COVID-19 U.S.A. Update: Are You Aware of FFCRA and SBA Legislations?

As the COVID-19 crisis continues to impact businesses across the US, permanent workforce reductions are a looming possibility (if not a reality) for many employers.

To help businesses survive this ordeal, the US government has enacted several legislations, which we wanted to share with you:

Families First Coronavirus Response Act (FFCRA or The Act)

On March 18, 2020, the President signed the new Families First Coronavirus Response Act (FFCRA or The Act) – effective until December 31, 2020 – that requires employers with less than 500 employees to provide a specific amount of paid sick leave and paid leave to employees affected by the new coronavirus.

It also provides affected employees with a corresponding employment tax credit and has temporarily expanded the Family and Medical Leave Act (FMLA) requirement to provide protected leave related to the coronavirus.

The FFCRA contains three sections:

  • Emergency Family and Medical Leave Act Expansion
  • Emergency Paid Sick Leave
  • Tax Credits for Paid Sick and Paid Family and Medical Leave

To learn more about the FFCRA, be sure to read this post from the US Department of Labor: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Small Business Administration (SBA) Economic Injury Disaster Loan

The US Small Business Administration (SBA) is also offering low-interest federal disaster loans to small businesses to help them cope with the economic losses caused by the coronavirus crisis.

The loans offer up to $2 million in assistance and can provide vital economic support to small businesses during these times. These loans have an interest rate of 3.75% and can be used to pay fixed debts, payroll, accounts payable and other bills. You can apply for a disaster loan here: https://disasterloan.sba.gov/ela/

To learn more about the SBA Economic Injury Disaster Loan, read this post from the US SBA: https://www.sba.gov/disaster-assistance/coronavirus-covid-19

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