As a result of self-quarantine and business closure, thousands of employees were left without salaries and small business owners without income. At the same time, supply chain companies lost demand and, therefore, had to lay off their employees.
The stress created by the coronavirus in the economy is unprecedented. It is felt all over the world.
A newsletter published by the White House on March 23, 2020, outlines several ways in which the administration will help small businesses stay viable, despite the coronavirus.
Small Business Administration (SBA)
The president signed into law that the SBA will be authorized to provide billions of dollars in low-interest loans to small businesses affected by coronavirus. Loans are provided in the amount of up to 2 million US dollars per company. Another 18 billion can be obtained through traditional SBA loans.
Department of Labor
The Federal-State Unemployment Insurance Program will provide benefits to workers who are unable to work and do not receive regular salaries, while their employees are protected by safety guidelines during coronavirus.
Department of Agriculture
The President approved and signed legislation that will provide credit guarantees for small businesses in rural areas.
Department of the Treasury
The Department of the Treasury agreed to postpone filing the tax return for 90 days until July 15 without charging interest or penalties for late filing. This should ease the pressure on the cash flows of small enterprises.
The Department is ready to help small enterprises that offer paid leave for employees during the crisis. Help involves a dollar-for-dollar tax credit for a company that provides paid leave. Other exemptions will also be offered for small firms that do not work and offer paid leave to employees.
The president is currently waiting for Congress to pass an additional bill on spending. It is believed that this bill will provide more than a trillion dollars in aid.
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