COVID-19 Weekly Digest (September 30, 2020)
Take a quick break and read through this week’s newsletter!
CARES ACT UPDATES
It looks like there is going to be one last attempt at Congress considering a new long-shot bill. This is the latest version of the Heroes Act and there are rumors the vote could happen this Wednesday. The price tag on this version of the Act is $2.2 trillion. The two main highlights of this act include:
$1,200 Stimulus Check plus $500 for Dependents
Specifically, $1,200 per person (or $2,400 for joint filers) if you have earned less than $75,000. There’s a 5% phase-out for those earning more than the limit.
The much-disputed $600 enhanced federal unemployment benefits
This would be retroactive to September 5, 2020, and extended until January 31, 2021. If you were unemployed in the weeks between the end of July and the 5th of September, unfortunately, you would not get an additional $600 per week through the extended program.
Don’t hold your breath for this to pass. There is still $1 trillion that the Republicans would like to cut out. This is likely to be the last attempt at passing any legislation related to pandemic relief before the Presidential election.
Paycheck Protection Program (PPP)
Even though 96,000 PPP forgiveness applications have been submitted to the SBA by participating banks since August 10, none have been forgiven. Banks do not yet have clear guidance from the SBA on the process of converting the loans to grants. Many bank leaders were blindsided by the announcement that businesses that received both a PPP loan and an emergency grant from the EIDL will have to subtract the EIDL grant from the amount of the PPP loan eligible for forgiveness. Many small businesses are waiting for additional clarification on the forgiveness process, which even with a simplified form, is still daunting.
HELP FOR SMALL BUSINESS
Political deadlock means that governmental assistance for small businesses is limited to SBA loans through the Economic Injury Disaster Loans or local and state programs. Other options include requesting leniency from credit card companies and other lenders or setting up a crowdfunding drive. Unlike government programs that stipulate what the funds may be used for, funds from crowdfunding may be used to cover any needed expenses.
Shark Tank investor Barbara Corcoran has these five tips for surviving the pandemic:
Throw out your business plan and think creatively of other ways to bring money in.
Call your landlord as soon as you think you might have trouble paying rent.
Learn to sell on camera.
Develop and plan for both a best-case scenario and a worst-case scenario.
Focus on simply staying in business.
Remaining flexible and focused on what seems to be working during a particular week will ultimately be more successful than trying to control what cannot be controlled.
LIVING WITH AND AFTER THE PANDEMIC
Health updates
How will the pandemic end? According to a panel of 11 virus and public health experts, COVID-19 will continue to be a problem until 60 to 70 percent of the population have developed immunity. A safe and effective vaccine may not be available until December, and the logistics of getting two doses, four weeks apart, to enough people may mean that most people won’t receive their first doses until the middle of next year.
Work in the post-pandemic world
With remote work continuing through the foreseeable future, managers need to develop different strategies to help employees who aren’t performing. Having a concrete, written set of expectations is the first step. Evaluating actual performance rather than physical presence or participation in Zoom meetings provides insight into who the top performers in a company are.
Back to school
Adults aren’t the only ones experiencing stress from the pandemic and general unrest of 2020. This article from Good Housekeeping has practical age-specific suggestions for helping kids deal with uncertain times. For example, all ages will benefit from a consistent daily or weekly schedule. Include blocks of one-on-one time with your kids on that schedule for activities of their choice.
Little glimmers of hope
With our normal routines turned upside down, people have found as many ways to cope with the pandemic as there are neighborhoods. This piece in the New York Times has a series of postcard vignettes of neighbors coming together to connect and help each other. In Los Angeles, a family picks citrus fruit from trees in their neighborhood, sharing the bounty with the owners of the trees and food pantries. In Wichita, the drag down Douglas has been revived with a parade of drivers in muscle cars, minivans, and SUVs. A neighborhood in Carrboro, NC put together an impromptu block party to celebrate a cluster of birthdays.
With compassion and respect for each other, we will all get through these difficult times together!
