March 26, 2020
UPDATED/NEW Guidance, Resources, Grants and Loans for Businesses Impacted by COVID-19

*Note: Additional Local & National Updates Expected Soon
The Southern Wayne County Regional Chamber will continue to work to identify critical resources for our membership. The Chamber urges our members to follow the appropriate recommendations, executive orders and precautionary actions to protect your organization and talent from this and any other respiratory illness. Additionally, it is critical to support our local small businesses who have been impacted. Order takeout or delivery from restaurants, shop small businesses online or by phone, support those who are impacted within our event and health/fitness industries, and do what you can to keep our local economy strong.

Please review the following message for more information and follow the SWCRC on Facebook for updates.
UPDATED: WEBINARS AND SEMINARS TO ASSIST THE BUSINESS COMMUNITY WITH NEW LAWS AND EXECUTIVE ORDERS
There are several webinars that are being made available to help our business community navigate the many new laws and executive orders coming out. Please follow the SWCRC on Facebook as we post these opportunities for Downriver entrepreneurs and job providers.
UPDATED: SENATE PASSES CARES ACT: WOULD PROVIDE RELIEF FOR BUSINESSES OF ALL SIZES, SELF EMPLOYED AND AMERICAN WORKERS
The US Senate passed bipartisan legislation to provide emergency relief to workers, families, small businesses and distressed industries. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) now moves to the US House where it is expected to see swift action.

Here are the details of the CARES Act according to an analysis  by the House Ways and Means Committee. A link to a full summary of the bill is located below these details.

Unemployment
  • Includes $250 Billion to Expand Unemployment Benefits: Provides economic relief and support for workers by making a significant investment in unemployment benefits.
  • Unemployment Benefits for More Americans: Makes sure self-employed and independent contractors can receive unemployment during the public health emergency. The bill also includes support to state and local governments and nonprofits so they can pay unemployment to their employees.
  • More Money for a Longer Period for More Workers: Makes benefits more generous by adding a $600/week across-the-board payment increase through the end of July. In addition, for those who need it, the bill provides an additional 13 weeks of benefits beyond what states typically allow.
  • Temporary Provisions: The expansion in unemployment benefits expires at the end of 2020.

Tax
  • Includes Tax Rebate Checks - The Senate bill also includes a one-time tax rebate check of $1,200 per individual and $500 per child for those with a valid social security number. There are no earned income or tax liability requirements to receive these rebate checks. The full rebate amount is available for those with incomes at or below $75,000 for individuals, $112,500 for head of household, and $150,000 for married couples.
  • Provides Another Option for Employers to Keep Connected to Their Employees. Employers of all sizes that face closure orders or suffer economic hardship due to the coronavirus crisis that continue to pay employees that are furloughed may be eligible for a 50% credit on up to $10,000 of wages paid to those employees. This will help workers keep their jobs, help local businesses ride out this storm, and ensure that furloughed workers have jobs to return to.
  • Delays Payroll Tax Payments for Employers: Employers would be able to delay the payment of their 2020 payroll taxes until 2021 and 2022, leading to approximately $300 billion of extra cash flow for businesses.
  • Restores Supports for Businesses Suffering Losses: The bill also allows businesses to carry back losses from 2018, 2019, and 2020 to the previous 5 years, which will allow businesses access to immediate tax refunds.

Small Businesses
  • Paycheck Protection/Forgiveness For Small Business Loans for Keeping Employees: The bill creates a “paycheck protection program” for small employers, self-employed individuals, and “gig economy” workers, with $350 billion to help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by the COVID-19 pandemic. The “Paycheck Protection Program” would provide 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency. If the employer maintains payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven, which would help workers to remain employed and affected small businesses and our economy to recover quickly from this crisis. This proposal would be retroactive to February 15, 2020, to help bring workers who may have already been laid off back onto payrolls.
  • Small Business Contractors Also Get Protection: Federal agencies would be required to extend contract performance periods and promptly pay small business contractors impacted by COVID-19.
  • Debt Relief: For six months, SBA is required to pay all principal, interest and fees on all existing SBA loan products including 7(a), Community Advantage, 504, and Microloan programs for six months.

Distressed Industries
  • Federal Tools to Provide Liquidity: $425 billion for loans, loan guarantees, and investments in support of facilities established by the Fed under 13(3) authority for purpose of providing liquidity to businesses, states, or municipalities through purchasing obligations or other interests directly from issuers of such obligations or other interests.
  • Loans for Major Industry: Direct lending to the following: $50 billion for passenger airlines, $8 billion for cargo airlines, and $17 billion for businesses critical to “maintaining national security.”

