Federal and State Resources for Businesses and Entrepreneurs during COVID-19
Oscar Perez
COO | CFO | CTO | Currently Global COO driving record growth at Infosys Consulting | Startup Advisor
The Federal Government, the State of Florida, and other states and cities are issuing new programs and guidelines to assist businesses and entrepreneurs through these difficult times. I have done my best below to list resources at the federal level and some at the state level. Now, more than ever, we need to be positive, stay nimble, and continue sharing resources with each other. Please reply to the thread if you have other valuable info. Stay safe and stay healthy. Quarantined regards,
Feds
Paycheck Protection Program
Receive up to 2.5x to cover your payroll costs. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. This loan has a maturity of 2 years and an interest rate of 1%.
U.S. Small Business Administration (SBA) https://disasterloan.sba.gov/ela/Information/Index Disaster Loans Program allowing businesses and non-profits to borrow up to $2 million with 30-year payment terms at low-interest rates. Businesses at 3.75% and non-profits at 2.75%. Please note that larger loans require collateral.
Unemployment Insurance Trust the Families First Coronavirus Response Act (FFCRA) includes Emergency Unemployment insurance that allocates $1 billion in emergency state grants. However, a new bill going through Congress will allocate more funds.
Federal Stimulus Program SBA Paycheck Protection Program
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
Families First Coronavirus Response Act https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/Families%20First%20summary.pdf
- Two weeks of paid sick leave
- Ten weeks of paid family leave
- Emergency paid leave benefits
For a more detailed explanation here is a great FAQ by Guardian Life: https://www.guardianlife.com/coronavirus/legislation/explanation
Internal Revenue Service (IRS) https://www.irs.gov/coronavirus various resources for businesses and taxpayers, including Tax Day is now July 15, 2020. This also includes information on Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave
Secretary of Education will be waiving interest on all student loans held by the Federal Government https://studentaid.gov/announcements-events/coronavirus
State Taxes
AICPA State Tax Filing Guidance https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf
Florida
The Florida Small Business Emergency Bridge Loan Program https://floridadisasterloan.org/ will provide up to $50,000 with no interest up to one year. If it is extended, it is at 12% which is still better rates than credit cards. Deadline is May 8, 2020.
Florida Department of Economic Opportunity Reemployment Assistance COVID-19 Frequently Asked Questions http://www.floridajobs.org/docs/default-source/ra-dua-documentation/dua-faqs-3-17-20-updates.pdf?sfvrsn=805543b0_4
Miami
Great resources from the Greater Miami Chamber of Commerce https://www.miamichamber.com/news and the Miami-Dade County website https://www.miamidade.gov/global/initiatives/coronavirus/home.page
City of New York
Assistance and Guidance for Businesses Impacted due to Novel Coronavirus https://www1.nyc.gov/site/sbs/businesses/covid19-business-outreach.page?_ga=2.139652915.1629427613.1584468230-197316099.1581628439
California
California’s IBank, a unit within the Governor’s Office of Business and Economic Development, is providing disaster loans of up to $1 million for small business borrowers as well as $500 to $10,000 loans for low-wealth entrepreneurs in declared disaster areashttps://business.ca.gov/coronavirus-2019/
San Francisco
The San Francisco COVID-19 small business Resiliency Fund https://oewd.org/covid-19-small-business-resiliency-fund?_ga=2.139652915.1629427613.1584468230-197316099.1581628439 allows impacted small business owners to access up to $10,000 for employee salaries and rent.
Texas
Austin
COVID-19: Community Resources in Austin, Texas http://www.austintexas.gov/article/covid-19-community-resources
Massachusetts
Massachusetts announces $10 million Small Business Recovery Loan Fund https://www.mass.gov/news/baker-polito-administration-announces-10-million-small-business-recovery-loan-fund
U.S. Chamber of Commerce
U.S. Chamber of Commerce https://www.uschamber.com/co/small-business-coronavirus with resources and strategies to help small businesses survive.
COVID-19 Loan and Relief Resources for Small Businesses from Gusto
Here is a super-comprehensive list of resources from the Gusto payroll service https://gusto.com/blog/business-finance/coronavirus-relief-resources and https://docs.google.com/spreadsheets/d/1SRBZE2_6Nftwd02M6Oxj8MoeuZ7y93spXIgIPhkkp2w/htmlview?sle=true#gid=0
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