[CT-NFB] FW: Federal Stimulus Package Small Business Owners Guide

Fri Mar 27 22:57:37 UTC 2020

From: Sigman, Brian [mailto:Brian.Sigman at ct.gov] 
Sent: Friday, March 27, 2020 6:07 PM
To: DORS-DL BESB <DORS-DLBESB at ct.gov>
Subject: Federal Stimulus Package Small Business Owners Guide
Importance: High

Good evening,

This information has been forwarded to the Vending Facility Operators.
Please assist with sharing this information with others who may have a small
business. Thank you.

From: Sullivan, Kathleen <Kathleen.Sullivan at ct.gov
<mailto:Kathleen.Sullivan at ct.gov> > 
Sent: Friday, March 27, 2020 5:49 PM

All - We JUST received the Small Business Guide for the Federal Stimulus
Package that was signed by POTUS today.  In an effort to share information
as quickly as possible, we're passing this along to you directly for use as
needed. There's a lot of important and timely information included -
particularly on the Paycheck Protection Program for small businesses. Below
are some key points highlighted, a press release and attached is the guide.

I imagine this will get discussed via federal partners in the coming days
and weeks but wanted to share right away given the importance. Feel free to
share with your partners as needed

Kathleen Sullivan

Director of Planning, Communications and Operational Readiness  l  Aging and
Disability Services

Office of the Commissioner  | 55 Farmington Avenue, Hartford CT 06105  |
860.424.5973 

For information on COVID-19, please visit
<http://www.ct.gov/Coronavirus%20or%20call%202-1-1> www.ct.gov/Coronavirus
or call 2-1-1. You can also text "CTCOVID" TO 898211.

Cardin, Bipartisan Senate Task Force Secure $377 Billion for Small
Businesses
<https://www.sbc.senate.gov/public/index.cfm/pressreleases?ID=20DFE67D-DA2E-
4918-BEB8-31196F001C6E> 

March 25, 2020

(Washington, DC)-U.S. Senator Ben Cardin (D-Md.), Ranking Member of the
Senate Small Business Committee and a senior member of the Senate Finance
Committee, today issued a statement on the $2 trillion economic stimulus
agreed to by Congressional leaders. The stimulus package includes $377
billion in funding to support small businesses secured by Cardin, Small
Business Committee Chairman Marco Rubio (R-Fla.), Senate Aging Committee
Chairwoman Susan Collins (R-Maine), and Jeanne Shaheen (D-N.H.), Ranking
Member of the Senate Appropriations Subcommittee on Commerce, Justice,
Science, and Related Agencies.

"American small businesses are facing an existential threat. The
unprecedented public health measures cities and states have taken to slow
the spread of the COVID-19, while necessary to protect public health, are
having a tremendous impact on small businesses in every community in
America," Ranking Member Cardin said. "Congress has a duty to ensure that
America's 30 million small businesses, and the 60 million people they
employ, are not forced to bear the financial costs of keeping our
communities safe on their own. I am grateful that Chairman Rubio, Senators
Collins and Shaheen, and I were able to reach a bipartisan agreement to
include $377 billion in support for small businesses in the stimulus."

Prominent measures in the
<https://www.sbc.senate.gov/public/index.cfm/pressreleases?id=3B42CB4F-CF1C-
4D6F-9212-290E6A19AB52> Keeping American Workers Employed and Paid Act and
the
<https://www.sbc.senate.gov/public/index.cfm/pressreleases?ID=D6E86723-C100-
4B6C-B122-50B3CAA81090> COVID-19 RELIEF for Small Businesses Act of 2020
make up Division A of the stimulus, which is titled the Coronavirus Aid,
Relief, and Economic Security (CARES) Act.

A description of the small business provisions in the stimulus follows:

Paycheck Protection Program

The stimulus includes nearly $350 billion in funding for a provision to
create a Paycheck Protection Program (PPP) that will provide small
businesses and other entities with zero-fee loans of up to $10 million. Up
to 8 weeks of average payroll and other costs will be forgiven if the
business retains its employees and their salary levels. Principal and
interest is deferred for up to a year and all borrower fees are waived. This
temporary emergency assistance through the U.S. Small Business
Administration (SBA) and the Department of Treasury can be used in
coordination with other COVID-financing assistance established in the bill
or any other existing SBA loan program.

