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How small businesses can benefit from the $2.2 trillion coronavirus relief package
The newly acted $2.2 trillion stimulus law has several features that will help small businesses stay afloat and keep their employees during the coronavirus crisis. Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27 and President Trump signed it into law. U.S. Small Business Administration (SBA) Administrator Jovita Carranza and U.S. […]
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The newly acted $2.2 trillion stimulus law has several features that will help small businesses stay afloat and keep their employees during the coronavirus crisis.
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27 and President Trump signed it into law.
U.S. Small Business Administration (SBA) Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin on March 31 announced that the SBA and the Treasury Department have started a “robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.”
For small businesses, the key feature of the CARES Act is the $349 billion Paycheck Protection Program, which is specifically designed to help small businesses keep their workforce employed. It will allow businesses to receive low-interest loans, fully guaranteed by the SBA, through participating banks, which will be forgiven if they meet certain requirements.
The new loan program will be available retroactively from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30 of this year.
Here is how it works, according to the SBA:
• Who is eligible?: All small businesses, including nonprofits, veterans’ organizations, tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
• Maximum loan amount: $10 million
• Loan forgiveness: if proceeds are used for payroll costs and other designated business operating expenses in the eight weeks following the date of loan origination. Note: Because the agency expects an avalanche of companies and people applying, it’s anticipating that no more than 25 percent of the forgiven loan amount may be spent on non-payroll costs.
All loans under this program will have the following features:
• Interest rate of 0.5 percent
• Maturity of 2 years
• First payment deferred for six months
• 100-percent guarantee by SBA
• No collateral
• No personal guarantees
• No borrower or lender fees payable to SBA
The Treasury Department and SBA said they expect to have this program up and running on Friday, April 3, so that businesses can go to a participating SBA 7(a) loan program lender, bank, or credit union to apply for a loan, and “be approved on the same day.”
“Our goal is to position lenders as the single point-of-contact for small businesses — the application, loan processing, and disbursement of funds will all be administered at the community level,” Carranza said.
Rob Simpson, president of CenterState CEO, is urging area companies to call their financial institution and apply as soon as possible.
“Don’t wait to call your bank. Call them now. Let them know your need and interest,” Simpson said on a webinar his organization set up for area businesses on the day the CARES Act was passed. “This is one of the most innovative public policy programs we’ve seen come out of Washington in a while,” he added.
Congressman John Katko (R–Camillus), who also appeared on the webinar, told companies, “You’d be crazy not to apply for it.”
Katko added that all the area banks he talked to would be participating in the program.
As of press time, the SBA didn’t have a link on its website to an application for the Paycheck Protection Program loans, but small businesses can visit SBA.gov/Coronavirus for more information and updates about the program.
The List feature is on temporary hold
The Central New York Business Journal is temporarily putting our weekly The List feature on hold beginning with this issue for the duration of the statewide coronavirus shutdown. Pausing a popular and longstanding part of our publication was not an easy decision, but it necessary to uphold the quality, completeness, and integrity of information we
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The Central New York Business Journal is temporarily putting our weekly The List feature on hold beginning with this issue for the duration of the statewide coronavirus shutdown.
Pausing a popular and longstanding part of our publication was not an easy decision, but it necessary to uphold the quality, completeness, and integrity of information we pass along to our readers.
The lockdown has disrupted our ability to compile complete lists. Data for most of our lists is collected through surveys sent via email, supplemented with telephone follow-up. With so many organizations temporarily closed, at reduced staff levels, or working from remote locations, we are simply unable to reach many of the contacts who normally provide information.
The current situation also affects the representativeness of data we might be able to collect. We want the information in our lists to show an accurate picture of the organizations listed in terms of size, scope, products/services offered, etc. The results of any survey research are a snapshot in time. Taking a snapshot during this time of COVID-19-related layoffs, facility closures, projects placed on hold, and shifts in operations would provide an extremely atypical and skewed picture of most companies.
We still intend to publish every list on our 2020 editorial calendar. A firm schedule for that can’t be worked out at this uncertain moment. But as soon as the government’s workforce restrictions are lifted, we will resume surveying and produce a timetable for publishing the delayed lists in future issues.
In the meantime, CNYBJ remains committed to providing the business community of our region news and information to help navigate this challenging period.
