Understanding the SBA Small Business Disaster Relief Loans
The Winston Salem Chamber is hosting a virtual meeting with Levi Kinnard, SBA Economic Development Specialist with the North Carolina District Office:
Wednesday, March 25, 10AM
Dial in: (605)-313-6023 \\ Access Code: 80-52-93#
Two New Refundable Payroll Tax Credits
The U.S. Treasury Department, the IRS, and the U.S. Department of Labor have announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. The key takeaways are:
Paid Sick Leave for Workers
For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
Employers receive 100% reimbursement for paid leave pursuant to the Act including health insurance costs.
Requirements subject to a 30-day non-enforcement period for good faith compliance efforts.
To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week. Learn more below.
Child Care for Essential Workers
We are happy to share that Imprints Cares and WS/FCS are providing childcare to essential personnel at 7 school sites beginning today, March 23rd. Learn more below:
The census is important for numerous reasons. The government relies on accurate data by the census to help allocate funds for things like educational programs, national disaster responses, funding for hospitals, and resources for schools. Additionally, the results of the 2020 census will help determine how many congressional seats and Electoral College votes our state receives. It is vital that every household in Forsyth County participates.
Hanesbrands Rises to The Occasion
Winston Salem’s own Hanesbrands was asked by the U.S. Department of Health and Human Services on Friday, March 13th if it could help address shortages of personal protective equipment due to COVID-19 by producing masks. HanesBrands responded by converting the company’s apparel production to the production of cotton masks approved by the Federal Drug Administration. In challenging times, it is great to see companies stepping up to serve the greater good.
Feds to Buy Debt
This morning the Federal Reserve announced a major expansion of lending programs that are designed to energize credit markets that tightened last week. This would expand its facilities to include certain types of corporate and municipal debt.
The Federal Open Market Committee sets rates and clarified that the purchases of Treasury and mortgage securities it approved one week ago are essentially unlimited. Additionally, the central bank said it would buy $375 billion in Treasury securities and $250 billion in mortgage securities this week. They will also begin purchasing commercial mortgage-backed securities issued by government-supported entities, which primarily consist of debt on apartment buildings.
Other components of the plan include:
- Launching three new lending facilities, including the crisis-era Term Asset-Backed Securities Lending Facility (TALF). These are the same that the central bank used in 2008 to support consumer and business credit markets. The Fed will lend money to investors to buy securities backed by credit-card loans and other consumer debt.
- The central bank unveiled plans for two lending facilities to support corporate credit markets.
- One will lend to investment-grade companies and provide bridge financing of four years
- A second will buy corporate bonds issued by highly rated companies and U.S.-listed exchange-traded funds in the investment-grated corporate-bond market.
- Those three facilities are designed to support $300 billion in new financing and the Treasury Department will cover $30 billion in losses.
There was good news for eligible small and midsized businesses, as well. There will be a Main Street Business Lending Program that will support lending for smaller businesses in need of relief.
Resources for Local Tourism Industry
Visit Winston-Salem is coordinating efforts to assess and respond to the impact of Covid-19 on local businesses supported by visitors and locals alike. Find their latest updates below:
Biotechnology Coronavirus Hub
The Biotechnology Innovation Organization is creating a hub for companies involved in research and development, testing, public health programs, and other related industries to facilitate the exchange of supplies and services. Companies in these fields should register below:
Winston Salem Chamber Resources: