The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. Its aim is to support American businesses during this very uncertain time with a $2 trillion stimulus package, and it has been watched closely by business owners across the country.
You may be wondering what this means for your portable sanitation company. We’ve included the main points and some advice below.
The CARES Act provides for an extra $600 per week in unemployment benefits for eligible workers on top of whatever benefits they were already able to receive. The benefit has been expanded to include members of the so-called ‘gig economy,’ the self-employed, freelancers, independent contractors, part-time workers, and new hires who were unable to commence their roles.
This means that any employees you have to let go because of COVID-19 can take advantage of this additional payment from the government.
Note: Any of your employees already on paid leave will not be eligible.
Almost all taxpayers who receive under $75,000 a year will also receive a one-time cash payment of $1,200 per adult and $500 per child under the age of 16. You may have received this payment already.
As a small business, there are some new loan opportunities available to you:
The Economic Injury Disaster Loan scheme has been expanded to include businesses with fewer than 500 employees affected by COVID-19. Successful applicants can receive an advance payment of $10,000, which does not have to be repaid, and a further loan amount with flexible payback terms. It is intended to cover sick leave, payroll, increased costs due to disrupted supply chains, mortgage payments, and debts.
The Paycheck Protection Program has created an emergency loan to help small businesses pay their staff and cover operating costs for two months. It is intended to help you retain your workforce — make payroll, utilities, mortgage, and lease payments — and pay interest on prior debts. If you keep your employees for 8 weeks after the loan payment, your loan is forgiven in part or in whole.
If the terms of these loans are met, they can act as partial or full grants. For more info on these, and for an in-depth analysis of the CARES Act, members of Portable Sanitation Association International can log in to access a downloadable summary.
If you receive some of the above payments from the CARES Act, how you use them is up to you. Review your portfolio and see where the cash is most needed. The most important thing right now is keeping your business afloat. There will come a time in the not-so-distant future when you’re back out on the field, so if this governmental aid can keep your employees on the books or keep your mortgage payments going, it may take the stress off your shoulders.
If you are keeping staff on, you may be wondering what to do with them right now if business has slowed. Why not check out our tips for tasks to keep you busy during slow periods?
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