Increased Unemployment Benefits & Your Business
As a small business owner, we are facing unprecedented challenges. Many have experienced a dramatic reduction in business, along with steep drops in revenue and profits. We are making hard decisions and taking action to stay afloat.
The Paycheck Protection Program has provided some financial relief. These SBA loans are keeping some in business or buying time. The PPP loan was a life raft meant to keep businesses operating and paying their employees. This was intended to tide us over for eight weeks and, as a small business owner, I am grateful for this support and fortunate to have had a very good Q1.
But . . . some employees are making more money not working.
The CARES Act expanded unemployment benefits providing an additional $600 a week. Those benefits will last four months. Some employees are asking to be laid off to collect unemployment. If employees are being paid by their employers, they don’t qualify for these benefits.
This puts some businesses between a rock and a hard place. The SBA PPP loans are forgivable, as a grant, when employers maintain their staff levels and salaries. It’s difficult to know what to do and how to best handle this.
How has your small business been impacted?
How are you tackling these challenges? If you need some support navigating these current struggles, please don’t hesitate to reach out to us. You are not alone in this.
We’re here for you.
If you need specific questions answered or could generally use some guidance to help you during this time in your business—our team is here to support you. Click below to book a 1-hour consultation with our Executive Team.
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