COVID-19 resources for small employers

As the COVID-19 pandemic continues to disrupt life and businesses in the U.S., we explore two key federal resources for organizations with fewer than 500 employees. Ellen McCann offers recent legislative updates to the Families First Coronavirus Response Act (FFCRA). Laura Kilmartin then unpacks the Paycheck Protection Program, a Small Business Administration (SBA) lending program designed to encourage businesses to keep their employees on the payroll. Key takeawaysThe Department of Labor has offered further guidance on the Families First Coronavirus Response Act – check their FAQ page. On April 9, we will release a special episode to cover the key updates. [02:55]The Paycheck Protection Program (PPP), administered by the SBA, is applicable to any small business with fewer than 500 employees, including sole proprietorships, independent contractors, self-employed persons and tax-exempt non-profits and veterans’ organizations. Several other employer types are designated by the SBA as small businesses even if they have more than 500 employees — check their website for updates. [05:17]A loan under the PPP has a two-year maturity and 1% interest rate. However, it is intended to act like a grant and will be forgiven if all employees are kept on the payroll for eight weeks and the money is only used for authorized purposes. [07:21]The rules are fairly simple: Loan proceeds must be used for payroll costs, including insurance premiums; mortgage interest; rent; and utilities. A total of 75% of the forgiven amount must have been used for those costs, and forgiveness is based on the employer maintaining or quickly rehiring all employees and maintaining salary levels. [10:02]Any SBA lender or federally insured bank or credit union is eligible to issue loans through this program. Check with your local lender to see if they are participating in the program. Fill out a loan application before June 30, 2020, but the sooner the better — limited funds are available. [14:07]Check the Small Business Administration website for more information.  Laura Kilmartin AVP, Government Affairs, Unum Laura is an insurance professional and attorney with a specific focus on government affairs and regulatory compliance. As Assistant Vice President of the Government Affairs organization at Unum, Laura focuses on state legislation and paid family leave. Since joining Unum in 2000, Laura established claims policies and practices for the benefits organization to ensure compliance with legislative and regulatory requirements and support new IT, product and leave initiatives. She also managed the Benefits Quality Assurance programs for all Unum’s insurance products and leave services.  Get in touch: hrtrends@unum.com(207) 200-6685