The COVID-19 Pandemic has been and remains a severe threat to any small business owner. It came from nowhere and it has cost millions of dollars in lost revenue.
A recent study done by the US Small Business Administration has found that small businesses are not following any plans. The report states that this is mainly due to a lack of proper planning and training from the Federal Government.
In this article, we will discuss how to set up a covid recovery plan to protect your small business and its local community.
COVID-19 relief options American Rescue Plan Act signed into law by President Biden
What is the American Rescue Plan Act?
The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs SBA is currently administering and adds new efforts, including: NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
What Are The Options?
SBA is currently offering the following funding options: First Draw PPP loans : If you have not received a PPP loan before, First Draw PPP loans are available to you.
What Was The Impact Of Sba’s Decision?
SBA established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
What Are The Changes To Sba’s Ppp?
SBA has: Allowed sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants Eliminated an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal Eliminated PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a dis-qualifier to participating in the PPP Ensured access for non-citizen small business owners who are lawful U.S.
What Are The Sba’s Key Initiatives?
SBA is strengthening its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse.
Who Are The Beneficiaries Of This PPP?
SBA also made four additional changes to open the PPP to more under served small businesses than ever before, publishing an Interim Final Rule FAQ with this detail on March 3, 2021.
The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs SBA is currently administering and adds new efforts, including:
NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants
NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
Source: sba.gov
According to research, A majority of small businesses believe it will take six months to a year before the American business climate returns to normal (up from 50% last month and 46% two months ago).
Guidance For Businesses And Employers
When it comes to businesses, they need financial assistance to siurvive this unprecedented situation.
The Small Business Covid is available for businesses, employers, and employees within companies that cannot afford COBRA coverage because it’s too expensive or no other options are available on the market.
Employers with fewer than 20 full-time workers are qualified for these plans, as well as self-employed individuals who have access to less affordable health insurance via family member’s or spouses’ employment benefits. This program is also available for public health workers.
ront-line workers need to work 30 hours per week before qualifying for this type of coverage through an employer, and even then, it has to be at the same company. Essential worker also play a significant role because they need to make sure they have enough money available for payroll taxes.
If not, then there could be potential penalties down the line with government agencies like the Internal Revenue Service (IRS). It is essential to determine what type of protection your employer has before you file any tax returns or paychecks not to put them on hold.
American Rescue Plan Act Of 2021
According to the American Rescue Plan Act of 2021, the federal government will provide all small businesses with relief from their debts. If a business has incurred between $100 and $200 million in debt, they are eligible for this plan. By doing this the federal assistance will increase the tax income.
These companies can then use this money to repay creditors over time and invest it into other assets like real estate or stocks.
Requirements For American Rescue Plan Act
The company must have been incorporated before September 12th, 2020
They cannot be a subsidiary of another organization.
The total amount owed by the company cannot exceed 200 million dollars before participating in the program.
Smaller organizations could qualify due to budgetary restrictions being enacted on corporations.
By providing these funds, the most vulnerable renters and small landlords, including those in disadvantaged communities that have suffered disproportionately from pollution and other environmental harms, won’t be left unable to cover their own housing costs.
Technical Assistance Resources For Small Businesses
The Small Business Technical Assistance Services (SBTAS) Program was created to assist small businesses facing the challenges presented by COVID-19 Outbreak.
SBS provides various services to help small businesses understand COVID-19 and provide the necessary resources, tools, and training for their recovery efforts.
This program has reached out to many types of organizations that are uniquely positioned to assist Small Businesses with understanding COVID-19, such as Small business associations.
- State Chambers & Commerce Organizations
- Economic development agencies
- Utility companies
- Insurance providers (non-COVID)
- FEMA Regional Assist Centers (RACs)
Small Business Technical Assistance Services provides informational webinars about COVID – 19 in partnership with the United States Department of Agriculture Economic Research Service, explaining what this disaster means for U.S. agriculture producers and exporters.
How Technical Assistance Resources Works
Enterprise Center staff will conduct an initial intake and assessment online to determine a small business’s priorities.
- Accounting/Financial Planning
- Business Consulting
- Legal Services
- Marketing & Branding
- COVID-19 Relief Program Navigation
- Technology (i.e., working remote/online sales)
- Workforce Management/Human Resources
Eligible Business Participants will receive a list of consultants in each of the above areas after the initial intake and assessment.
Covid-19 Resources And Guidance For Businesses
Due to Covid-19, many businesses worldwide are experiencing economic downturns and have had to close their doors. However, some business owners have been able to keep their businesses running by following COVID-19 Resources and Guidance for Businesses.
Covid-19 is a disease that has swept the world in recent months, causing many companies to shut down due to low demand or illness among employees.
The infectious disease can be found anywhere from densely populated countries such as China, with over one billion residents, where Covid-19 may spread more easily because of overcrowding. Out eastward into Australia, which only has about 24 million residents.
The Covid-19 virus is highly contagious and can quickly spread from person to person through contact or inhalation of droplets released by infected coughing, sneezing, vomiting, or talking.
Covid-19 Crisis Guidance For Businesses
As you know that to keep everyone and yourself safe, you need to follow the guidelines. Here are some common small business COVID-19 Guidance for Businesses.
Property Owners or managers should always wear gloves when handling any materials contaminated by blood, vomit, or feces.
Most cases don’t need a mask, but it can be helpful to have one on hand just in case. And if you’re cleaning up anything outside your home which might contain hazardous material such as chemical spills, then safety goggles would also come in handy.
A lot of times, people forget about those items they use daily, like pens, cups. That’s why we’re going to make a list of what you need in your COVID-19 emergency kit.
- Hand sanitizer (anti-viral)
- First Aid Kit with:
- Bandages, Gauze Pads, Antibiotic Ointment, Band-Aids or Cotton Swabs
- Clean Towels and Wipes for Cleaning up Spills
- Safety Goggles
- Follow COVID-19 Support Programs
- Take care of your Health Benefits
- Extra Pens for Writing Instructions on Products and Packaging For Customers. Such as Covered Items That Need To Be Disposed Of Properly.
- Keep Social Distancing
- Get a dose of COVID-19 Vaccine
Other Covid-19 Plans
There are also other plans one of them is, Michigan COVID Recovery Plan especially to support families of American workers through food assistance to help end the COVID-19 pandemic and hunger crisis. Communities The COVID-19 pandemic and the corresponding economic crisis are devastating families across the country. This act is designed to support families through the distribution of food.
It is expected that any plan should include a strong focus on vaccine distribution, economic recovery, school students in poverty, federal funding and more.
The governor’s MI COVID Recovery Plan includes a call on the Michigan Legislature to permanently extend unemployment benefits from 20 weeks to 26 weeks.
Conclusion
Everyone appeared to be caught out by both the rapid spread and death and devastation caused by the Covid 19 pandemic. The Government of USA created this plan to provide relief to businesses affected by the pandemic, the Small Business Covid Recovery Plans In The USA. If you are a small business owner and your business is affected, use our guidelines to keep your business safe and to get peace of mind.