The bill will now be taken up by the U.S. House of Representatives. The SWCRC will provide more information to our members as it becomes available concerning funding applications as the bill is signed into law.
UPDATED: DETAILS ON THE MICHIGAN STAY HOME, STAY SAFE EXECUTIVE ORDER. WHAT IS AN ESSENTIAL BUSINESS?
Governor Whitmer has issued a Stay Home, Stay Safe Order for the State of Michigan to prevent the further spread of COVID-19. The order goes into effect on March 24, at 12:01 a.m. and stays into effect until April 13 at 11:59 p.m. The U.S. Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) released official guidance from the President regarding the Identification of Essential Critical Infrastructure Workers During COVID-19.

We understand that there are many questions from businesses concerning what qualifies as an "essential service." The State's guidance of FAQs linked  HERE  is a resource, along with the Executive Order itself. 

Update: Yesterday, the U.S. Chamber was joined by Christopher Krebs, who serves as the first director of CISA to discuss the  guidance  that was issued last week and its impact on the business community. Please  click here  to access the recording.

Chamber members can contact CISA directly to ask questions on the guidance they issue and check to see whether they are included or not. Businesses could also ask for consideration to be included in CISA’s guidance as well. CISA’s email is: cisa.cat@cisa.dhs.gov.

Please review the list of essential services and workers  HERE  and also refer to the Governor's Executive Order for guidance.
UPDATED: FAMILIES FIRST CORONAVIRUS RESPONSE ACT GUIDANCE RELEASED
NEW: Click HERE to see presentation notes from a recent webinar to assist job providers with navigating the new Families First Coronavirus Response Act.

NEW: Click HERE to download the "FFCRA Employee Rights" Poster.

The Families First Coronavirus Response Act was signed into law by President Trump. The bill provides paid leave and FMLA benefits for employees of businesses and government organizations with fewer than 500 employees. The bill provides for reimbursement by way of refundable tax credits of leave expenses to businesses who meet the criteria.

The U.S. Department of Labor's Wage and Hour Division issued their first level of guidance on how the Families First Coronavirus Response Act (FFCRA) will affect employers and employees. In the text, the DOL makes it clear that they will be issuing further guidance and regulations related to the exemptions for employers with fewer than 50 employees, as well as health care providers—which will we share with you as soon as it becomes available.

The guidance—provided in a  Fact Sheet for Employees , a  Fact Sheet for Employers  and a  Questions and Answers  document—addresses critical questions, such as how an employer must count the number of their employees to determine coverage, how small businesses can obtain an exemption, how to count hours for part-time employees, how to calculate the wages employees are entitled to under this law, and more. 
NEW LOAN OPPORTUNITY: TCF, WAYNE COUNTY COMMIT $6 MILLION TO NEW LOW-INTEREST (0-2%) LOAN FUND FOR SMALL BUSINESSES
TCF Financial Corp. and Wayne County are committing at least $3 million each to a new low-interest loan fund for small businesses in Wayne County to borrow money as soon as next week to sustain their operations during the coronavirus-related shutdowns. Under the program being announced Wednesday, small businesses in Wayne County can apply for working capital loans ranging from $5,000 to $50,000 from Detroit-based TCF Bank that can be used for payroll, rent and utilities.

The criteria for the loans includes showing a 25 percent or more loss in revenue as a result of the economic upheaval from the coronavirus outbreak, said Gary Torgow, executive chairman of TCF Financial Corp.

The initial $6 million will be available for loans within a week of small-business owners applying and qualifying for a loan, Torgow said.

Interest rates for the loans will range from zero to 2 percent and will be interest-only for the first six months, County Executive Warren Evans said.
SBA ECONOMIC INJURY DISASTER LOANS NOW AVAILABLE TO MICHIGAN BUSINESSES AND NONPROFITS
*Available seminars to help our members will be announced. Follow the SWCRC on Facebook for updates.

Governor Gretchen Whitmer announced that the U.S. Small Business Administration (SBA) has approved her request for a statewide Economic Injury Disaster Loan (EIDL) declaration, opening the opportunity to small businesses to access low-interest loans from the SBA. Small businesses who have been impacted by COVID-19 seeking loan funding to help with operational expenses will need to apply for loan funding ONLINE . The official link to access the loan application is located HERE.

These funds are not meant to replace lost profit. The funds are designed to be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Please review the details and qualifications of this loan program HERE.

Small businesses in qualifying areas will be able to access low-interest loans through the SBA, with an interest rate of 3.75% for businesses, and 2.75% for nonprofits. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

For additional information or to obtain help preparing the loan application, please contact the Michigan SBA offices in Detroit .

