By Alfred Acenas
EBC Hawaii Bureau
HONOLULU, Hawaii (Eagle News) – U.S. Senator Brian Schatz, Democrat from Hawaii, launched an online resource guide on Saturday, March 28, to help businesses in the Aloha State avail of federal loans and new programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on Friday, March 27, in order to stimulate the economy severely impacted by the coronavirus (COVID19) pandemic. The aid package totaling $2 trillion is the largest of its kind in U.S. history.
“This new law will help Hawai‘i small businesses meet their payroll and provide people with paychecks for up to eight weeks,” said Senator Schatz, who is a member of the Senate Appropriations Committee. He added, “As more federal help becomes available, we’ll continue to work to provide more information about how Hawai‘i families and businesses can access these new resources.”
The new law created a Small Business Administration (SBA) loan program called the “Paycheck Protection Program.” It expands benefits and eligibility for SBA disaster loans, covers payments on existing SBA loans and creates new tax credits to help cover the cost of paid leave and payroll.
Another program for business owners with employees to consider is the SBA Paycheck Protection Program, which provides small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses. Up to eight weeks of payroll, mortgage interest, rent and utility costs can be forgiven. Payments on principal and interest are deferred for one year.
For establishments that already have an SBA loan or have taken one out within six months after the CARES Act is enacted, the SBA will pay all loan costs for borrowers, including principal, interest, and fees, for six months.
Such assistance options may help the Palama Express, a local chain of convenience stores located mostly in Honolulu. While complying with current government restrictions like the “Stay-at-Home, Work-at-Home” order that took effect statewide on March 25, the company struggles to maintain its “business as usual.”
As for local contractors that do business with the federal government, there are a number of ways they can be protected. Government agencies will be able to modify terms and conditions of a contract and to reimburse contractors at a billing rate of up to 40 hours per week of any paid leave, including sick leave. The contractors eligible are those whose employees or subcontractors cannot perform work on site and cannot telework due to federal facilities closing because of COVID-19.
Additional information on the above and details on other programs under the CARES Act can be found in the following website https://www.schatz.senate.gov/coronavirus/small-businesses.
(Eagle News Service)