The bill requires the SBA Administrator to set a cap on how much a bank can
earn to process loan applications and prioritize underserved borrowers,
including those in rural communities, minorities, women and veterans.

Emergency Economic Injury Grants

The stimulus includes $10 billion in funding for a provision to provide an
advance of $10,000 to small businesses and nonprofits that apply for an SBA
economic injury disaster loan (EIDL) within three days of applying for the
loan. EIDLs are loans of up to $2 million that carry interest rates up to
3.75 percent for companies and up to 2.75 percent for nonprofits, as well as
principal and interest deferment for up to 4 years. The loans may be used to
pay for expenses that could have been met had the disaster not occurred,
including payroll and other operating expenses.

The EIDL grant does not need to be repaid, even if the grantee is
subsequently denied an EIDL, and may be used to provide paid sick leave to
employees, maintaining payroll, meet increased production costs due to
supply chain disruptions, or pay business obligations, including debts, rent
and mortgage payments. Eligible grant recipients must have been in operation
on January 31, 2020. The grant is available to small businesses, private
nonprofits, sole proprietors and independent contractors, tribal businesses,
as well as cooperatives and employee-owned businesses.

A business that receives an EIDL between January 31, 2020 and June 30, 2020
as a result of a COVID-19 disaster declaration is eligible to apply for a
PPP loan or the business may refinance their EIDL into a PPP loan. In either
case, the emergency EIDL grant award of up to $10,000 would be subtracted
from the amount forgiven in the Paycheck Protection Plan.

The bill provides $562 million to ensure that SBA has the resources to
provide Economic Injury Disaster Loans (EIDL) to businesses that need
financial support.

Debt Relief for Existing and New SBA Borrowers

The stimulus includes $17 billion in funding for a provision to provide
immediate relief to small businesses with standard SBA 7(a), 504, or
microloans. Under this provision, SBA will cover all loan payments for
existing SBA borrowers, including principal, interest, and fees, for six
months. This relief will also be available to new borrowers who take out an
SBA loan within six months after the President signs the bill. The measure
also encourages banks to provide further relief to small business borrowers
by allowing them to extend the duration of existing loans beyond existing
limits; and enables small business lenders to assist more new and existing
borrowers by providing a temporary extension on certain reporting
requirements. While SBA borrowers are receiving the six months debt relief,
they may apply for a PPP loan that provides capital to keep their employees
on the job. The six months of SBA payment relief may not be applied to
payments on PPP loans. 

The stimulus also includes a permanent fix that allows SBA to waive fees for
veterans and their spouses in the 7(a) Express Loan Program, regardless of
the President's budget. Under current law, SBA may only waive fees on 7(a)
Express loans to veterans when the President's budget does not project a
cost above zero for the overall 7(a) loan program.

Paid Leave for Government Contractors

The stimulus includes a provision that provides paid leave for employees
working on small business contracts with the federal government. The measure
allows agencies to modify the terms of a contract to reimburse small
business contractors for the cost of providing paid leave, including sick
leave, to employees or subcontractors unable to perform work on-site due to
a facility closure and cannot telework.

Resources for Business Counseling Services

Many large companies are struggling to respond to the unprecedented economic
disruption our nation is facing, so small businesses that have even fewer
resources to dedicate to navigating the economic impacts of COVID-19 must
have access to reliable counseling and mentorship services.

The stimulus provides $275 million in grants to the nation's network of
Small Business Development Centers (SBDCs) and Women's Business Centers
(WBCs), as well as the Minority Business Development Agency's Business
Centers (MBDCs), to provide mentorship, guidance and expertise to small
businesses. The funding will allow SBDCs, WBCs, and MBDCs to hire staff and
provide programming to help small businesses and minority-owned businesses
respond to COVID-19.

The bill also provides funds for the associations that represent SBDCs and
WBCs to create a joint platform that consolidates information and resources
related to COVID-19 in order to provide consistent, timely information to
small businesses.

The SCORE mentoring program and Veterans Business Outreach Center program
are encouraged to use the platform and participate in the COVID-19 education
sessions for their volunteer mentors and small business counselors.  

https://www.sbc.senate.gov/public/index.cfm/pressreleases?id=20DFE67D-DA2E-4
918-BEB8-31196F001C6E

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