SBA Paycheck Protection Program may keep businesses afloat
Per Glassdoor, job openings on March 23 declined 8.8 percent week-over-week, swiftly returning to levels last seen in 2018. The decline of roughly half a million job openings is the worst one-week drop since 2016. Despite last week’s precipitous drop, average monthly job openings are still up 2.4 percent compared to March 2019 and down only 0.4 percent month-over-month, highlighting the rapid evolution of the crisis. The positive year-over-year growth shows that while recent events are dragging the labor market down, there is an economic buffer built in after years of fast growth in job openings.
The new Payroll Protection Program (PPP) SBA loan could change this decline. The government is helping small businesses stay afloat with this new potential debt forgiveness loan. If the employer is careful with how they spend the funds, they will not have to pay it back. Get more details on the SBA website. I urge employers to start thinking of tracking these payments now with special coding.
Maintaining your current job count (headcount) means recruiting and onboarding during this pandemic. Recruiting and onboarding can be done remotely. With Zoom, Freeconferencecall.com, Skype, Google Hangouts and a number of other online tools, you can do all the recruiting virtually through video conferencing, including testing. Onboarding can be done through a number of HR self-service systems if you are lucky enough to have one. If you are one of the unlucky ones, you can still use things like DocuSign, Adobe-sign or the old-fashioned secure emailing of handwritten forms. The Department of Homeland Security has temporarily given the flexibility to avoid in-person requirements for I-9s. Keep in mind this is only valid if your workforce at that location is 100% remote.
Optima office is ready to help you get your application submitted with the appropriate financial institution and set up your accounting system to ensure all these payments are tracked properly so you can take advantage of this opportunity to help keep your business running and maintain your current job count (headcount).
DISCLAIMER – Due to the daily changing environment and guidelines being provided by the government, this information could be outdated. Please contact our office for the latest updates and guidelines. Optima Office is not responsible for any actions taken due to the information provided. The information provided here is for instructional purposes and does not represent legal advice being given by Optima Office.
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