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Resources for Dealing with the Impacts of COVID-19
Here is a quick round-up of some of the resources available to businesses and non-profit organizations dealing with the impacts of COVID-19.
Economic Injury Disaster Loan (EIDL) - Working capital loans of up to $2 million to help small businesses, small agricultural cooperatives, and private, non-profit organizations meet their ordinary and necessary financial obligations that cannot be met as a direct result of the COVID-19 disaster.
The EIDL program includes an opportunity for businesses to request an advance of up to $10,000. The EIDL advance does not have to be repaid.
Paycheck Protection Program (PPP) - Forgivable loans to help small businesses and private, non-profit organizations pay their employees during the COVID -19 crisis. Small businesses and sole proprietors can apply now and independent contractors and self-employed individuals can apply starting Friday, April 10th.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union or Farm Credit System institution that is participating. Locally that includes American Bank, CBW Bank, Commerce Bank, Community Bank & Trust, GNBank, and Labette Bank. Others may be participating as well so check with the institutions where you usually do your banking first.
Employee Retention Tax Credits - The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allowable qualified health plan expenses) that Eligible Employers pay their employees. This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021.
Eligible Employers must carry on a trade or business in calendar year 2020 and either:
- Fully or partially suspend operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
- Experience a significant decline in gross receipts during the calendar quarter.
Employers may not utilize both the Paycheck Protection Plan and Employee Retention Tax Credits. More details on the tax credits are available at:
Kansas Department of Labor's Shared Work Program - The Employment
Security (Unemployment Insurance) Shared Work Program is designed to help both employers and employees. It is an alternative for employers faced with a reduction in workforce and allows an employer to divide the available work or hours of work among a specified group of affected employees in lieu of a layoff. Shared Work allows the employees to receive a portion of their unemployment insurance benefits while working reduced hours.
Kansas Department of Labor's Layoff Spreadsheet - One of the key ways to help your employees during a layoff is to complete the layoff spreadsheet for all employees affected. The Kansas Department of Labor provides employers the option to assist their employees with filing an application for Unemployment Benefits during a layoff. This process allows the employer the ability to submit the application for unemployment insurance benefits for employees that are impacted by a plant shutdown, temporary layoff, permanent layoff or seasonal layoff. It is more efficient for your HR team and ensures that employees receive benefits as quickly as possible.
Please let Janet know if she can provide more information or answer questions about any of the above or help connect you with other resources.
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