Covid-19 Tag

Covid-19 Small Business Resource Update As of March 23rd, 2020

Federal Changes- below is an update on items affecting/supporting small businesses as of 3.23.20.  Naturally, items are changing rapidly, and we will continue to provide future updates.

SBA Disaster Assistance – Available NOW– get started here.

Economic Injury Disaster Loan Program:

• Activated by States “Emergency” declaration- Loan amount up to $2 million – 3.75% business, 2.75% Non-Profit
• Working Capital & Business Expense only
  1. Cannot include “lost profits”
  2. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
• 1-year payment deferment from disbursement- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.
• Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Must meet 3 qualifications:

1. Eligibility – Business & Non-Profits (no church’s or worship centers)
2. Credit – lower than commercial standards
3. Repayment ability – PRE-DISASTER CONDITION

SBA Administration update:

• Cutting Red Tape – changing current policy
• If a business receives a DECLINE – the notice is referred to the local District SBA office same day and an SBA official MUST contact Borrower within 24 hours to match them with a different lender
• FEMA is supporting SBA with 500 additional support personnel

Additional Federal Update

Temporary Tax Changes:

• IRS Notice 2020-17
  < $1million in taxes due = payer able to defer payment without penalties or interest until July 15, 2020
• Applies to all individuals and business • filing calendar year return
  1st quarter estimated payment
• Interest and penalties will begin to accrue on July 15, 2020

 Families First Coronavirus Response – HR 6201:

• Amends FMLA definitions
• Applies to all employers < 500 employees (including govt)
• Sec of Labor can exempt employers < 50 emp if business viability is in jeopardy
• Exemptions for Health Care Providers and Emergency Responders

Employee Health Emergency Leave (Div. C)

• First 10 days unpaid (employee may use accrued time)
• Leave paid thereafter at no less than 2/3 of employee regular pay
  1. Maximum of $200 per day or $10,000 in aggregate
  2. Variable schedules = avg number of hours over prior 6 months
• Job restoration upon return (or equivalent)
  1. < 25 employees, then “reasonable efforts” over 1-year window
  2. If the position does not exist due to coronavirus emergency, then no obligation
• Exceptions for Health Care Providers & Emergency Responders

Emergency PAID Sick Leave (Div. E)

• 2 weeks (80 hrs.) of paid sick time if employee unable to work
  1. Quarantine or isolation order
  2. Caring for another – child, relative, quarantined individual
  3. Experiencing conditions similar to Coronavirus
  4. May not exceed $511 per day or $5,110 in aggregate
• NO tenure requirements
• Employer cannot require employee to use accrued time

Employer Tax Credits

• To offset employer costs
  1. 100% of qualified Employee Emergency Leave
  2. 100% of qualified Emergency Paid Sick Leave
• Refundable payroll tax credit allowed against employer portions of Social Security and Railroad Retirement payroll taxes
• Tax credit for wages under both types of leave- Includes Employer-paid portion of employee’s health plan coverage while on leave