Economic Assistance Package: What Employees and Small Businesses Need to Know

Economic relief passed by Congress during the Covid-19 pandemic is complex but promising for small business owners and employees (Adobe)

The economic assistance package for employees and small business owners is promising in its enactment, but extremely confusing as it goes through the administrative process.

The emergency relief package enacted by Congress and signed into law by the President on March 27^th, less than 10 days ago, has many provisions to help workers and owners make it through these hard times.  Congresswoman Donna Shalala, who represents Key Biscayne, issued a clear and detailed summary of the legislation, included here to help our residents gain a fuller understanding of the benefits.

However, since the CARES Act became effective, some potential snags and delays have been evident.  The cautionary takeaway thus far is not to count on an easy application process for the payroll protection programs or quick remittance of the direct cash payments.

Several examples point out the difficulties.  If you are on social security but do not file a tax return, the Treasury will send a check for the $1200 directly and faster, but if you normally file a tax return, and have not filed for 2018 or 2019, you have to file to get the money. That could mean a long delay.  And, the on-line application process for unemployment benefits appears to be dysfunctional.  As does the on-line application process for payroll protection program loans.

And thus far it appears that different banks have different standards and their own paperwork for payroll protection loans.  Some, for example, seem to require an existing business loan, and not merely a depository relationship, with the borrower/applicant. We may expect more observations about glitches as these programs are administered.

So, the best we can suggest at the moment is patience and persistence.  Just plow through the application process, overcoming confusion.   And for Key Biscayne, get some professional help as needed.  This is not a socially-distanced walk in the park.