U.S. Stimulus Package

What Does This Mean for Small Businesses and Individuals?

Business Loan Options

Other Relief For Small Businesses

Relief For
Individuals

State
Actions

Loan Options for Businesses

Main Street Lending Program

$600 Billion loan program provided by the Federal Reserve aimed at small and mid-size businesses

Who is Eligible?

  • Loans will be available for businesses with zero to 15,000 employees or with 2019 revenue of less than $5 billion
  • Small businesses are eligible and may apply even if they are participating in the Paycheck Protection Program
  • Business must be based in the US with most of its employees in the US

Who is Not Eligible?

  • Passenger air carriers (and related industry) that took advantage of CARES Act Section 4003(b)(1-3)
  • Non-Profits Organizations
  • Full list of ineligible businesses can be found by clicking here

Loan Summary

  • Main Street Priority Lending Facility
    • Maximum loan amount equal to the lesser of:
      • $50,000,000 or
      • Up to six times 2019 EBITDA when combined with existing outstanding and undrawn debt
    • Minimum Loan of $250,000
    • MSPLF repayment schedule is 15% in Year 3, 15% in Year 4, and 70% in Year 5
  • Main Street New Lending Facility:
    • Maximum loan amount equal to the lesser of:
      • $35,000,000 or
      • Up to four times 2019 EBITDA when combined with existing outstanding and undrawn debt
    • Minimum Loan of $250,000
    • MSNLF repayment schedule is 15% in Year 3, 15% in Year 4, and 70% in Year 5
  • Main Street Expanded Lending Facility
    • Maximum loan amount equal to the lesser of:
      • $300,000,000 or
      • 35% of outstanding and undrawn available debt, or
      • Up to six times 2019 EBITDA when combined with existing outstanding and undrawn debt
    • Minimum Loan of $10,000,000
    • MSELF repayment schedule is 15% in Year 2, 15% in Year 3, and 70% in Year 4
  • Interest rate equals LIBOR (1 or 3 month) plus 3%
  • Loan term up to 5 years
  • Interest payment are deferred for one year while principal payments are deferred for two years
  • Origination fee of 1% for MSNLF/MSPLF, and .75% for MSELF paid up front
    • Lenders have discretion whether or not to charge this fee
  • No prepayment penalty
  • Loans may be Secured or Unsecured
  • Restrictions:
    • Proceeds cannot be used to refinance existing debt
    • Dividends cannot be paid while the loan is outstanding or for 12 months after it is paid off
    • Stock buybacks cannot occur while the loan is outstanding or for 12 months after it is paid off
    • Compensation of employees that made over $425,000 in 2019 cannot be increased
  • Borrowers will be required to attest that the financing is needed due to challenges from the pandemic and that they will make reasonable efforts to maintain payroll and employees during the term of the loan.

How To Apply

  • The program is not yet operating but is expected to be available through eligible lenders in the upcoming weeks

SBA 7(a) Paycheck Protection Program

$659 Billion expansion of the existing 7(a) loan program under the CARES Act.

*On April 24th the program was officially expanded with an additional $310 billion in funding

  • Businesses with 500 employees or less are generally eligible, subject to certain industry exceptions.  The 500-employee threshold includes all employees, including full-time, part-time, and any other status.
  • Businesses with over 500 employees may be eligible by meeting any one of the following criteria:
    • Fewer than the number employees specified by SBA guidelines by industry – available  here;
    • Annual receipts under the amount specified by SBA guidelines by industry – available here;
    • Tangible net worth under $15 million; and average net income after Federal income taxes (excluding any carry-over losses) of $5 million or less for the two full fiscal years before the date of the application
  • Businesses with common ownership may be subject to the affiliation rules – Click here for more information
  • Self-Employed
    • Sole Proprietor, Independent Contractors, Self Employed and Non-Profits are also eligible
    • Partnerships are eligible at the partnership level and the individual partners should not apply separately
  • Businesses that were in operation on Feb 15, 2020 and had employees or paid independent contractors
  • Private Equity firms and Hedge Funds are not eligible
  • Frequently Asked Questions may be accessed here

