Employee Retention & Federal Aid
Is it better to layoff an employee in the current unemployment program with the state or try to retain through the PPP (or other federal loan programs)?
- Research your state’s unemployment plan offerings and payment schedule. Get paperwork for the Payment Protection Program (or another government loan) through your SBA lender, fill out the loan request forms and turn them in as quickly as possible.
Landlord Questions & Negotiation Tools
Tell Your Story: Are you open or closed? Did you use your extra cash to pay employees, vendors, utilities before the rent? Are you currently paying your employees?
Questions for Your Landlord or Property Management Company:
- Are they offering rent deferral for the next month(s)?
- Is the landlord willing to defer 25%, 50%, 75% of rent until you reopen?
- If your landlord is willing to work with you, you need to adjust your terms in writing with a modification to your lease.
- Is the landlord willing to place the deferred amount of rent on the last year of your lease and amortize the balance of the deferment for the remaining 12 months?
Tips for the Future
Reevaluate Your Business Model: With social distancing measures in place, are you able to do the same amount of business? If you project less sales, begin adjusting operations.
Create a Realistic Timeline: Is April-May enough time to get going again or will you need six months? If so, discuss with your landlord whether you can extend your lease with their help deferring six months to reopen.
Be Open to Change: Is it better to walk away and reopen in a different location? Moving to a new location may be in your best interest, with lower rent, and a new business model built for success with social distancing.