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| Small Businesses Will Get Help Paying Workers, if They Can Wait | Small Businesses Will Get Help Paying Workers, if They Can Wait |
| (about 5 hours 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. |
| 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. |
| Updated June 16, 2020 | |
| 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. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| 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.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| 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. |
| 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. |