Shoppers explore a mostly empty mall on May 12, 2020 in Columbus, Ohio.
Matthew Hatcherr/Getty Images
Business owners who got a forgivable federal loan may see a difficult choice ahead: getting a loan discharged or allowing workers to collect enhanced unemployment benefits.
But there’s a way entrepreneurs can get the best of both worlds: staying debt-free and keeping workers happy.
Specifically, work-sharing programs offer a way for business owners to recall employees to satisfy Paycheck Protection Program rules without jeopardizing expanded unemployment benefits, according to labor experts. Some workers even stand to get higher pay.
“There’s a lot of federal money floating around,” said Betsey Stevenson, professor of economics and public policy at the University of Michigan. “And a savvy business can make them and their workers better off.”
Unemployment benefits, small business loans
The $2.2 trillion coronavirus relief law enacted in March, known as the CARES Act, expanded unemployment…