CollectionsJul 17, 2026
HOWL Taps Shailene Woodley for ‘Home Sweet Home’ CampaignWoodley is seen in the campaign wearing our Piece of the Week, the “Frida” collar featuring 13 pieces of hand-carved Venetian glass.
IndependentsMar 31, 2020
On Data: The Questions You Need to Ask About CARES
In another special edition of On Data, Sherry Smith says jewelers need to consult their team of experts about the Coronavirus Aid, Relief and Economic Security Act.
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. She can be reached at sherry@edgeretailacademy.com.
The first confirmed coronavirus case in the United States was reported on March 5.
Although we are less than 30 days into this pandemic in the U.S., the numbers are staggering—more than 120,000 confirmed cases and over 2,000 deaths as of Monday, the World Health Organization reports.
We now lead the world in total number of cases.
We’ve never been here before, battling a nationwide pandemic and facing so much uncertainty.
We know we will come out of this; we just aren’t sure when or what that might look like, as many of us will be adjusting to a new normal.
In the meantime, though, it is critical—and I know you’ve heard me say this before and I make no apologies for saying it again—but we must focus on what we can control.
So in this column, I’d like to address the multiple stimulus packages and relief programs available to all of us as it relates to our employees.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
RELATED CONTENT: 5 Things Retailers Should Know About the Stimulus Bill
Last week, Congress passed a third stimulus package, which has allocated an additional $350 billion to small businesses and $150 billion for state and local stimulus finds. There are also provisions in the bill that will temporarily allow small businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.
There’s no doubt that it can be overwhelming trying to understand and decode all the information relevant to your business in the $2 trillion stimulus package, otherwise known as the CARES (Coronavirus Aid, Relief and Economic Security) Act.
Therefore, you must rely on your corporate attorney, certified public account and, if you utilize one, your payroll company.
Remember their roles require a complete understanding of the legalities and the nuances associated with all the stimulus packages. This is precisely what you pay them for.
In fact, it’s so easy to misinterpret and/or misunderstand how some of these programs will work that I urge you to avoid taking any action until you have spoken to your experts.
You simply can’t afford costly missteps.
Start by assessing your current financial situation. What does that look like?
Define your objective, which now for many of our retailers is about sustainability. What does that look like? Am I able to be self-reliant, or do I need assistance? Perhaps it’s a combination of both, depending on
Editors' Picks
Sponsored by
how long little to no revenue will be coming in.
Then set aside 15 to 30 minutes to create a list of questions for your team of experts.
It’s important to understand all your options when it comes to your employees and the potential legal ramifications.
A sample list of questions might look like this.
1) Am I obligated to give my employees paid leave?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
1a) Does this apply to all businesses, or are small businesses exempt?
2) If I offer paid leave to my current employees, will I be fully reimbursed?
3) Is it smart to take out a loan, given the low interest rates, in order to keep my employees on paid leave?
4) What advantages and disadvantages are there between paid leave versus layoffs?
5) If I am reimbursed, how quickly will those funds come through?
6) What form will the reimbursement take, cash or tax credits?
7) If part of the reimbursement is via tax credits, when would those be realized?
8) If I lay off my employees, am I obligated to pay them their PTO (personal time off) time first?
9) If I take out a loan to use for payroll expenses, is loan forgiveness a guarantee?
10) If not, what options do I have?
11) Is there anything I have overlooked?
Let me give an example of why it’s so important to do this exercise.
This excerpt is from a CNBC article published last Thursday and, yes, quickly updated the next day.
“Under the CARES Act, the loans can be for as much as 2.5 times payroll or $10 million, whichever is less. Payments can be deferred by up to a year, and businesses will be able to apply for forgiveness of the loan (or a portion of it) based on the amount used during the eight weeks following loan approval. Any amount not forgiven would have a maximum interest rate of 4 percent.”
I want to use this example because I’ve had many retailers debate keeping their employees on paid leave vs. unpaid leave because some are convinced they will be fully reimbursed.
Well, that’s simply not guaranteed. Look at the language above. While your payments could be deferred for up to a year, which would be very helpful, you will still have to apply for a forgiveness of the loan.
And, all or part of it may be forgiven, while the unforgiven portion would have a maximum interest rate of 4 percent.
One can easily see how this one paragraph could be subject to multiple interpretations.
The potential costly part to the retailer is that many of them would have to take a loan in order to grant paid leave. That’s a loan that might not be fully forgiven, which means you’ve taken on additional debt that you’ll have to pay back.
There is another article, also published last Thursday, from The New York Times that states payroll expenses would be fully covered, but there is a timeline in which you have to use those funds.
The bottom line is: There simply is no one right answer for all retailers, which is why you want to consider all the facts and ultimately make the decision that is in the best interest of your business.
Given how rapidly things are changing, you can understand why it’s imperative to rely on your team of experts. Utilize them! They will ensure you understand the impact of your chosen course of action.
At the end of the day, we all want to be standing on the other side of this pandemic.
Be well and stay healthy!
