Like many of you, we have been working to keep up with current news regarding information for businesses and their employees. The speed at which there are changes and announcements at the federal and state levels is rapid, and our goal is always to relay that information.
Federal, state and local governments are working to develop financial aid packages to help businesses that are struggling as a result of the pandemic. As companies struggle with how to continue their business, there are some resources available that may be useful.
The Senate has already approved the House bill, which would provide workers two weeks of paid sick leave in addition to up to three months of paid family leave due to COVID-19. The bill would provide tax credits to companies for the wages paid to employees (we will provide more information once signed by President Trump). Congress is now working on a stimulus package to help the economy, which may include additional assistance for businesses. In the meantime, there is some information that may be helpful to certain businesses in our area.
The Small Business Administration is offering low-interest disaster relief loans in designated states. Not all states are included, however, so it is important to review their website for more information: https://www.sba.gov/disaster-assistance/coronavirus-covid-19
New York City will provide relief to small businesses that see a reduction in revenue because of the pandemic. Mayor de Blasio’s office has indicated that businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero-interest loans of up to $75,000 to help mitigate losses in profit. The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees. You can find more information on assistance at: https://www1.nyc.gov/site/sbs/businesses/covid19-business-outreach.page
For those New York employers who are struggling with having to lay off a portion of their workforce, New York State has waived the 7-day waiting period for unemployment insurance benefits for people who are out of work due to COVID-19.
The New Jersey Economic Development Authority (NJEDA) has a portfolio of loan, financing, and technical assistance programs available to support small and medium-sized businesses, although we have yet to see any detailed aid packages in New Jersey related to the pandemic.
We will continue to monitor for updates and provide them as changes occur. In the meantime, please reach out to the Wiss team for assistance or questions.
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