The economic impacts for the Denali Borough of Covid-19 are likely to be significant. We will see large impacts on our tourism industry, and due to our narrow tax base, delayed challenges for our local government. This recovery will likely be lengthy, and in the short term, ever changing. Alaska State action and potential policy can be found at State Policy/Activity Dashboard Tracker
This page will be updated regularly to provide local businesses with resources and information during the following weeks and months, as the full impacts become known. To be included on our email list, please email us at firstname.lastname@example.org
If You Only Have 5 minutes, start here!
Great breakdown of all the different relief programs and what they cover.
Your local Alaska organizations are working to determine the economic impacts of this pandemic on the State of Alaska and your local region.
Completing the listed surveys will assist them in measuring area and depth of impact, as well as appropriate recovery responses.
Small Business Administration Information
FACT SHEET for borrowers: https://home.treasury.gov/cares
Go to Aksbdc.org and register for daily briefing information. Two webinar updates will be held daily.
Updates will be posted here as they open: Sba.gov/updates
Alaskan lenders participating in the PPP Loans can be found here: AK Participating Lenders List 4 1 2020 New Format
State of Alaska
The Legislature has passed a bill that will expand unemployment benefits for Alaskans impacted by COVID-19. This bill enables Alaskans who are unable to work, due to mandates, employer decision or to care for children displaced from school or childcare, to access unemployment benefits immediately. Under this bill, the standard one-week waiting period would be waived and the weekly per-dependent amount would triple from $25 to $75.
It also allows the State of Alaska to receive federal unemployment insurance grants authorized by the Families First Coronavirus Response Act. If you have been affected by COVID-19 closures and lost work, you can access the State Unemployment Insurance Program online at my.alaska.gov. Once on the homepage, click on “Unemployment Insurance Benefits.” You can also call for assistance: (1-888-252-2557).
The current federal bill summary can be found here: CARES Act
US Travel Association
Alaska State Chamber
(Small and midsize employers can claim two new refundable payroll tax credits to reimburse them, dollar-for-dollar, for the cost of providing employee leave related to the COVID-19 outbreak.
Businesses with less than 500 employees can get funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.
To take immediate advantage of new paid leave credits, businesses can retain and access funds that they would otherwise pay to #the IRS in payroll taxes.)
This is a blog article I highly recommend, which explains a lot of things better than I can. It has some information specific to Oregan, but most of it will benefit anyone.
The Oregan information I have forwarded to our local State Representatives, as it could be a great Alaskan option as well!
www.preparemybusiness.org is a website that can help with continuity planning. As you begin the process of moving through this major disruption, it is also an opportunity to record what works, what doesn’t, and use those observations to plan for the future.
Covid-19 Information Sites
For current information on Alaska cases visit Alaska Department of Health & Social Services
For current information on Alaska mandates related to Covid-19 please visit the The Office of the Governor
Small Business Economic Injury Loan Program
Much of the information can be found under the RESOURCES tab, see Small Business Administration Information section. Here is a copy of the Small Business Administration Loan Program 101: AK EIDL presentation 03_2020 Final Audio File
Stimulus Package Phase 3 Explained
- Rebates – American families will receive 1200 per person 2400 for a couple 500 per child. There will be direct deposits.
- There were 3 million initial filings for unemployment- This extends the program for 4 months and waives the 1 week waiting period. In addition to state benefits amounts, $600 per week will be added on top in most states, if they opt to participate. The bill adds $600 per week in unemployment benefits for 4 months on top of state unemployment. Maximum for UI in Alaska is $370 per week, meaning individuals could get $970 per week ($3,880 per month). This program waives the requirement to wait one week to receive unemployment benefits. The federal program follows state UI regulations.
- Generally the bill expands unemployment to individuals who don’t normally qualify (sole proprietors, 1099 works, and others who have not traditionally ”paid in”).
- The bill allows business owners to delay payroll tax payments to fix immediate liquidity issues. Employers can delay 50% of payroll tax payments for 1 year and the other 50% for 2 years.
- Restaurant and Retail – Tweaks 2017 tax law to give enhanced access to deductions to facility improvements that were done
- Loan/Grant Program – Less than 500 employees including sole proprietors & 501c3’s are eligible to receive a loan for 2.5 times average payroll up to 10 million dollars. If you maintain your employees you get full loan forgiveness ( if used for payroll and rent). If you reduce workforce, the forgiveness will be reduced proportionally.
Here’s how it works: Small Business owners will estimate their eligible expenses from the 8 weeks starting Feb 15, 2019 or March 1, 2019 to determine their eligible monthly expenses. Eligible monthly expenses include: Payroll, utilities, rent, and interest on a mortgage (not principal). The monthly eligible expenses figure is multiplied by 2.5 and this will be the loan amount given, up to $10 million. This is very sticky with seasonal businesses and there wasn’t really a very good answer for it. Our payrolls are much different in June than March. There should be more info next week.
- Legislation says the Treasury Secretary can expand the list of lenders beyond the traditional SBA lenders, to many more.
- Money will be sent to states and localities to help cover their losses in this as well. (Denali Borough should qualify)
- This program is different and you will work through a designated Leander for this not the SBA loan application system. Should have a list early next week.
- If you have laid off your staff you are encouraged to bring them back to get a full benefit of forgiveness
- Options for seasonal business (chose winter and summer season) allow for loan application based on the average for that season.
- Can get a 10,000 dollar advance on the loan that will be paid within 3 days of applying. Assuming this is used for qualified expenses this will be considered a grant.
- You can’t apply for this loan if you have taken out another loan for these expenses so you will need to consider if the SBA Disaster Loan or this program better suits your situation.
- You must certify that the current economic situation makes it necessary to apply for this program. Basically, you must have an impacted business.
- Small business owners will apply through a commercial lender. All 7(a) lenders will likely qualify, but the complete list will be released next week.