CNY unemployment rates mostly fell in February
It’s the last report before the coronavirus crisis slammed the state’s job market Unemployment rates in the Syracuse, Utica–Rome, Binghamton, and Ithaca regions declined in February compared to the year-ago month. At the same time, the jobless rate in the Watertown–Fort Drum area rose compared to February 2019, while the rate in the Elmira region
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It’s the last report before the coronavirus crisis slammed the state’s job market
Unemployment rates in the Syracuse, Utica–Rome, Binghamton, and Ithaca regions declined in February compared to the year-ago month.
At the same time, the jobless rate in the Watertown–Fort Drum area rose compared to February 2019, while the rate in the Elmira region remained unchanged.
The figures are part of the latest monthly New York State Department of Labor data released on March 31.
The February data reflects a time before the coronavirus pandemic hit the state, necessitating a shutdown of non-essential businesses and much of daily life in the second half of March. Weekly jobless claims filings soared in the state, so unemployment rates are likely to jump across the state when the March jobs report comes out.
Regional unemployment rates
The jobless rate in the Syracuse area fell to 4.7 percent in February from 5 percent in the year-earlier period.
The Utica–Rome region’s unemployment rate slipped to 4.8 percent from 5.2 percent; the Watertown–Fort Drum area’s number inched up to 7.1 percent from 7 percent; the Binghamton region’s rate dipped to 5.3 percent from 5.4 percent; the Ithaca area posted a 3.6 percent rate, down from 3.8 percent; and the Elmira region’s rate was unchanged at 4.7 percent.
The local unemployment data isn’t seasonally adjusted, meaning the figures don’t reflect seasonal influences such as holiday hires.
The unemployment rates are calculated following procedures prescribed by the U.S. Bureau of Labor Statistics, the state Labor Department said.
Statewide unemployment rate
New York state’s unemployment rate was 3.7 percent in February, down from 3.8 percent in January and 4 percent in February 2019.
The federal government calculates New York’s unemployment rate partly based upon the results of a monthly telephone survey of 3,100 state households that the U.S. Bureau of Labor Statistics conducts.
Upstate Medical University seeks recovered COVID-19 patients for “emergency” clinical trial
SYRACUSE, N.Y. — Upstate Medical University is seeking people who have recovered from the illness caused by coronavirus to donate plasma in an “emergency” clinical
Unemployment Insurance Benefits Under the CARES Act
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) — a $2.2 trillion stimulus bill to respond to the coronavirus pandemic. The unemployment-insurance portion of this act, known as the Relief for Workers Affected by Coronavirus Act, provides enhanced unemployment benefits including larger benefit amounts, availability for
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On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) — a $2.2 trillion stimulus bill to respond to the coronavirus pandemic. The unemployment-insurance portion of this act, known as the Relief for Workers Affected by Coronavirus Act, provides enhanced unemployment benefits including larger benefit amounts, availability for a longer period of time, and extended coverage for individuals who are not typically eligible for unemployment benefits, as outlined below.
A. Increased benefits
Under the CARES Act, individuals who are already eligible to receive unemployment benefits under state law will receive an additional $600 per week on top of their state benefits. This amount is a flat rate for everyone, no matter the amount of underlying benefits they would normally receive from their state. For example, a laid-off worker who is eligible and receives the maximum unemployment benefit in New York of $504 per week will receive a total of $1,104 ($504 in state benefits + $600 in federal pandemic unemployment compensation). However, a laid-off employee who receives a lower amount of state unemployment benefits will receive the same weekly $600 payment. It is currently unclear, however, if this additional weekly payment will be available to individuals who are receiving partial unemployment benefits from their state, or who are participants in a shared-work program.
States can provide the additional $600 in one payment or send the extra amount separately, as long as it is all done on the same weekly basis. Because the additional federal unemployment payment is a flat $600 for all eligible individuals, it is possible that some individuals could receive more in unemployment benefits than they would if they continued working.
Importantly, the additional income received through enhanced unemployment benefits will not affect individuals’ eligibility for other federal benefits like Medicaid and the Children’s Health Insurance Program (CHIP). While eligible individuals will apply through their state for benefits, the additional $600 weekly payment will be fully reimbursed by the federal government. This increased unemployment benefit will be available to individuals who independently qualify for and receive state unemployment benefits through July 31, 2020.
