What’s available, what’s planned to help Fort Worth businesses survive coronavirus?
Hundreds of Fort Worth-area business have inquired about assistance as the coronavirus shutdown cuts in to revenue. Millions in loans and grants could be on the way.
To get an idea of what Fort Worth business need, the city’s economic development department put out a survey Tuesday asking about coronavirus-related revenue loss, department director Robert Sturns said.
As of Thursday the survey had more than 600 responses. Meanwhile, the Dallas-Fort Worth office of the U.S. Small Businesses Administration has received 100 to 120 calls a day this week, director Herb Austin said.
“We know our small businesses are hurting,” he said. “They’re calling, hoping for a miracle.”
The Small Business Administration will offer small businesses up to $2 million in loans to cover losses small companies may face during the coronavirus pandemic.
But as of noon Thursday that money had not been opened to Texas.
Texas Gov. Greg Abbott declared a statewide disaster for all counties on Friday, but that didn’t automatically clear the way for SBA loan assistance. Instead SBA and the state had to find five small businesses hurt by the disaster and submit them for a declaration from the SBA headquarters in Washington.
That happened Tuesday, Austin said, but it could be “hours or days” before the authorization is given for loans in Texas.
Once the loans are approved for Texas businesses, owners must show they were doing well before the disaster declaration and revenue has significantly dropped due to coronavirus, Austin said. The SBA may also do a credit check.
Small businesses and agriculture cooperatives may qualify for loans with interest rates capped at 3.75%. Small private nonprofits can qualify for 2.75% interest rate loans. These disaster relief loans have a 30 year life. There are no fees.
For those not wanting to wait for a disaster loan, the city’s small business center has partnered with lenders like People Fund to provide loans with relaxed requirements, Sturns said. These loans are typically used during startup and would require a small business to take on debt.
More information is available through Fort Worth’s Small Business Assistance Center or by calling 817-392-2622.
The city is working to develop tools to aide those businesses, he said, but nothing concrete has been decided.
The city could start a microloan program and has been in talks with some banks about opening lending options, but creditors need further guidance from the state and federal authorities, he said. Preliminary talks have begun with a few local foundations about partnerships to provide grants or other assistance to businesses, he said.
Facebook announced to would provide$100 million in grants to cities like Fort Worth where they operate data and server centers. That money could be used to assist local business, Sturns said, but it’s unclear how much Fort Worth will get.
The Trump Administration has sought a nearly $1 trillion stimulus package that would include relief for small businesses. The package requires action by Congress and details about how much Texas would receive are unknown.
“I think everybody is trying to keep up with a shifting situation,” Sturns said.
Lawmakers and businesses associations have pleaded for more assistance from the state government.
In a letter to Abbot Tuesday, state Sen. Beverly Powell asked the governor to use economic development funds for job retention during the state of disaster. The funds are typically used to finance new and expanded enterprises, but Powell said taking care of existing businesses must be the priority.
Abbott Thursday closed all dine-in restaurants, along with bars and gyms, an effort that many cities and counties had already taken.
Emily Williams Knight, president of the Texas Restaurant Association, in statement said the mandate would have “a catastrophic impact to an industry already reeling from mass reductions in customer visits.”
She urged the state to defer sales tax and provide bridge loans for restaurants.
Smaller local efforts to help businesses are also underway.
Visit Fort Worth, the city’s tourism bureau, compiled a list of restaurants offering curbside and delivery on its website. City officials met with restaurant owners before announcing closures, Fort Worth Mayor Betsy Price said Wednesday, to help cushion the blow and provide them time to work with employees and suppliers.
Fort Worth chef Jon Bonnell told reporters Wednesday after Tarrant County closed dine-in restaurants he believed the decision was the right thing to do for public health, despite the hardship it would cause businesses and employees.
Bonnell said about 120 independent restaurant owners were working to convert to takeout or delivery. His resultants have abandoned the idea of fine dining during the crisis, he said, and have shifted to family meal orders.
“Those that have closed and those that have converted are hoping that we can limp along through this and on the other side of this and come back to a vibrant restaurant scene even one day,” he said.
The Fort Worth Chamber of Commerce has begun a series of virtual events to assist chamber members with obstacles related to the COVID-19 pandemic. The series will be posted on the chamber’s Facebook page and feature a number of industry experts.
Unemployment and sick leave
On Wednesday President Donald Trump signed a coronavirus relief bill that opens to door for paid sick leave for many Americans impacted by the virus. Qualified workers at small and midsize companies as well as government employees can get paid leave if they’ve been employed at least 30 days. If a person is sick, quarantined or seeking a diagnosis or care for coronavirus they can receive up to two weeks of paid sick leave. Those caring for a sick family member can also qualify. Up to 12 weeks of paid leave is available for guardians carrying for children because schools or child care providers ore closed due to the virus.
Businesses and nonprofits will be reimbursed for the full amount within three months through a payroll tax credit. Large companies were not included in the bill as prerequisite for its passage, the New York Times reported.
The National Restaurant Association said the bill didn’t go far enough protect restaurants since the bill requires small business owners cover the cost of the paid leave and recover the money later through a federal tax credit.
Among remedies, the National Restaurant Association urged Congress to allow owners to defer mortgage, lease and loan obligations, provide tax credits for businesses retaining employees, open grants that would go directly to businesses, allow businesses to delay, defer, or forgo tax obligations and expanded access to effective, efficient and affordable federal and conventional loans.
On Tuesday Abbott instructed the Texas Workforce Commission to waive the waiting week, for unemployment benefits. The waiting week is the first payable week of person’s unemployment claim.
The commission is exercising its authority under the Governor’s declaration of a Statewide Disaster to waive unemployment insurance work search requirements effective immediately. Previously to be eligible for unemployment benefits, applicants were required to register for work search on WorkinTexas.com and meet a minimum number of work search-related activities a week.
The commission is also encouraging employers to enroll in the Shared Work program instead of turning to layoffs.
Shared Work allows employers to supplement employee wage lost with partial unemployment benefits. Under the program employers can cut normal weekly work hours for employees between 10% and 40%. Unemployment benefits in the program are paid only for wages lost because of a reduction in the employee’s regular hours.
This story was originally published March 19, 2020 at 2:51 PM.
