By GARLAND KENNEDY
Sentinel Staff Writer
Local employers and businesses can apply for a number of federal aid programs which are designed to mitigate the economic impacts of the coronavirus pandemic, a U.S. Chamber of Commerce representative told the Sitka Chamber Wednesday.
“The policymakers’ goal here is to enable businesses to continue paying their obligations and, most importantly, continue paying their employees during this crisis,” U.S. Chamber Northwest Region Director Chris Eyler said over teleconference.
There was no gathering at the Westmark Hotel as usual for the Sitka Chamber. Instead, about 60 Sitkans took part from the various places where they’re self-isolating, tuning in to the proceedings by way of the teleconference application Zoom.
Eyler provided details about the $2 trillion federal relief package, which ranges from checks to individuals to payroll protection offered to businesses. Chief among the relief bills which have worked through Congress is the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which alone is equal to ten percent of the United States’ GDP.
The Paycheck Protection Program is a $349 billion program which allows banks to offer loans to businesses for up to two and a half months of payroll, Eyler said.
He added that standards for applying for the PPP have been lowered. All that’s needed is “a good faith certification from the borrower that this money is necessary because your operations are going to be adversely required by the ongoing coronavirus crisis.”
Also, after eight weeks, a Paycheck loan becomes a grant, equal to the amount spent on payroll, interest on mortgage, rent and utilities, Eyler said. However, if a business dedicates less than three-quarters of the paycheck protection funding to paying employees, the amount of money turned into a grant is reduced.
The money which remains in loan form, he said, will have one percent interest and a two-year payment period. Employers also have time to bring employees back on payroll under this program.
“If you have laid off an employee between February 15 and April 26 of this year, you have until June 30 to bring those employees back on board and restore wages in order to avoid any reduction in the amount of a loan turned into a grant forgiven,” he said.
The computer desktop of Chris Eyler is projected along with some of the audience members of Wednesday’s Sitka Chamber of Commerce meeting. It was the first online-only meeting of the chamber. Eyler, executive director of the Northwest Region in the Congressional and Public Affairs Division at the U.S. Chamber of Commerce, discussed the $2 trillion CARES Act. (Sentinel Photo)
The CARES Act also allows employers to delay payment of federal payroll taxes until January 1, 2021. However, Eyler said, a business which does so will not be able to claim loan forgiveness under the program.
Another aspect of the new law is a $1,200 payment directly to individuals who make under $75,000 annually, with the amount scaling down the higher a person’s income.
The Small Business Administration also is offering new disaster loans, Eyler said. A business can request up to $10,000 for emergency aid, which should be handed out within three days of the application’s being reviewed.
“This does not have to be repaid, even if the underlying loan is denied. You still get to keep the money,” he said.
However, Eyler noted that the wait time has grown with the sheer volume of people applying for the loans.
Eyler, and some commentors at the Chamber meeting, acknowledged that the situation is changing day-to-day. The U.S. Chamber of Commerce offers a short guide to COVID-19 economic relief at uschamber.com/co/start/strategy/cares-act-small-business-guide.
Further coronavirus economic aid bills remain on the floor in Congress.
