'Small Businesses Seek a Crisis Lifeline Beyond Loans' diff viewer (12/13)

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Small Businesses Seek a Crisis Lifeline Beyond Loans	Small Businesses Seek a Crisis Lifeline Beyond Loans
2020-06-24 10:22:23 UTC	2020-06-24 10:54:26 UTC (32 minutes later)
[Read our Coronavirus Relief Small Business F.A.Q.]	[Read our Coronavirus Relief Small Business F.A.Q.]
As small businesses such as restaurants, bars, gyms and hair salons are forced by the coronavirus pandemic to go dark and lay off millions of employees, frantic owners are desperate for government aid to help them salvage enterprises that can’t survive for long without customers.	As small businesses such as restaurants, bars, gyms and hair salons are forced by the coronavirus pandemic to go dark and lay off millions of employees, frantic owners are desperate for government aid to help them salvage enterprises that can’t survive for long without customers.
But the main federal lifeline offered so far — low-interest disaster loans — is unappealing to many people running on thin margins and leery of taking on debt they can’t afford to repay.	But the main federal lifeline offered so far — low-interest disaster loans — is unappealing to many people running on thin margins and leery of taking on debt they can’t afford to repay.
“All we do is make enough money to make it through the off-season,” said Donna Benefiel, who owns the Sunset Produce Market in Banks, Ore., and a grocery store on the Oregon coast. “We’re not that profitable. We don’t have any reserves. How do we borrow a year’s worth of money and then have to pay it back?”	“All we do is make enough money to make it through the off-season,” said Donna Benefiel, who owns the Sunset Produce Market in Banks, Ore., and a grocery store on the Oregon coast. “We’re not that profitable. We don’t have any reserves. How do we borrow a year’s worth of money and then have to pay it back?”
On Monday, the Federal Reserve resurrected an asset-purchase facility from the 2008 financial crisis intended to encourage banks and financiers to make loans to small businesses and households. It also plans to announce a new Main Street Business Lending Program designed to support lending to “eligible small and medium-sized businesses” but offered few details.	On Monday, the Federal Reserve resurrected an asset-purchase facility from the 2008 financial crisis intended to encourage banks and financiers to make loans to small businesses and households. It also plans to announce a new Main Street Business Lending Program designed to support lending to “eligible small and medium-sized businesses” but offered few details.
A disaster loan program is already up and running. Congress authorized up to $7 billion early this month for small business disaster loans through the Small Business Administration. Unlike the agency’s flagship loans, which are made by banks, disaster loans are issued directly by the government.	A disaster loan program is already up and running. Congress authorized up to $7 billion early this month for small business disaster loans through the Small Business Administration. Unlike the agency’s flagship loans, which are made by banks, disaster loans are issued directly by the government.
Red tape has slowed the process. To make businesses in their state eligible for the loans, each state’s governor had to submit a formal disaster declaration request to the agency. It took until Sunday for all 50 states to have their applications filed and approved.	Red tape has slowed the process. To make businesses in their state eligible for the loans, each state’s governor had to submit a formal disaster declaration request to the agency. It took until Sunday for all 50 states to have their applications filed and approved.
S.B.A. representatives declined to say how many loan applications the agency has received or approved. In past disasters, it has typically taken the agency at least two weeks to make loan decisions.	S.B.A. representatives declined to say how many loan applications the agency has received or approved. In past disasters, it has typically taken the agency at least two weeks to make loan decisions.
Companies with up to 500 workers can borrow as much as $2 million at a 3.75 percent interest rate, which is far lower than the cost of typical small business loans. But defaulting can have catastrophic consequences: The agency asks those seeking more than $25,000 — and most small business loans are at least that much — to put up collateral, preferably real estate. That’s a standard term on nearly all S.B.A. loans.	Companies with up to 500 workers can borrow as much as $2 million at a 3.75 percent interest rate, which is far lower than the cost of typical small business loans. But defaulting can have catastrophic consequences: The agency asks those seeking more than $25,000 — and most small business loans are at least that much — to put up collateral, preferably real estate. That’s a standard term on nearly all S.B.A. loans.
Borrowers who own their homes often risk losing the property if they can’t repay what they borrowed. Terms like that spook business owners, especially now, when there is little clarity around when and how the coronavirus pandemic will subside, and whether mom-and-pop shops will ever recover.	Borrowers who own their homes often risk losing the property if they can’t repay what they borrowed. Terms like that spook business owners, especially now, when there is little clarity around when and how the coronavirus pandemic will subside, and whether mom-and-pop shops will ever recover.
Lori Lucas and her husband run This Old Couch, a vintage home décor store, out of a bright yellow farmhouse just outside Dayton, Ohio. Over Memorial Day weekend last year, tornadoes tore through the area, leaving the couple’s home damaged and local shopping at a standstill.	Lori Lucas and her husband run This Old Couch, a vintage home décor store, out of a bright yellow farmhouse just outside Dayton, Ohio. Over Memorial Day weekend last year, tornadoes tore through the area, leaving the couple’s home damaged and local shopping at a standstill.
