Utah County businesses are looking to take advantage of federal legislation that will impact economic prospects for the foreseeable future.

The Coronavirus Aid, Relief, and Economic Security Act, which was signed into law on March 27, provides resources to health care providers and employees in the health care community, but the legislation does include aid for individuals and small businesses, business lawyer Timothy Crisp said.

In his over 30-year career, Crisp, a partner with Holland and Hart, LLP, has helped banks and companies navigate banking and finance.

The CARES Act is intended to recognize and begin introducing solutions for a nationwide problem, Crisp said, where nearly everyone is being adversely affected. The legislation also provides relief to small businesses in need.

While the act does provide most single Americans with a $1,200 deposit and married couples with $2,400, legislators have set aside almost $350 billion for businesses. It might sound like a staggering amount, Crisp said, but the funds will be gone before the end of June.

The CARES Act is the third major coronavirus bill passed by Congress and signed into law.

“There will probably be others at this rate, but this is the first one that provided concrete financial assistance to non-health care business while helping health care businesses too,” Crisp said.

Silicon Slopes Serves has put together an economic task force to help small businesses understand and take advantage of state and federal aid.

The organization formed the task force to get a better understanding of the needs of small businesses in Utah communities, to get a better idea of what small business owners are going through, and to lay out available options, Traeger CEO Jeremy Andrus said.

Small businesses have been crushed, he said, as economic activity has all but stopped. State and federal aid is meant to help stabilize businesses across the board.

“No small business has ever been through a shock to the system like this,” Andrus said. “Effectively, many businesses have just ceased operations.”

Andrus, who was appointed head of the task force last month, said the goal of the task force is to pull together resources for small business owners that demystify the process of getting help.

The most immediate resources available to small businesses comes from the federal CARES Act passed last month. Within the legislation, there are two types of loans that business owners can take advantage of: the paycheck protection program and the economic injury disaster loan.

The most attractive option, Andrus said, is paycheck protection. This option gives small businesses access to loans up to two-and-a-half times the average amount required to maintain monthly payroll expenses in 2019. There is no collateral or personal guarantees required.

Businesses can then use this money toward payroll, rent or utilities. In this case, Crisp said, a small business refers to one with 500 employees or fewer.

Crisp said these loans are guaranteed through a bank or credit union, and the Small Business Administration guarantees the loans.

If the funds awarded through the paycheck protection program are used correctly, Crisp said, businesses can have all or a portion of their loans forgiven by the end of an eight-week period.

“It’s meant to help businesses, but it’s also meant to help the employees that work for those businesses, especially those who have had salary or wage cuts or have been laid off or furloughed,” he said.

Crisp has been advising small businesses and nonprofit organizations to apply immediately.

“Don’t walk, don’t call, run to your bank or credit union and tell them you want to apply for this,” he said.

The application process is roughly three pages and is used to gather an employee head count, payroll numbers for 2019 and ensuring certifications, Crisp said. Some banks and credit unions are requiring an additional application for their own records.

For companies with fewer employees or for business with venture capital or hedge funds, the applications can become a little more difficult.

Crisp said there has already been unprecedented demand for these loans, and some banks or credit unions, like Wells Fargo, have already run out of funds to allocate.

The Silicon Slopes Serves economic task force also is working to act as a steady line of communication between government officials and business owners to maintain a certain level of understanding and open dialogue.

In order to ensure small businesses are being heard, the task force is hosting a regular survey that allows business owners to explain what they are experiencing, from layoffs to furloughs and more.

From previous surveys, Andrus said small businesses are expecting to make 50% in the second quarter. Additionally, on average, local entrepreneurs believe they will struggle to bounce back from their financial injuries until the first quarter of next year.

“There is a tremendous amount of economic uncertainty and pain,” Crisp said.

Crisp said several of the businesses he has spoken with are doing fine but feel weary about the future because their customers and suppliers are having a difficult time.

Moving forward, Andrus said the task force is especially focusing on how the pandemic is affecting mental health.

“People are going through a lot right now, and small business owners especially,” he said. “They’re feeling the strain of the economy on their businesses. They’re feeling the pressure of the moment. They’re feeling uncertainty around the COVID-19 virus. The accumulation of all of these things creates a tremendous amount of pressure on a small business.”

In addition to offering financial aid resources, the task force also is partnering with local organizations to ensure mental health resources are available to help business owners persevere.

Small businesses can begin preparing themselves for a prolonged economic disturbance by speaking with their vendors about flexible pricing, paying the most important vendors or bills first to ensure imperative costs are taken care of, and maintaining open communication with landlords and others, Crisp said.