03/26 COVID-19 Update for Small Businesses

3/26/20 Update: Inc. and the U.S. Chamber of Commerce partnered earlier today to host a virtual Small Business Town Hall. They broke down this $2 trillion stimulus package specifically for small business owners like us.

The $2 trillion stimulus bill passed by the Senate on Wednesday (and expected to pass through the House today) is huge — both in terms of relief it offers and its literal mass. It is 883 pages of technical legal speak that most of us aren’t ready or willing to muddle through.

That’s why Inc. and the U.S. Chamber of Commerce partnered to host a virtual National Small Business Town Hall — so we can ask the millions of questions we have that relate directly to our small businesses.

Here are the details:

• The town hall was hosted earlier today, March 27, at 12noon EDT
• Inc.’s editor-at-large, Kimberly Weisul, served as host
• Neil Bradley, executive VP, and chief policy officer at the U.S. Chamber of Commerce answered questions

Discussion topics included:

• Opportunities provided by the bill
• The headaches it might provide as well
• How to maximize its benefits to support your business

Discussion included:

• Opportunities provided by the bill
• The headaches it might provide as well
• How to maximize its benefits to support your business

The town hall happened earlier today, from 12PM to 1PM, but a recording is available here.

Then check the SBA’s disaster relief section of its website to see if businesses in your area can apply. The website has been hit with a huge influx of traffic and operation is spotty, however.

The rest will become clear next week or in the coming weeks, once the bill has been signed into law and there’s been more time to digest its 883 pages.

3/27/20 Update and Revisions: We’re learning more about the bill, how it defines and affects small business owners, and how to start the application process. Read on to learn more.

The text of the bill can be read on the official Congress website right now.

So far, in relation to businesses, reporting on the bill indicates that it includes:

• $349 billion for small business loans
• $50 billion for companies who retain employees on payroll to cover 50% of workers’ paychecks
• SSA payroll tax deferment (6.2%) for companies
• $500 billion in loans for larger distressed companies
• $130 billion for hospital funding
• $150 billion for state and local governments

Here’s what we’ve learned about how this bill affects small businesses:

• A “small business” is defined as any business with fewer than 500 employees
• Money spent on rent, payroll, utilities and insurance premiums within the provision timeframe will be forgiven and not need to be paid back
• The timeframe of your loan forgiveness provision will depend on the type of loan, grant or relief you apply for
• If you re-hire staff within your forgiveness timeframe, their payroll expenses can be forgiven
• The amount of your loan that can be forgiven depends on expenses incurred during the forgiveness provision timeframe
• It appears that the type of loans included in the stimulus package are SBA economic injury disaster loans, SBA 7(a) loans, and fee-free loans of up to $10 million provided outside of the SBA
• If you apply for an SBA economic injury disaster loan, you will be given a $10,000 grant as an advance a few days after applying, and this grant does not have to be repaid even if you are eventually denied the loan
• Loans will be available through the SBA’s existing 7(a) program and framework, which already includes credit unions and most large banks
• If you have an existing SBA 7(a) or 504 loan, you may be eligible for immediate relief — the SBA will cover all loan payments (including principle and interest) for 6 months
• More banks and institutions are now authorized to provide SBA loans than before
• If you’re stepping outside of the SBA, you can borrow up to 125% of average payroll costs over 8 weeks with underwriting costs waived and principle and interest payments deferred for a year
• All of this is dependent on the bill being passed and signed into law

Disclaimer: Maximize Printing is not a financial institution and any financial decisions you or your business undertakes should be made in close consultation with your bank or chosen financial professional. We’re just trying to gather information relevant to small businesses, streamline it and present it to you daily.

If you’re interested in staying within the SBA’s framework for any relief your business might receive, you should download this PDF, which explains their 3-part loan process.

So, what can you do right now to ensure your small business benefits from this stimulus?

Contact your bank. Discuss your options.

If your area is eligible, you can apply now for an SBA economic injury disaster loan. By simply applying (once the bill is signed into law), you should receive a $10,000 grant as a cash advance within 3 days even if your loan application is denied.

Since the bill has been amended in the Senate, it will be sent back to the House for another vote on approval. The vote is expected to pass in the House on Friday, to be sent thereafter to the President to sign into law.

You may be wondering… How will this bill affect my workers and other workers all over the country?

Here’s what we know about how this bill affects workers:

The bill includes relief for American workers in the form of $1,200 one-time payments to employees making less than $75,000, scaling down $5 for every $100 the taxpayer makes. Working parents are eligible to $500 in relief per dependent child. It’s being reported that relief payments are capped at $3,000.

In addition, unemployment benefits have been boosted and will include relief for gig economy workers like freelancers and independent contractors who are not employed full time by a single employer. Examples of gig economy workers include Uber drivers and delivery service drivers.

Then check the SBA’s disaster relief section of its website to see if businesses in your area can apply.

Now is the time to support each other and remember that we’re all in this together—and we’ll get through it together.

Tony & Yolanda

Here at Maximize Printing, we are committed to staying open, serving small businesses and delivering all current, future and in-process orders and direct mail campaigns without halt despite COVID-19.