Tag: coronavirus business impact

  • The third stimulus package is expected to pass soon, what does it mean for businesses?

    The third stimulus package is expected to pass soon, what does it mean for businesses?

    The third stimulus package (dubbed The American Rescue Plan of 2021) is expected to go to the House today for a final vote – in fact by the time this article goes live it may have already – and then it is expected to be signed into law by President Biden.

    We’re all aware of the stipulations this has for individuals, with many receiving a third wave of stimulus payments in the form of $1400 for every adult and child that meets the current income criteria as well as many expecting an increase to the Child Tax Credit, but what in this bill is specifically outlined for businesses?

    The first stimulus packages included notable relief in the form of the forgivable Paycheck Protection Program (or PPP) loans. These loans offered businesses 24 weeks of paycheck protection for their employees so they could remain in business and keep their staff even as their businesses were subject to widespread closures.

    Earlier in the year we covered the benefits of the PPP and how it compared to the Economic Injury Disaster Loan (EIDL) program here.

    The American Rescue Plan Stimulus bill also includes many provisions for businesses just like the first two packages did, including the following:

    • $1.25 billion for shuttered venue operators
    • $7.25 billion for the Paycheck Protection Program (PPP)
    • $15 billion for targeted Economic Injury Disaster Loan (EIDL) advance payments
    • $25 billion for restaurants, bars, and other eligible providers of food and drink
    • And $175 million to create a “community navigator” pilot program to increase awareness of and participation in COVID-19 relief programs for business owners currently lacking access

    The Paycheck Protection Program in particular has allocated over $662 billion to businesses since being established 11 months ago, and there is sill $284 billion in funding available.

    However, the new stimulus bill did not extend the window for applying. If your business meets the criteria and you’re considering applying for this program you must do so by March 31st of this year at which time the window is scheduled to close for good.

    The current bill also has a clause to make it more available for not-for-profit businesses by including a new category entitled “additional covered nonprofit entity,” we suggest meeting with your accountant or tax preparer if you think this may apply to your business.

    If your business requires greater aid than the PPP provides for and you have no more than 300 employees, the EIDL program may be a better fit for you. An additional $15 billion in funding to that program will be made available in the next round of stimulus. This loan program applies to your business if you suffered a 30% or more loss in revenue during any 8 week period between March 2nd, 2020 and December 31st, 2021.

    There is much more to it than we can go over here but we again suggest meeting with your accountant or tax preparer if your business suffered a loss during in the 12 months since COVID-19 began (which probably applies to many if not all of us) and think one of these programs could help your business on the path to recovery and economic growth.

    Looking for more to read? We suggest these tech articles from the last week.

    This article was powered by Valley TechLogic, an IT provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.

  • Hardware Shortages May Continue Into 2022, So What Can Consumers Do About It?

    Hardware Shortages May Continue Into 2022, So What Can Consumers Do About It?

    COVID related hardware shortages and merchandising shortages in general are not new, since the beginning of the pandemic we have seen shortages in food, toilet paper, cleaning products and even personal protective equipment (PPE) frontline workers desperately needed to stay safe.

    Many of these shortages have been solved by an uptick in production. However, computer and electronic related shortages have been some of the worst hit and so far, the longest lasting with many experts saying we won’t see an end to them until 2022.

    At the beginning of the pandemic as schools closed and many jobs went remote the shortages when it came to laptops and desktops made sense, students and workers needed devices to continue to learn and work on.

    We saw that these shortages were solved when popular PC makers ramped up production and pushed forward new product launches to entice this entirely new market of PC consumers – many of which had abandoned bulkier hardware in favor of small and portable smart phones in years prior. It was common during this time for households to go from a single PC in the home to several.

    Now as we’ve stepped into 2021, we’re seeing shortages when it comes to the components these devices are made of. Especially when it comes to computer chips otherwise known as semi-conductors.

    We’re going to get a little technical here, a semi-conductor (or integrated chip) is a series of electronic circuits printed onto a conducting material, usually silicon. These chips form the brain of your electronic equipment. Tech News #3

    have been reported well before the pandemic hit (and are certainly be making things even worse). These silicon shortages don’t just effect PCs and laptops, cellphones, gaming equipment, even cars.

    Our growing demand for electronics has created the silicon shortage and we don’t as of yet have a solution that would allow us to keep our current breakneck pace when it comes to new electronic product launches. Many solutions center around increasing the longevity of existing products and ending planned obsolescence by allowing outside vendors to fix OEM products without voiding a customer’s warranty (as an example).

    On top of the silicon shortage, Bitcoin and Bitcoin related mining has also seen a resurgence in popularity. Powerful Graphical Processing Units (GPUs) are needed to make Bitcoin mining as efficient and productive as possible and as such we’re seeing GPUs skyrocket in price, many selling for several times their MSRP.

    It’s expected that it will take until 2022 for vendors and factories to catch up and prices to begin to stabilize. If you’re in the market for a new computer or laptop in the interim, you may find yourself in for a wait and a price hike.

    If you run or own a business, having a technology service provide like Valley Techlogic behind you can assist you in your business’s hardware needs. We have special relationships with our vendors and can use those to our customers advantage, saving them both time and money.

    If you’re a business owner located in the Central Valley and your office is due for a hardware upgrade, reach out today to find out what we can do for you.

    Looking for more to read? We suggest these tech articles from the last week.

    This article was powered by Valley TechLogic, an IT provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.