Confused by the options available? Not sure how to proceed? Here is a brief summary of information and resources for Texas business owners during Covid-19.
The situation is changing daily, so your best bet is to keep up with the news several times a day.
- Texas Workforce Commission Covid-19 Resources for Employers. Includes information on unemployment. What to do if you have to close temporarily or permanently due to Covid-19, see the information on shared work programs and mass claims submission. An employer can submit a “mass claims” form for employees’ unemployment benefits, streamlining the process for everyone. This option requires filling out the appropriate documentation available on the website and submitting a spreadsheet at least 5 days in advance of the layoff. TWC Covid Resources for Employers
- Federal Employee Paid Leave Act summary from U.S. Department of Labor. Applies to companies with fewer than 500 employees.
- Small Grants/ resources: A few companies with small grants or resources.
- Additional Informational Resources:
Houston Score: Mentoring, instructions on filling out loan documents, workshops.
U.S. Chamber of Commerce Guide for Small Business Surviving Coronavirus. This is excellent and really worth the time to review all the information and practical advice here.
Texas Department of State Health Services on Coronavirus: This page has useful information for Texans including Executive Orders signed by the Governor.
In addition, here is information about economic relief under the CARES (“Coronavirus Aid, Relief and Economic Security”)Act:
- Economic Injury Disaster Loan (EIDL) From the Federal Government (SBA). Special repayment terms. No payments for 12 months. Apply through SBA. Can apply for a loan advance of up to $10,000. (As of 04-17-20, this message appears on the SBA site: SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.)
- Payroll Protection Program (PPP) from a Small Business Association (SBA) lender. Loan that can be forgiven if money is used and documented properly. Money from the loan used to cover first eight weeks of employee wages, rent, mortgage, utilities can be forgiven. (As of 04-17-20, this program is not taking any more applications. It remains to be seen whether or not more funds will become available. Your best bet is watch the news and apply immediately if more funds become available.)
A word about Private Lender loans: If you have a banking relationship, and the means to do so, you can still request a private business loan or home equity loan.
As always, be aware that it may take time to update websites and blogs. Make sure to stay in touch with breaking news to find out if and when additional resources are available or new programs come into effect.
Kalish Law Office has been serving Texas businesses and families since 1984. If you need small business advice from a business lawyer, give us a call. We can help by reviewing your contracts and obligations and help you understand all of your options during this difficult time. We are waiving our initial consultation fees through May 31, 2020.