Loan Summary

  • Loan amount up to 250% of the employer’s average monthly payroll costs for 2019 Maximum loan of $10M.
    • A single corporate group is limited to a maximum of $20M.  A single corporate group is defined as businesses that are majority-owned by a common parent.
  • Payroll costs include:
    • Salary, Wages, Commissions (Capped at $100,000 per employee/self-employed individual)
    • Cash Tips or Equivalent – Based on employer records of past tips, or in absence of such records, a reasonable, good-faith employer estimate
    • Payment for vacation, parental, family, medical or sick leave
    • Benefits and insurance premiums
    • Payment of any retirement benefit
    • Payments of state and local employment taxes
  • Payroll costs exclude:
    • The compensation portion of an employee/contractor that exceeds an annual salary of $100,000
    • Federal employment taxes
    • Payments to independent contractors. Independent contractors may apply for a PPP loan on their own.
  • If the business was not operating during the period of February 15, 2019 and June 30, 2019, your average monthly payroll will be calculated using average monthly payroll costs from January 1, 2020 and February 29, 2020.
  • Allowed uses of loan: Salaries, payroll costs, benefits, mortgage interest (not principal), rent, and utilities.
  • Loan interest rate of 1%
  • Loans taken after June 5th, 2020 will have a maturity of five years
  • Loans taken prior to June 5th, 2020 may have the maturity extended from two to five years as long as borrower and lender mutually agree
  • Payments may be deferred for 10 months after covered period ends
  • No collateral or personal guarantee required
  • All fees are waived
  • The loan will be received as a lump sum and can’t be taken in multiple draws.
  • Borrower required to certify in good faith that current economic uncertainty makes the loan necessary to support ongoing operations. This requirement includes that borrowers take into account their access to other sources of capital.
    • Borrowers that received a loan, but are ineligible have until May 18thto repay the loan without any consequences

Loan Forgiveness

  • 100% of the loan (principal and accrued interest) may be forgiven as long as the following criteria is met:
    1. All loan proceeds used for covered expenses within the 8-week or 24-week period from the date of the loan.
    2. Reduction in salaries does not exceed 25%
    3. No reduction in number of Full-Time Equivalent employees
  • Amount forgiven will be reduced by the $10,000 EIDL COVID-19 “advance” if applicable (see below)
  • At least 60% of the forgiveness amount must be used for on payroll costs.
  • No part of the loan forgiveness is considered income.
  • Borrowers are now allowed to choose one of the following Payroll Covered Periods in calculating eligible payroll costs:
    • Covered Period – twenty-four-week (168-day) period that starts the day of the PPP loan disbursement. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4.
    • Alternate Payroll Covered Period – borrowers with a bi-weekly (or more frequent) payroll schedule may select their 168-day covered period for payroll costs to start on the first normal payroll cycle following the date of the PPP loan disbursement. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day is Saturday October 10.
    • Please note: borrowers may elect an 8-week covered period if loan was made before June 5th, 2020.
  • Calculating Payroll Costs
    1. 8-week Covered Period
      • Employees – Wages are capped at $15,385 (8/52 x $100k)
      • Owner-Employee – Wages to owners are capped at $15,385 (8/52 x $100k)
    2. 24-Week Covered Period
      • Employees – Wages are capped at $46,154 (24/52 x $100k)
      • Owner-Employee – Wages to owners are capped at $20,833 (2.5/12 x $100k)
  • Calculating Full-Time Equivalent Employees – Full-Time Equivalent employees is now based on a 40-hour work schedule.
    1. Employees working 40 hours or more are considered 1 FTE
    2. Employees working less than 40 hours will be considered a “fractional employee”. This is calculated by taking the amount of hours the employee worked divided by 40.
    3. Employers may count part-time workers as ½ FTE.
    4. With proper documentation of job offerings, employees that refuse to accept their job back will not decrease your FTE employee requirement.
    5. Borrower may measure FTE employees during the covered period vs. one of the following:
      • Average number of FTE employees on payroll between February 15th, 2019 and June 30th, 2019
      • Average number of FTE employees on payroll between January 1st, 2020 and February 29th, 2020
      • Seasonal employers use either of the above periods or any consecutive twelve-week period between May 1st, 2019 and September 15th, 2019
      • An FTE safe harbor allows employers to look to the FTE on December 31, 2020 under certain circumstances.
  • If businesses are unable to meet the FTE requirement or unable to fully reopen due to compliance with government orders or guidance, they may be able to waive the headcount requirement entirely.
  • If the business did have a reduction in salaries that exceeded 25% and/or it had a reduction in number of employees, your loan would not be 100% forgiven. The percent decrease of either salaries or number of employees must be applied to the loan principal when calculating loan forgiveness.
    • Example: If the business has 100 employees and 10 were laid off, the loan would only be eligible for 90% forgiveness, while the business is responsible for the other 10% plus interest (only on the balance due).
  • Request for loan forgiveness must be submitted to the lender with documentation certifying the use of the proceeds.

