Coronavirus Resources for Small Businesses
LSBA's team of experts is working hard to keep you updated on how the coronavirus impacts your business. We update this site frequently, but you can sign up for our e-alerts to get updates as they happen. Click here to sign up for LSBA's e-Alerts.
If you need help or have a question about the pandemic and your business, you can email our experts at email@example.com.
(This information was last updated 7/2/20.)
Louisiana Governor Edwards signed an official order on June 4th to enter Phase Two of reopening the state for business starting June 5th. In Phase Two, many businesses will be allowed to now operate at a 50% capacity (previously 25%) and some businesses are able to open that were previously closed in Phase One. The 50% capacity counts both the number of employees and members of the public as determined by the State Fire Marshal.
Businesses also have to ensure social distancing, require public-facing employees to wear masks, and provide increased sanitation. In addition, the state strongly recommends but doesn't require businesses to consider temperature checks before a person can enter, and posting the symptoms of COVID-19 outside with a request that symptomatic individuals not enter.
Businesses that can operate at 50% occupancy in Phase Two (previously at 25%) include:
Businesses that can open in Phase Two at 50% occupancy (previously closed in Phase One) include:
Bars and breweries without LDH food permits may also open during Phase Two, but it must be at 25% occupancy with strict social distancing requirements.
The following businesses remain closed:
However, any business that is directed to be closed in the Phase Two order may petition to reopen under a plan approved by the State Fire Marshal in consultation with Louisiana Department of Health. The State Fire Marshal may approve this plan or offer guidance on how the business may reopen in Phase Three.
For more information, visit OpenSafely.la.gov for guidance and updates from the State Fire Marshal’s Office and the Louisiana Department of Health. Business owners can register with this site which will allow you to receive updated communication, notifications, and helpful guidance via email specific to your business type. You can also download documents for guidance related to your specific type of business here.
For a guide listing businesses that can be open at any given time, visit gov.louisiana.gov/page/can-this-business-open.
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As the number of COVID-19 cases rise in Louisiana, some parishes are passing local ordinances that require masks or face coverings to be worn in public, which includes businesses.
As a service to our members, LSBA has designed a generic mask poster for our members to notify customers and employees that masks or face coverings are required to be worn inside their business.
Even if your business is not located in an area where masks are required, you may choose to require that all customers and employees wear masks, and you might want to put several of these posters up at your workplace as reminders.
You can print LSBA's "Masks Required" poster here in English and here in Spanish.
Both OSHA and the CDC recommend the use of masks or face coverings to help slow the spread of the coronavirus, especially in areas of significant community-based transmission. For more information from the CDC, click here. For more information from OSHA, click here.
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In response to concerns over the strict PPP forgiveness rules, Congress approved the PPP Flexibility Act in early June. This new law relaxes the requirements for PPP loan forgiveness in favor of small businesses. This article is updated with those changes.
Small businesses needing financial assistance due to the coronavirus can apply for a Paycheck Protection Program (PPP) loan. PPP loans provide cash to cover payroll, rent, utilities, and mortgage interest. To apply for a PPP loan, contact your local banker. To find a lender in your area that is authorized to issue PPP loans, click here. The PPP application form can be downloaded here.
If you are thinking of applying for a PPP loan and haven’t yet, the deadline to apply is June 30, 2020. No additional applications will be accepted after June 30th.
If your business receives a loan from the Paycheck Protection Program, you can apply to have some of all your loan forgiven (which means you don’t have ro pay it back) if you spend the money on certain expenses within 24 weeks of receiving the loan.
There is a simplified application [Form 3508EZ] available for employers who have not reduced their number of employees or their employees’ wages by more than 25%.
To be eligible for loan forgiveness, you must spend at least 60% of the loan on payroll for employees (salary/wages, health insurance, retirement, paid leave, and state unemployment taxes) and no more than 40% of the loan on rent, utilities (including phone and internet bills), and mortgage interest.
Any amount of your PPP loan that is not forgiven will be converted to a traditional loan with a 1% interest rate. If your PPP loan was approved prior to June 5, 2020, your loan term is 2 years, but you can negotiate with your bank for a longer term. If your PPP loan was approved after June 5, 2020, your loan term is automatically 5 years.
The amount of your PPP loan forgiveness can be reduced if you have fewer employees or lower employee salaries after receiving your loan than you did before the pandemic. If you hire furloughed employees back or restore their pre-coronavirus salaries by December 31, 2020, your forgiveness will not be penalized.
