Business Resources During COVID-19

Resources to Help Keep Your Business Afloat

COVID-19 has taken a toll on nearly all industries and has particularly affected small businesses who are vulnerable to economic downturns. Small businesses support global economies and keep the world turning. It is imperative that during a financial crisis that there are both state & federal programs for economic support to support small and large businesses alike. Outlined below include summaries of the different aid programs implemented to assist businesses.

Coronavirus Preparedness and Response Supplemental Appropriations Act:

• In an effort to minimize the financial implications small businesses are facing President Trump signed the Coronavirus Preparedness and Response Supplemental Appropriations Act, which provides $50 billion low-interest loans to provide capital and liquidity to firms affected by the coronavirus. However, the SBA has explicitly excluded cannabis businesses, even if it is legal in the state. Hemp companies are not included in this as they are completely legal under the 2018 Farm Bill. Learn more here.

Families First Coronavirus Response Act:

• Included under this act is the Emergency Family and Medical Leave Expansion Act, which outlines the requirements for providing ongoing family paid leave time for up to 12 weeks. If an employee cannot attend work due to having coronavirus, having to support a child that cannot go to school, or are under a shelter-in-place order, employers can still pay them up to 12 weeks and still get reimbursed under this act.

• The Emergency Paid Sick Leave Act also falls under this category and applies to businesses with fewer than 500 employees. Two caps are provided, which are reimbursable:
  • $511 per day and $5,110 if an employee is ill or subject to quarantine; and
  • $200 per day and $2,000 if an employee is caring for others.
• Finally, the Pay Tax Credits under this act states that the IRS will refund employers 100% of the cost paid for sick leave, either through payroll tax credits and/or direct payment refunds.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act:

• The Act grants small businesses the ability to receive small business interruption loans to cover payroll expenses, health care benefits, employee salaries, rent, utilities, and interest on mortgage debt.
• There are two programs under this act, including:
  • The Paycheck Protection Program which are loans made by traditional commercial lenders of up to $10 million, with 4% interest and up to 10 years; and
  • The SBA Economic Disaster Loans, made out directly by the SBA. The loans can be made up to $2 million and have interest rates of 2.75% for non-profits and 3.75% for small businesses. You are eligible if you are:
    • A small business with fewer than 500 employees or otherwise meets the SBA’s size standard
    • A 501(c)(3) with fewer than 500 employees
    • An individual who operates as a sole proprietor
    • An individual who operates as an independent contractor
    • An individual who is self-employed who regularly carries on any trade or business
    • A Tribal business concern that meets the SBA size standard
    • A 501(c)(19) Veterans Organization that meets the SBA size standard
  • Unfortunately, cannabis companies are not eligible for SBA loans, and it is unlikely that they would be covered by the Payment Protection Program either.

Please note: the programs mentioned above do not support cannabis businesses even though cannabis facilities were deemed essential businesses that are allowed to remain open for business during these times. Read more about whether Marijuana is ‘Recession-Proof?’ Industry Experts Say Yes – To A Point – and Alcohol Might Be A Guide.