The couple took a $16,000 disaster loan from the S.B.A., which they began repaying this month — just as the pandemic crisis set in. The idea of piling on more debt is frightening, but they may have to do it. “It may be our only option to pay the mortgage,” Ms. Lucas said. “We also don’t draw a paycheck, so we can’t even apply for unemployment.”	The couple took a $16,000 disaster loan from the S.B.A., which they began repaying this month — just as the pandemic crisis set in. The idea of piling on more debt is frightening, but they may have to do it. “It may be our only option to pay the mortgage,” Ms. Lucas said. “We also don’t draw a paycheck, so we can’t even apply for unemployment.”
On Monday, the S.B.A. said that it will automatically defer payments on its existing disaster loans through the end of the year.	On Monday, the S.B.A. said that it will automatically defer payments on its existing disaster loans through the end of the year.
Nearly half of America’s private-sector workers get a paycheck from a company with less than 500 employees, and a third of those work for a business with fewer than 100 workers.	Nearly half of America’s private-sector workers get a paycheck from a company with less than 500 employees, and a third of those work for a business with fewer than 100 workers.
Following the outbreak, countries like Denmark, Germany and France have offered large payroll subsidies and other aid to help companies pay bills and keep workers employed. Michael and Melody Shemtov, who co-own nine restaurants in South Carolina and Tennessee, are wistfully eying that kind of forceful government support. This past week, they laid off more than 250 employees, a process they described as heartbreaking.	Following the outbreak, countries like Denmark, Germany and France have offered large payroll subsidies and other aid to help companies pay bills and keep workers employed. Michael and Melody Shemtov, who co-own nine restaurants in South Carolina and Tennessee, are wistfully eying that kind of forceful government support. This past week, they laid off more than 250 employees, a process they described as heartbreaking.
“When you terminate staff, their health insurance is terminated as well,” Mr. Shemtov said. But with no cash coming in, they said they had little choice.	“When you terminate staff, their health insurance is terminated as well,” Mr. Shemtov said. But with no cash coming in, they said they had little choice.
Restaurants and retailers nationwide, big and small, are making the same grim calculation. Unemployment claims rose 30 percent the week of March 8 and could reach unprecedented heights.	Restaurants and retailers nationwide, big and small, are making the same grim calculation. Unemployment claims rose 30 percent the week of March 8 and could reach unprecedented heights.
The Trump administration and lawmakers have discussed plans for a bailout that could top $2 trillion, including direct payments to individuals and aid for battered industries like the airlines. A memo circulated on Wednesday by the Treasury Department proposed $300 billion for small business “interruption” loans.	The Trump administration and lawmakers have discussed plans for a bailout that could top $2 trillion, including direct payments to individuals and aid for battered industries like the airlines. A memo circulated on Wednesday by the Treasury Department proposed $300 billion for small business “interruption” loans.
That would be a vastly larger program than anything the government has previously run. Last year, the Small Business Administration backed $28 billion in loans issued by banks; its disaster program lent out just over $2 billion.	That would be a vastly larger program than anything the government has previously run. Last year, the Small Business Administration backed $28 billion in loans issued by banks; its disaster program lent out just over $2 billion.
The agency is used to ramping up quickly to disburse loans after natural disasters like floods and earthquakes — after Hurricane Harvey in 2017, it processed most loan applications in less than three weeks — but its track record with large economic disasters is troubled.	The agency is used to ramping up quickly to disburse loans after natural disasters like floods and earthquakes — after Hurricane Harvey in 2017, it processed most loan applications in less than three weeks — but its track record with large economic disasters is troubled.
In the aftermath of the 2008 financial crisis, Congress ordered the S.B.A. to partner with banks on zero-interest loans of up to $35,000 to “viable” small companies hurt by the recession. The program was laden with complex rules, and fewer than 9,000 companies took the loans. Nearly half of the applications approved did not meet all of the agency’s rules, auditors estimated.	In the aftermath of the 2008 financial crisis, Congress ordered the S.B.A. to partner with banks on zero-interest loans of up to $35,000 to “viable” small companies hurt by the recession. The program was laden with complex rules, and fewer than 9,000 companies took the loans. Nearly half of the applications approved did not meet all of the agency’s rules, auditors estimated.
And many vulnerable businesses cannot afford to wait weeks for a cash infusion. The median small company takes in $381 a day and spends $374, a 2016 analysis by the JPMorgan Chase Institute found. The typical business has enough savings to survive just 27 days.
Ms. Benefiel is already calculating how the dominoes will fall in the collapse of her produce stores. She relies on the spring and summer tourist trade to carry her family and her four employees through the lean winter months. This year, the entire season could be wiped out, and without sales, she can’t pay fixed expenses like rent and utility bills.
“The first thing that’s going to happen is that we’re going to lose our business because of lack of income, and we’ll get evicted,” she said. “The second thing that’s going to happen is the same thing to us, personally.
Updated June 22, 2020	Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.	A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.	The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
	And many vulnerable businesses cannot afford to wait weeks for a cash infusion. The median small company takes in $381 a day and spends $374, a 2016 analysis by the JPMorgan Chase Institute found. The typical business has enough savings to survive just 27 days.