Financial Assistance for the Affected Businesses

Federal, state, and local governments are trying to lessen the impact that the COVID-19 virus crisis has on companies.

As the coronavirus outbreak forces people to take extra precautions and avoid crowded places, businesses are suffering. In New York City, for example, some restaurants are experiencing declines in sales of as much as 30 percent, according to The Wall Street Journal. Because that kind of revenue dip can be devastating for small businesses, the U.S. government is providing financial assistance to companies that are taking a hit.

The White House is also evaluating additional measures to lessen the blow to businesses and mitigate the impact on the economy. Meanwhile, state and city governments are rolling out similar initiatives. Here’s where the federal government and some local governments currently stand.

Federal government

President Trump signed a bill that allows the Small Business Administration to issue an estimated $7 billion in low-interest loans. The presidential administration, as well as legislators on Capitol Hill, are discussing additional measures that have yet to be signed into law, including:

• Assistance to the airline and cruise industries
• A cut to the payroll tax 
• Paid sick leave for those affected by the virus who don’t have benefits through their employer
• Improved access to coronavirus testing
• Financial assistance to hourly wage workers affected by reduced business
• Increased access to small-business loans

New York City

The state of New York has seen more than 170 cases, the most of any state, with the majority clustered in Westchester County. New York City Department of Small Business Services commissioner Gregg Bishop told the Journal that the following measures will be made available to about 2,600 businesses in New York City:

• Businesses of up to 100 employees that can document a drop in sales of 25 percent or more in recent weeks may be eligible for zero-interest loans of up to $75,000
• Businesses with fewer than five employees may be eligible for cash grants of up to 40 percent of payroll costs for two months, which will average about $6,000

Read more: https://www.inc.com/kevin-j-ryan/coronavirus-resource-list-for-businesses.html?icid=hmside1