B. Extended time for benefits
Many states, including New York, provide for 26 weeks of unemployment benefits. The CARES Act will provide certain eligible workers with an additional 13 weeks of benefits, up to 39 total weeks. While each state will pay out the extended benefits to eligible workers, the federal government will reimburse each state in full for the additional benefits paid out. The 13 weeks of extended unemployment benefits would apply to two categories of applicants:
Those who meet the expanded eligibility criteria discussed in Section D below, who are unemployed, partially unemployed, or unable to work due to a qualifying reason related to COVID-19 at any time from Jan. 27, 2020 through Dec. 31, 2020; or
Those who have exhausted their typical 26 weeks of unemployment eligibility, and are actively seeking work, between enactment of the CARES Act and Dec. 31, 2020, as discussed in Section E below.
C. Waiver of seven-day waiting period
Many states, including New York, typically provide for a seven-day waiting period from layoff or termination before individuals can apply for and receive unemployment benefits. New York has already waived that seven-day waiting period for people who are out of work due to COVID-19-related closures or quarantines. For all states who waive the typical seven-day waiting period, New York included, the federal government will provide full funding for unemployment benefits paid out during that waived waiting period through the end of 2020.
D. Expanded eligibility for COVID-19 related reasons
The CARES Act would also make far more workers eligible for unemployment benefits than usual. Newly covered individuals would receive the amount they would have received using the calculation method of their respective state, plus an additional $600 each week. Since these workers would not typically be eligible to receive unemployment benefits, the entire amount of benefits they receive will be funded by the federal government.
Newly covered individuals include those who have exhausted their unemployment benefits, independent contractors and self-employed individuals who are unemployed, partially employed, or unable or unavailable to work because:
• The individual has been diagnosed with COVID-19 or is experiencing symptoms of COVID-19 and seeking a medical diagnosis;
• A member of the individual’s household has been diagnosed with COVID-19;
• The individual is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID-19;
• A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of COVID-19 public health emergency and such school or facility care is required for the individual to work;
• The individual is unable to reach their place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency;
• The individual is unable to reach their place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
• The individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency;
• The individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID-19;
• The individual had to quit his or her job as a direct result of COVID-19;
• The individual’s place of employment is closed as a direct result of the COVID-19 public health emergency; or
• The individual meets any additional criteria established for unemployment assistance.
Newly covered individuals include those who are seeking part-time employment, do not have sufficient work history, or who otherwise would not qualify for regular unemployment benefits under state or federal law, provided they are unable to work due to one of the above-listed COVID-19 related reasons. In order to receive these benefits, newly covered individuals will be required to self-certify that they meet the above eligibility criteria and are otherwise able to work.
Workers who are able to work from home and those receiving paid sick leave or paid family leave (including under the recently enacted Families First Coronavirus Response Act) are ineligible to receive unemployment benefits under the CARES Act.
This expanded unemployment coverage will be available retroactively, for unemployment dating back to Jan. 27, 2020 and continuing through Dec. 31, 2020, subject to a cap of 39 total weeks. The U.S. Secretary of Labor will establish a process for making assistance available for the weeks of unemployment that eligible individuals experienced prior to enactment of the CARES Act.
E. Expanded eligibility for those actively seeking work
Similar to the expansion of benefits for individuals who are not typically eligible for benefits, the CARES Act provides an additional 13 weeks of eligibility to individuals who have exhausted their normal 26-week allotment of unemployment benefits and are actively seeking work. However, unlike the benefits available to independent contractors, self-employed individuals or certain others, benefits under this portion of the CARES Act are only available to applicants who are totally unemployed, which excludes those able to find part-time work.
To qualify for this additional benefit, an individual must:
• Have exhausted their rights to regular unemployment compensation from their state;
• Have no rights to unemployment compensation under state, federal, or Canadian law, or to compensation under any other federal program; and
• Be able to work, available to work, and actively seeking work.
• Importantly, being “actively seeking work” requires applicants to engage in a search for employment available in the labor market (while still considering their skills and capabilities) and maintain a list of employers they have contacted, including the method and date of contact. Additionally, when requested, applicants must provide these records of their job search to their state as verification that they are seeking employment.
The benefits available to individuals who are actively seeking work are the same as available under the other portions of the CARES Act, meaning they will receive a payment equal to unemployment compensation calculated using the methodology of their state, plus an additional $600 per week in additional benefits. Because these additional benefits —including those provided under the calculation of their state—would not typically be available for these additional 13 weeks, the full amount of benefits paid out to each eligible individual will be funded by the federal government. These benefits will be available from enactment of the CARES Act through Dec. 31, 2020.
