During this crisis, I am doing regular updates to keep small businesses and the self-employed informed of financial support, legislation, resources, and other help available to them.
Remember: I am doing a Facebook Live today at 1pm EDT/10am PDT at facebook.com/RhondaAbramsSmallBusiness to keep you updated and answer questions. And if someone forwarded you this newsletter, you can sign up at PlanningShop.com.
“THE STIMULUS BILL”
Yesterday, the Senate passed a two trillion dollar bill as a lifeline to the US economy. This included cash grants to individuals; expanded unemployment benefits—including for the self-employed, independent contractors, and gig workers; and loan programs for small businesses—with provisions for forgiveness for those loans if small businesses keep their workers employed.
The House of Representatives could pass it today, and the President has said he will sign it. However, Republican Congressman Thomas Massie (KY) is threatening to delay the entire bill for at least a few more days.
Details were in my Daily Update yesterday. And you can find them on PlanningShop’s website here.
In particular, you’ll want to focus on:
- Unemployment Insurance: for self-employed, independent contractors, gig workers. You are now entitled to $600 per week for up to four months.
- Paycheck Protection Program loans: These are the new loans in the CARES Act that can later be forgiven if an employer keeps employees on the payroll during the crisis (or call them back to work if they’ve already been laid off). More details in my Daily Updates next week and Facebook Live chats.
- $1200 per adult, $500 per child: Individuals earning less than $75,000 and couples filing jointly earning less than $150,000 will be getting a check from the government.
YOUR QUESTIONS ANSWERED
Next week, I will try to clarify some of the many questions you all have raised about how you can access benefits, how you can apply for loans, and how this applies to your particular situation. I will also try to answer those as best I can during my Facebook Live sessions – 1pm EDT/10am PDT.
YOUR INPUT NEEDED! CROWDSOURCING FOR THE NEXT BILL
It is widely expected that another bill (“Phase Four”) will be needed, possibly introduced in the House of Representatives, which is currently more friendly to the smallest businesses than the Senate. I’m working with elected officials and a variety of organizations putting together recommendations for the next stimulus bill. And I will be putting those recommendations into my USA Today column.
Here’s your chance to get your needs addressed. Use the button below to send me your—and others’—recommendations for what’s missing, what needs to be clarified, what should be amended in the next bill.
For instance, what’s missing in the current bill are GRANTS for small businesses and the forgiveness provisions are confusing—if not downright impossible to achieve—for many businesses.
- Public Private Strategies. This bipartisan organization has made a list of various Covid-19 resources available for employers, including state resources. Click here for the website.
- Open for Business Hub. Includes a list of some technology companies that have free offers and discounts for working remotely. Click here for the website.
- Small Business Development Centers. Get acquainted with your local SBDC. They will be a great source of information and guide through the loan application process. Be patient. They’ll be swamped. Find your SBDC here.
Covid-19 has recently hit Michigan hard, with Detroit and the surrounding area becoming an epicenter. The Michigan Economic Development Corporation shared with me information and resources about what the state of Michigan is doing to help small businesses:
- Michigan Small Business Relief Program will provide up to $20 million ($10 million in small business grants and $10 million in small business loans) to support businesses facing drastic reductions in cash flow and the continued support of their workforce.
- Pure Michigan Business Connect Virtual Procurement Assistance will help source health and human service supply needs amidst the COVID-19 outbreak.
- Capital Access Program uses public resources to generate private lender financing, providing small businesses access to capital that might not otherwise be available. Any business affected by COVID-19 is eligible to receive support through the Collateral Support and Loan Participation programs.
- The Michigan Economic Development Corporation quickly created a COVID-19 resources website to serve as a one-stop-shop for Michigan businesses to find the resources and support available to them. This page includes information and links to the latest COVID-19 updates from the Governor’s office, info on Michigan’s Small Business Relief Program, links to federal support available to small businesses, as well as other services that are always available and even more important during the COVID-19 outbreak.
I will discuss all this further during my Facebook Live sessions 1 pm EDT/10 am PDT facebook.com/RhondaAbramsSmallBusiness and in future daily updates—sign up at PlanningShop.com (scroll to middle of page) if you are not already on my mailing list.
Stay well. Stay home (if you can). We’ll get through this together.
Copyright Rhonda Abams, 2020