Which of the Coronavirus Relief Programs is best for your business?
Scenario 2: Furlough Employees
In the second scenario, Jimmy is increasingly uncertain about how long this crisis will continue affecting his business. He decides to furlough most of his employees and operate using only take-out services. He wants to qualify for the maximum amount of federal relief possible to remain in business, while also doing right by his employees and giving them their jobs back once he’s able to reopen his dining-room doors. Discover how the government coronavirus relief programs affect his decision to furlough all 38 of his hourly employees in the video below
Scenario 3: Shut Down
In this, the most pessimistic scenario, Jimmy decides to lay off all 38 of his employees and shut down the restaurant’s operations. Jimmy decides against dissolving the company and instead applies for loans made available through the CARES Act. He knows that by laying off his employees and shuttering his deli he will most likely not qualify for loan forgiveness. Still, he feels it’s the only way he can make ends meet at this moment.
Watch the video below to see how the decision to shut down Jimmy’s Deli affects his ability to qualify for the various government relief programs available through the CARES Act.
PLEASE NOTE: This content has been provided by G&A’s legal partner, Groom Law Firm, and is shared with their permission. This information is only a summary of what is included in the FFCRA and CARES Act and should not be considered legal advice. If you are seeking advice on the COVID-19 business relief programs, please consult with your legal counsel so that you and your counsel may consider all relevant facts particular to your business.
As of press time, the U.S. Small Business Administration was no longer accepting applications for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances).