Please see below for important updates on Coronavirus (COVID-19) and its impact to employers.
Colorado Small Businesses Eligible for Federal Disaster Loan Assistance
We are happy to share that Colorado was just approved for the federal Small Business Administration’s (SBA) Economic Injury Disaster Loan program. Under the program, small businesses and nonprofits throughout the state can seek up to $2 million in loans to help with disruptions to operations due to COVID-19. The loans can be used to pay for essential needs like payroll, accounts payable, fixed debts, and other bills that can’t be paid due to the virus. The interest rate is 3.75% for small businesses and 2.75% for nonprofits.
For more information on applying for a small business loan under the Disaster Assistance Program, visit the SBA’s website here.
U.S. Senate Proposing Another Federal Bill Giving Relief to Small Businesses, Taxpayers
The U.S. Senate is currently working on a third COVID response bill that would provide assistance to small businesses, individual taxpayers, and severely stressed sectors of the U.S. economy.
While the proposal is still in development, lawmakers have indicated that the initial plan would appropriate $300 billion in small business interruption loans. Employers with 500 or less employees could be eligible, and the loans would cover six weeks of payroll for employees. Further, the possibility of obtaining key person life insurance or other loans of this kind can be discussed. If loans such as these can be procured by business owners or important personals in the business, they could possibly ensure the survival of the firm even if they are unable to continue being active.
The proposal would also provide secured loans to the airline industry and other critical sectors of the economy that are experiencing severe financial distress due to COVID. Additionally, lawmakers are weighing direct payments to individual taxpayers based on income level and family size.
The legislation is expected to be finalized as early as next week for consideration in the U.S. Senate.
The Colorado Chamber is committed to keeping our members up to date on the latest developments on COVID-19’s impact to the business community. Please visit our website at www.cochamber.com/coronavirus for resources and updates.