Notably, due to the enactment of the CARES Act in late March, it is unlikely that recently unemployed workers will exhaust their 26 weeks of unemployment before the July 31 expiration of the generally available $600 Federal Pandemic Unemployment Compensation payments. Consequently, there may be a period of time after July 31, 2020 and before an unemployed individual exhausts his or her typical allotment of 26 weeks of unemployment, where the additional Federal Pandemic Unemployment Compensation is not available, until an individual reaches their 27th week of unemployment and this benefit becomes available again, provided they are actively seeking work.
F. Additional assistance for nonprofits
Finally, the CARES Act includes a provision to reimburse nonprofit organizations for one-half of their costs incurred to pay unemployment benefits between March 13, 2020 and Dec. 31, 2020.
Things to consider
When making decisions on response and impact of the COVID-19 pandemic on employees and operations, including decisions on workforce adjustments, furloughs and continuation of pay and other benefits, employers should consider these enhanced unemployment-benefit provisions, together with the business incentives provided under the CARES Act and other recently enacted state and federal legislation.
Paul J. Buehler, III is an associate attorney in the Albany office of Syracuse–based Bond, Schoeneck & King PLLC and Mallory A. Campbell is an associate attorney in the firm’s New York City office. This viewpoint article is drawn from an April 1 post on the firm’s New York Labor and Employment Law Report blog. Contact Buehler at pbuehler@bsk.com and contact Campbell at mcampbell@bsk.com
A Sign of the Times-April 6, 2020
A SIGN OF THE TIMES:Photos showing life in CNY amid the coronavirus crisis
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MACNY: State budget includes funding for apprentice program
DeWITT, N.Y. — The newly approved state budget includes $750,000 to sustain the manufacturers’ intermediary apprenticeship program (MIAP). That’s according to a Friday statement from
Click to View the 2020 Manufacturing Directory
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Important Information, Resources Available For Those Impacted By Coronavirus
The coronavirus isn’t just an unprecedented public-health emergency. It has turned life as we know it upside down. Tens of thousands of afflicted New Yorkers are fighting the virus, and selfless health-care professionals are working around the clock to help them win. They’re in our thoughts and prayers every day. Our efforts to contain the spread
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The coronavirus isn’t just an unprecedented public-health emergency. It has turned life as we know it upside down. Tens of thousands of afflicted New Yorkers are fighting the virus, and selfless health-care professionals are working around the clock to help them win. They’re in our thoughts and prayers every day.
Our efforts to contain the spread of the virus and protect vulnerable populations have also disrupted nearly every facet of our day-to-day lives as Americans — weddings and funerals, worship and entertainment, even voting. The devastating impact on our economy right here in our community can’t be overstated. Small-business owners and their dedicated employees need relief now.
Help and critically important information is available to assist those who have been impacted.
Small-business owners can apply for disaster-loan assistance at https://disasterloan.sba.gov/ela. A fact sheet and downloadable presentation can be accessed at https://esd.ny.gov/resource-guide-covid-19-sba-disaster-loans. Important tax information for small-business owners and their employees can be found at https://www.tax.ny.gov/press/alerts/nys-tax-response-to-covid-19.htm.
Business owners can receive up-to-date guidance and updates from Empire State Development at https://esd.ny.gov/esd-covid-19-related-resources. To access an FAQ about what designates an essential business based on the governor’s recent executive order, you can visit https://esd.ny.gov/sites/default/files/ESD_EssentialEmployerFAQ_032220.pdf. To apply for the designation, visit https://esd.ny.gov/content/request-designation-essential-business-purposes-executive-order-2026. To submit a question to Empire State Development, visit https://esd.ny.gov/covid-19-help. Important information for farmers can be found at https://agriculture.ny.gov/coronavirus.
A step-by-step guide to help New Yorkers file for unemployment insurance can be accessed at https://www.labor.ny.gov/ui/pdfs/Unemployment-Filing-Instructions.pdf. Additional instructions can be found by visiting: https://labor.ny.gov/pressreleases/2020/march-17-2020-1.shtm. Additionally, details about the state’s paid sick-leave plan, including instructions on how to apply, can be found at https://paidfamilyleave.ny.gov/paid-family-leave-family-care.
Details regarding the temporary suspension of state debt collection can be found at https://ag.ny.gov/press-release/2020/attorney-general-james-and-governor-cuomo-temporarily-suspend-state-debt. A database of county health departments is featured at https://www.health.ny.gov/contact/contact_information/index.htm. Information for parents about the state’s expanded remote learning capabilities for students at home can be found by logging on to http://www.nysed.gov/news/2020/state-education-department-and-new-yorks-public-television-stations-announce-expanded.
