SMALL BUSINESS

What is the Paycheck Protection Program (PPP)?

Paycheck Protection Program is a Small Business Association (SBA) loan that helps businesses keep their workforce employed during the Coronavirus (COVID 1-19) crisis. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Can I apply?

The following entities affected by Coronavirus (COVID-19) may be eligible for the Paycheck Protection Program (as defined 5/07/2020):

• Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
• Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans’ organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
  • 500 employees, or
  • That meets the SBA industry size standard if more than 500
• Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
• Sole proprietors, independent contractors, and self-employed person

What is the Economic Injury Disaster Loan?

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Can I apply?

The new eligibility for Agricultural businesses is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.

Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).

SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.

3. SBA Express Bridge Loans

What is the SBA Express Bridge loan?

The SBA Express Bridge loans allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

Can I apply?

If you are a small business that currently has a relationship with an SBA Express Lender.

4. SBA Debt Relief

What is SBA Debt Relief?

The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief 

Can I apply?

Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

• For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
• For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended and will make six monthly payments.
• For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

The Arizona Commerce Authority lists multiple assistance programs available: https://www.azcommerce.com/covid-19/financial-resources/

Local First Arizona is a nonprofit organization supporting, promoting and advocating for a strong local business community. Visit their resources: https://www.localfirstaz.com/covidresources

Governor Doug Ducey issued Executive Order 2020-34 which outlined the guidelines for reopening businesses in Arizona.

Update - In an executive order issued by Governor Doug Ducey on March 5, 2021, it is declared that specific occupancy percentage limitations for businesses will expire. This applies to restaurants, gyms, theaters, water parks, bowling alleys, and bars providing dine in services. Physical distancing and mask protocols will remain in place. 

Barbers and cosmetologists (licensed by Title 32) may be open, providing they establish and implement protocols and best practices for businesses to address COVID-19, including:

• Using face coverings for employees and customers
• Operating by appointment only
• Following protocols as directed by the Centers for Disease Control and Prevention, U.S. Department of Labor, and the Arizona Department of Health Services.

What are those protocols? (Note: guidance from federal and state agencies related to COVID-19 is continually updated. All are encouraged to visit agency sites directly to ensure compliance with current recommendations and guidelines – www.cdc.gov , www.azhealth.gov , www.dol.gov )

To the extent possible, take measures to ensure that customers follow these guidelines:

• Stay home if sick.
• Stay at least 6 feet away from other patrons.
• If you are at higher risk for severe illness, you should avoid visiting barbers and cosmetologists. People at higher risk for severe illness include adults 65 or older and people of any age who have serious underlying medical conditions.
• Do not touch your eyes, nose, or mouth.
• If possible, use touchless payment (pay without touching money, a card, or a keypad). If you must handle money, a card, or use a keypad, use hand sanitizer immediately after.
• After leaving your appointment, use hand sanitizer. When you get home, wash your hands with soap and water for at least 20 seconds.

Additional steps to be taken by barbers and cosmetologists:

• Maintain physical distancing, to the extent possible.
• Provide and require employees to wear masks when possible.
• For salon treatments that require touching someone’s face, provide and require employees to wear gloves when possible.
• Provide access to soap and water for handwashing or an alcohol-based hand sanitizer at stations around the store, salon or spa for use by employees and clients. Require employees to wash hands immediately before and after providing client service.
• For treatments/appointments that don’t require touching the client’s face, clients should be encouraged to wear masks for their protection.
• Operate with reduced occupancy and capacity based on the size of the business location with special attention to limiting areas where customers and employees can congregate.
• Wipe any pens, counters, or hard surfaces between use or customer.
• Implement comprehensive sanitation protocols.
• Implement symptom screening for employees prior to the start of their shift.
• Consider offering cloth face coverings to employees and visitors to wear.
• Consider operating by appointment-only to manage occupancy levels.
• Arrange waiting areas, service areas, and break rooms to provide for appropriate physical distancing and sanitize areas regularly between use.
• Consider posting signs advising customers and employees of expectations and guidance.
• Consider not charging late/cancellation fees if someone cannot make their appointment due to illness.
• Train all employees in the above safety actions.

