Covid-19  Business Resources

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain nonprofits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA. Click here for "The Small Business Owner’s Guide to the CARES Act".

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Small Business:

• $377 billion for the Keeping American Workers Paid and Employed Act, which will help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by the COVID-19 pandemic

• $350 billion worth of 100 percent guaranteed SBA loans, a portion of which SBA will forgive based on allowable expenses for the borrower, through a new Paycheck Protection Program (PPP)

• $10 billion in direct grants for businesses that do not qualify for the EIDL program

• $17 billion for to have SBA step in and make six months of principle and interest payments for all SBA backed business loans

• $562 million for SBA to administer Economic Injury Disaster Loans (EIDL) to businesses that need financial support. SBA has signed emergency declarations for all 50 and the territories, so the EDIL program will be able to help small businesses across the country.

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Payroll Protection Program:

As of Friday, April 3rd- small businesses and nonprofits can apply for the nearly $350 billion in loan/grant available through the Payroll Protection Program Final Borrower Form HERE.

• Up to 100% forgivable as long as employers keep paying their workers

• Employers can borrow up to 250% of their average monthly payroll (max. of $10M) 

• Eligible if you are: sole proprietor, partnership, C-Corp, S-Corp, LLC, Independent contractor, self-employed individual, 501c3 non-profit, 501c19 veteran organization, tribal business of SBA

Talk to your lender today (or a local lender): Ask to apply for SBA 7a program called Payroll Protection Program FINAL Borrower form HERE.

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Department of Labor Unemployment Insurance:

• Pandemic Unemployment Assistance - Creates a temporary Pandemic Unemployment Assistance program through December 31, 2020 to provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history, and others) who are unable to work as a direct result of the coronavirus public health emergency.

• Supplemental Federal Pandemic Unemployment Compensation -Through July 31, 2020, the federal government would provide an additional temporary Federal Pandemic Unemployment Compensation (FPUC) of $600 a week for any worker eligible for state or federal unemployment compensation (UC) benefits

• Allows employers to receive an advance on the tax credit for required paid family leave implemented in Families First Coronavirus Response Ac from Treasury instead of having to be reimbursed on the back end

• The bill includes $360 million for the Department of Labor to invest in programs that provide training and supportive services for dislocated workers, seniors, migrant farmworkers, and homeless veterans. This also includes funding for DOL agencies to ensure new Paid Leave and UI benefits are implemented swiftly and effectively.

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Direct Payments to Americans

• 1 time direct payment $1,200 (individuals), $2,400 (joint filers), and an additional $500 per child

• Based on 2019 tax returns for those who have filed and 2018 tax return for those who have not

• Income eligibility: Full amount for individuals making up to $75,000 (individual) and $150,000 (joint filers) who are not a dependent of another taxpayer and have a work eligible SSN. The direct payment amount begins decreasing and then phases out completely for those making over the full payment income cap. Completely phases out at $99,000 (individuals) and $198,000 (joint filers)