We’re In This Together!
31 Mar 2020
How quickly things can change – and we do not mean the weather!
The Wall Economic Development Corporation wants to provide its community members with any information that might be helpful with the recent COVID-19 outbreak. All employers should be implementing strategies to protect their workforce from the coronavirus while ensuring continuity of operations. We also urge businesses to get creative on ways to keep their sales up – post photos of inventory online, offer free delivery for the month, and stay in front of your customers via your online channels.
Many Wall’s businesses have already announced closures or modified their hours, which not only greatly impacts their ability to generate revenue for themselves, but may also put many of their employees out of work.
What to do if you’ve been laid off:
- Take a couple days to strategize
- Utilize unemployment insurance. It’s not going to make you wealthy, but it can help you pay for groceries and bills during tough time. Apply right away if you’ve been laid off
- Call your landers and utility companies and explain your situation.
- With a lot of people working remotely, it is actually a good time for networking or acquiring new skills.
- Don’t forget to think big and be creative. It’s a great time to think about where you career to be in two to three years. Be strategic about where you want to be when this is over.
- Whatever you choose to do, just remember that this is –without question – a difficult time, but time passes and so will this.
- Remember that you’re not alone
There are many new programs rolling out under the CARE ACT. Below are three new programs for employers and their employees:
1. Covid- 19 Reemployment Assistance (Apply here)
This program is rolled out under the SD State unemployment office. It is similar to unemployment Insurance, but without the weekly job search requirement. In addition to normal state payments based on income there will be an extra $600.00 weekly to beneficiaries:
- If you are out of work because your employer closed due to Covid -19, if you have tested positive for Covid 19, if you have been sent home because your employer thinks you are a risk, or if you have reduced hours you will qualify for this program.
- If you have self-quarantined and are unable to work, or if you are unable to work because you are caring for a dependent, you are unlikely to qualify.
2. The Small Business Assistance Economic Injury Disaster Loan & Emergency Economic Injury Grants (Apply here)
This loan offers temporary assistance to small businesses to help overcome temporary loss of revenue. The grant provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production cost due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
3. Small Business Paycheck Protection Program
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at http://www.sba.gov.
Loan Terms & Conditions
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
If you are a lender, more information can be found here
If you’re a borrower, more information can be found here
The application for borrowers can be found here
Responding to the Census
The 2020 Census is happening now. You can complete your questionnaire online, by phone, or by mail.
You can respond to the 2020 Census by visiting our online questionnaire https://my2020census.gov
Responding by phone.
It’s easy, simple and confidential. Call 844-330-2020.
Responding by Mail
To respond to the census, you can mail back the paper questionnaire sent to your home.
The 2020 Census will ask a few simple questions about you and everyone who is or will be living with you on April 1, 2020
Wall Economic Development Corporation always welcomes local businesses and individuals to become investors/members of WEDC to help our community to grow.
The goal of Wall Economic Development is to improve the quality of life of residents in Wall.
If you are interested to become a WEDC member, please contact Liliya Stone at 605-279-2658 or email@example.com
Thank you to our members for believing in our organization and supporting us.
Sincerely, Liliya Stone
Executive Director of WEDC