Dine-in services may be open, provided they establish and implement protocols and best practices for businesses to address COVID-19, including:

• Enacting physical distancing policies
• Following protocols as directed by the Centers for Disease Control and Prevention, US Dept. of Labor, and the Arizona Dept. of Health Services.

(Note: guidance from federal and state agencies related to COVID-19 is continually updated. All are encouraged to visit agency sites directly to ensure compliance with current recommendations and guidelines – www.cdc.gov , www.azhealth.gov , www.dol.gov )

To the extent possible, restaurant establishments should take measures to ensure that customers may follow these guidelines:

• Stay home if sick.
• Consider ordering food for delivery or curbside pickup if available.
• Protect yourself while dining at restaurants:
• Stay at least 6 feet away from others while dining.
• When you do dine-in, consider dining during off-peak hours (for example, early morning, mid-afternoon, or late night).
• If you are at higher risk for severe illness, continue to use takeout and delivery and avoid dine-in services at restaurants. People at higher risk for severe illness include adults 65 or older and people of any age who have serious underlying medical conditions.
• Do not touch your eyes, nose, or mouth.
• If possible, use touchless payment (pay without touching money, a card, or a keypad). If you must handle money, a card, or use a keypad, use hand sanitizer immediately after.
• Wash your hands with soap and water or use an alcohol-based hand sanitizer before you eat and again when you are finished.
• After leaving the restaurant, use hand sanitizer. When you get home, wash your hands with soap and water for at least 20 seconds.

The Centers for Disease Control and Prevention (CDC) guidance, under all circumstances, recommends the following precautions should be followed by restaurants providing dine-in services:

• Consider assigning duties to vulnerable workers that minimize their contact with customers and other employees.
• Enforce hand washing, covering coughs and sneezes.
• Develop standards for the use of non-medical grade masks or cloth face coverings by employees when near other employees and customers.
• Ensure adequate supplies to support healthy hygiene practices for both employees and customers including soap, hand sanitizer with at least 60 percent alcohol (perhaps on every table, if supplies allow), and tissues.
• Consider posting signs on how to stop the spread of COVID-19, properly wash hands, promote everyday protective measures, and properly wear a face covering.
• Intensify cleaning, disinfection and ventilation practices.
• Wash, rinse, and sanitize food contact surfaces, food preparation surfaces, and beverage equipment after use.
• Avoid using or sharing items such as menus, condiments, and any other food. Instead, use disposable or digital menus, single serving condiments, and no-touch trash cans and doors.
• Wipe any pens, counters, or hard surfaces between use or customer.
• Train all employees in the above safety actions.
• The Department of Health Services recommends the following additional steps be taken by restaurants:
  • Maintain physical distancing, including limiting parties to no more than 10.
  • Implement comprehensive sanitation protocols, including increased sanitation schedules for bathrooms.
  • Continue to provide options for delivery or curbside service even if a location offers dine-in.
  • Implement symptom screening for employees prior to the start of their shift.
  • Consider offering masks to wait and host staff.
  • Restaurants should sanitize customer areas after each sitting with EPA-registered disinfectant, including but not limited to:
    • Tables
    • Tablecloths
    • Chairs/booth seats
    • Table-top condiments and condiment holders
    • Any other surface or item a customer is likely to have touched
    • Avoid instances where customers serve their own food.

(Note: guidance is continually updated so you are encouraged to visit these websites to ensure compliance with the most up-to-date guidance – www.cdc.gov , www.azhealth.gov , www.dol.gov )

Businesses can resume partial openings that incorporate social distancing and sanitation measures established by the United States Department of Labor or the Arizona Department of Health Services. The guidance for retailers include:

To the extent possible, retail establishments need to properly facilitate allowing their customers to follow these guidelines:

• Stay home if sick
• Order online or use curbside pickup if possible
• Protect yourself while shopping.
• Stay at least 6 feet away from others while shopping and in lines.
• Cover your mouth and nose with a cloth face covering when you have to go out in public.
• When you do have to visit in person, go during hours when fewer people will be there (for example, early morning or late night).
• If you are at higher risk for severe illness, find out if the store has special hours for people at higher risk. If they do, try to shop during those hours. People at higher risk for severe illness include adults 65 or older and people of any age who have serious underlying medical conditions.
• Disinfect the shopping cart, use disinfecting wipes if available.
• Do not touch your eyes, nose, or mouth.
• If possible, use touchless payment (pay without touching money, a card, or a keypad). If you must handle money, a card, or use a keypad, use hand sanitizer right after paying.
• After leaving the store, use hand sanitizer. When you get home, wash your hands with soap and water for at least 20 seconds.

