Small Business and Coronavirus | Page 2 | Syracusefan.com

Small Business and Coronavirus

Not that I doubt your source, but can you provide a link as I am unable to find anything like that. For me, if I have to pay that amount and this ends up being a protracted health event, I will have to shutter my doors. We work for companies that supply components for the US navy and SpaceX and could not weather these restrictions long term.
 
I own and operate McDonald’s franchises in NYC. Although many do not understand the franchise model, i work on extremely low margins,

30% of my revenue is paid to my employees total labor costs. For those standing on a soap box about our pay, which is $15 an hour to start everyone of my general managers and superviors began at min wage and they all now make between from 60k to 150k depending on their tenure , performance and the sales in the restaurants they run.

i have a total of 1200 employees combination Both full and part time.

My revenue is down 40% and my manhattan locations are down over 60%. Although we have cut hours we have not laid or anyone as we are trying to stay open for our staff , serve customers in need when in many cases it makes zero sense to continue operating.

i have to make difficult decisions soon. If i do not manage this as well as possible and I do not survive this then all my employees are out of work.

I am have major concerns regarding my ability to survive this crisis. I am not looking for anyone to feel bad for me but as an example of how devastating this crisis will be for our economy the economic impact is hard to fathom.
 
I own and operate McDonald’s franchises in NYC. Although many do not understand the franchise model, i work on extremely low margins,

30% of my revenue is paid to my employees total labor costs. For those standing on a soap box about our pay, which is $15 an hour to start everyone of my general managers and superviors began at min wage and they everyone of them makes between from 60k to 150k .

i have a total of 1200 employees combination Both full and part time.

My revenue is down 40% and my manhattan locations are down over 60%. Although we have cut hours we have not laid or anyone as we are trying to stay open for our staff , serve customers in need when in many cases it makes zero sense to continue operating.

i have to make difficult decisions soon. If i do not manage this as well as possible if i don’t survive this then all my employees are out of work.

I am have major concerns regarding my ability to survive this crisis. I am not looking for anyone to feel bad for me but as an example of how devastating this crisis will be for our economy.
Thanks for sharing. Best of luck. We'll get through this - hopefully with a minimum of economic and emotional pain. Wishful thinking, I know. But I hope for it nonetheless.
 
I own and operate McDonald’s franchises in NYC. Although many do not understand the franchise model, i work on extremely low margins,

30% of my revenue is paid to my employees total labor costs. For those standing on a soap box about our pay, which is $15 an hour to start everyone of my general managers and superviors began at min wage and they all now make between from 60k to 150k depending on their tenure , performance and the sales in the restaurants they run.

i have a total of 1200 employees combination Both full and part time.

My revenue is down 40% and my manhattan locations are down over 60%. Although we have cut hours we have not laid or anyone as we are trying to stay open for our staff , serve customers in need when in many cases it makes zero sense to continue operating.

i have to make difficult decisions soon. If i do not manage this as well as possible and I do not survive this then all my employees are out of work.

I am have major concerns regarding my ability to survive this crisis. I am not looking for anyone to feel bad for me but as an example of how devastating this crisis will be for our economy the economic impact is hard to fathom.
Goodroc, I was actually thinking about you this week while reading about businesses like McDonalds and their employees. It is admirable how you are trying to preserve at least some income for your employees...even though, as you say, it adversely affects you personally. I hope everyone here reads what you have written. It is such a real-life example of how we are all in this together. If I lived in Manhattan, I would patronize your McDonalds.
 
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My company I work for is a small business and we had a call this past Friday. Things are good for now but if this extended all summer with little federal help I think there’s a very good chance we fold from what I’m gathering.
So hey if you know anyone that is hiring during these times in Orlando or CNY, looking for a 24 year old, please let me know cause I might be looking for a job lol
 
I own and operate McDonald’s franchises in NYC. Although many do not understand the franchise model, i work on extremely low margins,

30% of my revenue is paid to my employees total labor costs. For those standing on a soap box about our pay, which is $15 an hour to start everyone of my general managers and superviors began at min wage and they all now make between from 60k to 150k depending on their tenure , performance and the sales in the restaurants they run.

i have a total of 1200 employees combination Both full and part time.

My revenue is down 40% and my manhattan locations are down over 60%. Although we have cut hours we have not laid or anyone as we are trying to stay open for our staff , serve customers in need when in many cases it makes zero sense to continue operating.

i have to make difficult decisions soon. If i do not manage this as well as possible and I do not survive this then all my employees are out of work.

