COVID-19 Resources
Facebook Grants
Facebook is starting a Small Business Grant Program. You can sign up to receive updates when they have more information available. Click here. They have also put together a page of resources for small businesses here.
Square Subscription Fees
If you use Square, they are refunding all software subscription fees for the month of March, including Appointments, Retail, Restaurants, Loyalty, Team Management, Payroll, Marketing, and Online Store. They will manage this process for you—there’s no need to do anything.
Unemployment questions:
I have to close my business due to COVID-19. What has to be done for my employees to file a claim?
If you are closing temporarily: There are two options in this case, depending on the size of your business. The easiest method would be to have employees file online at https://unemployment.state.ok.us/. When filing, they would need to provide a return to work date within eight weeks of the last day worked. Another option is for your business to submit a mass claim.
After asking for clarification, this applies to businesses closing because they are legally required to as well as those experiencing loss of revenue.
What do I do if I am able to recall employees sooner than expected?
Notify OESC in writing of the return to work date by faxing the information to 405-962-7504.
Do my employees have to look for other work while the business is closed?
If a return to work date has been given to the employee, he/she will not have to search for other work during the layoff period. If there is no return to work date, work search must be completed.
How much will employees receive from unemployment:
If you are eligible to receive unemployment, your weekly benefit rate in Oklahoma will be 1/23 of your wages in the highest paid quarter of the base period. The minimum amount you will receive each week is $16; the maximum amount you will receive is $520. You may receive benefits for a maximum of 26 weeks. (In times of very high unemployment, additional weeks of benefits may be available.)
Are tips included in the calculation: Yes, Section 1-218 of the Act describes gratuities and requires them to be considered wages.
Can employees claim unemployment if the business hasn't shut down completely (i.e., maintaining to-go orders and deliveries) but there has been a significant loss of production causing business owners to not be able to offer as many hours but still continue some operations?
Yes, but payment depends on a couple of factors. Oklahoma has a full-time law that prohibits anyone working 32 or more hours a week from being eligible for unemployment, regardless of the amount of earnings. Those individuals are considered full-time employed. If working less than 32 hours per week, it will depend on the amount of earnings. Oklahoma has a $100 rule (Section 1-217 of the Act) which means that when earnings are reported (and all earnings must be reported during the week they are earned, not the week paid) we disregard the first $100 but any earnings over $100 are deducted dollar for dollar. So if someone earns $150 we will deduct $50 from the unemployment payment. If the individual earns $100 more than his weekly benefit amount (which is established when the claim is filed) then no payment will be made.
One-week waiting period. Gov. Kevin Stitt on March 19 signed an executive order to suspend the one-week waiting period before unemployment benefits can be paid. “The requirement that an individual be unemployed for a waiting period of one (1) week before benefits are paid is hereby waived so long as this order remains in effect,” the executive order states.
https://www.ok.gov/oesc/Businesses/Employer_FAQs_about_UI_and_COVID-19/index.html
Families First Coronavirus Response Act
Although the Act includes language for the Secretary of Labor to exempt small businesses (fewer than 50 employees) from providing job-protected leave, it is important to note that there is currently no guidance on how businesses may qualify or apply for the exemption.
Here’s a summary of the new Act provided by Spirit HR:
Requires employers with fewer than 500 employees to provide up to 12 weeks of job-protected leave related to caring for a child via an expansion of the Family and Medical Leave Act (FMLA) with the first 10 days unpaid.
Requires employers with fewer than 500 employees to provide up to 80 hours (generally two weeks) of emergency paid “sick” leave to full-time employees with special rules for part-time employees.
Provides tax credits for required paid sick leave, paid family and medical leave and certain health plan expenses.
Requires group health plans, health insurers and government programs to provide free coronavirus testing.
SBA Disaster Relief Loan
The loan application process will be handled virtually through www.sba.gov/disaster. There is a customer service number specifically set up for this program that is available to answer questions (1-800-659-2955) or email at disastercustomerservice@sba.gov.
The loans will have 30 year terms with a 3.75% interest rate. They will have a full deferment for the first year with no payments due for the first 12 months.
The funds will be for working capital needs related to business operations. This includes items typically thought of as working capital, i.e. payroll (including any regular salary of the owner(s)), rent, etc, but it can also include paying fixed debt obligations such as a mortgage payments, paying back short-term or bridge loans made by lenders specifically for this purpose and credit card debt related to these economic circumstances. Borrowers must maintain receipts for all proceeds from the loan for three years in case of an audit.
The amount available to a borrower will primarily be determined by dividing last year’s gross profit in half up to $500,000. If a borrower needs more than $500,000 and their gross profit calculation will support this, there is a slightly more involved calculation that can allow up to $2,000,000. To qualify for the loan, the SBA will pull an Experian credit score. The SBA will not say what the minimum score requirement is, but our understanding is that most businesses will qualify.
Historically the average processing time on these loans has been 3 days with disbursement within 30 days. Obviously the volume should be substantially higher for the current economic relief loans than previously loans, but the SBA still plans to turn these loans around as quick as possible. Disbursement will be one lump sum directly into the customer’s account.
The Oklahoma Department of Commerce has staff available to assist small businesses with filling out disaster loan application forms. Companies needing assistance with the application forms and economic development organizations aiding businesses in their communities should contact Ray Little at ray.little@okcommerce.gov or 405-815-5227.
I know there was some concerns about the question of eligibility for businesses with credit available elsewhere. Here's some clarification: SBA is likely to be very lax on their usual “credit elsewhere” test when it comes to these loans. The primary criteria will likely be liquidity of a business, or lack thereof. As long as you can show you are lacking liquidity enough to weather a significant downturn and reduced (or zero) revenue coming through the door, it should be fine.
If you wish to apply, visit www.disasterloan.sba.gov, click on apply online, and go ahead and register. This will give you a user name and password, and you can be ready to apply when it goes live. Here is also a link to the application.