Arlington Chamber of Commerce issued the following announcement on April 13
Well-trained, motivated employees who really care about customers are an important asset to businesses. To recover from the COVID-19 pandemic, businesses will need to rely on these essential employees. Even if your business is temporarily closed, keeping valued employees on the payroll could be your best option. We would like to share resources to help businesses retain their employees.
PAYROLL PROTECTION PROGRAM – The Payroll Protection Program (PPP) allows businesses to borrow up to two-and-a-half times your monthly payroll. If you keep your employees on the payroll and use the funds to pay them, the loan can convert to a grant that does not have to be repaid. You apply at your local SBA lending bank. Try the bank you use first. The volume is so great that some banks are only accepting applications from their clients.
SBA DISASTER LOAN PROGRAM – The Small Businesses Administration’s (SBA) Disaster Loan Program enables businesses to apply for a loan of up to $2 million with an interest rate of 3.75%. (Non-profits can borrow at 2.75%). Since Texas is in a declared disaster area, businesses that meet the criteria within the state are eligible to apply. You apply for this loan directly with the SBA. CLICK HERE to access the application. As an added bonus, the SBA will grant eligible applicants up to $10,000 which does not have to be repaid, whether you qualify for the loan or not.
UNEMPLOYMENT INSURANCE – While the PPP and SBA loans are great resources, the sheer volume of businesses applying for loans has overloaded the system and results are slow. This means you may not be able to keep making payroll until cash arrives. In that case, you may want to consider your options with unemployment insurance. Normally, businesses may resist letting laid-off employees get unemployment benefits to protect the unemployment insurance tax payroll rate. However, we are living in an unprecedented time that may call for businesses to use this available resource.
Small businesses may want to make forms readily available and counsel their employees on taking unemployment only until they can rehire them. Federal unemployment benefits have added $15 an hour to the normal maximum state benefit. However, it is still unlikely that your critical employees will make more on unemployment than you pay them.
At this time, unemployment offices are also experiencing a high volume. If businesses need help regarding unemployment insurance, they can contact state representatives to reach their constituent service people.
ASK FOR RELIEF – Businesses with outstanding loans can reach out to their landlords, leasing companies and bankers. If businesses communicate their needs, they can potentially receive temporary relief.
We truly are stronger together, and the Chamber is dedicated to helping our members navigate this unique time. CLICK HERE to view our COVID-19 resource page.
Original source can be found here.
