The Industry Takes a Closer Look at Relief Programs

April 10th, 2020 by Emmariah Holcomb

The Federal Government enacted a stimulus package in an effort to aid America’s corporations and small businesses. But, as door and window companies and their employees cope with the effects of the coronavirus, figuring out what that help consists of isn’t easy, some companies suggest.

“While I believe the programs are beneficial, they proved somewhat challenging to complete [the applications for],” Adam Weinrub, Vytex president said. “Vytex is thankful to have a great relationship with our bank who helped guide us through the process every step of the way.”

Coronavirus Aid, Relief, and Economic Security (CARES) Act

The CARES Act was signed into law, appropriating $377 billion for companies with 500 employees or less. The program is designed to provide immediate relief through grants, while allowing the Small Business Administration (SBA) to administer loans of up to $10 million per small business—portions of which are labeled as forgivable. At the discretion of SBA officials, the requirements for 500 employees or less could be loosened on a case-by-case basis.

Meanwhile, “The SBA has already had over $66 billion requested by struggling small businesses around the country, and is pushing for an additional $251 billion to be available,” says Clint Coons, ESQ, an Anderson Business Advisors founder. “Until this passes, funding options are limited, so it’s important that you understand your options as quickly as possible.”

According to the terms of the CARES Act, Americans will receive a one-time direct deposit of up to $1,200, and married couples will get $2,400, plus an additional $500 per child. Payments are decreased on a graduating basis, starting with incomes of $75,000.

Paycheck Protection Program (PPP)

PPP is part of the CARES Act, which has up to $349 billion designated for forgivable loans to small businesses, so that they can pay their employees during the COVID-19 crisis. All loan terms will be the same for every company, according to the SBA.

The PPP is designed to help small businesses carry employees through uncertain and unprecedented times due to COVID-19. The loan amounts under PPP will be forgiven as long as the following terms are met, according to the SBA:

  • Loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the eight-week period after the loan is made; and
  • Employee and compensation levels are maintained.

It is important to note that payroll costs are capped at $100,000 on an annualized basis for each employee.

“Vytex Corporation filed for the PPP program and our application was just approved today,” Weinrub said. “We have been working closely with our bank throughout the past week when the information for the program was released. There were changes and updates to the program the last several days which required revisions to our application, as well as some confusion as to how the application submittal process works.”

Weinrub mentioned he was surprised at how quickly the company’s application was approved after it was submitted.

Economic Injury Disaster Loan Emergency Advance (EIDL)

In response to the coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000, according to the SBA.

This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, according to the SBA, and loan advances will not have to be repaid.

Families First Coronavirus Response Act (FFCRA)

The FFCRA was signed into law on March 18, 2020, and requires employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to employers with fewer than 500 employees.

Childcare is a category under the FFCRA that provides aid if you’re caring for your child because their school or place of care is closed due to COVID-19 related reasons. If you’re the primary caregiver you can qualify for the up to 80 hours of paid sick leave. An important thing to note for those with children: if you have a child whose school is closed and you’re the primary caregiver you get 12 weeks of paid leave if you are the only person available to take care of said child and if you are not able to continue working or telework. The paid leave for childcare is only at two thirds of your pay versus 100% of your pay.

“There are millions of small businesses out there that will remain closed; be smart, make necessary adjustments, and be there for your employees at this time,” said Coons.

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