You won’t be penalized for reducing your employees if you have made a good faith written offer to rehire a laid-off employee who refuses to return to work. If you try to re-hire a furloughed employee and they refuse to come back to work, this will not count against you as long as you document your rehire offer in writing (email is fine) and document the employee’s response so you can prove that you tried to rehire them but they refused your offer.
Employees who were fired for cause, voluntarily resigned, or who voluntarily requested a reduction in their hours don’t count against you for loan forgiveness. Again, make sure to make to document these decisions in writing (email is fine). And if you can document that you are unable to re-hire employees who were on your payroll as of February 15, 2020 and you can’t hire similarly-qualified individuals to fill their positions by December 31, 2020, you can still get full loan forgiveness.
Also, if you can’t go back to your pre-pandemic staffing levels because your business is complying with worker or customer social distancing measures, your loan forgiveness will not be penalized.
Paycheck Protection Program FAQ’s for Small Businesses
The Small Business Owner’s Guide to the CARES Act
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The Louisiana Loan Portfolio Guaranty Program (LPGP) is a new state program that will offer loans of up to $100,000 to Louisiana small businesses affected by the coronavirus pandemic.
Loans can be used for normal business operations, such as payroll, rent or mortgages, utilities, and other expenses.
The loan repayment period is at least one year but no more than 5 years. The interest rate would be fixed up to 3.5% (lower rates subject to lending institution).
No payment will be due and interest will not accrue during the first six months of the loan.
Ineligible businesses are those solely engaged in gaming, non-profit organizations, real estate developers, pawn shops, pay-day loans, lending and investment concerns, or speculative activities. Periodic reporting including, but not limited to, compliance with the borrower’s obligations, will be required on the loan.
Loan details can be found at OpportunityLouisiana.com/covid19.
Update: The SBA stopped accepting EIDL applications on April 15th due to lack of funds. They are currently working through the applications that were filed prior to that date, and they are only accepting EIDL applications from agricultural businesses at this time. Unless you have already applied for the $10,000 EIDL grant, you can no longer submit an application. For more information, go to covid19relief.sba.gov.
The Federal Reserve has announced a new $600 billion program that will make loans to small businesses needing capital to preserve employees. The Main Street Lending Program will offer 4-year loans to eligible small businesses that were in good financial standing before the onset of the coronavirus pandemic. Principal and interest payments on the loans will be deferred for one year. To apply for a Main Street loan, contact your local banker. For more information, please click here.
Businesses that have applied for a PPP loan may also take out a loan under the Main Street Program. Like with the Paycheck Protection Program (PPP), a business will apply to a private lender for a Main Street loan.
Unlike loans under the PPP, Main Street Program loans are not forgivable and borrowers will be responsible for up to 2 percent in origination and facility fees. Borrowers may not use proceeds under the Main Street loan programs to repay or refinance preexisting loans but must strive to maintain payroll and retain employees during the term of the loan.
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Employers are responsible for withholding Social Security and Medicare payroll taxes from their employees’ paychecks and paying these taxes along with the employer’s share to the IRS each month. The Social Security tax is 12.4% total, with 6.2% withheld from the employee’s wages and the employer paying 6.2%. The Medicare tax is 2.9%, with 1.45% withheld from the employee’s wages and the employer paying 1.45%.
As part of aid to businesses provided in the Coronavirus Aid, Relief and Economic Security Act (CARES Act), employers can defer depositing the employer’s share of Social Security taxes until December 2021. For payroll periods starting March 27th through the end of this year, employers may defer their share of the Social Security tax (6.2%) and not deposit it with the IRS. Instead of depositing the usual amount of payroll tax, employers can simply hold back their portion of the Social Security tax each month and use it for other operating expenses. *Please note this only applies to the employer’s portion of the Social Security tax. Employers may not defer the employee’s part of the Social Security tax, and employers must still deposit both the employee’s and the employer’s portion of the Medicare tax each month.
Employers who decide to defer their part of the Social Security tax have until the end of next year to start depositing the amount they deferred. Half of the deferred payroll tax amount must be deposited with the IRS on December 31, 2021, with the other half due by December 31, 2022.
All employers may take advantage of this payroll tax deferral, including employers who have received a Paycheck Protection Program (PPP) loan.
For more information from the IRS about payroll tax deferral, please click here.
This payroll tax deferral is not the same as the payroll tax credits that employers may take for providing paid leave to employees or the employee retention credit. The IRS has detailed information about these credits here.