Applying For Forgiveness

  • Form EZ (available here https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf)) – more simplified application that borrowers may use as long as they attest to one of the following:
    • Self-employed with no employees
    • Borrowers did not reduce salaries and average paid hours by more than 25% and did not reduce headcount
    • Borrower did not reduce salaries and average paid hours by more than 25% and was unable to operate due to COVID-19
  • Standard Application (available here) consists of four components
    • PPP Loan Forgiveness Calculation Form
    • PPP Schedule A
    • PPP Schedule A Worksheet
    • PPP Borrower Demographic Information Form (Optional)
  • Documentation Needed for application
    • Payroll
      • Bank account statements or third-party payroll service provider reports for the periods that overlap with the covered or alternate-covered period
      • Tax Forms 941 and state quarterly business and individual wage reporting
      • Unemployment insurance tax filings
      • Payment receipts, canceled checks or account statement documenting employee health insurance and retirement plan contributions.
    • Non-Payroll Costs
      • Mortgage Interest Payments– copy of lender statements from February 2020 and during the covered period
      • Business rent or lease payments– current lease agreement and receipts or canceled checks of February 2020 and during the covered period
      • Utility Payments– copy of invoices from February 2020 and those paid during the covered period
    • All documentation related to the borrower’s PPP loan must be maintained it its files for six years after the date of the loan is forgiven or repaid in full

Self-Employed Individuals

  • Eligible if in operation as of 2/15/2020. Further guidance to be provided for those not in operation on this date.
  • Calculating the loan amount
    • Sole Proprietor
      • No Employees – Monthly Average of 2019 Schedule C Net Profit (Capped at $100,000) x 2.5
      • 1 or more employees – Monthly Average of 2019 Schedule C Net Profit (Capped at $100,000) plus payroll costs x 2.5
    • Partnership
      • Monthly Average of Self-Employment Income of the generate active partners for 2019 plus payroll costs x 2.5
    • Forgiveness
      • Eligible expenses include owner compensation replacement
      • Owner compensation replacement is limited to a maximum of $15,385 (8/52 of 2019 net income) for 8-week covered period or $20,833 (2.5/12 of 2019 net income) for a 24-week covered period.
      • 60% of the PPP loan proceeds must be used for payroll costs including owner compensation replacement
      • All other covered expenses:
        • Covered benefits for employees but not owners
        • Mortgage Interest
        • Rent payments
        • Utility payments

How To Apply

  • The program is currently available to small businesses
  • Independent contractors and self-employed individuals may apply starting April 10th.
  • Applications are processed through banks and other participating financial institutions.
  • A sample of the application is available here
  • Anyone looking to apply should contact their existing banking relationship to inquire. Many applications are available electronically on your bank’s website.
  • Required documentation includes payroll tax forms or equivalent payroll processor records
    • For Self-Employed Individuals
      • 2019 1099-misc, invoice, bank statement, or book of record that establishes you are self-employed
      • 2020 invoice, bank statement, or book of record establishing you were in operation on or around 2/15/2020
    • The deadline to apply for a loan is August 8, 2020 or until funds made available are exhausted.

Economic Injury Disaster Loan

The Economic Injury Disaster Loan is an existing program administered by the Small Business Administration (SBA) and has been made available due to COVID-19 being declared as a nationwide disaster. The CARES Act has greatly expanded the EIDL with providing the SBA with $10 billion to help support.

Who is Eligible?

