Covid-19 is a severe threat to any small business owner. It can happen in the blink of an eye, and it can cost you tens or even hundreds of thousands of dollars in revenue if you are not prepared for it.
A recent study done by the US Small Business Administration has found that small businesses are not following any plans. The report states that this is mainly due to a lack of proper planning and training.
In this article, we will discuss how to set up a covid recovery plan to protect your small business from these types of threats.
What is Small Business Covid Recovery Plans
Small Business Covid Recovery Plans In the USA is a problem that has been around for years now. It is created to stop viruses from spreading.
It is a government program that provides financial assistance to small businesses.
The Small Business Covid Program was launched in 2006, and it will provide up to 50% of total losses, with no cap on the amount paid by the federal government.
Small businesses are entitled if they have suffered at least $25,000 worth of damage or lost income because of an eligible event-a terrorist attack or natural disaster and can show how their business would be irreparably harmed if not given this protection.
Government agencies often use this type of insurance to get back on track after an event.
Guidance for Businesses and Employers
When it comes to businesses, they are usually the ones that need financial assistance. They can apply for Small Business Covid recovery plans in the USA and get up to 50% of their losses covered by this plan.
Because most small business owners have more than one location, they can apply for a Small Business Covid recovery plan in the USA. They will be able to get up to 50% of their losses covered by this plan.
The Small Business Covid is available for businesses, employers, and employees within companies that cannot afford COBRA coverage because it’s too expensive or no other options are available on the market.
Employers with fewer than 20 full-time workers are qualified for these plans, as well as self-employed individuals who have access to less affordable health insurance via family member’s or spouses’ employment benefits.
Employees need to work 30 hours per week before qualifying for this type of coverage through an employer, and even then, it has to be at the same company.
Employers also play a significant role because they need to make sure they have enough money available for payroll taxes. If not, then there could be potential penalties down the line with government agencies like the Internal Revenue Service (IRS).
It is essential to determine what type of protection your employer has before you file any tax returns or paychecks not to put them on hold.
American Rescue Plan Act of 2021
According to the American Rescue Plan Act of 2021, the federal government will provide all small businesses with relief from their debts. If a business has incurred between $100 and $200 million in debt, they are eligible for this plan. These companies can then use this money to repay creditors over time and invest it into other assets like real estate or stocks.
Requirements for American Rescue Plan Act:
The company must have been incorporated before September 12th, 2020
They cannot be a subsidiary of another organization.
The total amount owed by the company cannot exceed 200 million dollars before participating in the program.
Smaller organizations could qualify due to budgetary restrictions being enacted on corporations.
Technical Assistance Resources for Small Businesses
The Small Business Technical Assistance Services (SBTAS) Program was created to assist small businesses facing the challenges presented by COVID-19.
SBS provides various services to help small businesses understand COVID-19 and provide the necessary resources, tools, and training for their recovery efforts.
This program has reached out to many types of organizations that are uniquely positioned to assist Small Businesses with understanding COVID-19, such as Small business associations;
- State Chambers & Commerce Organizations
- Economic development agencies
- Utility companies
- Insurance providers (non-COVID)
- FEMA Regional Assist Centers (RACs)
Small Business Technical Assistance Services provides informational webinars about COVID – 19 in partnership with the United States Department of Agriculture Economic Research Service, explaining what this disaster means for U.S. agriculture producers and exporters.
How Technical Assistance Resources Works
Enterprise Center staff will conduct an initial intake and assessment online to determine a small business’s priorities.
- Accounting/Financial Planning
- Business Consulting
- Legal Services
- Marketing & Branding
- COVID-19 Relief Program Navigation
- Technology (i.e., working remote/online sales)
- Workforce Management/Human Resources
Participants will receive a list of consultants in each of the above areas after the initial intake and assessment.
COVID-19 Resources and Guidance for Businesses
Due to Covid-19, many businesses worldwide are experiencing economic downturns and have had to close their doors. However, some business owners have been able to keep their businesses running by following COVID-19 Resources and Guidance for Businesses.
Covid-19 is a disease that has swept the world in recent months, causing many companies to shut down due to low demand or illness among employees.
The infectious disease can be found anywhere from densely populated countries such as China, with over one billion residents, where Covid-19 may spread more easily because of overcrowding.
Out eastward into Australia, which only has about 24 million residents.
On December 18th, 2018, the virus was first identified when photos surfaced online showing people wearing biohazard suits at a hospital in Taiwan and the country with over 23 million residents.
The Covid-19 virus is highly contagious and can quickly spread from person to person through contact or inhalation of droplets released by infected coughing, sneezing, vomiting, or talking.
COVID-19 Guidance for Businesses
As you know that to keep everyone and yourself safe, you need to follow the guidelines. Here are some common small business COVID-19 Guidance for Businesses.
Owners or managers should always wear gloves when handling any materials contaminated by blood, vomit, or feces.
Most cases don’t need a mask, but it can be helpful to have one on hand just in case. And if you’re cleaning up anything outside your home which might contain hazardous material such as chemical spills. Then safety goggles would also come in handy.
A lot of times, people forget about those items they use daily, like pens, cups. That’s why we’re going to make a list of what you need in your COVID-19 emergency kit.
- Hand sanitizer (anti-viral)
- First Aid Kit with:
- Bandages, Gauze Pads, Antibiotic Ointment, Band-Aids or Cotton Swabs
- Clean Towels and Wipes for Cleaning up Spills
Extra Pens for Writing Instructions on Products and Packaging For Customers. Such as Covered Items That Need To Be Disposed Of Properly. In The Case Of Infection Exposure and Other Situations Where Employees May Not Have Time To Wash Their Hands When Returning From Outside Activities Or Touching Sticky Materials Contaminated By Blood etc.
So above are the Small Business Covid Recovery Plans In the USA. If you are a small business owner and your business is affected, use our guidelines to keep your business safe.