Additional steps to be taken by retail establishments:

• Maintaining physical distancing.
• Operating with reduced occupancy and capacity based on the size of the business location with special attention to limiting areas where customers and employees can congregate.
• Implementing comprehensive sanitation protocols.
• Continuing to provide options for delivery or curbside service even if a location allows customers inside the store.
• Closing fitting rooms at clothing stores, meeting rooms or other enclosed spaces accessible to customers that do not allow for appropriate physical distancing.
• Implementing symptom screening for employees prior to the start of their shift.
• Considering offering cloth face coverings to employees and visitors to wear.

The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. Although the requirement that employers provide paid sick leave and expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA) expired on Dec. 31, 2020, there may still be workers’ and employers’ rights and responsibilities to consider. To learn more, click here.

The Families First Coronavirus Response Act (FFCRA or Act) requires certain (covered) employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. 

Covered Employers: The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to certain public employers, and private employers with fewer than 500 employees.  Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or childcare unavailability if the leave requirements would jeopardize the viability of the business as a going concern.

Eligible Employees: All employees of covered employers are eligible for two weeks of paid sick time for specified reasons related to COVID-19. Employees employed for at least 30 days are eligible for up to an additional 10 weeks of paid family leave to care for a child under certain circumstances related to COVID-19. Special rules apply for Health Care Providers and Emergency Responders.

What are the specified reasons related to COVID-19?

Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to telework) due to a need for leave because the employee:

1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
2. has been advised by a health care provider to self-quarantine related to COVID-19;
3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
5. is caring for a child whose school or place of care is closed (or childcare provider is unavailable) for reasons related to COVID-19; or
6. is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

If they are subject to a quarantine or isolation order related to COVID, have been advised by a healthcare provider to self-quarantine related to COVID, experiencing COVID symptoms and are seeking a medical diagnosis, caring for an individual subject to quarantine or an individual who has been advised to self-quarantine, or an individual who is experiencing any other substantially-similar conditions, then: A full-time employee is eligible for 80 hours of leave, and a part-time employee is eligible for the number of hours of leave that the employee works on average over a two-week period.

If they are caring for a child whose school or place of care is closed (or child care provider is unavailable for reasons related to COVID-19, then:  A full-time employee is eligible for up to 12 weeks of leave (two weeks of paid sick leave followed by up to 10 weeks of paid expanded family & medical leave) at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

For leave reasons where the employee:

• is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
• has been advised by a health care provider to self-quarantine related to COVID-19;
• is experiencing COVID-19 symptoms and is seeking a medical diagnosis;

These employees taking leave are entitled to pay at either their regular rate or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a 2-week period).

For leave reasons where the employee:

• is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
• is experiencing any other substantially-similar condition specified by the Secretary of Health and Human Services, in consultation with the Secretaries of Labor and Treasury.

These employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a 2-week period).

For leave reason where the employee:

• is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons relating to COVID-19

These employees taking leave are entitled to pay at 2/3 their regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period).

(Note: 1. Paid sick time provided under this Act does not carryover from one year to the next. Employees are not entitled to reimbursement for unused leave upon termination, resignation, retirement, or other separation from employment. 2. An employee may elect to substitute any accrued vacation leave, personal leave, or medical or sick leave for the first two weeks of partial paid leave under this section)

No. Executive Order 2020-21 which stated that unless a court determines on motion of one of the parties that it is contrary to the interest of justice, a commercial eviction action including lock out, notice to vacate, or any other attempt to inhibit the operations of a business shall be temporarily suspended for tenants unable to pay rent due to financial hardship caused by the COVID-19 pandemic, expired on May 31, 2020.