  • Businesses are expected to certify and demonstrate that they were impacted by the COVID-19 pandemic
  • Eligibility is based on amount of revenue and number of employees depending on the businesses specific industry.
    • Look up the criteria by industry here

Loan Summary

  • Small businesses, nonprofits, sole proprietors and ESOPs affected by COVID-19 may qualify for loans up to $150,000.
  • Borrowers can receive up to $10,000 as a grant. The amount received is equal to $1,000 per employee up to a maximum of $10,000.
  • Interest rate of 3.75% for small businesses, 2.75% for nonprofits.
  • The maximum unsecured loan amount is $25,000 and no personal guarantee request on loans below $200,000.
  • Loan repayment terms vary by applicant with a maximum of 30 years.
  • Use of Loan Proceeds
    • Allowed: Accounts Payable, Fixed Debts, Payroll, Operating Costs
    • Not Allowed: Business Expansion, Refinance of existing Debt, Payments on other federal Loans, Criminal of Civil Fines and Penalties, Physical Repairs, and/or Dividends or Disbursements to owners except as related to their performance of service.
  • The first month’s payments are deferred a full year from the date of the promissory note.
  • Applicants may have an existing SBA loan, however the loans may not be consolidated.

How to Apply

**Please note, as of April 16th, SBA is unable to accept new applications at this time for the (EIDL)-COVID-19 related assistance program (including EIDL Advances) Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

  • Applications can be submitted online – https://covid19relief.sba.gov/#/
  • No other documentation is needed to submit an application online, however the following documentation may be requested by the SBA subsequent to the submission of your application:
    • Tax Information Authorization (IRS Form 4506T), completed and signed by each principal owning 20% or more of applicant business, general partner, general manager, or owner who has 50% ownership interest in affiliate business.
    • Federal tax returns.
    • Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant and each principal, general partner or managing member.
    • Schedule of Liabilities listing all fixed debts (SBA Form 2202)
    • Additional documentation can be requested.

Small Business Express Loans Expansion

The Small Business Express Loan was an existing program prior to The CARES Act. Due to this new legislation, the loan amount has increased from $350,000 to $1 million and will speed up the approval process to 36 hours.

Loan Summary

  • Provides a term-loan or line of credit to small businesses
  • Loan up to $1M
  • Approval may be completed within 36 hours
  • Loans are made through a financial institution, interest rates may vary.

Other things to know

  • Small businesses may apply for both the Economic Injury Disaster loan and the Paycheck Protection program. In order for the PPP to still be eligible for forgiveness, you cannot use both loan proceeds to cover the same type of expenses.
    • The $10,000 grant a business received from the EIDL is deducted from any potential forgiveness related to the PPP Loan.
  • Only for existing EIDLs, not related to COVID-19, are allowed to be refinanced into the PPP loan.
  • Affiliation Provisions – Both related to EIDL and PPP
    • Multiple subsidiaries may not apply individually if any of the following apply:
      1. Common Ownership (assumed over 50%)
      2. Common Management
      3. Franchise Agreements
    • These provisions require further clarification from the SBA

Other Relief for Small Businesses

Payroll Tax Deferral

Postpones the due date for employer’s share of payroll taxes (6.2%) related to Social Security and Railroad Retirement for businesses as of March 27, 2020 through December 31, 2020.

Who is Eligible?

  • This payroll tax deferral applies to all employers, with no requirement to show any specific COVID-19-related impact.
  • Employers who have received proceeds from the Paycheck Protection Program, are also eligible to defer payments until December 31st, 2020
  • The deferral is not available to any employers that have received loan forgiveness with respect to the Paycheck Protection Program loan as described above.

Deferral Summary

  • Deferred amounts are payable over the next two years, with 50% due on December 31, 2021; the remaining 50% will be due December 31, 2022.
  • Self-employed individuals may defer the employer portion.
  • This relief does not apply to Medicare tax or other applicable employment taxes.

Employee Retention Credit

Eligible employers are allowed a credit against payroll taxes for 50% of the qualified wages of an eligible employee for wages paid from March 13, 2020 to December 31, 2020. The credit is refundable if it exceeds the employer’s social security or Railroad Retirement Tax due in a quarter.

Who is an Eligible Employer?

Eligible employers are those that carried on a trade or business during the 2020 calendar year, including tax-exempt organizations that either:

  • Fully or partially suspended operations due to orders from a governmental authority, limiting commerce, travel, or group meetings due to COVID-19, or
  • The businesses gross receipts for 2020 experienced a year-over-year (comparing calendar quarters) reduction of at least a 50%. The business is entitled to the credit for each quarter until gross receipts for a quarter exceed 80 percent of receipts from the same quarter in 2019.
  • This credit is not available for self-employed individuals.
  • This credit cannot be combined with the Paycheck Protection Program detailed above.
  • Employers who applied for the Paycheck Protection Program loan, received payment, and repaid the loan by May 14, 2020 will be treated as though they have not received the loan for purposes of the credit.

