This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/03/26/business/coronavirus-stimulus-small-business.html
The article has changed 13 times. There is an RSS feed of changes available.
| Version 10 | Version 11 |
|---|---|
| Small Businesses Will Get Help Paying Workers, if They Can Wait | Small Businesses Will Get Help Paying Workers, if They Can Wait |
| (7 days later) | |
| [Read our Coronavirus Relief Small Business F.A.Q.] | [Read our Coronavirus Relief Small Business F.A.Q.] |
| Every day counts for Glynis Donnelly, who owns a jewelry store in Tampa, Fla. Ever since the coronavirus outbreak decimated foot traffic to her store, she has been using her savings to pay her eight part-time employees. | Every day counts for Glynis Donnelly, who owns a jewelry store in Tampa, Fla. Ever since the coronavirus outbreak decimated foot traffic to her store, she has been using her savings to pay her eight part-time employees. |
| “It may not be the most business-smart thing to do,” Ms. Donnelly said, “but I know my employees very well, and I know that they need me as much as I need them.” | “It may not be the most business-smart thing to do,” Ms. Donnelly said, “but I know my employees very well, and I know that they need me as much as I need them.” |
| The $2 trillion stimulus package passed by Congress late Wednesday, which includes more than $370 billion for small businesses such as Ms. Donnelly’s, could bring much-needed help. The bill will allow banks to lend directly to businesses, and those loans will be backed by the Small Business Administration. And although there are restrictions, some of the terms are less onerous than other programs administered by the S.B.A. | The $2 trillion stimulus package passed by Congress late Wednesday, which includes more than $370 billion for small businesses such as Ms. Donnelly’s, could bring much-needed help. The bill will allow banks to lend directly to businesses, and those loans will be backed by the Small Business Administration. And although there are restrictions, some of the terms are less onerous than other programs administered by the S.B.A. |
| But it could take at least two weeks after the bill is signed into law for the money to begin flowing, and for small business owners — many of whom operate on thin margins — delays could mean the difference between surviving and shuttering their businesses permanently. | But it could take at least two weeks after the bill is signed into law for the money to begin flowing, and for small business owners — many of whom operate on thin margins — delays could mean the difference between surviving and shuttering their businesses permanently. |
| Federal authorities know time is tight. Regulators on Thursday released a statement encouraging banks and credit unions to start making small loans to individuals and small businesses immediately, independent of the stimulus. | Federal authorities know time is tight. Regulators on Thursday released a statement encouraging banks and credit unions to start making small loans to individuals and small businesses immediately, independent of the stimulus. |
| Ms. Donnelly said she intended to make quick use of the stimulus program to try to supplement her personal expenses. She has $60,000 in savings and plans to dip into her 401(k) plan after that if no other funds are available. Her husband, who works as an ear, nose and throat doctor at a small practice in Tampa, has not received a paycheck in six weeks. The practice stopped paying its doctors to shore up its finances in preparation for the coronavirus’s economic shock, she said, adding that it too could qualify for a loan under Wednesday’s bill. | Ms. Donnelly said she intended to make quick use of the stimulus program to try to supplement her personal expenses. She has $60,000 in savings and plans to dip into her 401(k) plan after that if no other funds are available. Her husband, who works as an ear, nose and throat doctor at a small practice in Tampa, has not received a paycheck in six weeks. The practice stopped paying its doctors to shore up its finances in preparation for the coronavirus’s economic shock, she said, adding that it too could qualify for a loan under Wednesday’s bill. |
| The stimulus package is offering small businesses S.B.A.-backed loans to pay for basic expenses. They would not have to repay portions that were spent on paying employees, a mortgage, rent or utilities. The banks lending the money would be reimbursed for those portions by the Treasury Department, which is receiving $377 billion to fund the program. | The stimulus package is offering small businesses S.B.A.-backed loans to pay for basic expenses. They would not have to repay portions that were spent on paying employees, a mortgage, rent or utilities. The banks lending the money would be reimbursed for those portions by the Treasury Department, which is receiving $377 billion to fund the program. |
| The bill is the latest effort by the federal government to prevent the widespread decimation of small businesses as the virus, which is still spreading, forces people indoors. An earlier stimulus package offered special loans to cover employees’ benefits along with utilities and other necessities while businesses were closed. Modeled after a disaster relief function inside the S.B.A., it requires applicants to deal directly with the small agency. | The bill is the latest effort by the federal government to prevent the widespread decimation of small businesses as the virus, which is still spreading, forces people indoors. An earlier stimulus package offered special loans to cover employees’ benefits along with utilities and other necessities while businesses were closed. Modeled after a disaster relief function inside the S.B.A., it requires applicants to deal directly with the small agency. |
| But the S.B.A.’s website has been so jammed that many users have been unable to complete loan applications, and those who did are told that they will take at least three weeks to process. | But the S.B.A.’s website has been so jammed that many users have been unable to complete loan applications, and those who did are told that they will take at least three weeks to process. |