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Effective April 1, 2020, small businesses are required by the Families First Coronavirus Response Act (FFCRA) to give their employees paid leave in certain circumstances relating to the coronavirus. Employees who cannot work due to one of the reasons listed below are entitled to two weeks of paid leave, with an additional 10 weeks of paid leave if they have to care for a son or daughter whose school or daycare has been closed due to the coronavirus.
How do employees qualify for paid leave?
Employees receive two weeks of paid leave if you have work for them to do but they cannot come to work (or work from home) because:
Employees taking leavefor reasons 1 and 2 above must be paid their regular rate of pay, up to $511 per day.
Employees taking paid leave for reasons 3 and 4 above must be paid two-thirds their regular rate of pay, up to $200 per day.
Can my employees choose to stay at home and take paid leave?
No. Employees cannot decide on their own to self-quarantine and be entitled to receive paid leave. To qualify for paid leave under reason #1 above, the employee must be advised by a doctor or other health care provider to self-quarantine.
Do my employees qualify for paid leave if they have to stay home with their children because school is closed for summer vacation?
No. Paid leave is not available in this situation because the school is closed for summer, not because of COVID-19. To qualify for paid leave, the school must be closed for reasons due to COVID-19, which is not very common now that school has closed for the summer. However, if the child’s summer daycare – a camp or other program in which the employee’s child is enrolled – is closed or unavailable for a COVID-19 related reason, the employee may be entitled to paid leave.
Do employees working from home qualify for paid leave?
Employees working from home are not entitled to paid leave because they are still working.
What documentation do I need to get from employees who request paid leave?
Employees must provide appropriate documentation to request paid leave which must include the following:
One of my employees says they are tired, have a cough, or have other symptoms of COVID-19 and is taking leave to seek a medical diagnosis. What documentation may I require from the employee to document their efforts to obtain a diagnosis?
You may require the employee to identify their symptoms and provide you with a date for a test or doctor’s appointment. You may not, however, require the employee to provide further documentation before allowing them to use paid leave for COVID-19 related symptoms. The minimal documentation required is intentional so that employees with COVID-19 symptoms may easily take leavey and slow the spread of COVID-19.
Are there tax credits for this paid leave?
Yes. Employers can offset the cost of leave by keeping a portion of the quarterly federal employment taxes they would otherwise deposit with the IRS. If the cost of the leave is more than your federal employment tax bill, you can request an advance refund from the IRS using form 7200. To claim a payroll tax credit, you must retain the documentation described above and comply with any IRS procedures for claiming the tax credit. For more information about how to claim these payroll tax credits and what documentation is required, click here. For more information about form 7200, click here.
Is there an exemption for small businesses?
Small businesses with fewer than 50 employees can be exempt from providing paid leave if it would jeopardize the viability of the business. The exemption only applies to requests for paid leave due to school closure or unavailability of childcare due to COVID-19. If an employee requests paid leave for any of the other qualifying reasons (such as the employee is told to self-quarantine by a doctor or is experiencing symptoms of COVID-19), the employer must comply with the requirements of the FFCRA and provide the paid leave regardless of the financial hardship it may cause the employer.
For more information about the small business exemption, click here.
Is this paid leave a permanent requirement?
No. The paid leave required under the FFCRA expires December 31, 2020.
New Poster Required
The paid leave law requires all employers to provide a notice to their employees explaining the new paid time off that they may be eligible for because of COVID-19.
For more information from the US Department of Labor, click here.
Here is a one-page summary of when employees can request paid leave.
Click here for a Fact Sheet on this leave from the US Department of Labor in English.
Click here for a Fact Sheet on this leave from the US Department of Labor in Spanish
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The CARES Act increases unemployment benefits and expands who can qualify for unemployment.
Under the bill, some furloughed employees who are still employed by your business but who are unable to work due to the coronavirus will be able to receive unemployment benefits.
Also, workers who don’t normally qualify for unemployment – like independent contractors and the self-employed – are also eligible for benefits.
The maximum unemployment benefit in Louisiana is $247 a week, but the CARES Act adds $600 per week to this amount, for a maximum total benefit of $847 per week. And the bill adds on an additional 13 weeks of unemployment benefits to Louisiana’s existing 26 weeks, so employees can stay on unemployment for a total of 39 weeks.
Laid-off employees can file for unemployment benefits here: https://www.louisianaworks.net/hire/vosnet/Default.aspx
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Businesses who hire an employee under the age of 18 must get an employment certificate from the minor’s school (or a parent/legal guardian if the student is in home study). Because the schools are closed due to the coronavirus pandemic, the Louisiana Workforce Commission (LWC) is now issuing blanket Employment Certificates for employers who want to employ school-aged minors.