Sherry Smith is director of business development for data and consulting company The Edge Retail Academy. In her role, Smith works with wholesalers, brands and retail stores on business mentoring, and data analysis and aggregation. She can be reached at sherry@edgeretailacademy.com.
More on Independents
The Latest
SourcingJul 17, 2026
U.K. Woman Pays £5 for £15K Diamond Ring at Car Boot SaleA WeBuyVintage jewelry expert uncovered how much the flea market find was actually worth.
SourcingJul 17, 2026
Diamond Dealer Jeff Pancis Pens MemoirThe founder of natural colored diamond wholesaler Pancis Gems shares stories from his five decades in the industry.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Events & AwardsJul 17, 2026
Gem Awards Opens 2027 Nomination PeriodSubmissions for the milestone 25th annual Gem Awards will be accepted across three categories from now through July 31.
Weekly QuizJul 17, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsJul 16, 2026
Q&A: Guzema’s Co-Owners On Its US Expansion, 10-Year AnniversaryValeriya Guzema and Mariana Lenha look back on the last decade and discuss the Ukrainian brand’s first U.S. store.
SourcingJul 16, 2026
Ekati to Close, Leaving Canada With One Diamond Mine The diamond mine, which opened nearly 30 years ago in Canada’s Northwest Territories, is expected to shut down by mid-August.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
FinancialsJul 16, 2026
Richemont’s Jewelry Sales Soar for the Seventh Quarter in a RowJewelry sales for the company, which owns Cartier, Van Cleef & Arpels, Vhernier, and Buccellati, rose 21 percent in the first quarter.
Events & AwardsJul 16, 2026
MJSA Mentor & Apprenticeship Program Certifies First Advanced Apprentice GraduateThe graduate, Grace Barden, credited the program with helping her secure a job as a bench jeweler.
Events & AwardsJul 16, 2026
Jewelers of Louisiana to Host 80th ConventionThe event, scheduled for next month in New Orleans, will include dinner, a custom jewelry design contest, and education sessions.
SourcingJul 15, 2026
1,305-Carat Diamond Recovered from Mine in BotswanaThe yet-to-be named stone is the 10th diamond weighing more than 1,000 carats to come out of Lucara’s Karowe mine.
FinancialsJul 15, 2026
Watches of Switzerland’s US Sales Jump 18%, Declines to Comment on Sale Report The watch and jewelry retailer had a strong fiscal year despite what its CEO described as a “complex operating backdrop.”
Events & AwardsJul 15, 2026
Hamptons Jewelry Show to Return in JulyThe open-to-the-public luxury jewelry and timepiece show, in its second year, is slated for July 23-26.
CollectionsJul 15, 2026
Pomellato’s New High Jewelry Is LiberatingBold color, expressive gem-setting, and sculptural form define the three chapters that make up “Stile Libero.”
ColumnistsJul 14, 2026
Sherry Smith: What Today’s Jewelry Consumer Is Telling Us Rising revenue does not automatically mean a healthy business, particularly in the current economic landscape, Smith writes.
TrendsJul 14, 2026
Amanda’s Style File: Shoulder Dusters These long, fluid drop earrings are sure to catch the eye.
CrimeJul 14, 2026
Man Charged in $1M Jewelry Store Heist Lands on FBI Most Wanted ListAlberto Perez-Elias is one of four men charged with robbing a Cape Coral, Florida, jewelry store and is the only one still at large.
Events & AwardsJul 14, 2026
Conference on Mining, Sustainability Kicks Off in NYCInitiatives in Art and Culture is hosting its 16th annual Gold and Diamond Conference, with the theme of “Resilience.”
Lab-GrownJul 13, 2026
Stephanie Gottlieb Changes Her Mind on Lab-Grown DiamondsThe designer, who once said she’d never sell lab-grown diamonds, debuted two capsule collections designed to be fun and easy to wear.
SourcingJul 13, 2026
De Beers Announces Potential Layoffs, 2-Year Production Pause at VenetiaThe diamond miner and marketer is undergoing another round of cost-cutting measures ahead of its sale by Anglo American.
Events & AwardsJul 13, 2026
Registration Opens for JIS Fall 2026 ShowThe annual trade-only buying event is slated for Oct. 16-19 in Miami Beach, Florida.
Events & AwardsJul 13, 2026
AGTA Accepting Entries for Spectrum 2026AGTA also has announced the lineup of judges for the colored gemstone cutting and jewelry design contest’s various categories.
TechnologyJul 10, 2026
There’s a New Blind Box for Luxury Watches Collectibles platform Arena Club’s new Time Boxes could contain a Rolex or Patek Philippe watch.
TrendsJul 10, 2026
Jade Trau Creates a Constellation of DiamondsThe “Constellation Plié” collar, our Piece of the Week, features diamonds arranged in a constellation of shining stars.
SourcingJul 10, 2026
CFO of De Beers’ Consumer-Facing Division Leaves Company Shaun Wills joined the company in 2024 and was chief financial officer of the De Beers Brands and Consumer Markets division.
WatchesJul 10, 2026
Brilliant Earth Expands Into WatchesIn honor of its 20th anniversary, the jewelry brand has released a limited-edition collection of Swiss-made timepieces.