I am have major concerns regarding my ability to survive this crisis. I am not looking for anyone to feel bad for me but as an example of how devastating this crisis will be for our economy the economic impact is hard to fathom.
Praying for you and your employees goodroc. Hang in there. Your friends are rooting for you.
 
restaurants start and close all the time though.. Have to think someone else thinks they can jump in and do it.

Maybe so, but not anywhere near the numbers that are coming. Take out isn't going to keep the industry going. More people work in restaurants than in manufacturing in this country.
Would you brush it off if someone said, "eh, it's only our manufacturing industry that's going to get crushed"?
 
no but like 75% of restaurants last under 2 yrs or some number like that. the issue will be how many can start back up its a tough business even without these issues
 
Am interesting piece of information. This was pointed out to me by my payroll company, which factored into my decision to lay off 1/3 of my staff today.
If someone on your payroll has a qualifying Covid19 event that prevents them from working, the business must pay their wages, up to I think $530 a week, until they return. It's about 1/2 of that if they have to care for someone impacted. (You can seek a waiver, but must pay while that is pending.)
Speak with your payroll people.

The Emergency Paid Sick Leave Act requires employers (with less than 500 employees) to pay employees their regular rate of pay, up to $511 per day, for a total of 80 hours for full time employees. This only applies if the employee is unable to work or telework as a result of personally be affected by COVID-19 (including being unable to go to work due to a governmental quarantine or isolation order).

If an employee is unable to work or telework due to caring for family member suffering from COVID-19 or because of lack of child care while schools are shut down, the employee is still eligible for paid leave, but at a lower maximum rate of $200 per day. Again, for full-time employers, this leave is limited to 80 hours.

Leave under the Emergency Paid Sick Leave Act is in addition to any sick leave or PTO currently offered by the employer. Also, it must be exhausted before the normal PTO is used.

In addition, the Families First Coronavirus Response Act also included the Emergency Family and Medical Leave Expansion Act. Unlike the Sick Leave Act, employees do not automatically qualify. If they do qualify, parents can use the EFMLA when unable to work or telework to care for a minor child, without access to their normal child care because of COVID-19.

The first two weeks of leave under the EFMLA is unpaid. Employees can use PTO during this unpaid period. For instance, an employee could use the leave under the Emergency Paid Sick Leave Act. Hmmm . . . it is almost like the two paid leaves were meant to be used in conjunction with each other.

After the two weeks of unpaid leave are done, the employee can receive 10 weeks of paid leave under the EFMLA. AT that point, the employee is paid 2/3 of his or her average rate of pay, up to $200 per day.

The Department of Labor is in the process of crafting regulations for employers of less than 50 employees in which they could be exempt from the two laws if the paid leave "would jeopardize the viability of the business as a going concern."

The laws are not currently in effect. They will become effective no later than April 2nd (it could be earlier). So, the paid leave does not need to be currently offered . . . yet.
 
The Emergency Paid Sick Leave Act requires employers (with less than 500 employees) to pay employees their regular rate of pay, up to $511 per day, for a total of 80 hours for full time employees. This only applies if the employee is unable to work or telework as a result of personally be affected by COVID-19 (including being unable to go to work due to a governmental quarantine or isolation order).

If an employee is unable to work or telework due to caring for family member suffering from COVID-19 or because of lack of child care while schools are shut down, the employee is still eligible for paid leave, but at a lower maximum rate of $200 per day. Again, for full-time employers, this leave is limited to 80 hours.

Leave under the Emergency Paid Sick Leave Act is in addition to any sick leave or PTO currently offered by the employer. Also, it must be exhausted before the normal PTO is used.

In addition, the Families First Coronavirus Response Act also included the Emergency Family and Medical Leave Expansion Act. Unlike the Sick Leave Act, employees do not automatically qualify. If they do qualify, parents can use the EFMLA when unable to work or telework to care for a minor child, without access to their normal child care because of COVID-19.

The first two weeks of leave under the EFMLA is unpaid. Employees can use PTO during this unpaid period. For instance, an employee could use the leave under the Emergency Paid Sick Leave Act. Hmmm . . . it is almost like the two paid leaves were meant to be used in conjunction with each other.

After the two weeks of unpaid leave are done, the employee can receive 10 weeks of paid leave under the EFMLA. AT that point, the employee is paid 2/3 of his or her average rate of pay, up to $200 per day.

The Department of Labor is in the process of crafting regulations for employers of less than 50 employees in which they could be exempt from the two laws if the paid leave "would jeopardize the viability of the business as a going concern."