These Employment Certificates will expire 60 days from the date of issuance. Upon expiration, employers will be required to obtain Employment Certificates as required under Louisiana law.
Employers desiring to obtain an Employment Certificate must submit a completed and signed “Application to Employ Minors under 18” along with proof of age to firstname.lastname@example.org.
The application is available from the LWC at: laworks.net/Downloads/WFD/MinorApplicationToEmployForm.pdf.
Employers will receive an email from the LWC with the names of those minors who are approved to work under the Employment Certificate. This email should be kept on file. Blanket Employment Certificates are not transferrable.
Any questions regarding employment certificates should be directed to email@example.com.
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To further assist Louisiana employers during the COVID-19 national emergency, the Louisiana Workforce Commission (LWC) is extending the deadline for first quarter 2020 wage and tax reports to June 30, 2020.
The LWC previously announced that it was granting Louisiana employers a temporary deferral from paying their first quarter 2020 unemployment taxes until June 30. The latest deferral now makes both the wage and tax reports and the 1st quarter 2020 unemployment tax payment due at the same time, rather than having an earlier deadline for wage and tax report submissions.
In addition, employers’ unemployment insurance experience tax rates will not be impacted by COVID-19 related claims, which means most employers should not see a tax rate increase as a direct result of the high number of COVID-19 related unemployment claims currently happening in Louisiana and nationally.
The IRS has extended the tax filing deadline for individuals and businesses to file and pay income taxes to July 15, 2020.
The February 2020 sales tax returns and payments were due on March 20, 2020. The filing and payment deadline for the February 2020 sales tax period has been extended to May 20, 2020. This is an automatic extension and no extension request is necessary. The Department of Revenue will waive delinquency penalties and compromise interest associated with delinquent sales tax remittances as long as the return and payment are received by the extended due date of May 20, 2020. All electronic filing and payment mandates contained within Title 61 of the Louisiana Administrative Code relative to sales tax are temporarily suspended. No penalties will be assessed for a taxpayer’s failure to file a sales tax return electronically or remit sales tax by electronic funds transfer.
In response to the ongoing COVID-19 crisis, the Louisiana Department of Revenue (LDR) announced today that they will be extending both the filing and payment deadlines for income and franchise taxes to July 15.
Mirroring the new federal tax deadlines set by the IRS last week, LDR's extension includes individual, corporate, partnership, and fiduciary tax returns. This extension is automatic for all taxpayers, and no penalties or interest will be assessed for payments received by the new July 15 deadline.
For more specific details, click here to read LDR's official announcement.
The payment deadline has been extended but not the filing deadline. On March 19, 2020, the Louisiana Workforce Commission (LWC) announced a deferral for payment of first quarter state unemployment taxes. Employers will still be required to make appropriate filings by April 30, 2020, but any payments associated with unemployment taxes will be deferred until June 30, 2020. In the announcement, LWC also clarified that an employer’s unemployment insurance experience tax rate will not be impacted by claims related to COVID-19.
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CDC Recommendations for Cleaning and Disinfecting Your Workplace
CDC Workplace Considerations for Reopening
OSHA Guidelines on Preparing Your Workplace for Covid-19:
OSHA’s 7 Steps to Wearing a Mask at Work:
OSHA Guidance for Restaurants:
OSHA Guidance for the Construction Industry:
Information from the Internal Revenue Service regarding extended filing deadlines, as well as new Employee Retention Credit to assist employers with their payroll taxes
Guidance on the CARES Act from the US Treasury
Wage and Hour Issues During the COVID-19 Pandemic
Many businesses are being affected by forced closures or alternative operations to stop the spread of COVID-19, which is especially true in the entertainment and dining industry. The US Department of Labor Wage and Hour Division provides information on common issues employers face when responding to pandemics or other public health emergencies, and their effects on wages and hours worked under the Fair Labor Standards Act.
For Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease
For business Information on Covid 19 from the Louisiana Small Business Development Center
Louisiana Economic Development Launches Business Hotline
Louisiana Economic Development has launched a hotline to answer questions from the state's business community during the Coronavirus crisis. LED staff will be answering the phones and will be ablefield inquiries from businesses and stakeholders from across the state.
The current hotline number is (225) 342-4321. A toll-free hotline number is coming soon. For more information, you can visit LED's COVID-19 webpage.
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