COVID -19 Financial Resources For Workers and Businesses

People all over the country are experiencing economic hardships due to the novel coronavirus, or COVID-19. Many states have mandated closures of restaurants, entertainment venues, and hotels. Leaving many service workers without income and other employment benefits.

The White House recently when it released new guidelines that included avoiding crowds of more than 10 people. In light of heath advisory recommendations, many business owners face uncertainty as Americans hunker down in their homes instead of frequenting local businesses.

As we wait to see what comes of this virus — from both a health and economic perspective — it’s important to know where to find factual information and get the resources and relief that’s desperately needed in some parts of the country.

For employees affected by the coronavirus

Various measures are being passed or implemented at all levels of government to support workers who are financially affected by the coronavirus pandemic. Here are a few resources you can explore to get more information about programs and financial assistance specific to your situation.

1. Federal resources

The federal government is working to provide immediate relief to workers across the country. While much is being discussed, here are some specific pieces of legislation that have been approved.

The Families First Coronavirus Response Act has been signed into law as of March 18. Some of the most significant provisions within this bill that directly benefits workers include:

Making coronavirus testing free
Providing paid sick leave for some workers
Enhancing unemployment benefits
Increasing funds for Medicaid
Strengthening food security initiatives

The Department of Housing and Urban Development (HUD) just released a moratorium suspending all foreclosures and evictions for single-family homeowners with FHA-insured mortgages for 60 days.

There are also discussions about providing direct payments to taxpayers to provide additional financial relief. The details, however, have not yet been announced.

2. State resources

State benefits and programs vary across the country, but many now have more leeway to benefit families affected by COVID-19. Depending on your state, you may qualify for:

Unemployment insurance. The Department of Labor has given states greater flexibility to amend their laws so more people affected by COVID-19 can access unemployment benefits. If your employer has reduced your hours or closed operations due to COVID-19, you may qualify to file an unemployment insurance claim with your state. For more information specific to the rules in your state, contact your state’s unemployment insurance program.
State-mandated disability insurance (DI). Depending on what state you live in, you may be able to file a DI claim if you’re unable to work after being exposed to or having COVID-19. These short-term benefit payments serve as a partial-wage replacement. Residents of California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico should check with their state for details about eligibility and benefit information.
Paid family leave. Your state may offer paid family and medical leave if you can’t work because you need to care for an ill or quarantined family member. Again, check with your state for specific details.

Keep in mind that you may qualify for other state-run public assistance programs if your income has recently changed due to the pandemic. These may include supplemental nutrition programs and other medical and financial assistance programs unique to low-income families.

3. Temporary relief from financial institutions

Many banks and credit card companies are working with their customers to provide temporary relief. For example, Citibank is waiving monthly service fees and penalties for withdrawing certificates of deposit funds.

Contact each financial institution you do business with to see what programs are available. Even if they haven’t issued a formal statement, your creditors will likely work with you by temporarily lowering your interest rate, adjusting the timing of your payments, or waiving late fees.

For small businesses facing closures

If your business is being impacted by this pandemic, look into these resources to help provide financial relief during this uncertain time.

Small Business Administration loans

The U.S. Small Business Association (SBA) is providing assistance through the Economic Injury Disaster Loan program. Small businesses can access up to $2 million in low-interest working capital loans to help overcome the loss of revenue caused by the COVID-19 outbreak.

For more information, contact SBA’s disaster assistance customer service center at 1-800-659-2955 or email disastercustomerservice@sba.gov.

State and local resources for businesses

Many states and local entities are offering programs and resources to help combat closures and assist businesses in various ways.

For example, eligible businesses in New York City with less than 100 employees may be eligible for zero-interest loans up to $75,000 if they can document a 25% drop in sales. For more information, check out the NYC Small Business Continuity Fund.

If you’re located in San Francisco, check out the COVID-19 Small Business Resiliency Fund which plans to issue emergency funds up to $10,000 for eligible small businesses that are affected by the coronavirus.

To learn more about opportunities near you, contact your city government directly to get the resources you need during this uncertain time.

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The Financial Gym Team March 23, 2020