The laws are not currently in effect. They will become effective no later than April 2nd (it could be earlier). So, the paid leave does not need to be currently offered . . . yet.
Thanks. That's essentially how it was explained to me. The salary requirement is not a percentage, like comp, but dollar for dollar, up to those amounts.
 
no but like 75% of restaurants last under 2 yrs or some number like that. the issue will be how many can start back up its a tough business even without these issues

5 years, not 2. Big difference. How many people even have jobs for 5 years anymore?
 
Thanks. That's essentially how it was explained to me. The salary requirement is not a percentage, like comp, but dollar for dollar, up to those amounts.

Under the Emergency Paid Sick Leave Act, it is regular rate of pay up to the maximum. Under the Emergency Family and Medical Leave Expansion Act, once the leave becomes paid (after the first two weeks), it is a percentage of the regular rate of pay, up to a maximum of $200.
 
I read this article the other day...interestingly, the President seemed to share this sentiment is yesterday's coronavirus briefing. I thought about posting it in that "Corona Virus Update" thread which was moved to the OT board, however, being kind, that thread has evolved into a runaway train.

 
I'm currently under a 5-year contract as a Business Coach for a large multinational based in the SEastern US and the Phillipines. Ironically we were hit hard a few months back because of the Taal Volcano eruption & most of our overseas workforce had already transitioned to W@H, or been laid off.
This is a whole new ballgame though. We're updating our systems to transition staff to W@H, and those who still need to come to work will be subject to thermal scanning to monitor their temperature, before being allowed in the facility- everyone enters and leaves through one entrance.
We're all kinda waiting on the NC Governor- if he gives the word to shut it all down, then we go full blast into the transition. Hoping that doesn't happen, but its looking more likely that it will.

Am also a private landlord with several properties, so of course that business is under strain for the forseeable future. Working with my tenants to see about maybe deferring their payments for a few months, but if this lasts longer than July/August, its gonna start getting ugly.
Well, Charlotte-Mecklenburg County finally pulled the inevitable trigger and starting Thursday the 26th, there’s a 14-day stay-in-place order in effect.
Good news is that since my company is in telecommunications/technology, we’ve been designated as essential so I get to keep my job, thank God, and we'll remain open albeit w/ a skeleton crew, as most of our staff is now W@H.
Really feel for everyone who’s facing so much uncertainty right now, in terms of even having a job in a few weeks. There’s relief on my part, but also a sense of responsibility & guilt. I just wanna help as many folks as i can who aren’t as lucky in this instance. Sad.
 
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So update. Although I am going thru cash at an alarming rate I have not laid off any employees. My sales are down 60% which is far below my break-even. Mcd Corp has deferred my fees and my bank has put me on interest which is providing much needed working capital. We had to cut hourly workers schedules however with The Nyc Fww law makes m it is virtually impossible to operate with the costs and restrictions of this regulation. Although we'll intended there are many flaws that hurt those intended to help. I am hopeful for stimulus package will help but its to early to fully understand. Although my front line workers.are no on the level of The hospital workers they are truly heroes with many coming to work literally risking their health for my company, my customers Ans their families. I will never forget it and will not cut a penny of compensation for a single front line worker unless i need to close down my operations and risk incolvency which would put the company in peril and puts potentially 1200 full and part time workers out of work.
 
I had a couple food pickups since i made a trip to the office yesterday. Both places said they were doing very well as a business but not so good for the hourly as they dont need that many people besides some cooks and kitchen staff. the MacD drive in next door was probably 20 cars deep.
 
As a former small business owner, I cannot fathom having to make the difficult choices that are confronting fellow posters.

simply trying to understand and interpret regulations and possible aid packages has to be a full time job.

my very best wishes that as many as possible come thru this crisis healthy and with some sort of economic survival.
 
So update. Although I am going thru cash at an alarming rate I have not laid off any employees. My sales are down 60% which is far below my break-even. Mcd Corp has deferred my fees and my bank has put me on interest which is providing much needed working capital. We had to cut hourly workers schedules however with The Nyc Fww law makes m it is virtually impossible to operate with the costs and restrictions of this regulation. Although we'll intended there are many flaws that hurt those intended to help. I am hopeful for stimulus package will help but its to early to fully understand. Although my front line workers.are no on the level of The hospital workers they are truly heroes with many coming to work literally risking their health for my company, my customers Ans their families. I will never forget it and will not cut a penny of compensation for a single front line worker unless i need to close down my operations and risk incolvency which would put the company in peril and puts potentially 1200 full and part time workers out of work.
SBA forgivable loans, as I understand it, will pay for half your payroll costs. I’m looking into that this week.
 
