The 13th edition of Hispanic Entrepreneurs (July-September) arrived at one of the most difficult times for the Hispanic community in the United States. With the coronavirus pandemic at its peak, this issue focused on the most urgent matters: informing entrepreneurs and families about IRS stimulus checks, financial resources available for businesses in Tennessee, the employment credits established by the CARES Act, and the inspiring story of Carol Martinez Cala, founder of Carol's Daycare in Clarksville, TN.
Everything About the IRS Coronavirus Economic Impact Payment
The federal government approved, through the CARES ActA series of economic benefits for workers and business owners affected by the pandemic. One of the most important was the Economic Impact Payment, administered by the Internal Revenue Service (IRS).
In the first four weeks of distribution, more than $200 billion to approximately 130 million people, according to the Treasury Department and the IRS.
Who were eligible? To receive the payment, the person had to be a U.S. citizen or legal permanent resident, have a valid Social Security Number, and not be listed as a dependent on someone else's tax return. The adjusted gross income limits were:
- To $75,000 for individuals → payment of $1,200
- To $112,500 for heads of household
- To $150,000 for couples with joint tax returns → payment of $2,400
- Families with qualified children received $500 additional per child
Taxpayers with incomes above $99,000 (individuals) or $198,000 (couples) did not receive any payment.
How to track the payment? The IRS enabled the tool Get my payment To check payment status, update banking information, and confirm details. The IRS never requests personal information via text message or phone call to send a payment—any such communication should be reported as a scam attempt.
A key detail: Stimulus checks are not part of gross incomeTherefore, they should not be included in the federal tax return.
Resources for Businesses Affected by COVID-19 in Tennessee
The pandemic created critical challenges for businesses: access to capital, staff reductions, a drop in demand, and high sanitation costs. In response, both the federal government and the state of Tennessee, along with support organizations, implemented specific aid programs.
Check Protection Program (PPP) – SBA Forgivable loans were available to businesses with fewer than 500 employees, intended for payroll, rent, utilities, and mortgage interest payments. The terms included a two-year repayment period, a 0.5% interest rate, and no collateral was required.
Economic Injury Disaster Loans – SBA Available to small businesses and non-profit organizations with a limit of $2 million per applicantThe interest rate was 3.75% for private businesses and 2.75% for non-profit organizations, with terms of up to 30 years. For more information: SBA hotline at (800) 659-2955.
Unemployment Claims Employees who lost their jobs could manage their claim through www.Jobs4TN.govCompanies could also file unemployment claims on behalf of their affected employees.
Tennessee Talent Exchange A TN Department of Labor and Workforce initiative connecting people unemployed due to COVID-19 with companies in the grocery, retail, and logistics sectors. Access at: jobs4tn.gov.
Support Organizations: Score (free mentoring and webinars), LaunchTN (resources for keeping businesses active), Life Science Tennessee, and local chambers of commerce.
Available Loans for Businesses: The 3 Benefits of the CARES Act
The IRS highlighted three key tax credits for businesses affected by the pandemic:
1. Employee Retention Credit A refundable loan of 50% of up to $10,000 in wages paid per employee (maximum $5,000 per worker). Eligible for businesses that suspended operations by government order or that registered a drop in gross revenue of less than 50% compared to the same quarter of 2019. The credit was claimed through the Form 941 or as a reduction in federal employment taxes.
2. Paid Sick Leave Credit Employees who were unable to work due to COVID-19 were entitled to up to 10 days (80 hours) paid leave at its regular rate, capped at $511 per day and $5,110 in total.
3. Expansion of Family Sick Leave For employees who had to care for someone with COVID-19 or stay home with their children due to school closures: up to 2 weeks of leave at 2/3 of regular salary (maximum of $200/day, $2,000 total) or up to 10 additional weeks for childcare ($200/day, $12,000 total).
Businesses could check their eligibility directly with the IRS at irs.gov.
Carol's Daycare: A Place for the Family in Clarksville, TN
The cover story of this edition is that of Carol Martinez Cala, a Dominican-New York entrepreneur who came to Clarksville, TN as part of a United States Army family and found in this city the ideal place to put down roots and build a business.
Carol was born in New York, started working at age 13 in summer programs and, over time, earned her Bachelor’s Degree en Human Resources Business Administration en Baruch CollegeHer experience at the Fort Campbell military base DayCare was key: there she learned about educational plans, pricing structure, schedules and industry regulations.
The motivation to open Carol’s Daycare It was as genuine as it was practical: she wanted to spend more time with her children and, at the same time, create jobs for other families. “One of the reasons I decided to start this business is because I wanted to spend more time with my children, and I managed to hire two more people, thus generating those jobs which in turn helped us and allowed them to spend time with their families,” she explained.
His advice for entrepreneurs is clear and applicable: “As an entrepreneur, you have to be very curious; that's part of the entrepreneur's mission. Managing your time well is vital, thinking strategically about what you're going to do, and networking will undoubtedly help you.”
The pandemic forced the temporary closure of the DayCare because it's a space where many families gather. However, Carol and her team resumed operations while adhering to all health and safety measures.
Contact:
- 3394 Dresden Way, Clarksville TN 37040
- Phone: (931) 802-5000 / (931) 302-2089
- Cmartinez_cala@hotmail.com
