The Stimulus Bill : Get Us Back To Work + Help Us Survive
You would think that since we are sitting at home in our pajamas that things would slow down in the world. That everyone would be too busy eating green chili potato chips and watching Tiger King on Netflix to actually do anything. Silly us. In actuality, things are moving extremely fast. Faster than they ever have.
Everywhere we look businesses are drastically reinventing themselves overnight to serve their customers in the best and safest way that they can. The government is moving the speed of light and the moments of bipartisanship that haunted our every moment the past… well, forever… seem to be trumped (ha) by this literal disaster. Our Senate, Congress and President are seeing clearly-ish and have aligned on a decision to pass a Big ol’ 2 trillion dollar Bill to hopefully save the country from economic despair.
We all know money does not solve it all. There are still some really, really big issues that we are all confronting right now at this very moment. Thousands of people are dying each day from a foreign disease that we have no cure, we can’t leave our homes, touch surfaces without gloves, or see our loved ones... not to mention that most of our community is living with the reality of food insecurity and not knowing where this upcoming months rent is coming from. This situation is total shit and its really scary.
But here we go. We continue on and we are going to get through this.
I love doing what I do because when I walk into work, I know I am on a team that knows that there is no option to fail. We know that when the shit hits the fan in the middle of service, we cannot and will not crumble. So thats what I see now — I look at our community of resilient, powerful, confident humans and I know that we will get back there. Taking advantage of this Bill is how we are going to do it and we will do it together.
I am going to break this down for us in a way that I think is most helpful. I will not go over it all. This Bill, which is called the CARES Act, is complex and has many different entities it is going to allocate funding to. Our priorities are Individual + Small Business, so we will visit how we are all going to #1 Survive #2 Get back to work doing what we love to do.
Individual
In the next month, most of us will be receiving some sort of cash payment from the government. Individuals earning less than $75,000 can expect a check $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of three earning less than $150,000 can expect $2,900. We don’t know when exactly these will be sent out and only people with Social Security numbers will receive this benefit. The second caveat means that many immigrants wont get this check, even though they pay taxes like the rest of us. Something to be aware of since our restaurant industry is fully dependent on the migrant community. This is another structural disparity that will make survival difficult and we should all keep that in mind.
Unemployment insurance just got chunkier — many more people can qualify now and the amounts being paid out will be larger. In addition to the amount that you qualify for per the State of Oregon, you will be getting an additional $600 from the federal government. Meaning rather than being paid $450 per week, you will be getting $1050 per week in unemployment benefits. This little chunky boost in payments will last 4 months. The legislation also adds 13 weeks of unemployment insurance. People nearing the maximum number of weeks allowed by their state would get an extension. New filers would also be allowed to collect the benefits for the longer period.
These new filers NOW INCLUDE freelancers, contractors, and self-employed people. This is very exciting. Pass this news on to your tattoo artist, freelance roommates, and Uber driver friends. Get them in the system fast because as we all know now — the unemployment process takes way too long. Screw that ‘waiting week’. Point them to our Employee Resources page for some pointers on the application process. A reminder that undocumented workers do not qualify for unemployment insurance and wont be receiving any aid in the coming weeks unless it is from their community. More to come on that in a few days.
The SBA also extended and expanded their disaster relief loans to include the self-employed & others listed above. These loans are subject to forgiveness if used for certain purposes and within a specific timeline. For more information about qualification and circumstance, see our Employer Resources page and talk to your lender. This money is meant to get all of us up and running again, so take advantage of it and be smart on how you use the funds so that you can walk away with no added debt.
Another new program that the stimulus bill implemented is for our looming student loans. Employers can provide up to $5,250 in tax-free student loan repayment benefits. This means that your employer can contribute payments to your student loan lender and that money would not count as income. Again, the details of how this is going to be done are still being worked out amongst many institutions, but this is something to look forward to as we get back to work.
Small Business
The big draw for small businesses are emergency grants and a forgivable loan program for companies with 500 or fewer employees. The loans are mostly allocated in coordination with the SBA and grants will be allocated by the state sponsored programs like Prosper Portland Small Business Relief Fund.
These ‘forgivable’ loans are meant to be used to rehire your employees and establish a consistent workplace + payroll. This is the legislations $350 billion “Paycheck Protection Program”. Qualifying restaurants could borrow two-and-half times their monthly payroll (up to $10 million) and use that money on the payroll, rent, and utility payments. Eight weeks of these costs could then be entirely forgiven from that loan, if the restaurant maintains payroll over the course of the loan. We have word that this eight week time period would end on June 30th, so if you are sitting on loan funds pass that time you would owe money back with little or no interest.
Do not take this money out without speaking to a banker that you trust & have a personal relationship with AND your tax preparer. We do not know the tax implications of all of this money that may flood your business bank account in the upcoming month. It would be real shit if you are left with a hefty tax bill this year.
Speaking of taxes, the bill establishes a fully refundable tax credit for businesses of all size that are closed or distressed to help them keep workers on the payroll. The goal is to get employees hired back or put on paid furlough (different from a lay off) to make sure they have jobs to return to. The credit covers to 50 % of payroll on the first $10,000 of compensation, including health benefits, for each employee. Eligible employers with 100 or fewer full-time employees could use the deduction even if they aren't closed.
A reminder to small businesses that the Prosper Portland Grant process opens tomorrow Monday, March 30th and closes Wednesday, April 1st. It is a short window, but you can walk into it fully prepared by gathering the following information now:
State of Oregon Business Registration Number
2019 Annual Gross revenue (how much you sold in 2019)
Your best estimate of revenue loss due to COVID-19. Look at recommendations on how to accurately do this math here.
Number of employees
Years in business
If any of you have any questions regarding all of this, please do not hesitate to contact us. We are working to get as much information as fast as we can and are spending way too much time reading all of the articles, watching all of the news, and asking all of the questions so that you do not have to. We understand how hard this must be for so many of you; whether you are working, trying to recreate a business, or at home trying to stay sane. You all are the reason that this community exists in the first place and why it keeps on living.
— Katy from PIRA