The Mom Project’s commitment to support our employer partners in building a better workplace is stronger than ever during this uncertain time.
The U.S. government is responding to the economic hardship caused by COVID-19 and their impacts on small businesses and individuals. Our goal is to help you understand what resources are available through federal legislation, provide you with accurate and up-to-date information, and help you navigate this rapidly evolving legal and regulatory landscape.
So far there have been three phases of federal legislation passed. We’ve included an overview of the Paycheck Protection Program (PPP) and a summary of the three phases of legislation below. We also offer some additional resources where you can get more support and information.
Last updated April 10, 2020.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, The Paycheck Protection Program (PPP) helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
How does this impact small businesses?
TLDR; The Payroll Protection Program offers federally guaranteed loans to employers who maintain their payroll during this time, and helps cover payroll costs for employees—including those you've hired through partners like The Mom Project.
For a full list of eligible uses for these funds, see page 3 of this guide.
Your local Small Business Development Center or Women’s Business Center can also provide free assistance and guide you to lenders. Or, email employers@themomproject.com for a referral.
So far there have been three phases of legislation passed to support small businesses, which we’ve outlined below in the order in which they were approved.
How does this impact small businesses?
TLDR; This was the first phase of COVID-19-related relief legislation (it is expanded in Phase 3 below!); It authorized the U.S. Small Business Administration (SBA) to provide an estimated $7 billion in low-interest disaster loans to small businesses through the Economic Injury Disaster Loan (EIDL) program.
Next Move: Business owners should check their insurance policy for disaster or business interruption coverage. See guidelines for EIDL program and more info via the SBA here.
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How does the law affect small businesses?
TLDR; As an employer with less than 500 employees, you’ll be required to offer paid sick leave for employees who have been impacted by coronavirus. You’ll receive tax credits to offset these payments. Businesses with 50 employees or less may be exempt from these requirements.
Please note that FFCRA does not apply to independent contractors, only part time or full time employees per federal guidelines.
Prohibitions: Employers may not discharge, discipline, or otherwise discriminate against any employee who takes paid sick leave under the FFCRA and files a complaint or institutes a proceeding under or related to the FFCRA.
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How does the law affect small businesses?
Reference: The Small Business Owner’s Guide to the CARES Act
TLDR; Several programs were instituted to bring relief to small businesses, which we’ve highlighted below.
The CARES Act also includes information on tax measures that may help your business.
Visit The Small Business Owner’s Guide to the CARES Act to see what relief your business may be eligible for.
There is a lot of information to digest and you may be wondering what support options make the most sense for your business. Fortunately, there are counselors and resource partners available to help. These partners and the associations that represent them will receive additional funds through the CARES Act to better support small business owners during this time.
To find relevant resources for your business, look at page 9 of the CARES Act guide or visit the SBA website to find a resource partner in your area.
There are a number of other guides available to help you navigate this time. We’ve listed a few here, but also encourage you to contact local agencies to understand additional state-specific assistance that may be available.
We’re in this together, and The Mom Project will continue to share relevant information as it becomes available over the coming weeks.
*The Mom Project will update this post with relevant information for government supported assistance to small businesses as it becomes available / approved. The information here is current to the best of our knowledge and should not be construed as legal advice or guidance.
1Paycheck Protection Program Borrower Application Form: With respect to “purpose of the loan,” payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.
2Paycheck Protection Program Fact Sheet: The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and
utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.