COVID-19

C2BE has put together questions for our clients* that are also applicable to any business owner. You should ask yourself and consider taking steps to create new opportunities for your business to live and thrive post COVID-19.

*C2BE is a worker-owner & cooperative incubator

If you’re not an essential business, that probably means that your business is currently closed.  If you haven’t already; here are a few things you should consider doing right away if you’re unable to generate revenue:

Now, if you’ve done all these things and are currently considering jumping into the stimulus windfall, you need to create a strategic game plan for analyzing whether you can afford to participate.  Here are some things to consider before taking on additional debt:

Depending on how you’ve thought those points through, there are only a few courses of action to take.

One last thing, if you plan to reopen after COVID: STAY CONNECTED to your clients! Let them know that your business is only closed TEMPORARILY

Use email marketing platforms and social media opportunities that exist to let the world know your business will be back!

Federal Loan Programs

Paycheck Protection Program or PPP

Keeping American Workers Paid and Employed Act – (CARES Act Section 1107)
Effective Date: 02-15-2020; Expiration Date: – 06/30/2020

What is it: The Small Business Administration will provide 100% forgivable loans to help eligible businesses pay operational costs like payroll, rent/lease, health benefits, loan interest, utilities, etc.

More Information: Check with an SBA lender and the SBA & PPP Application Form
Co-ops & worker-owned businesses ARE eligible! More from the US Federation of Cooperatives

Economic Injury Disaster Loans (EIDL) and Emergency Economic Injury Grants (EEIG)

(CARES Act Section 1110)
Effective Date: EEIG – 01/31/2020; Expiration date – 12/31/2020

What is it? The U. S. Small Business Administration (SBA) provides low-interest, long-term disaster loans to businesses and non-profits of all sizes to repair or replace uninsured/underinsured disaster damaged property.

More Information: US Small Business Administration Disaster Assistance- Covid-19 & Form to apply

Small Business Debt Relief Program

Effective Date: 03/27/2020; Expiration date: 09/27/2020

What is it? This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
More Information: SBA Disaster Loan & Grant Application & https://www.sba.gov/disaster-assistance/coronavirus-covid-19

Government & Grant Programs

Emergency Paid Sick Leave

(Families First Coronavirus Response Act)(Section 7003)
Governmental Agency: IRS & the US Dept of Labor
Effective Date: 04/02/2020; Expiration date: 12/31/2020

Employers Covered: 500 or fewer employees
What is it? Two weeks of paid sick leave. Employers must poster Sick Leave/FMLA Notice
More Information: IRS Notice IR-2020-57, March 20, 2020
Where to Apply: NA – Employer pays benefit

Family Medical Leave Expansion

(Families First Coronavirus Response Act)(Section 7001)
Governmental Agency: IRS & the US Dept of Labor
Effective Date: 04/02/2020; Expiration date: 12/31/2020

Employers Covered: 500 or fewer employees
What is it? Twelve weeks of job-related leave with up to two-thirds pay for ten weeks
Employers must poster Sick Leave/FMLA Notice

More Information: IRS Notice IR-2020-57, March 20, 2020
Where to Apply: NA – Employer pays benefit

Employee Retention Credit

(Cares Act Section 2301)
Governmental Agency: IRS
Effective Date: 03/13/2020; Expiration date – 12/31/2020

Employers Covered:
Eligible employers must have carried on active operations in 2020 and met of the following two test:
1) Operations were fully or partially suspended due to a governmental order limiting commerce, travel or group meetings (such as Michigan Executive Order 2020-21); or
2) Gross receipts decrease by at least 50% from prior year (comparing the same calendar quarters)
What is it? Provides refundable payroll tax credit for 50% of wages paid by eligible employers to employees during the Covid-19 crisis. This program does not apply to employers receiving assistance through the “Paycheck Protection Program”
(See “Loan Programs” tab)

More Information: SBA Small Business Owner’s Guide to the CARES Act- Page 11
Where to apply: NA – Employer pays benefit and offsets payments from payroll taxes submissions to the IRS

Delay of Payment of Employer Payroll Taxes

(CARES Act Section 2302)
Governmental Agency: IRS
Effective Date: 03/27/2020; Expiration date – 12/31/2020

Employers Covered:  Employers and self-employed individuals
 
What is it? Section 2302 of the CARES Act allows employers and self-employed individuals to postpone deposits of their share of federal Social Security tax on employees’ wages paid from March 27, 2020 through and including December 31, 2020.
 

Federal & Michigan

NAME: Unemployment Benefits for Workers Not Eligible Under State Programs (CARES Act section 2102)

Governmental Agency: Michigan Unemployment Insurance Agency
Effective Date: 01/27/2020; Expiration date: 12/31/2020

Suggestion to employers: Does C2BE want to put anything here like “Businesses may want to let their employees know this is an option.
Employers Covered: NA – This provision concerns individuals who are not covered by any employer’s unemployment insurance.

What is it? Provides unemployment compensation benefits to sole proprietors, independent contractors and individuals who have exhausted the States’ UIA benefits. The applicant is the individual worker.

Where to Apply: Michigan Unemployment Insurance Agency – Online
Click on the “For Employees” button
Additional information:
COVID-19 RELATED CAUSES:
Worker self-certifies that:
– S/he has been diagnosed with COVID-19 or are experiencing symptoms of COVID-19 that require a medical diagnosis.
– A member of the household has been diagnosed with COVID-19.
– S/he is providing care for a family member or member of their household who has been diagnosed with COVID-19.
– A member of the household for which they have primary caregiving responsibility is unable to attend school or another facility that has been closed as a direct result of the COVID-19 public health emergency and because of this closure s/he is unable to work.
– S/he is unable to work because of a quarantine imposed as a result of the COVID-19 public health emergency.
– S/he is unable to work because s/he has been advised to self-quarantine by a health care provider.
– S/he was scheduled to start a job but is unable to do so as a result of the COVID-19 public health emergency.
– S/he has become a “major support for a household” because the breadwinner in the household has died as a direct result of COVID-19.
– S/he quit her/his job as a direct result of COVID-19.

Temporary Expansion of Unemployment Eligibility and Cost-Sharing (Michigan CARES Act Section 2014)

Governmental Agency: Michigan Unemployment Insurance Agency (Executive Order 2020-21)
Effective Date for Michigan: Immediate; Expiration date for Michigan: 12/14/2020 @ 11:59pm
Effective Date for CARES: Date state agrees to participate in the CARES Act UC program;
Expiration date for CARES: 07/31/2020

Employers Covered: All Michigan Employers; UIA Notice to Employee

What is it? Increase in Michigan Unemployment benefits and employers not charged for benefits paid due to an executive order requiring closing or limitation in operations

Where to Apply: Michigan Unemployment Insurance Agency – Online
Click the “For Employees” button

Additional information:

Michigan Small Business Relief Program; Small Business Grants Michigan

Economic Development Corporation
Michigan Unemployment Insurance Agency (Executive Order 2020-21)
Effective Date: Immediate

Employers Covered: Eligible organizations must:
– Have 100 employees or less;
– Need working capital for payroll, rent, mortgage payments, utilities or other ordinary business expenses;
– Be able to demonstrate an income loss as a result of the COVID-19 outbreak or related state

What is it? MEDC is providing funding through 15 local economic development organizations to provide grants up to $10,000 to Michigan small businesses/organizations impacted by Covid-19.

Where to Apply: Local Economic Development Organization

Additional information: Most of these programs are now closed. We are leaving this information up as things are dynamic and something could change at anytime.