Senator Caleb Rowden’s Legislative Column for the Week of March 30, 2020
Last week, our federal lawmakers passed a $2 trillion relief package to help individuals and businesses through the financial hardships largely caused by the COVID-19 pandemic. The legislation, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, includes several provisions I would like to share with you in this week’s legislative column.
I’m sure many of you have heard about the stimulus check provision that was included in this legislation. The final version of the act includes a one-time payment of $1,200 for individuals who make less than $75,000 per year and gives families an extra $500 for each child. The bill also increases unemployment insurance payments by $600 per week for four months. I understand that applying for unemployment may be a confusing process, but the Missouri Department of Labor has provided an information guide on their website concerning unemployment benefits and other programs available to Missourians affected by the pandemic.
A few weeks ago, the governor asked the U.S. Small Business Administration (SBA) to grant Missouri access to the agency’s Economic Injury Disaster Loan Program. This request was granted, so now our state’s small businesses have access to this loan program. The program provides small businesses with working capital loans of up to $2 million to help small businesses recover their loss of revenue due to the spread of COVID-19 virus in our state. Businesses that apply for the program are also eligible to apply for a loan advance of up to $10,000. If your small business has been affected by the coronavirus outbreak in our state, please visit disasterloan.sba.gov/ela/ for more information about the Economic Injury Disaster Loan Program.
The SBA is also offering assistance to small businesses through its 7 (a) Loan Program. Through this program, the SBA will cover principal and interest requirements on new 7 (a) loans issued prior to September 27, 2020, as well as current 7 (a) loans for six months. Business counseling is available through your local Small Business Development Center. You can find counseling availability by visiting SBA’s webpage on local assistance.
The CARES Act also provides $349 billion for the SBA’s Paycheck Protection Program (PPP). This loan program will provide cash flow through forgivable federal loans for businesses that maintain payroll through the closure or disruption of their business. You can learn more about PPP Loans on the SBA’s website. On April 2, the SBA issued an “Interim Final Rule” that provides more requirements and implementation guidelines for the PPP. There are changes from the original plan, including raising the interest rate from 0.5 percent to 1 percent. The SBA’s “Interim Final Rule” for the PPP can be found on the SBA’s website under the “Lender Guidance” section. I would encourage you to look at these new guidelines.
Another resource is the Internal Revenue Service (IRS) Employee Retention Credit, which provides a refundable payroll tax credit for 50 percent of wages paid by eligible employees. However, this resource is not available to employers who are receiving assistance through the PPP loan program. You can find more information about the IRS Employee Retention Credit here.
The stimulus package also includes a $500 billion loan program for businesses and cities impacted by COVID-19, $150 billion to support health care systems across the country and $150 for aid to state and local governments.
I am here to serve you, and my office door is always open to your questions, concerns and suggestions. You can reach my staff at 573-751-3931, and you can visit www.senate.mo.gov/rowden for an array of legislative and constituent resources.