Public health efforts to stop the spread of COVID-19 by closing businesses is causing economic upheaval in the business community and leading to worker layoffs.

Government efforts are now underway to mitigate some of the damage through loans, extension of benefits and tax credits.

On March 17, the Delaware County Chamber of Commerce hosted a conference call with state and local officials and local businesses to talk about what might be coming soon to businesses and workers.

The PA Department of Community and Economic Development and the Delaware County Commerce Center are identifying and surveying businesses in Delaware County affected by COVID-19 to find out the biggest issues they face from the containment efforts.

The survey can be found on the Delaware County Commerce Center Facebook page.

That information will be presented to the U.S. Small Business Administration and other state and federal agencies to open the door to disaster relief funding.

Businesses impacted by the coronavirus can apply for small business assistance loans such as the Economic Injury Disaster Loan. The loans can be up to $2 million that can be used to cover fixed operating expenses, at a rate of 3.75 for small businesses, 2.75 for nonprofits.

Learn more about SBA loans by clicking here.

The DCED also has capital loans to help COVID-19 impacted businesses as well as other resources listed on its website here.

For new unemployment claims caused by the pandemic, the state is waiving  a week-long waiting period, along with PA CareerLink registration and work search guidelines to speed up receipt of benefits.  Click here to learn more about unemployment benefits.

At the federal level, the U.S. House of Representatives passed an 8.3 billion emergency supplemental package 10 days ago providing funding for COVID-19 testing, research and prevention.

Since then, a new law has been passed providing funding for free virus testing, paid leave, unemployment benefits and emergency food provisions.

The “Families First Coronavirus Response Act” provides paid sick leave for workers sick or in quarantine with COVID-19 who may have to take off from work, who are helping a family member who is quarantined or infected with COVID-19, or who have children whose schools have closed as a result of the coronavirus outbreak, according to U.S. Sen. Pat Toomey, who briefed Pennsylvania business owners on the new legislation on a Thursday morning conference call.

Those workers get 10 days paid leave at full salary, or two-thirds of their salary if caring for someone else.

Eligible employees can also receive 12 weeks of paid leave to care for a child.

“This paid leave mandate is going to be fully funded by the federal government. The cost is not going to be incurred by employers,” Sen. Toomey said.

The Act also offers free testing for coronavirus, increases unemployment benefit contributions from the federal government, provides food assistance and federal funding for Medicaid.

“It increases the federal share of unemployment benefits because we believe the states will be unable to pay their traditional share and it encourages states to expand eligibility,” Sen. Toomey said.

Click here to read a summary of the Act.

The Congress is now looking at legislation addressing the economic impact to businesses. Much of that help will likely come from loans to small and medium-sized companies, a portion of which will be forgiven.

“The last thing we want is for these companies to go under so there’s no job for workers to come back to.  This is going to be a very generous small business lending program.”

Tax provisions could help businesses with a cash flow crunch, like delaying the day you have to pay taxes, or suspending the employer side of the payroll tax, Sen. Toomey said.

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