COVID-19 Information for Businesses

IMPORTANT NOTE

The summarized information below is tailored for what we think our clients would find most helpful. It is not the full rules, regulations or terms. This summary information is NOT tax advice and may be missing relevant information to make informed decisions. It's meant to help guide you the appropriate details linked below only. Please consult the details in the related links or contact us to discuss your specifics before relying on the summary information.  We may update this information as we learn more about the programs.  

PPP: Paycheck Protection Program Loans

Loan / Requirements

Max loan up to $10m up to 250% average monthly payroll for 2019. 

2 year term, 0.5% interest rate. No prepayment penalty. 1 PPP loan per entity.

Seasonal businesses may use average monthly payroll from  2/15/19 to 6/30/19 

New businesses may use average payroll from 1/1/20 to 2/29/20

Loan Requirements: 

  • Harmed by COVID-19 between 2/15/2020 and 6/30/2020
  • Retroactive to bring employees already laid off back onto payroll 
  • Available through 6/30/2020
  • Business in operation on 2/15/2020 (including sole prop & independent contractor)
  • Less than 500 employees per physical location 


Payroll Costs include:

  • Gross Compensation
  • Vacation/Sick Time
  • Group Health 
  • Retirement 
  • State Payroll Tax
  • (If self employed) Net Self Employment Income

Does NOT include

  • Compensation over $100k (per employee)
  • Outside US
  • Sick/Family leave under Families First Act 


Additional uses of loan (may not be forgiven) 

  • Mortgage/debt Interest
  • Inventory
  • Rent
  • Utilities


Additional program information HERE

Self-employed information HERE

Credit / Grant Assistance

Up to 8 weeks of costs forgiven from loan balance (beginning on loan origination date) :

  • Payroll Costs
  • Mortgage Interest*
  • Covered Rent/leases*
  • Covered Utility Payments*

*in Force prior to 2/15/2020. Only 25% of the forgiven amount may be for non-payroll costs.


Deferral

  • Up to 6 months automatically (request up to 12 months)


Can get other SBA loans but can’t use same qualifying expenses for both


Must maintain payroll

  • If number of employees decrease, percentage of loan forgiveness decreases by same amount (if already laid off prior to 4/26/2020, can rehire by 6/30/2020)
  • If payroll expenses decrease by more than 25% per employee, loan forgiveness will be reduced by the same amount.  


SBA Loan Forgiveness Application

(contact US for an excel calculator to assist)

EIDL: Economic Injury Disaster Loans

Loan / Requirements

Low interest (less than 3.75%) up to $2m to pay for expenses that could have been met had the disaster not occurred including payroll and operating expenses 


  • Less than 500 employees including sole proprietorship (even without employees), independent contractors
  • Available 1/31/2020 to 12/31/2020
  • Grants backdated to 1/31/2020 for those that already applied for EIDL
  • Can also apply for PPL loan or refinance EIDL into PPP but any advance amount under EIDL reduces PPP forgiveness 
  • Can’t use same qualifying expense for EIDL and PPP
  • Been in operation since 1/31/2020

Credit / Grant Assistance

Request grant of up to $10k ($1k per employee) when applying for loan that does not need to be repaid. 

Can be used for

  • Payroll
  • Sick Leave
  • Increase production Costs
  • Business obligations 
  • Debts
  • Rent 
  • Mortgage


Deferment at Administrator’s discretion up to 4 years.  

Small Business Debt Relief Program

Loan / Requirements

  • Up to $5m for fixed assets for expansion or modernization (real estate, equipment, etc)
  • Microloans up to $50k to startup/expand. 
  • Existing Non-Disaster 7(a) loans  (and maybe some 504 and microloans)
  • New borrowers who take out loans prior to 9/27/2020

Credit / Grant Assistance

SBA will cover loan payments (Principal & Interest)  for 6 months 


(Does Not include PPP loans) 

Payroll Tax Delay

Requirements

  • Delay employer portion of payroll taxes (FICA) through 2020. 
  • Deferred amounts due 50% of 12/31/2021 and 50% at 12/31/2022
  • Not available if receiving assistance through PPP  

Employee Retention Credit

Requirements

Refundable Payroll Tax Credit through 12/31/2020

  • Wages  of employees who are furloughed or reduced as result of closure or economic   hardship.  
  • If 100 or fewer FT employees then all employee wages eligible regardless of furlough
  • Includes  health benefits
  • Wages  do not include those for other payroll credits, PPP loans,  for paid leave, family leave  or medical leave
  • Do not qualify if you received a PPP loan


Credit / Grant Assistance

Refundable payroll tax credit for 50% of wages paid (including health benefits) for the first $10k in wages per employee 


Employers that have been fully or partially suspended as a result of government order limiting commerce, travel or group meetings 

OR 

Experienced >50% reduction in quarterly receipts year over year  

Paid Sick & Family Leave

Requirements

Employers with less than 500 employees must provide up to 2 weeks paid leave to employees. May be a hardship exemption for businesses with fewer than 50 employees for school closings or childcare unavailability if it could jeopardize business as a going concern.  


Qualifying reasons: 

  1. Quarantine or isolation order- 100% pay for 2 weeks up to $511 per day
  2. Health Care Provider advised self-quarantine- 100% pay for 2 weeks up to $511 per day
  3. Experiencing symptoms and seeking diagnosis- 100% pay for 2 weeks up to $511 per day
  4. Caring for individual subject to (1) or (2) above- 2/3 pay for 2 weeks up to $200 per day
  5. Caring for a child whose school or childcare closed- 2/3 pay for 12 weeks up to $200 per day


Employee information posters required to be posted: click HERE

Employer Information: click HERE

FAQs: click HERE

Credit / Grant Assistance

Full credit for wages paid plus cost to maintain health insurance.


Credit is applied against future federal payroll taxes and payments.  Can also request advance from IRS.

Net Operating Losses

Requirements

Ability to take losses from 2018, 2019 or 2020 and amend earlier returns to take advantage of a loss carry back for up to 5 years