Last but not least, we know this is a tough time for everyone. This epidemic is putting millions of New Yorkers in extremely difficult circumstances. You need to continue to be mindful of your mental and emotional health. If you’re struggling, please don’t hesitate to contact the state’s emotional support hotline at (844) 863-9314.
Brian M. Kolb (R,I,C–Canandaigua) represents the 131st Assembly District, which encompasses all of Ontario County and parts of Seneca County. Contact him at kolbb@nyassembly.gov
A Nation in Crisis: Who will care for the elderly?
Our society is aging at a rapid pace. Soon, a sizable population will need some form of long-term care. But who will care for them? The number of Americans over the age of 65 will nearly double from 52 million in 2018 to 95 million by 2060, and will occupy a higher percentage of the
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Our society is aging at a rapid pace. Soon, a sizable population will need some form of long-term care. But who will care for them?
The number of Americans over the age of 65 will nearly double from 52 million in 2018 to 95 million by 2060, and will occupy a higher percentage of the total population — from 16 percent to 23 percent.
New York is projected to have 4.5 million people over the age of 65 by 2040. That would be 14 percent of all state residents. Of the 65 and older demographic, nearly 70 percent of them will need some form of long-term care.
The best form of care depends on the needs of the individual. Those in good health may be able to stay in the comfort of their own homes. For older adults who need routine medical attention, facilities with a medical team might be the best and only choice.
In either scenario, residents would likely need well-trained or certified health-care workers or both. But there are more job openings than workers. PHI, the research and advocacy group for direct-care workers, projects that by 2028, more than 8 million direct-care jobs will need to be filled nationwide.
An obvious question arises from these alarming numbers: how can we, and other providers, continue to offer services when there are not enough workers?
The challenges ahead
• High turnover rate
A high turnover rate creates a significant burden for businesses. Training new employees takes time and money. It becomes disruptive to the operation when they leave too soon. It’s especially troublesome for the long-term care industry because, compared to other hourly-waged jobs, direct-care workers need specialized training and medical knowledge to do their jobs well.
• Difficulty recruiting
The high turnover rate leads to another challenge: recruiting and training new workers. While demand for certified health-care professionals and home-health aides remain high, the workforce itself is shrinking.
• Potential federal and state budget cuts
Funding, or the lack of, remains a major source of struggle. The current federal administration’s proposal to reduce federal health program spending for the elderly, if passed, would further strain an industry that’s already operating at a multibillion-dollar deficit.
In New York, one in three residents are in the Medicaid program. That’s a total of 6 million people relying on Medicaid. Within that 6 million people, 70 percent of the cost provides care for the elderly.
In addition, about 45 percent of baby boomers have not saved for retirement. Soon, the boomers will rely on Medicaid, Medicare, and Social Security — the assistance programs they need but might not be available for them.
Possible solutions
The good news is that long-term care providers in Central New York have anticipated these hurdles and have been working to find solutions.
• Retain current employees
Competitive wages, better benefits, and internal talent-management programs are a few good strategies to retain current employees.
Other forms of financial assistance can also help keep employees. Major life moments, such as starting a family or purchasing a car or a house, can get expensive. Providing specific items or programs that support these needs may not be common, but we have seen firsthand that it can make a huge difference.
Investing in current employees to advance their careers within your organization is another great option. Companies can offer flexibility in work hours and financial support for industry-specific educational programs.
• Get creative with recruitment
Second chance or re-entry programs can be a practical solution.
There are assistance programs in place in every state to help those who were justice-involved to successfully transition back into the community. It’s possible for this population to return to work and contribute to society as working individuals, but they still face barriers and have trouble securing jobs.
With proper training, support, and resources, we can create a pipeline of job-ready workers who would fill a variety of positions throughout long-term care and other industries in Central New York.
• Diversify income
Federal and state grants could alleviate financial strains, but there is competition for these grants and no guarantees.
Donations are an important source of income. The generosity of individuals who are passionate about senior care and eager to create a place where the elderly can enjoy has supported our organization in the past and will continue to be essential for our ability to provide the best care in this challenging environment.
Looking Ahead
Central New York — and the nation — need skilled health-care workers. But the shortage is too complicated to be solved by a single entity. Industry leaders, policymakers, and legislators must come together and workout a viable, sustainable solution. And I welcome a discussion on these important topics with other leaders.
Kimberly Townsend is president and CEO of Loretto, and author of “Lifecircle Leadership: How Exceptional People Make Every Day Extraordinary.”
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