Breaking Down Options for Small Businesses

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (S. 3548) among other things, is an unprecedented financial assistance package for small and mid-size businesses. There are a number of provisions coming online to support small businesses, which can also lead to a bit of confusion on where you should start. In an attempt to clarify eligibility for the various small business-related components of the bill, we offer this breakdown.

Options for Small Businesses

I am a sole proprietor, self-employed or an independent contractor. What are my options?

• You are now eligible to file for unemployment with Iowa Workforce Development — OR —
  
• You are eligible to participate in the Paycheck Protection Program. This program is set to open on April 10. You will go through a local SBA approved lender. You can review the guidelines and review needed documentation here. Additionally, the U.S. Chamber has created an easy-to-follow checklist that you can view here. Additional details to follow.
• You are eligible for a SBA Economic Injury Loan (EIDL). With this program comes an opportunity for an emergency advance of up to $10,000 that is forgivable.
  • Talk with your banker about the possibility of using both the PPP and EIDL.
• If you are an Iowa Targeted Small Business or were in the process of becoming one, you are eligible for the Targeted Small Business Sole-Operator Fund. Applications are open until April 10.
• If you need to care for a child whose school or place of care is closed, or child care provider is unavailable, because of COVID-19 related reasons, then you are entitled to take expanded family and medical leave (FMLA) and receive up to 10 weeks of paid FMLA tax credit. This was established under the Families First Coronavirus Response Act (H.R. 6201). Visit Iowa Workforce Development for more details.

I am a 501c3. What are my options?

• You are eligible to participate in the Paycheck Protection Program. This program is set to open on April 3. You will go through a local SBA approved lender. You can review the guidelines and review needed documentation here. Additionally, the U.S. Chamber has created an easy-to-follow checklist that you can view here. Additional details to follow.
• You are eligible for a SBA Economic Injury Loan (EIDL). With this program comes an opportunity for an emergency advance of up to $10,000 that is forgivable.
  • Talk with your banker about the possibility  of using both the PPP and EIDL.
• If you have had to cut staff, or reduce hours, those employees can for unemployment with Iowa Workforce Development.
• If staff members need to care for a child whose school or place of care is closed, or child care provider is unavailable, because of COVID-19 related reasons, then they are entitled to take expanded family and medical leave (FMLA) and receive up to 10 weeks of paid FMLA tax credit. This was established under the Families First Coronavirus Response Act (H.R. 6201). Visit Iowa Workforce Development for more details. 

I am a small business with fewer than 500 employees. What are my options?

• You are eligible to participate in the Paycheck Protection Program. This program is set to open on April 3. You will go through a local SBA approved lender. You can review the guidelines and review needed documentation here. Additionally, the U.S. Chamber has created an easy-to-follow checklist that you can view here. Additional details to follow.
• You are eligible for a SBA Economic Injury Loan (EIDL). With this program comes an opportunity for an emergency advance of up to $10,000 that is forgivable.
  • Talk with your banker about the possibility of using both the PPP and EIDL.
• If you have had to cut staff, or reduce hours, those employees can for unemployment with Iowa Workforce Development.
• If staff members need to care for a child whose school or place of care is closed, or child care provider is unavailable, because of COVID-19 related reasons, then they are entitled to take expanded family and medical leave (FMLA) and receive up to 10 weeks of paid FMLA tax credit. This was established under the Families First Coronavirus Response Act (H.R. 6201). Visit Iowa Workforce Development for more details.

I am a 501c6. What are my options?

• You are eligible for a SBA Economic Injury Loan (EIDL). With this program comes an opportunity for an emergency advance of up to $10,000 that is forgivable.
• If you have had to cut staff, or reduce hours, those employees can file for unemployment with Iowa Workforce Development.
• If staff members need to care for a child whose school or place of care is closed, or child care provider is unavailable, because of COVID-19 related reasons, then they are entitled to take expanded family and medical leave (FMLA) and receive up to 10 weeks of paid FMLA tax credit. This was established under the Families First Coronavirus Response Act (H.R. 6201). Visit Iowa Workforce Development for more details.

You can count on The Partnership to continue to share accurate and fact-based updates as well. See more on COVID-19 here.

Find these tips useful? Find more business tools and information by visiting the Business Resources page.