UPDATE: Possible Changes to SBA’s Economic Injury Disaster Loans (EIDLs) if the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) becomes law:
• Loans can be made based solely on credit scores.
• Loans available to all non-profits, including 501(c )(6)s.
• Loans below $200,000 can be approved without a personal guarantee.
• Borrowers can receive $10,000 cash advances that are forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments, or repaying obligations that cannot be met due to revenue losses.
MICHIGAN MEDC SMALL BUSINESS RELIEF PROGRAM ANNOUNCED TO PROVIDE $20 MILLION IN GRANTS AND LOANS TO HARDEST HIT BUSINESSES
The Michigan Small Business Relief Program announced today authorizes the MEDC to provide up to $20 million in support for small businesses. The funding is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.

The qualifications limit GRANT funding to businesses with 50 employees or less, who need working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business.

The qualifications limit LOAN funding to businesses with 100 employees or less, who need working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business. Companies must demonstrate that it cannot access capital through alternate sources.

More information on small business LOANS expected to be available no later than April 1 is located HERE .

More information on small business GRANTS expected to be available no later than April 1 is located HERE.  

The application and more information is expected to be available HERE no later than April 1. 
EMPLOYERS CONTEMPLATING POTENTIAL LAYOFFS
The State of Michigan and Michigan Department of Labor & Economic Opportunity Director Jeff Donofrio have provided critical guidance to employers contemplating potential layoffs.

The SWCRC is recommending our members and employers if possible to consider temporary leave, rather than terminations. The State has also sent out a very important message urging the same. This notice also provides specific guidelines for employers placing talent on temporary unpaid leave.
UPDATED: UNEMPLOYMENT INSURANCE FOR EMPLOYEES AND EMPLOYERS IMPACTED BY COVID-19 AND EXECUTIVE ORDER CLOSURES:
Work Share Program – The Governor’s Unemployment Insurance (UI) Executive Order expands the State’s Work Share program. With the plan, rather than being laid off, eligible employees work a reduced number of hours in the work week and receive a portion of weekly unemployment benefits. Employers are encouraged to implement the program that permits employers to maintain operational productivity during declines in regular business activity instead of laying off workers. More information and guidance about Work Share can be found HERE.

It’s important to note that the Executive Order (EO) now allows all employers to take advantage of the program, regardless of whether the employer’s reserve in the employer’s experience account as of the most recent computation date preceding the date of the employer’s application is a positive number.

Unemployment Benefits – Eligibility has been expanded for those impacted by COVID-19 during this crises. Eligible employees should apply for unemployment benefits online at Michigan.gov/UIA or 1-866-500-0017. A factsheet on how to apply for benefits for those impacted by the COVID-19 pandemic can be found HERE.

Additional unemployment resources for employees can be found HERE.

UPDATE: The Governor issued Executive Order 2020-24, rescinding the original EO addressing unemployment insurance. The new order reaffirms the action of Executive Order 2020-10, and clarifies and strengthens its expansion of eligibility for unemployment benefits and cost-sharing with employers. A ccording to the Executive Order, there is no UI charged to the employer. " Any benefit paid to a claimant that is laid off or placed on a leave of absence must not be charged to the account of the employer(s) who otherwise would have been charged but instead must be charged to the Unemployment Insurance Agency’s non-chargeable account. Effective March 25, 2020 at 11:59 pm, the benefits conferred on employers by this section are not available to employers determined to have misclassified workers. "
PENALTY AND INTEREST WAIVED FOR 30 DAYS FOR MONTHLY MICHIGAN SALES, USE, AND WITHHOLDING TAX RETURNS DUE MARCH 20, 2020
The State of Michigan will be waiving penalty and interest on sales, use and withholding taxes for 30 days in light of the COVID-19 outbreak.
ADDITIONAL MEDC CAPITAL RESOURCES
The MEDC is encouraging businesses and communities throughout the state to learn more about its wide range of tools aimed at assisting Michigan’s small- and medium-sized businesses. In particular, the MEDC Access to Capital programs can provide greater availability of working capital during times of growth, change or economic uncertainty.

To support businesses and communities during this unprecedented time, the organization will also be evaluating virtual matchmaking and other enhancements to programs such as its International Trade, Entrepreneurship and Innovation, Pure Michigan Business Connect, PlanetM and Match on Main Street programs.

The Michigan Economic Development Corporation’s (MEDC) call center stands ready to support businesses looking for assistance through other available state programs. For more information, visit MEDC’s  website  or call 888.522.0103. The Michigan Small Business Development Center can also provide resources for small businesses impacted by COVID-19. Visit their  website  for additional information.
WAYNE COUNTY COVID-19 HOTLINE
The Information Center has been partnering with Wayne County Health, Human Services and Veteran’s Services Department to provide the Wayne County COVID-19 Hotline (734) 287-7870.

The Information Center has been working with Wayne County to respond to needs for up-to-date and accurate information about COVID -19 and related important information from Wayne County for Wayne County residents and businesses.