Eureka Springs is filled with restaurants, bars, shops and tourist lodging. For those businesses that have had to close or greatly curtail operations because of the coronavirus, there may be more help available than they realize.
Wendi La Fey said that while applying for unemployment assistance can be daunting, it is important to get your application in early to get the most benefit. La Fey operates the Gypsy Camp tourist lodging in Eureka Springs. She said that even people who are self-employed might be eligible for benefits if the virus emergency has impacted their income.
“The state is saying go ahead and file the application if you are self-employed or contract labor,” La Fey said. “I filed for Disaster Unemployment Assistance and got an email back the next day on that one. You might have to look in your spam folder for the e-mail and then closely follow the directions. Anyone applying for unemployment is supposed to get an extra $600 a week from the federal government. They are waiving a lot of the normal requirements for unemployment benefits. This program goes through July 25.”
To apply online, go to dws.arkansas.gov/unemployment/ or call 1 (844) 908-217 or (501) 534-6304.
Another major source of support for small businesses is the Small Business Administration, which is handling loans associated with business disruption. And while these are called loans, by temporarily expanding the traditional SBA 7(a) loan program, the Paycheck Protection Program for businesses with up to 500 employees provides a $10,000 advance that includes loan forgiveness for retaining employees
Sandy Martin, who heads the city’s Economic Development Taskforce, said Equity, Cornerstone and Arvest Banks are all up to speed on the SBA programs.
“Many loan applications are already being processed,” Martin said. “The bankers have worked 24/7 to help. The directive is to call local bankers for all things SBA or CARES Act related.
“As of April 3, local banks are prepared to work with you on the SBA covid-19 process and applications. There is a new PPP application. Call your banker, it will save you the frustration of trying to get through to SBA.”
The Economic Injury Disaster Loan program provides up to $10,000 of economic relief to businesses experiencing temporary difficulties. “The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid,” the SBA wrote.
For this program, applications can so be made online at SBA.gov. A yellow banner at the top takes you to a streamlined form. It is necessary to have a total of gross earnings from 2019 in order to apply.
The SBA Express Bridge Loans enable small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 in loans quickly.
The SBA Debt Relief program is providing a financial reprieve to small businesses during the pandemic by the SBA automatically paying the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
The Arkansas Division of Workforce Services said those who are self-employed can sign up to receive a direct notice of when their application for unemployment benefits is ready. The website for joining the email list is bit.ly/3e5qZWd. The state has estimated it will be the end of the month before these Pandemic Unemployment Assistance applications are available. Until this emergency, self-employed workers were not eligible for unemployment benefits.