Yesterday’s senate special committee meeting focused on support for small business, inviting Jane Sawyer, Director, Hawaii District Office of the US Small Business Administration, and Dennis Ling, Administrator of the Business Development and Support Division of the State Department of Business, Economic Development & Tourism. See agenda and link to the session. The state will be working to support the funding coming from the federal relief act—CARES (H.R.748).
The CARES Act provides $350 billion for guaranteed loans under the Small Business Administration to help small businesses impacted by the COVID-19 pandemic. There are two major programs approved for Hawaii on March 20: Economic Injury Disaster Loan and Paycheck Protection Program (see below). The faster employers apply for these loans, the more it will help them to survive and keep their workers employed through the COVID-19 pandemic. You apply through your bank and once approved, you can receive the loan quickly. There is no cost to apply and no prepayment penalty. Sounds too good to be true? Well, it is. The federal relief act is meant to be just that – funding to buttress businesses and their workers against the downturn from the COVID-19 disaster. For more information on SBA resources to help you see the SBA small business guidance page or contact our Hawaii District Office.
Economic Injury Disaster Loan for up to $2 million to support small businesses and nonprofits to help overcome the temporary loss of revenue caused by COVID-19. The low interest loan (3.75% for small business and 2.75% for nonprofits) for a period up to 30 years can be used to pay fixed debts, payroll, taxes, etc. that cannot be paid because of disaster’s impact. See SBA disaster assistance page. You can see the loan application here. You can also apply for an advance of $10,000 as a bridge to continue your current operations and this will be forgiven.
Paycheck Protection Program (for period February 15 through June 30 2020) is an incentive program for small businesses to keep their workers on the payroll. The loan is for 8 weeks and can used for payroll, rent, mortgage interest, taxes, utilities: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
Economic Impact Payment. One more thing we learned. The direct cash payment to help in recovering from the economic impact of COVID-19 is administered by the Internal Revenue Service (IRS). IRS will be sending checks directly to you. However, if you are not working, you need to file a simple tax return. See https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
Like the special committee you may have been wanting to hear from the Governor on what’s happening in our battle against the coronavirus. We are pleased that Governor along with Health Director Bruce Anderson and Incident Commander Kenneth Hara will be having daily press briefings at 2:30 pm. The first was held yesterday. For updates, see the Hawaii COVID-19 website.
One last thought: We are just learning about the COVID-19 virus (can you believe that it has been around for less than 3 months) but South Korea has had a long history with other virus outbreaks and has tackled and contained the virus. So I leave you with advice from Dr. Kim Woo-Ju, the “Dr. Fauci” of South Korea, professor and expert in infectious diseases at Korea University and instrumental in South Korea’s success in containing the virus. Each individual can contribute to ending the COVID-19 outbreak: Wash your hands well, wear a mask, and social distance. https://www.youtube.com/watch?v=gAk7aX5hksU&feature=youtu.be
