March 19, 2020Share
COVID-19 Assistance from the Small Business Administration
By: Harsh Arora, Partner in Kelley Kronenberg’s Fort Lauderdale office focusing his practice on business litigation and handling complex and international corporate transaction matters. He has represented multinational businesses as their outside general counsel.
The current COVID-19 pandemic is on the verge of becoming an economic crisis, if not already, with long-lasting impacts felt across all industries. Therefore, businesses must be proactive now, in order to combat and mitigate potential losses.
The Small Business Administration (SBA) may be an avenue for small businesses searching for a helping hand during the pandemic, as the SBA is encouraging small businesses to do their part to keep their employees, customers, and themselves healthy.
Some available assistance provided by the SBA are as follows:
- Economic Injury Disaster Loan Program provides small businesses with capital loans of up to $2 million in order to provide vital economic assistance to help businesses tolerate temporary losses of revenue.
- Guidance for Businesses and Employers for planning considerations if more widespread outbreaks of COVID-19 occur; to develop strategies for employers to implement immediately; and to provide suggestions on how to respond to common issues presented currently to small businesses, including:
- Capital Access
- Workforce Capacity
- Inventory and Supply Chain Shortfalls
- Facility Remediation and Clean-up Costs
- Insurance Coverage Issues
Assistance to Small Businesses to access federal resources.
Loan Resources for small businesses to utilize when operating their business, which may offer loan amounts up to $5,000,000.
Export Loans to provide help to small businesses in order to achieve sales through exports and to overcome the challenges associated with trade.
Government Contracting assistance to provide assistance with continuity of operations for small businesses with federal contracts.
Small businesses should start preparing, if they have not started already, for the ensuing economic impacts from the COVID-19 outbreak, and ask themselves questions, such as:
- Do we have a budget to pay employees if the income stream slows, or even stops?
- Do we have a budget to take all precautionary measures, such as the adequate funds to perform routine environmental cleaning around the office, in order for our employees to safely come into work to perform their employment duties?
- Do we have a budget to fund remote access for our employees, if possible to implement, so that they can work from home?
Small businesses should consult counsel in order to assist shuffling through, and potentially choosing the best available financial or other assistance program offered by the SBA.
Disclaimer: This article is intended to provide you with general information regarding the impact of a potential or actual coronavirus pandemic. The contents of this article are not intended to provide specific legal advice.
For more information, please contact Harsh Arora, email@example.com or TEXT, 954-256-0743