Although it’s hard to know when this pandemic will end, we are confident that at some point, it will, and there is a way for small Government Contractors to survive and bounce back. A small business in government contracting must work together with the government to prevent substantial economic impact.
According to the Centers for Disease Control and Prevention (CDC), as of April 03, there are already 213,144 cases of COVID-19 infection in the United States and 4,513 deaths.
For this reason, the government is taking action to stop the increasing number of deaths.
The CDC provided guidelines for businesses and employers to follow. These include encouraging sick employees to stay at home, performing cleaning in the business premises, maintaining social distancing, and supporting every employee to maintain respiratory hygiene, cough etiquette, and other health measures. If there’s also a confirmed case, government contractors should conduct a risk assessment on their business premises.
Common Problems that affect Small Business
- No capital or cash flow to cover the financial losses due to this crisis.
- Employees declared essential. They get sick, and you have to hire another to replace them.
- Employees forced to work at home or use sick leave.
Communicate with Employees
The following are guidelines that we at DynaGrace Enterprises gave to our employees.
Most Important Actions to Take Now
- Follow public health directives about staying home as much as possible when not required to go into work.
- Know the signs of COVID-19, as compared to other illnesses (like allergies). If you are ill, contact your health care provider to seek advice. Intermountain Health Care in Utah has a Symptom Checker here.
- Clean AND disinfect frequently touched objects and surfaces. Disinfection madates cleaning with soap and water before disinfection.
- Wash your hands often with soap and water for at least 20 seconds. Use hand sanitizer with at least 60% alcohol if soap and water are not available.
- Avoid touching your eyes, nose, and mouth with unwashed hands.
- Cover your mouth and nose with a tissue when you cough or sneeze or use the inside of your elbow. Throw used tissues in the trash and immediately wash hands with soap and water for at least 20 seconds.
- Avoid using other employees’ phones, desks, offices, or other work tools and equipment, when possible. If necessary, clean and disinfect them before and after use.
- Practice social distancing by avoiding large gatherings and maintaining distance (approximately 6 feet or 2 meters) from others when possible.
If you are declared an essential employee
- Have your letter with you when driving.
- You will need to be on-call, have your CAC reader, and check emails.
- Telecommute Options
If there is a possibility you have the virus or test positive
- Stay home if you have symptoms (i.e., fever, cough, or shortness of breath), you should notify your project leader and STAY HOME.
- A sick family member at home with these symptoms requires you to stay home. Please notify us as well and find out ASAP if they have COVID-19.
- Positive Test
- Notify anyone that has been around you
- We are offering you an additional paid sick leave if you test positive. We want you to rest and get better, and you will not be required to telecommute.
- Sick employees should follow the CDC-recommended steps.
- Employees should not return to work until the criteria to discontinue home isolation is met with consultation from healthcare providers and state and local health departments.
The most important thing is to let your employees know you care about them.
Communicate with Government
As a Government Contractor, you have the responsibility to communicate with the government office that you are dealing with. You need to inform these offices regarding the state of your business process. Don’t be afraid to tell them that you won’t be able to supply the necessary materials or finish a specific project within the given period. Remember, these offices choose Government Contractors, like your business, with the idea that you are a credible and responsible. Do not be silent, be transparent.
Making the above statement is essential as this will give them the necessary information, and they might even be able to help you. Besides, each government office has been tasked to grant flexibility for small business federal contractors and to expedite the contract award process so that affected businesses can begin generating revenue through the COVID-19 RELIEF for Small Businesses Act of 2020.
The bill includes extending the performance time of small business contractors by 30 days, adding more budget for sole-source award contracts, temporary removal of market research requirements, Office of Management and Budget’s annual category management goals exclusion, prompt payments within 15 days, and revision in the delivery schedule.
Mainly, this act is helping small business Government Contractors to continue your delivery and to help you survive this pandemic.
Hardship Loans and Grants
Paycheck Protection Program
Reference: PayCheck Protection Program
In H.R.748 – CARES Act, the US Congress appropriated $349 billion for loans to small businesses. The loans are issued under the Paycheck Protection Program that provides loans up to $10 million that can be forgiven in certain circumstances. Highlights include:
- Business must have less than 500 employees
- Employees are full-time, part-time, or other basis.
- Affiliation rules apply.
- Loans available for expenses occurred during February 15, 2020 to June 30, 2020
- Maximum Loan Amount is 2.5 times the payroll costs for the prior year or $10 million
- Businesses can use the money for payroll, group health costs, payment of interest on mortgages, rent, utilizes, and other debt incurred before February 15, 2020
- No Personal Guarantee
- Loan Maturity at 2 Years
- Interest Rate of 4% or less
- Lenders already approved to make SBA Loans offer these loans
- Applications are taken through existing SBA 7(a)
Small Business Administration (SBA)
The SBA has loans available of up to $2 million per business to help with financial issues under their Economic Injury Disaster Loans. You can apply online through their website or print and fill out
the PDF documents in their site and mail it to their processing and disbursement center
SBA Disaster Loans were not initially intended to be used for COVID-19. In the past, the funds have been used for events such as droughts or floods. However, when COVID-19 started to have huge effects on businesses, the Administration decided to open up these loans to those that were affected by COVID-19.
The SBA’s website was crashing because so many people were on it at the same time. The SBA has a new website for individuals looking to apply for Economic Injury Disaster Loans. Please use this link moving forward. https://covid19relief.sba.gov/#/
Internal Revenue Service (IRS)
The IRS recently released this FAQ on the Employee Retention Credit that was included in the CARES Act. This credit is designed to be an incentive for businesses to keep employees on payroll during this difficult time. https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act
US Chamber of Commerce
The US Chamber of Commerce has a one-pager for Small Business Guide and Checklist
We are Americans. We will survive. My heart goes out to every one of you. Stay safe and healthy.
Linda Rawson, is the Founder of DynaGrace Enterprises, and the author of The Minority and Women-Owned Small Business Guide to Government Contracts: Everything You Need to Know to Get Started. For consulting and coaching on Government Contracting visit the website GovCon-Biz.
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