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One more thing to consider as you plan the layoffs: You may be eligible for one (or more) of the loans from the latest relief bill. The loans come with a near-z

by gk1 7y ago

One more thing to consider as you plan the layoffs: You may be eligible for one (or more) of the loans from the latest relief bill. The loans come with a near-zero interest rate and a big chunk of it may be forgiven.[1] However, there are stipulations related to layoffs and reduced salaries, which is why you should evaluate this option before making the irreversible decision to fire people. [1] Here's a decent summary: https://www.washingtonpost.com/business/2020/03/30/heres-how-get-small-business-loan-under-349-billion-coronavirus-aid-bill/ https://www.washingtonpost.com/business/2020/03/30/heres-how...

acwan93 7y ago
We were considering laying off but quickly decided on pay cuts due to (what currently seems like!) the temporary nature of this and knowing that the relief bill will come. Our projection is that the loan funds should arrive by the pay cycle after our upcoming one. Like the article and the parent comment mentions, laying off is a very significant and irreversible decision and at least in our case seemed too extreme.
- divbzero 7y ago
  This is exactly what the relief bill is aiming to accomplish: to bridge otherwise healthy businesses to the other side of the crisis without having to dismantle their teams now and painstakingly rebuild them afterwards. Hopefully many companies like yours can make this plan work out in reality.
matwood 7y ago
I agree that the forgivable loans are a good option. I was searching for a good summary the other day and here is the bill and the official summary (not sure why it was so hard to find). https://www.sbia.org/resources-for-small-businesses-impacted-by-covid-19/ https://www.sbia.org/resources-for-small-businesses-impacted... EDIT Looks like your article is linking to the sbia. Last week everything I found was still referring to things that should be in the bill.

by gk1 7y ago

acwan93 7y ago

We were considering laying off but quickly decided on pay cuts due to (what currently seems like!) the temporary nature of this and knowing that the relief bill will come. Our projection is that the loan funds should arrive by the pay cycle after our upcoming one. Like the article and the parent comment mentions, laying off is a very significant and irreversible decision and at least in our case seemed too extreme.

divbzero 7y ago
This is exactly what the relief bill is aiming to accomplish: to bridge otherwise healthy businesses to the other side of the crisis without having to dismantle their teams now and painstakingly rebuild them afterwards. Hopefully many companies like yours can make this plan work out in reality.

matwood 7y ago

I agree that the forgivable loans are a good option. I was searching for a good summary the other day and here is the bill and the official summary (not sure why it was so hard to find). https://www.sbia.org/resources-for-small-businesses-impacted-by-covid-19/ https://www.sbia.org/resources-for-small-businesses-impacted... EDIT Looks like your article is linking to the sbia. Last week everything I found was still referring to things that should be in the bill.