‘A life line’: How Myrtle Beach businesses can benefit from coronavirus stimulus bill
Grand Strand businesses — from tourist attractions to fine dining — are hurting as the coronavirus pandemic has brought tourism to a halt. But a nationwide stimulus package could help keep businesses afloat.
The South Carolina Department of Department of Workforce and Employment reported Horry County had the highest unemployment claims filed in the state last week. Tourism is South Carolina’s largest industry.
While many residents can expect a $1,200 check sent directly to them in the coming weeks, United States Congressional Representative Tom Rice, R-7, said the COVID-19 stimulus package will help employers with fewer than 500 employees keep payroll through the crisis.
But you have to apply at your bank for the help.
“Every bank is qualified. It’s a 100 percent government guaranteed loan so there is no reason a bank won’t help you out,” Rice said. “The extent you use the money to meet payroll, you don’t have to pay that back. It’s an enormous benefit … a life line.”
Congress approved the largest stimulus bill in United States history on Friday and President Donald Trump later signed it. It hopes to provide some relief to the economic strains caused by the coronavirus.
The stimulus package allows small businesses to seek a ”7(a) loan” from the Small Business Administration through any community or regional bank branch. Businesses do not have to be related to tourism, you just have to attest that the virus has harmed your company.
The loan allows businesses to borrow up to two-and-a-half times their current payroll per month and some other expenses to help keep employees paid through the crisis.
“Every small business owner should go talk to their banker about the 7(a) program,” Rice said. “If you don’t go ask for it, you won’t get it.”
While the loan program is what Rice wants small businesses to apply for, the bill also includes provisions to help small businesses with taxes and loan payments.
Businesses can benefit from a months-long delay on the employer payroll tax and expansion of unemployment benefits. A carry-back program will allow losses this year to be used against previous years’ taxes to get some money back, Rice said. For student workers, there are also incentives for employers to help employees pay student loans to avoid income taxes on the payments. The deadline to file your taxes has also been pushed back 90 days.
Ultimately, Rice knows tourism has a tough road ahead due to the coronavirus. He said these measures will help keep businesses afloat until the economy can reopen and begin the recovery process.
“This area is hurt far worse than any other area in the state. These small business programs are going to ease the pain, but it won’t do away with it,” Rice said. “We’re going to lose some small businesses, but these programs will help keep some.”
This story was originally published March 30, 2020 at 12:37 PM.