| Jerry Akers, who with his family owns and runs 27 Great Clips hair salons in Iowa and Nebraska, said his wife spent four hours in the middle of the night this week trying to apply for a $2.7 million S.B.A. disaster-relief loan, to cover 12 weeks of health benefits for 220 furloughed employees. The S.B.A.’s website was so overloaded that she could not send the application until 4 a.m. | Jerry Akers, who with his family owns and runs 27 Great Clips hair salons in Iowa and Nebraska, said his wife spent four hours in the middle of the night this week trying to apply for a $2.7 million S.B.A. disaster-relief loan, to cover 12 weeks of health benefits for 220 furloughed employees. The S.B.A.’s website was so overloaded that she could not send the application until 4 a.m. |
| Mr. Akers said he hoped the new program would be easier to use. He is also hoping the bank he has relied upon for years can participate. | Mr. Akers said he hoped the new program would be easier to use. He is also hoping the bank he has relied upon for years can participate. |
| “We have a banker that we’ve got a great relationship with, but I met with him three or four days ago and he said ‘We’d lend to you hand over fist in normal times, but everything is shutting down and we don’t know what that means for you yet.’” | “We have a banker that we’ve got a great relationship with, but I met with him three or four days ago and he said ‘We’d lend to you hand over fist in normal times, but everything is shutting down and we don’t know what that means for you yet.’” |
| Under the new program, individual lenders will be able to use their own paperwork to process loans and can expect S.B.A. approval within two weeks. Banks will not disburse the loans until the S.B.A. assures them that each is fully guaranteed against default. | Under the new program, individual lenders will be able to use their own paperwork to process loans and can expect S.B.A. approval within two weeks. Banks will not disburse the loans until the S.B.A. assures them that each is fully guaranteed against default. |
| Unlike other S.B.A.-backed loans, business owners won’t have to provide personal guarantees or use all their available assets — from real estate to equipment — as collateral. There are no fees, and interest rates are capped at 4 percent. | Unlike other S.B.A.-backed loans, business owners won’t have to provide personal guarantees or use all their available assets — from real estate to equipment — as collateral. There are no fees, and interest rates are capped at 4 percent. |
| “Because of the scale of this effort, it really has to work,” said Paul Merski, a lobbyist for the Independent Community Bankers of America, a trade group. | “Because of the scale of this effort, it really has to work,” said Paul Merski, a lobbyist for the Independent Community Bankers of America, a trade group. |
| Lending conditions are complicated by the fact that normal paperwork is harder to complete. Social distancing makes it difficult to get forms notarized, and appraisers are not visiting properties to inspect them. Lenders and state officials are finding workarounds; for instance, New York now allows notaries to complete their work through a video connection. | Lending conditions are complicated by the fact that normal paperwork is harder to complete. Social distancing makes it difficult to get forms notarized, and appraisers are not visiting properties to inspect them. Lenders and state officials are finding workarounds; for instance, New York now allows notaries to complete their work through a video connection. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| 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. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| 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. |
| 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. |
| But the lag in loan approval could cripple small-margin operations like restaurants, many of which only have cash to sustain themselves for two weeks, said Karen Harned, executive director of the National Federation of Independent Business’s small business legal center. | But the lag in loan approval could cripple small-margin operations like restaurants, many of which only have cash to sustain themselves for two weeks, said Karen Harned, executive director of the National Federation of Independent Business’s small business legal center. |
| The program comes with restrictions: Loans are limited to $10 million, to businesses with 500 employees or less. Businesses that have recently laid off workers would be required to repay a larger portion of their loans, and loans covering salaries of over $100,000 a year wouldn’t qualify for forgiveness. | The program comes with restrictions: Loans are limited to $10 million, to businesses with 500 employees or less. Businesses that have recently laid off workers would be required to repay a larger portion of their loans, and loans covering salaries of over $100,000 a year wouldn’t qualify for forgiveness. |
| Businesses would not have to repay loans covering up to eight weeks worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it. | Businesses would not have to repay loans covering up to eight weeks worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it. |
| Michael Muscarella, who runs Dog Services, a kennel in Richmond, Va., plans to apply to fund his payroll. In late January, he and his partners met to prepare for the coronavirus outbreak and decided to pay employees through the end of April. | Michael Muscarella, who runs Dog Services, a kennel in Richmond, Va., plans to apply to fund his payroll. In late January, he and his partners met to prepare for the coronavirus outbreak and decided to pay employees through the end of April. |
| One of its three kennels is still open and caring for the pets of those fighting the virus, such as health care workers and emergency responders. But many of its employees have stopped showing up to work. | One of its three kennels is still open and caring for the pets of those fighting the virus, such as health care workers and emergency responders. But many of its employees have stopped showing up to work. |
| The business employs as many as 60 people and pays $14 an hour. Mr. Muscarella said he would use a loan to give low-wage employees an incentive not to abandon their jobs, as home delivery services like Amazon and GrubHub begin to lure workers away. | The business employs as many as 60 people and pays $14 an hour. Mr. Muscarella said he would use a loan to give low-wage employees an incentive not to abandon their jobs, as home delivery services like Amazon and GrubHub begin to lure workers away. |
| “I’ve got to find a way to keep them loyal to me,” he said. | “I’ve got to find a way to keep them loyal to me,” he said. |