RVDA: SBA Loan Program Available for Small Businesses Impacted by COVID-19
The Small Business Administration will work directly with state governors to provide targeted, low-interest loans to small businesses that have been severely impacted by COVID-19. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Click here for more information on the SBA’s Economic Injury Disaster Loans.
President Signs Coronavirus Response Act on Paid Sick Leave
President Trump has signed the Families First Coronavirus Response Act. This economic stimulus plan to address the impact of COVID-19 includes many provisions which apply to employers, such as paid sick leave for employees impacted by COVID-19 and those serving as caregivers for individuals with COVID-19.
There are two provisions providing paid leave to employees forced to miss work because of the COVID-19 outbreak: an emergency expansion of the Family Medical Leave Act (FMLA) and a new federal paid sick leave law. The leave provisions will go into effect on April 2.
This law provides refundable tax credits for employers who are required to provide Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave. These tax credits are allowed against the employer portion of Social Security taxes. While this limits application of the tax credit, the law states that employers will be reimbursed if their costs for qualified sick leave or qualified family leave wages exceed the taxes they would owe. The law allows the Secretary of Labor to exclude to exempt small businesses with fewer than 50 employees if the required leave would “jeopardize the viability of their business.”
There are also caps on paid sick leave wages and specific calculations for rate of pay included in the law. RVDA will provide more information as the Department of Labor releases more details on how the law will be implemented.
For detailed information from leading employment law firm Fisher Phillips, click here.