SBA forgivable loans, as I understand it, will pay for half your payroll costs. I’m looking into that this week.
The SBA PPP program has the potential to help tremendously however there is massive confusion, unanswered questions by many small business and the lenders including massive banks such as chase and BOA who has if yesterday cannot process any applications as they do not know if they have Exposure and how they process, vett the loan amounts, eligibility and the forgivable amount which is what most business need. Adding additional debt will help short term but to continue to kick the can down the road will simply just keep some business going for now but without being able to make up the lost revenue paying these deferred liabilities will be virtually impossible for many business. The SBA loan is a 2 year loan which I don’t Understand how they expect anyone to be able to pay back next year even with a rebound to pre crisis revenue in the next few months. Most small business work on very small margins and it’s obvious they did not consult with small business owners when coming up with this stimulus package. I am hopeful that things change as much as the govt is hard to explain putting together a 2 trillion $ stimulus package in a week is virtually impossible to do without making errors. .
 
The SBA PPP program has the potential to help tremendously however there is massive confusion, unanswered questions by many small business and the lenders including massive banks such as chase and BOA who has if yesterday cannot process any applications as they do not know if they have Exposure and how they process, vett the loan amounts, eligibility and the forgivable amount which is what most business need. Adding additional debt will help short term but to continue to kick the can down the road will simply just keep some business going for now but without being able to make up the lost revenue paying these deferred liabilities will be virtually impossible for many business. The SBA loan is a 2 year loan which I don’t Understand how they expect anyone to be able to pay back next year even with a rebound to pre crisis revenue in the next few months. Most small business work on very small margins and it’s obvious they did not consult with small business owners when coming up with this stimulus package. I am hopeful that things change as much as the govt is hard to explain putting together a 2 trillion $ stimulus package in a week is virtually impossible to do without making errors. .
Goodroc, thanks for the update from the front line. I have many friends who are small business owners. I feel so badly for all of you ... trying to do the right thing for your employees while at the same time having to balance so many other things (such as the survival of your business).
 
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The SBA PPP program has the potential to help tremendously however there is massive confusion, unanswered questions by many small business and the lenders including massive banks such as chase and BOA who has if yesterday cannot process any applications as they do not know if they have Exposure and how they process, vett the loan amounts, eligibility and the forgivable amount which is what most business need. Adding additional debt will help short term but to continue to kick the can down the road will simply just keep some business going for now but without being able to make up the lost revenue paying these deferred liabilities will be virtually impossible for many business. The SBA loan is a 2 year loan which I don’t Understand how they expect anyone to be able to pay back next year even with a rebound to pre crisis revenue in the next few months. Most small business work on very small margins and it’s obvious they did not consult with small business owners when coming up with this stimulus package. I am hopeful that things change as much as the govt is hard to explain putting together a 2 trillion $ stimulus package in a week is virtually impossible to do without making errors. .

What I’m hearing is that the confusion should be ironed out by some time next week. Some lenders are working with customers to ensure they have all required materials ready and have done their payroll calculations correctly (for PPP loan - which can convert into a grant).

The EIDL loan is a simple process - request the $10k grant portion of things. If you happen to get a PPP loan they will roll the EIDL $10k into that PPP through some refi process. That’s my current understanding. I’m no expert but I have received roughly a million emails on the topic.
 
The SBA PPP program has the potential to help tremendously however there is massive confusion, unanswered questions by many small business and the lenders including massive banks such as chase and BOA who has if yesterday cannot process any applications as they do not know if they have Exposure and how they process, vett the loan amounts, eligibility and the forgivable amount which is what most business need. Adding additional debt will help short term but to continue to kick the can down the road will simply just keep some business going for now but without being able to make up the lost revenue paying these deferred liabilities will be virtually impossible for many business. The SBA loan is a 2 year loan which I don’t Understand how they expect anyone to be able to pay back next year even with a rebound to pre crisis revenue in the next few months. Most small business work on very small margins and it’s obvious they did not consult with small business owners when coming up with this stimulus package. I am hopeful that things change as much as the govt is hard to explain putting together a 2 trillion $ stimulus package in a week is virtually impossible to do without making errors. .


2 year loan at 1%. That is as good as it gets. That's the kind of rate the government charges Wall Street.

Or you can take a 10 year loan at 4%. There is no collateral requirement and no personal guarantees.

This is as close to free money as any business owner is likely to see in our lifetimes.

If you qualify for the Payroll relief, you get 2.5 months of current payroll. One of my clients just got a half million dollars for a health supplements manufacturing business with about 50 employees.
 

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