“The bill’s ‘Paycheck Protection Program’ will go a long way in helping small businesses in the short term by providing federally guaranteed loans that can be forgiven to help them cover payroll, rent, utilities and mortgage interest,” said Frank Knapp Jr, president of the SC Small Business Chamber of Commerce and co-chairman of Businesses for Responsible Tax Reform in a statement.
Greenwood Index-Journal
March 27, 2020
By JAMES HICKS
Businesses are feeling the crunch from loss of business because of the COVID-19 pandemic. But, there are resources to help them weather the storm.
“Small businesses are the ones going to bear the brunt,” said Jamie Compton, communications director for Countybank. “We are looking for ways to support them.”
Small businesses have a number of groups that can offer help and guidance.
The South Carolina Small Business Development Centers are offering services to help small businesses during the COVID-19 pandemic. The SCSBDC offers consulting and help with federal and state assistance, as well as some resources to prepare for further coronavirus-related issues.
“We can help people assess their financial situation,” said Michele Abraham, state director of the SCSBDC. “Our consulting services are free of charge.”
For those that are concerned about whether they will be able to open again or continue to stay in business, Abraham offers a few suggestions for small businesses.
Conduct an assessment of financial position and what reserves are available to survive this.
Evaluate all costs and where money can be saved short term.
Talk with current banks, insurance agents, and key vendors NOW.
Stay in touch with clients to keep business atop their mind and encourage loyalty.
Identify if services can be offered remotely, if possible.
Encourage and calm employees as well as stay in touch with those that might be laid off.
Talk to the local SBDC for assistance.
SCORE is another resource for small businesses that specializes in mentoring and education. They are offering a free webinar on April 9 focused on answering questions that small business owners may have. To register, go to their website at score.org/coronavirus.
The Small Business Administration offers many programs to help struggling small businesses. Countybank was recently honored as the No. 1 lender in the state for SBA loans.
“We are doing a lot of outreach,” said Paul Pickhardt, senior vice president and manager of SBA lending at Countybank. He said that they are reaching out to clients as well as non-client businesses to let them know about the Disaster Relief Act.
The Small Business Administration offers an Economic Injury Disaster Relief Loan for small businesses and nonprofits. The important information about that loan are as follows:
Businesses need to have an acceptable credit history.
May be used to pay fixed debts, payroll, accounts payable and other bills.
Must be physically present in the United States.
No collateral is needed for loans of less than $25,000.
The interest rate is 3.75% for businesses without credit elsewhere.
Repayments are deferred for one year.
About one month to receive funds
If a business has applied for this loan but needs funding right away, there are is a program to help. The SBA Express Bridge Loan is available to help businesses while they await approval or funding for the Economic Injury Disaster Relief Loan. These loans have criteria:
Available only through an SBA Express Lender.
Can receive up to $25,000.
Maximum of seven-year term.
Must have relationship with banker prior to disaster.
Must have applied for and awaiting long term loan approval.
Congress has also taken action to help small businesses.
Under the Families First Coronavirus Response Act, each employee can have up to 80 hours of paid sick leave for coronavirus reasons.
Businesses with less than 500 employees can use the employee payroll taxes to pay sick leave for its employees who are sidelined by the COVID-19 pandemic. The business would subtract the amount owed from the next regular deposit and if it exceeds that amount, the business can request an accelerated credit for the amount remaining.
The United States Senate has also proposed and passed a $2.2 trillion stimulus bill known as the “CARES Act” that contains a provision to help protect paychecks.
The “Paycheck Protection Program” allows for eight weeks of cash flow assistance to small businesses who maintain their payroll, according to a statement from Rep. Jeff Duncan, R-SC.
“The bill’s ‘Paycheck Protection Program’ will go a long way in helping small businesses in the short term by providing federally guaranteed loans that can be forgiven to help them cover payroll, rent, utilities and mortgage interest,” said Frank Knapp Jr, president of the SC Small Business Chamber of Commerce and co-chairman of Businesses for Responsible Tax Reform in a statement.
This bill has also passed the House and was signed by President Donald Trump on Friday afternoon.
The Internal Revenue Service and state Department of Revenue have also taken action to help businesses.
To ease the filing burden, both agencies have moved their income tax filing and payment deadlines to July 15.