State departments, local organizations prepare help for business owners, workers

MOSES LAKE — There is help for workers and business people alike who have seen major slowdowns in business as a result of the response to the coronavirus pandemic, though the details of many disaster-related assistance programs are still being worked out.

According to Allan Peterson, head of the Small Business Development Center in Grant County, the federal government’s Small Business Administration has a special “economic injury” loan that can cover up to $2 million in expected losses, depending on the size of the business.

“There’s no cost to apply,” said Peterson during an online briefing on Thursday outlining available aid to small businesses. “A lot of rules are being relaxed on this, and if you are in doubt, apply.”

Businesses don’t need collateral for SBA’s Economic Injury Disaster Loan Assistance program, and loans are frequently approved in 2-3 weeks, Peterson said. In addition, portions of loans used to cover payroll through the end of June are eligible to be forgiven, Peterson said.

The SBA will determine both eligibility and the amount of the loan, but business owners will only be charged for what they use, Peterson said.

Business people who are uncertain whether they qualify can contact Peterson at the SBDC for more details, though Peterson said that uncertainty shouldn’t stop anyone from submitting an application.

“Don’t eliminate yourself,” he said. “Go ahead and apply.”

According to Brant Mayo, head of Grant County Economic Development Council, the Washington state Department of Commerce is going to make $5 million available statewide for grants of up to $10,000 to help small businesses, those with fewer than 10 employees and that have been in business for at least one year.

The grants are intended to cover rent, utilities and supplies, but not labor, capital or travel, Mayo said. They will be made through the state’s economic development councils, and Mayo expects them to be very competitive once the applications are available.

Juliann Dodds, a senior commercial lender with Banner Bank in Moses Lake, advised business owners to get a clear picture of their cash flow situation and talk regularly with their banker to see what payment can be deferred and whether they may need a bigger line of credit.

She also advised business owners to be flexible since the situation is “changing daily.”

“Everybody is coming forward to give options to business owners,” she said. “Stay in touch with your banker, they’re there to help, and we have some really good financial institutions in Grant County.”

Todd Wurl, head of the Washington State Employment Security Department’s WorkSource Central Basin Center in Moses Lake, said workers laid off or sidelined by the near-collapse in business as a result of COVID-19 shutdowns should also apply for unemployment insurance even if they are unsure they qualify.

People who have been laid off should file for unemployment insurance “as soon as they can,” Wurl said.

“As soon as you are notified, open up a claim,” he said. “Start the process ASAP.”

He said the state has seen the highest unemployment insurance claims it has ever seen in the last week, and it is having to scramble to move employees around in the department as well as hire a number of new employees to handle claims.

The Employment Security Department has two programs employers can also participate in, Wurl said. The first, called Shared Work, allows employers to reduce hours, with the state picking up the remainder to ensure each worker gets a full-time paycheck, while another program called Standby allows for temporary layoffs with a return-to-work date.

This ensures that laid-off employees don’t have to look for work while they are on unemployment, he said.

The time workers can be on Standby in Washington has been extended to 12 weeks, he said, while Gov. Jay Inslee has also waived the week-long waiting to apply for unemployment insurance.

Charles H. Featherstone can be reached at [email protected].