How Small Businesses Can Survive During Covid-19

Rafi Uddin is the founder and managing partner of Accountex. Before he started his own firm, he worked many years at a local and national public accounting firm both in Tax and Audit. Also, he worked with healthcare, Technology, retail and consulting management industries. He worked in Fresno, Los Angeles, San Jose and Dallas. His firm works with many national franchisees, healthcare, renewable energy, construction consulting management, technology and other industries.

What does the FFCRA-19 bill mean for employers

The expanded Family First Coronavirus Response Act 2019 included two significant sections,

  • The Emergency Paid Sick Leave Act (EPSLA)
  • The Emergency Family and Medical Leave Expansion Act (EFMLEA)

Will talk about it in details

What can small businesses can do for COVID-19

What resources are available for Small businesses?

  • Loans from SBA
  • Few states have declared loan/mortgage deferral program up to 90 days.

What loans are available for small businesses?

  • SBA Disaster loan assistant e
  • The US Small business administration is offering designated states and territories low-interest federal disaster loans for working capital to small business suffering substantial economic injury as a result of the COVID-19.
  • The loan is up to $2M
  • It can be used to pay payroll, bills, fixed debt. The interest rate is 3.75% for small biz and 2.75% for non-profit.
  • SBA also offering the long-term repayment. Terms will be determined case by case basis.

What self-employed can do in this situation:

Self-employed persons are generally entitled to receive an income tax credit for up to 50 days of family leave. The credit is equal to the number of family leave days—not to exceed 50—multiplied by the lesser of:

  • Two-thirds of the taxpayer’s average daily self-employment income; or
  • $200 per day.

In addition, self-employed individuals are generally entitled to an income tax credit for up to 10 days of sick leave. This credit is equal to the number of sick leave days—not to exceed 10—multiplied by the lesser of:

  • Two-thirds of the taxpayer’s average daily self-employment income; or $511 per day (or $200 per day if the individual is caring for a family member).

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