Help available for firms hurt by COVID-19

VW independent/submitted information

The coronavirus (COVID-19) outbreak is causing a global health emergency, as well as a global economic slowdown. Trade, investment, growth, and employment are all affected and the crisis will have an impact on the achievement of the UN Sustainable Development Goals.

As the only international organization fully dedicated to supporting the competitiveness of micro, small, and medium-sized enterprises (MSMEs), the International Trade Centre is closely following how the pandemic is affecting MSMEs with a particular focus on those small businesses in developing countries.

Here in Van Wert County, the Van Wert Area Economic Development Corporation is providing insights and guidance to small businesses searching for ways to cope with the operational stress generated by COVID-19. The agency has compiled information that will also be a useful resource for business support organizations and policymakers assisting MSMEs in these efforts.

“Our office remains open, although working remotely, and we are doing our very best to support the businesses of Van Wert County,” said Executive Director Stacy Adam.

During the coronavirus (COVID-19) outbreak, local restaurants, retail stores, and other businesses have been restricted or ordered to close. Both business and employees have been impacted. Van Wert Area Economic Development and other partners are committed to supporting those impacted businesses, while there are federal programs business owners should consider.  

There are a number of programs that can provide assistance to local businesses.

The Paycheck Protection Program is a modification of the Small Business Administration’s (SBA) 7a loan program. A portion or all of a loan amount equaling 2½ times average monthly payroll may be forgiven as long as the loan is used to retain employees, cover payroll costs, and up to 25 percent of the loan used for mortgage interest, rent, and utility costs over the eight-week period after the loan is made. Applications are submitted through local banks that are approved SBA lenders.  

The SBA also has Economic Impact Disaster Loans to support small businesses overcome the temporary loss of revenue as a result of the COVID-19 pandemic. An eligible business or organization may request an advance on the loan, up to $10,000. The advance may be used towards paid sick leave to employees, payroll, increased costs of materials, rent or mortgage payments, and repayment of other obligations that cannot be met due to revenue losses. The advance does not need to be repaid, even if the applicant is subsequently denied for an Economic Impact Disaster Loan. A business can apply at https://covid19relief.sba.gov/.

The distribution of Recovery Rebates for individuals has begun this week. U.S. residents or citizens with adjusted gross income under $75,000 ($150,000 married), who are not the dependent of another taxpayer, and have a work-eligible social security number will receive a $1,200 ($2,400 married) rebate. They are also eligible for an additional $500 per qualified child. 

Rebates gradually phase out above adjusted gross incomes of $75,000 (single) and $150,000 (joint). Most people do not need to take any action. The IRS will calculate their payment amount and automatically send it to them (in the form of checks or direct deposit).  

There have also been emergency unemployment benefit changes. The new federal Pandemic Unemployment Assistance Program will provide benefits for many individuals previously ineligible for state unemployment benefits, including self-employed workers and 1099 tax filers from January 27-December 31. The waiting week for benefits has been temporarily removed, and an additional $600 a week emergency increase in unemployment compensation will be added to weekly unemployment benefit, effective until July 31.  

Pandemic Emergency Unemployment Compensation adds an additional 13 weeks of unemployment compensation for individuals who have exhausted their state unemployment benefits through December 31.  Those eligible can apply for unemployment benefits online 24 hours a day, seven days a week, at unemployment.ohio.gov. It is also possible to file by phone at 877.644.6562.   

“There have been delays while waiting for guidance from the Department of Labor and SBA and, due to the extraordinary number of applications for both business relief and unemployment benefits,” said VWAEDC Executive Director Stacy Adam. “Because the impact is so widespread and the demand so great, it is taking time to get the much-needed relief to these small businesses.

“In an effort to provide some immediate relief, our office has worked swiftly and taken immediate action to assist businesses in Van Wert County,” Adam added.  

The Revolving Loan Fund Board approved no-interest loans with deferred payment for three months which are available to approved, impacted businesses to be used for working capital. The RLF Board is limiting loan amounts to allow support to as many businesses as possible, while providing quick and much needed funding to businesses.  

The Economic Development office has been able to get a check to businesses that have been approved within one week from the time a completed application is received.

To inquire about the local Revolving Loan Program, for questions or support in general, contact Adam at the VWAEDC office at 419.238.2999.