COVID-19 - Financial resources for small businesses
Within a short space of time, many governmental resources have been made available to small businesses to help them through these times. Here’s an essential list to make sure you can access the help you need.
Major support from the government:
1. SBA Economic Injury Disaster Loan Program
As part of its disaster assistance program, the SBA is providing low-interest loans of up to $2 million to small businesses affected by the coronavirus in SBA-declared disaster areas. These loans carry an interest rate of 3.75% for small businesses. Loan repayment terms vary by applicant, up to a maximum of 30 years.
Apply here and select “Economic Injury” as the reason you’re seeking assistance. Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 for help with your application.
2. Federal Income Tax & State Tax Payment Deadline Extensions
The federal tax return filing deadline has now been extended from April 15, 2020 to July 15, 2020. This covers income tax and self-employment tax only. Of course, if you are expecting a tax refund, you should file as soon as possible. Check with your state tax agency for details on delayed state and local tax deadlines as a result of coronavirus.
3. State and Local Coronavirus Small Business Assistance
States and municipalities are making a wide variety of resources available to help support small businesses. Check your governor’s website for up-to-date information about relief available in your area.
4. Paid leave financing for small and medium businesses
As part of the Families First Coronavirus Response Act, all businesses with less than 500 employees will be able to access paid sick leave and child care leave:
• 10 days of paid sick leave at two-thirds of the employee’s pay, up to $510 per day, for employees sick with coronavirus
• 10 days paid sick leave at two-thirds of the employee’s pay up to $200 per day, for employees caring for someone with coronavirus or caring for children when the employee’s children’s schools are closed
• 10 weeks of paid child care leave at two-thirds of the employee’s pay up to $200 per day
The paid leave credits can be set off against payroll taxes that the business owes and the IRS will issue any additional rebate as a refund to the business.
5. Banks across the country assisting their customers
The American Bankers’ Association has put together a summary of the assistance available from banks across the country. Check out the list to see what your bank might be able to do for you.