COVID-19 Relief Options to Get Money into Your Pocket
Summary of Small Business Emergency Financing
March 31, 2020
At HBE, we continue to monitor all of the COVID-19 related financial relief options that are available to our clients. We recognize that the amount of information coming out on these options can be overwhelming, and changes rapidly. In an effort to provide you with the relevant information you need in order to take advantage of the relief measures as quickly as possible, we have summarized the key resources your business should consider below.
Please remember, every business is different and different approaches to relief financing may need to be considered. We have a team of professionals who have been designated to assist our clients in evaluating these options.
We will also be hosting a webinar on Friday, April 3, to provide additional information on the COVID-19 SBA relief financing options, as well as paid leave provisions and credits, payroll retention credits, and delayed payment of employer payroll taxes. Please watch for additional information on this upcoming webinar.
COVID-19 Economic Injury Disaster Loan (EIDL) – https://www.sba.gov/page/disaster-loan-applications
Any business affected by COVID should consider this loan. You apply directly to the SBA for this loan (https://covid19relief.sba.gov/#/) and initially only need to provide basic company and owner information to get the process started. After the application is processed, you will need to furnish additional information (such as tax returns, personal financial statements, projections, and liability schedules).
- EIDL Emergency Advance Grants. These grants provide emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an EIDL. To access the advance, you first apply for an EIDL and then request the advance. The funds may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments. These grants do not need to be repaid under any circumstance.
Paycheck Protection Program (PPP) – https://www.sba.gov/funding-programs/loans/paycheck-protection-program
You will need to work directly with your banker to facilitate this process. The good news is that you can obtain up $10 million or 2.5 times your your monthly payroll costs. A portion of the loan proceeds used for payroll retention may be available for future forgiveness.
- You should consider applying or directing employees that are not able to be employed by your business to the Nebraska Department of Labor (DOL) resources page. https://dol.nebraska.gov/PressRelease/Details/141
- Nebraska DOL Unemployment Benefits – https://www.dol.nebraska.gov/UIBenefits
- Federal Pandemic Unemployment Assistance – https://www.dol.nebraska.gov/webdocs/Resources/Items/Federal%20COVID-19%20Programs.pdf
Paid Leave and Family Medical Leave – https://www.dol.gov/agencies/whd/pandemic
Starting April 1, employees affected by the COVID may be entitled to certain paid leave. Employers paying out this applicable leave are entitled to refundable payroll taxes to offset the cost of the leave.
CARES Act Business Tax Provisions – https://hbecpa.com/tax-related-provisions-of-the-2020-cares-act/
- Business Tax Provisions – Two of the most impactful business provides of the CARES Act are the payroll retention credits and delay of payment for employer portion of the Social Security taxes during 2020. It is important to note that these benefits are not available to businesses that participate in the SBA Paycheck Protection Program (PPP).
- Individual Tax Provisions – From recovery rebates to loosened retirement withdrawal relief, individuals have some benefits to consider and be aware of as well.