Jackson, Miss. (Neshoba Democrat) – Businesses and employees out of work due to the COVID-19 pandemic could be eligible for relief from the state and federal government after measures were to passed to offer emergency loans and waive certain unemployment requirements.
The U.S. Small Business Administration announced last week it was relaxing the criteria for states seeking an economic injury declaration related to the novel coronavirus.
Historically, the SBA has required any state or territory impacted by a disaster to provide documentation certifying that a small business in each county requesting relief had been impacted. That rule has been changed so that the state need only provide proof that five small businesses across the state have been impacted.
Also, the SBA announced that disaster assistance loans for small businesses would be available statewide following an economic injury declaration from Governor Tate Reeves’ rather than only in county’s identified as disaster areas.
SBA Administrator Jovita Carranza said Friday that banks and financial institutions’ cooperation in the face of the crisis has been indicative of the effort to mobilize a massive public-private response, but that the SBA still had a role to play.
“As a result, most small businesses that need credit during these uncertain times will be able to obtain it,” Carranza said. “However, our goal is to ensure that credit is available to any and all small businesses that need credit but are unable to access it on reasonable terms through traditional lending channels.”
SBA’s Economic Injury Disaster Loans can offer up to $2 million in assistance for each affected small business. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Interest rates range from 3.75 percent for small businesses and 2.75 percent for non-profit organizations.
Small business owners searching for more information can visit the SBA disaster assistance web site at www.SBA.gov/Disaster.
Locally, Mississippi lawmakers unanimously passed a bill to allow local government entities such as counties, cities and school districts the ability to pay employees who are placed on administrative leave during a declared state of emergency before temporarily adjourning the current legislative session.
The authority vested in these governmental bodies is voluntary, not mandatory, and has been been provided by the Legislature in previous emergency situations, including post-Hurricane Katrina.
“The last thing our local governmental entities and schools need to be worried about is how to pay their janitors, cafeteria workers, bus drivers and so many others,” Lieutenant Governor Delbert Hosemann said. “Before we temporarily adjourned the session, it was imperative we take this concern off the table for our local officials.”
Gov. Tate Reeves last week announced efforts to provide unemployment benefits to help Mississippi workers and their families impacted by the COVID-19 outbreak.
Working to support Mississippi’s dedicated workforce and relieve undue burdens, Reeves signed an executive order instructing the Mississippi Department of Employment Security (MDES) to expedite payments to unemployed Mississippians and relax collection requirements on employers.
Reeves made the announcement directly addressing Mississippi via Facebook Live.
“This is not a time for us to panic. This is a time for us to come together as Mississippians, as Americans. Small businesses are the backbone of our economy, and their employees are the people who keep our economy going. We have worked very closely with the Mississippi Department of Employment Security to help employees of small businesses that are having a difficult time keeping their doors open in these challenging times,” said Reeves on Saturday.
Reeves is waiving the one-week waiting period to receive unemployment benefits for all claims filed from March 8 to June 27 and suspending all work search requirements that normally must be met to receive benefits.
To relieve some of the pressure on employers, the Governor is also suspending all collection activities, such as enrollment of liens and tax garnishments, and providing MDES and employers some flexibility as we move forward during this difficult time.
Governor Reeves is currently working on next steps to take care of Mississippi employers and help them navigate this unprecedented time.