Much has changed in the way we all conduct our lives over the last several weeks due to the pernicious Corona Virus. People are staying home. When leaving our homes for essential services we are wearing masks and gloves. Many businesses have closed but those deemed essential are working overtime to provide food and other necessities to our friends and neighbors. Over 100,000 hard-working New Hampshire residents are now unemployed. Meanwhile hospitals and other health care providers have postponed elective procedures to prepare for the expected surge in virus cases to occur in late April or early May.
Many people have contacted me about how they and their families or small businesses can stay afloat in these troubling times. The best initiative for small business owners is the federal Payroll Protection Program which enables a business with 500 or fewer employees to borrow up to $10 million to cover eight weeks of payroll. Critically important — this loan turns into a grant provided the business retains or rehires employees.
Businesses should apply for this grant through local community or commercial banks. The rapid rollout of this initiative has created some confusion among business owners about documentation required. Documentation is obviously necessary to prevent waste, fraud and abuse of taxpayer funds. So, business owners will have to provide proof of payroll, proof of being in business as of February 15, 2020, various IRS forms, and documentation for independent contractors.
Businesses that have successfully completed the application have indicated that dealing with a bank they already have a relationship with has eased some of the paperwork burdens as the bank would already have much of the needed documentation.
There are 37 banks in New Hampshire that are Small Business Administration certified lenders. That list can be obtained at www.nhbankers.com/coronavirus.
A week after applications could be submitted almost 2000 loans to NH businesses have been approved with a value of $405 million protecting nearly 11,000 jobs according to the NH Bankers Association.
I will continue to advocate for bridge loan funding administered by Regional Development Corporations (RDCs). These funds can come from New Hampshire’s allocation of federal funds. These RDCs know local small businesses and are very nimble helping them when they need help the most.
People have also asked me about unemployment compensation. Apply for these benefits at the Department of Employment Security www.nhes.nh.gov. The initial difficultly of applying for unemployment was due to the large number of applicants. Those issues have largely been resolved. Nevertheless, people should look for the red box application link on the website and the directions for when to apply. Governor Sununu increased the minimum amount of unemployment and the federal legislation funded a temporary $600 weekly amount on top of state benefits. It should be noted that self-employed individuals who have had their business income interrupted can also receive unemployment. Remember that you need to apply every week to continue to receive the Corona Virus related unemployment benefit.
Providing strong leadership, Governor Sununu recently announced the formation of the Governor’s Office for Emergency Relief and Recovery and named Banking Commissioner Jerry Little to lead this effort. A minimum of $1.25 billion will be provided to New Hampshire from the recent federal legislation. While final federal guidance on allowed uses of these funds has yet to be released, these resources need to be used for expenses related to the Corona Virus.
New Hampshire’s hospitals which have lost significant revenue due to reserving facilities for Corona Virus related cases can receive funding as can other health care providers. These funds can also be used to support our unemployment trust fund and the Bureau of Economic Affairs as they work to assist employers. Presumably funding can also be used to support local communities that have virus related expenses and not for profits such as food pantries that are stretched thin providing assistance to hard working people who have lost jobs.
It is important to note that the Attorney General’s Office has warned of potential scams involving federal funds. Government entities are not sending emails asking for personal information so carefully scrutinize any correspondence you may receive. More information can be obtained at the www.doj.nh.gov/covid-19-scams/.
Lastly, many people are asking when life can begin to resume some semblance of normalcy. That question is being asked because the economic consequences for our state and nation are profound and because the number of new cases in hot spot areas has begun to plateau. Despite these hopeful signs – public health officials warn it is too early to stop doing what we are doing. All of us need to continue to practice social distancing and wearing masks. Testing for the virus is expanding in New Hampshire and around the country. Access to testing is vital to opening up the economy. Vaccines are being developed and medications are showing positive results.
I hope and also believe that we will begin to resume normal lives sooner rather than later. It is critical to be driven by real data and smart practices that are likely to be cautiously phased in order to protect against a virus relapse. Patience and optimism are vital.
So too is gratitude for those on the front lines of fighting the virus: health care providers, supermarket workers, pharmacy employees, postal workers, first responders and many others. They are truly selfless heroes.
As always contact me with questions at 603-387-2365.
