As the COVID-19 pandemic forces some businesses and industries to lay off employees and close their doors, businesses and nonprofits are receiving help from the federal as well as state and local governments. More help is on the way as the government works on passing new laws to provide financial aid to desperate businesses. We have put together a list of resources that are currently available, including how to apply for small business loans. As soon as the stimulus bill is passed, we will add to the list details on how it affects your business.
The impact of the COVID-19 pandemic on the construction industry has taken several forms. Following guidance from the Occupational Safety and Health Administration (OSHA), construction workers have had to make changes to the way they work, have meetings and take breaks, and must now take extra care of their personal protective equipment in order to protect their health. The industry may experience supply chain disruptions and challenges. Shelter-in-place orders or having workers test positive for the virus are affecting the availability of workers or requiring extensive cleaning of sites, impeding the progress of projects. Financial constraints may affect on-going or future work. Help from the federal government, in the form of legislation like the Families First Coronavirus Response Act, the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Small Business Administration’s Economic Injury Disaster Loan Program, is designed to assist with some of the financial challenges of the pandemic.
Manufacturing + Distribution Resources
The manufacturing industry has been particularly hard hit by the COVID-19 pandemic, as social distancing, shelter-in-place and other health measures affect manpower on-site, thus hampering production. The Occupational Safety and Health Administration (OSHA) has provided guidance for the manufacturing workforce to help protect workers. Legislation like the Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law on March 27, 2020, provided loans and tax credits for manufacturers, while proposed legislation like the COVID-19 Emergency Manufacturing Act aims to authorize the federal government to contract with manufacturers to ensure the production of personal protective equipment, prescription drugs and other medical supplies necessary to combat the COVID-19 pandemic. Within our COVID-19 hub, you will find this and other information relevant to manufacturers.
Non Profit Resources
Nonprofits are among businesses hardest hit by the COVID-19 pandemic. Shelter-in-place and social distancing policies mean planned fundraising events have had to be cancelled for the foreseeable future. Congress and the federal government have passed and signed into law legislation to bring some financial relief to nonprofits. Among them are the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Paycheck Protection Program.
Real Estate Resources
The real estate industry has seen a large drop in purchasing activity over the last couple of months, due to the COVID-19 pandemic. 80% of home buyers have delayed or stopped searching, and demand for office space is on hold as working from home is implemented in many states. Commercial and residential tenants have been offered mortgage and rent breaks or discounts. Aid from the federal government, like the Paycheck Protection Program, has helped businesses pay rent and mortgage interest during the economic slowdown caused by the pandemic. The Coronavirus Aid, Relief and Economic Security (CARES) Act amended previous legislation in order to change the depreciation period for qualified improvement property; modified the deduction of business interest expenses for the 2019 and 2020 tax years; allows real estate businesses to make late elections or undo elections to take advantage of bonus and depreciation increases; and gives taxpayers the opportunity to defer tax on gains they make from the sale of certain property.
The restaurant industry suffered a devastating blow when the COVID-19 pandemic caused cities and states to implement stay-at-home and social distancing policies, forcing many restaurants to close. Those that were able to adapt to pick-up or delivery services stayed open but had to cut down the number of staff they employed, leading to financial hardship for their employees. With the help of legislation like the Paycheck Protection Program and the Coronavirus Aid, Relief and Economic Security (CARES) Act, the restaurant industry has been given a financial lifeline, but many restaurants still face challenges. Even as shelter-in-place policies are being lifted, social distancing needs to be maintained for health reasons, so restaurants are having to adapt their hours, payment methods and seating arrangements.