Statewide & Official Information
Here you’ll find up to date information from government, official organizations and state by state plans and procedures for reopening.
State by State Information
Resources & Tools
Patents & Novel Ideas
Getting guidance and help.
Yes, there’s a lot to know and it’s a moving target. Safe Doors Open goal is to evaluate and condense legislation important to your industry. As updates roll out, we’ll provide value-added, relevant information. Let’s begin with good news for small businesses.
Does your business have 500 or fewer employees?
Among the near-term offerings for small US businesses — considered to be any company with 500 or fewer employers — previously passed legislation has been modified. What emergency funding means for small businesses: a lifeline to stay afloat during the Covid-19 crisis.
On April 10, 2020, the 3rd National Small Business Town Hall took place. The virtual event was led by inc.com’s editor-at-large Kimberley Weisul, with the US Chamber of Commerce executive vice president and chief policy officer Neil Bradley, as well as a panel of industry experts. Updating companies across the US on Small Business Administration (SBA) initiatives, key facts included funding criteria of the stimulus package (CARES Act), created to expedite emergency cash relief to individuals and companies.
Updates: Economic Injury Disaster Loan (EIDL)
and Paycheck Protection Program (PPP).
Two key programs are the EIDL and the PPP for small businesses, entrepreneurs and sole proprietors. The priority is to keep small businesses going and people employed. By keeping people on the payroll through the crisis, the intention is that companies will be in a better position when the economy improves.
High demand. Low interest rates.
Not surprisingly, with the overwhelming demand, some requirements have changed. For example, the PPP program stipulates you must use 75% of the loan to pay employees on your payroll for the short-term if you want to convert the loan to a grant with loan forgiveness. At the risk of stating the obvious, if you qualify, you don’t have to pay the loan back. You can also use funds for other business expenses: utilities, rent, mortgage and interest payments. At this time, the loans are shaping up to be two-year loans with a 1% interest rate (unless they convert to a grant). For now, at least.
Lend a helping hand.
As a business owner, even if you’ve let employees go, you can re-hire them. More than that, even if your business is not open, you can support employees with payroll cash payments through the transition. And perhaps create a heightened level of loyalty for the long term.
A financial cap. An organized response.
Initially, the program provided up to $10K per company which has been modified to up to $1K per employee (still with a maximum cap of $10K per business). Officials are also considering rolling the EIDL into the PPP which, as it turns out, could be a good thing. And while the loans don’t include 1099 independent contractors, who may be key to your business, contractors are now eligible to receive funds separately. They simply must apply on their own. Further, if you have an existing SBA loan, you’re being offered a six-month payment deferment. In addition, both landlords and lenders are being asked to extend a 90-day grace period so businesses can get a breather.
Cash is king. Maybe the whole monarchy.
Lending institutions are stepping up to help financially. The initial $349B approved for small businesses, based on six weeks’ payroll for every US small business, will likely need to expand. It is expected that additional legislation and funding will be rolled out. The numbers thus far are based on a projection that, of all US small businesses, one in 10 can last for one month without revenues. And one in four can survive two to three months. In other words, not long. Cash flow rules.
Stay in the know.
Words to the wise: continue to monitor the situation for updates. As Bradley cautioned all businesses, “pay attention.” Now more than ever, staying in the know is essential.
To learn more, go to covid19relief.sba.gov.
For information on the application process, contact SBA Customer Service at 1-800-659-2955 (TTY: 1-800-877-8339) or go to DisasterCustomerService.sba.gov.