While COVID-19 and the ongoing stay at home measures in the state of Florida are a little overwhelming, local businesses still have resources and organizations to turn to. This list is by no means exhaustive, but it is a pretty good starting point.
The CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a measure passed by the national government to help the United States weather the COVID-19 crisis. The act is a massive undertaking by the federal government and is overwhelming to parse through. We recommend this video for an easy understandable breakdown in plain English.
Employee Retention Tax Credit
The employee retention tax credit is one of the most important part of the CARES Act for business owners. This is a refundable payroll tax credit for all businesses and non-profits that retain employees during the COVID-19 crisis. It is a part of the CARES Act. For more information, click here: https://www.schatz.senate.gov/coronavirus/employee-retention-tax-credit
- The credit is provided through December 31, 2020.
- The credit equals 50% of wages and compensation.
- Businesses are eligible if:
- They have been fully or partially suspended due to a government order.
- They experience a 50% reduction in quarterly receipts due to the crisis.
- Small businesses (100 employees or less) can claim a credit for wages paid to employees, up to $10,000 per person
- Larger businesses can claim credit for employees who are furloughed or face reduced hours due to business closure or economic hardship.
The SBA
The Small Business Administration is a federal administration that works to keep small businesses in the United States afloat. They provide resources, aid, capital, and expertise for small business owners. The SBA has plenty of resources for business owners during this chaotic time.
SBA Paycheck Protection Program
The Paycheck Protection Program is a loan program designed to help small businesses keep their employees on the payroll. Information about the program can be found here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
- Lenders can begin processing application as soon as April 3, 2020. The program is available through June 30, 2020.
- The loan amount will be fully forgiven if employers keep their employees on payroll for 8 weeks, using the loan funds to continue payroll.
- At least 75% must be used for payroll, the other 25% can be used for interest on mortgages, rent, and utilities. As long as that 75% is used for payroll, the entire loan will be forgiven.
- Forgiveness will be reduced if the full-time headcount declines or there is a cut in salaries or wages.
- Any small business can apply. This includes small businesses in hospitality and food industries if the individual stores employee less than 500 workers. Each store location can be eligible for the program.
**Please Note**
Businesses CANNOT claim both the Employee Retention Tax Credit and the SBA Paycheck Protection Program.
SBA COVID-19 Economic Injury Disaster Loans
The loan application can be found here: https://covid19relief.sba.gov/#/ The SBA has said that they are trying to get funds out starting as early as next week.
- Businesses can apply for loans of up to $2,000,000
- Up to $10,000 of a loan will be forgiven – that is FREE MONEY
- The application has been streamlined to be as simple as possible
- For property owners, there is a section about loss of income due to rent loss
- The SBA says that business owners can receive a direct deposit of $10,000 directly into their bank account in 2-3 days if they provide the relevant details.
- Landlords and brokers qualify, depending on their business setup
Florida Disaster Loans
The state offers economic disaster “bridge the gap” loans for small businesses that are interest free for one year. More information can be found here: https://floridadisasterloan.org/
- Small businesses are businesses that are privately owned, for-profit, and have two to one hundred employees.
- The loans are in amounts up to $50,000. Certain businesses may receive up to $100,000 with special permissions.
- Applications are being accepted through May 8, 2020.
- The loan is interest free for one year, with 12% interest per annum on the unpaid balance once the year is up.
More Options
For our out-of-state readers, Shopify compiled a list of federal and state resources here.
Food Service Industry
If you are a food service business owner, there are resources that you can direct your employees to.
- The Restaurant Workers Community Foundation has an exhaustive list of resources for food service employees and businesses. Additionally, the foundation created a crisis relief fund for those impacted by COVID-19. If you or someone you know is able to donate, they can do so here.
- The One Fair Wage campaign has also established a relief fund for tipped workers and service workers who are impacted by the virus. If you need assistance, reach out here. The campaign is asking all applicants to be patient, they are working as quickly as possible to get to everybody. Again, if you have the ability to donate, they are accepting donations here.
- The Giving Kitchen is an ongoing program in Georgia that helps out food service employees. While Florida employees might not qualify for any aid they are offering, the organization provides another massive list of resources for food service workers.
Take The Business Damage Assessment
The Business Damage Assessment is a online survey that business owners can fill out in five to ten minutes. While the assessment does not provide direct aid, it helps both state and local government see what economic sectors and physical locations are being hit hardest by the COVID-19 emergency.
FEMA
In order for a business to be stable, the business owner needs to be stable. FEMA offers a local relief search that is open to everyone. There is even a box that business owners can check specifically to find resources that will work for you.
Consult Other Business Organizations
Many local chambers of commerce are putting together resources, such as this COVID-19 business toolkit from the North Tampa Bay Chamber Of Commerce. Consult your local chamber website, even if you are not a member.
As well as chambers, look into any local business groups, especially for particular industries. For example: business leads groups, or real estate interest groups.
The Takeaway
COVID-19 is a global problem, business owners all around the world are facing similar issues. While that may seem bleak, it is actually a positive. The business community as a whole is working through this together.
