SPRINGDALE, Ark. — Many businesses are temporarily closing their doors because of coronavirus (COVID-19), and others like restaurants are hanging on by switching to curbside service and delivery. President Trump signed the more than $2 trillion stimulus package Friday (March 27), so help is now on the way.
“It was absolutely one of those things where we were like; we have to close our restaurant, the one thing we worked so hard to build and grow, but when the public’s health is at stake, that’s a no brainer to me,” Brent Hale said.
There are about $380 billion in loans that will be available to small businesses, which is any business with less than 500 employees.
Owner of Sammich Love and Big Sexy Food, Brent Hale says this will allow him to keep his staff employed.
“We’ve done everything we can to make sure we have revenue coming in to keep them paid, and so far, we haven’t missed anything on that, and we are very proud of that. That’s one of the things we are really looking forward to is even if we have to do a full shutdown, we can keep our staff on payroll and take care of them and their families,” Hale said.
University of Arkansas Economist Mervin Jebaraj says this money will come initially as loans for businesses, so they can be back in full operation once this crisis is over with.
“If you use it to pay rent, use it to pay utilities, you use it to pay your other fixed costs, and you use it to pay for 90% of your payroll as it was on March 1, those loans will convert into grants, and you don’t have to pay those back to the federal government,” Jebaraj said.
Bill Rogers, with The Springdale Chamber of Commerce, says these loans are going to be a lifeline for every business in America. He says companies should be patient because before they can get the loans, the small business administration will still have to write the rules and regulations, so banks will know how to give out this money.
“What small businesses need to do is go ahead and reach out and contact your current personal banker and let them know of your interest. That’s the most important thing you can do right now. That way, when they know what to do, they can contact you,” Rogers said.
Rogers also said to let your employees know you plan to apply for this loan to give them peace of mind. He also recommends contacting your accountant and all of your vendors.