Unemployment assistance & small business recovery loan funding
Wednesday, the Massachusetts legislature and the Governor signed legislation eliminating the one week waiting period for unemployment insurance. The new law (SB2599), which is effective as of March 10, will expire 90 days after the end of the state of emergency. Please note that the Executive Office of Labor and Workforce Development and the Division of Unemployment Assistance are also filing emergency regulations that will allow people impacted by COVID-19 to collect unemployment in the following circumstances:
- The workplace is shut down and expects to reopen in four or fewer weeks. Workers must remain in contact with their employer and be available for any work their employer may have for them that they are able to do, but do not otherwise need to be looking for work.
- An employer may extend the period of the shut-down to eight weeks, and the employees will remain eligible for the longer period under the same conditions described above.
- If necessary, DUA may extend these time periods.
*Employers who are impacted by COVID-19 may request up to a 60-day grace period to file quarterly reports and pay contributions.
Also, Governor Baker has announced a $10 million Small Business Recovery Loan Fund, administered by Massachusetts Growth Capital Corporation (MGCC), to provide emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits.
Open to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits (negative impact must be verifiable), the fund is being offered with no payments due for the first 6 months, then 30-months of principal and interest payments and no prepayment penalties. Businesses can apply for loans up to $75,000. For more information on this program, visit the MGCC website.
TAM will continue to keep you informed about developments related to COVID19. As always, do not hesitate to contact TAM with any questions or concerns.