We received the following information from Congressman Jack Bergman’s office. It includes a number of resources for small businesses that appear to be useful.
What Small Businesses Need To Know :
Access to Capital:
– According to Secretary Mnuchin, the Administration is in the process of working on a regulation to allow some businesses who have large amounts of their workforce out to take the tax credit in advance. This is to ensure that businesses have enough payroll cash on hand to meet the leave requirements.
– Economic Injury Disaster Loan Program – The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (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.
For more information please click here.
SBA provides a number of loan resources for small businesses to utilize when operating their business. For more information on loans or how to connect with a lender, click here.
Qualified Sick Leave Wages
Businesses with fewer than 500 employees must pay up to 80 hours of emergency paid sick leave to full-time employees (pro-rata rules apply to part-time employees) who are home sick from coronavirus, complying with a quarantine, or taking care of an individual who has been infected.
This leave also applies to working families who may be forced home due to school closures.
Federal government will provide employers with a refundable payroll tax credit of 100 percent of the required wages. o Employees are capped at $200 per day ($511 per day in the case of employees that are home sick from coronavirus or complying with a quarantine).
Qualified Family Leave Wages
Businesses with fewer than 500 employees must provide an additional 12 weeks of paid leave due to caring for a child whose school is closed.
The first 2 weeks of the leave, which is covered by the qualified sick leave described above, may be unpaid. During the remaining 10 weeks, the employer will pay 2/3 of the employee’s salary, capped at $200 per day for up to 50 days. Federal government will provide businesses with a refundable payroll tax credit of 100 percent of the required wages.
Secretary of Labor may issue rules to exempt small businesses with fewer than 50 employees from these requirements when the imposition of such requirements would jeopardize the viability of the business as a going concern.
Michigan Economic Development Center
The MEDC call center stands ready to support businesses looking for assistance through other available state programs. For more information, visit MEDC’s website here or call 888.522.0103.
Michigan Small Business Development Center
The Michigan Small Business Development Center can also provide resources for small businesses impacted by COVID-19. Visit their website here for additional information.
SBDC: We’ve gathered these resources from our trusted partners to help you make decisions for the health of your team and business.
- Small Business Administration: Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 (COVID-19)
- American Society of Employers: FAQ’s for Potential HR Issues Arising from the Coronavirus
- SBA to Provide Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19)
- OSHA: Guidance on Preparing Workplaces for COVID-19
- Google: Resource to help your small business manage through uncertainty
Governor Whitmer Expands Unemployment Benefits for Michigan Workers
Under the governor’s order, unemployment benefits would be extended to:
- Workers who have an unanticipated family care responsibility, including those who have childcare responsibilities due to school closures, or those who are forced to care for loved ones who become ill.
- Workers who are sick, quarantined, or immunocompromised and who do not have access to paid family and medical leave or are laid off.
- First responders in the public health community who become ill or are quarantined due to exposure to COVID-19.
Small Business Taxpayers Provided Tax Assistance
Small businesses that have experienced disrupted operations due to the COVID-19 pandemic now have additional time to make their sales, use and withholding tax monthly payment, according to the Michigan Department of Treasury.
Effective immediately, small businesses scheduled to make their monthly sales, use and withholding tax payments on March 20 can postpone filing and payment requirements until April 20. The state Treasury Department will waive all penalties and interest for 30 days.
“The past week has been hard for small businesses owners across the state as we work to mitigate the spread of coronavirus,” Gov. Gretchen Whitmer said. “Allowing them more time to pay their monthly tax payments will help us provide some much-needed assistance. I will continue doing everything I can to ensure our small businesses have the support they need during this time. We will get through this together.”
Specific information about Treasury providing tax assistance to small businesses due to COVID-19 can be found in SUW Penalty and Interest Waiver Notice.
HR 6074, the Coronavirus Preparedness and Response Supplemental Appropriations Act
Rep. Bergman voted in favor of H.R. 6074, which was later signed into law by President Trump. The Coronavirus Preparedness and Response Supplemental Appropriations Act 2020 (H.R. 6074) expanded the Small Business Act’s definition of a disaster to include Coronavirus (COVID-19). As a result, the SBA will be able to provide Economic Injury Disaster Loans (EIDLs) under a Governor’s Certification Disaster Declaration. In order for SBA to issue an EIDL declaration, the Governor must submit a written request to SBA with supporting economic injury loss information that certifies at least five (5) small businesses in a disaster area have suffered substantial economic injury as a result of the disaster.