As this article is being prepared, the Senate has already passed the coronavirus stimulus package, and members of the House of Representatives are traveling to the nation’s capital for a vote. If the package is passed as-is, how will your small business benefit? Here are a few highlights:
- Direct payments – Unless you or your workers are making over $75,000/year, every adult is getting $1,200.
- Payroll tax credit – If you have fewer then 500 workers, there is a tax credit.
- Expanded unemployment insurance – Even if you are a sole-proprietor or a freelancer, you may be eligible for unemployment if you can’t work.
- Loans or grants – Small businesses may be eligible for loans or grants to pay for your payroll rather than laying off employees. The loans can also be used for rent and utility payments or for mortgage interest. How much you can receive is based on how much you paid your employees during the first two months of this calendar year.
The stimulus for small businesses is designed to help you continue to pay your employees during the pandemic. After all, with the added unemployment benefits, the government will be paying them if you don’t, so the bill is designed to help you keep workers on.