212 Well-Known Member
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    A friend owns a dentist office with 234 employees. Why should he not lay off all employees prior to this going into affect and then rehire them later? He cant afford to pay 14 weeks of sick leave (2 full pay, 12 at 2/3 pay) for every employee with a kid if schools aren't opened. Is he/I reading it wrong? He doesn't want to do that but what are his other options?

    https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
     
  35. Mikelangelo

    Mikelangelo Nicking a living
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    I don't run a business but think the best thing an employer can do for someone in this time is give them a bonus right now and let them collect unemployment, very far from an expert but this shit saddens me.
     
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  36. dblplay1212

    dblplay1212 Well-Known Member
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    Yea he's baffled by it. Idk how they expect a business to pay employees for 14 weeks with no income coming in. That's ridiculous. In theory it's great but small businesses dont have that kind of cash.
     
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  37. NYGator

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    Because this...


    Section 1106. Loan Forgiveness Establishes that the borrower shall be eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020.

    Amounts forgiven may not exceed the principal amount of the loan. Eligible payroll costs do not include compensation above $100,000 in wages. Forgiveness on a covered loan is equal to the sum of the following payroll costs incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages:

    Payroll costs plus any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation + and any covered utility payment.

    The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation. To encourage employers to rehire any employees who have already been laid off due to the COVID-19 crisis, borrowers that re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period.
     
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  38. NYGator

    NYGator Degen from Upcountry
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    NOOOO! Read my post to dbl. if true, he can give them 2 months of pay on the govt from loans converted to grants. and then four months of unemployment if that is still necessary.
     
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  39. NYGator

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    TLDR; govt Is paying for two months of your operational expenses as long as you don’t cut people significantly.
     
  40. dblplay1212

    dblplay1212 Well-Known Member
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    How quickly are these loans going out? It's a cash flow problem more than anything. A couple weeks, cool. Months? Probably not.
     
  41. NYGator

    NYGator Degen from Upcountry
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    Mnuchin said that they are reorganizing the SBA to be able to approve these and give them in ONE DAY. Do I believe that, no, but I am very cautiously optimistic. This will literally be huge for the economy if true. I can tell you this is exactly what I need for my business and I will feel really good about the year if this is true and easy to get.

    to your point though, I think they realize that what you are saying is the issue for most companies, I can extend cash flow for my company to July/August assuming we can collect our receivables without any new business, but that is a big assumption. That also assumes no layoffs or massive cutbacks.
     
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  42. dblplay1212

    dblplay1212 Well-Known Member
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    Please let me know when and how they can be applied for.
     
  43. NYGator

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    I will be updating this thread regularly. I have been staying on top of this. I am meeting with my exec team tomorrow and conferring with my advisors and Accountant tomorrow, so keep checking here.
     
  44. dblplay1212

    dblplay1212 Well-Known Member
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    Thanks. What kind of business do you have? Anything I can support?
     
  45. NYGator

    NYGator Degen from Upcountry
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    Unfortunately no. We are the largest provider of diagnostic reporting software for anatomic pathology laboratories. Basically we help doctors diagnose and report cancer and other disease. We do this as a small company. I have 60 employees and we compete against billion dollar companies, so every dollar counts right now.
     
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  46. dblplay1212

    dblplay1212 Well-Known Member
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    Good luck man.
     
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  47. Rusty Shackleford

    Rusty Shackleford Dale 1 - Rats 0
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    The bigger offices seem to be furloughing their employees. It is tough to have enough cashflow to cover multiple payrolls at that point. You aren't reading it wrong at all. The game plan for a lot of folks before the law passed today was to get the SBA loan to cover the costs and then pay it back with the tax credit when you file your quarterly taxes. It looks like there are going to be a couple of different options to cover that cost now. No one knows the best way because they haven't provided guidance yet. I would tell him to hold tight over the weekend. I don't think it changes anything if he does it next Tuesday or if he does it today.
     
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  48. marcus

    marcus Sex with old ladies for money aaaand bear traps.
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    I’m tentatively very happy for you guys. Best of luck going forward.
     
  49. Wchristopher

    Wchristopher Well-Known Member

    My wife owns a small company and laid off a few people last week once she lost some big contracts, this reads like she needs to hire them back to qualify for the sba loans. That’s gonna be an awkward conversation if so.

    Also, what would happen if you terminate an employee but hire another person so your total number stays the same?
    these rules confuse the heck out of me.
     
  50. Wchristopher

    Wchristopher Well-Known Member