Credit Summary

  • Eligible employers will receive a refundable credit against the 6.2% employer portion of the payroll tax (Social Security and Railroad Retirement) equal to 50% of qualified wages paid each quarter.
  • Qualifying wages are based on the number of business employees in 2019. The amount of qualified wages per employee for all quarters cannot exceed $10,000.  This means an eligible employer may take a credit up to $5,000 per employee.
  • If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid as well as a portion of the cost of employer-provided health care to all employees, regardless of whether they worked or not. If the employees worked full time and were paid for full-time work, the employer still receives the credit.
  • If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid as well as a portion of the cost of employer-provided health care to employees who did not work during the calendar quarter.
  • Aggregation rules apply for determining the number of employees, this requires certain affiliated employers to be treated as one.
  • This credit is only available for wages paid after March 12, 2020 and before January 1, 2021. To the extent that it exceeds the business payroll tax liability, it is refundable.
  • An eligible employer can receive both tax credits for the qualified leave wages and Employee Retention Credit but not for the same wages.

How to Claim the Retention Credit

  • Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.
  • Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly Employment Tax Returns (Form 941) beginning with the second quarter.
  • If the employer’s employment tax deposits exceed the credit, the employer may receive an advance payment from the IRS by submitting Form 7200.
  • If the anticipated credits are not in excess of the remaining federal employment tax deposits, do not file the Form 7200.
  • We are awaiting additional guidance on how to obtain the credit through a PEO.

Tax Credits for Paid Sick Leave

Employers subject to the requirements are entitled to a refundable tax credit equal to the amount of the qualified paid sick leave requirements paid by the employer per quarter.

Who Does this Apply To?

  • Employers with fewer than 500 employees are required to provide paid sick leave.
  • There is a small business exemption where there are less than 50 employees.

Summary of the Credit

  • The tax credits for the paid sick leave wages are capped depending on the qualified reason that the employee is unable to work.
  • Eligible employers will claim credits on their quarterly Employment Tax Returns (Form 941) beginning with the second quarter, but they may benefit more quickly from reducing their employment tax deposits.
  • If the employer’s employment tax deposits exceed the credit, the employer may receive an advance payment from the IRS by submitting Form 7200.

Bonus Depreciation for Qualified Improvement Property

  • Retroactively provided a correction to the Tax Cuts and Jobs Act regarding “Qualified Improvement Property” allowing taxpayers to elect to take 100% bonus depreciation.
  • “Qualified Improvement Property” is any improvement to an interior portion of a building which is nonresidential, real property.

Elimination of Business Loss Limitations

Net Operating Losses

  • Temporarily repeals limitations on the deduction of net operating losses imposed by the Tax Cuts and Jobs Act.
  • Net operating losses created in the 2018, 2019, and 2020 tax years can be carried back five years with no limitation on usage.
  • The IRS has granted a 6-month extension to file for a tentative refund for the carryback of NOLs that arose in a taxable year that began during calendar year 2018 and that ended on or before June 30, 2019.

Excess Loss Limitations

  • Temporarily suspends the limitations on utilizing net business losses imposed by the Tax Cuts and Jobs Act.
  • Net business losses for 2018, 2019, and 2020 tax year can be used without limit.

Business Interest Expense Limitation

  • For tax years beginning 2019 and 2020, the adjusted income percentage is increased from 30% to 50%.

1031 Exchanges

  • The IRS has provided an automatic extension of the 45-day identification period and the 180-day exchange period for taxpayers to July 15.
  • The extension only applies if the exchange deadlines were from April 1 – July 15.
  • The extension does not retroactively grant relief if the deadline was prior to April 1.

Relief for Individuals

Tax Filing and Payment Extensions

  • The IRS has extended the 2019 federal income tax payments and filing date from April 15, 2020 to July 15, 2020
  • First Quarter 2020 estimated payments are also due July 15, 2020.
  • Second Quarter 2020 estimated payments are due on June 15, 2020.  There has been no extension granted.
  • Individual states are required to set their own deadlines and forms of tax relief. 38 States, including New York and New Jersey, have extended their filing deadlines from April 15 to July 15.
  • 8 states have extended filing deadlines to other dates, Virginia (June 1), Iowa (July 31), Hawaii (July 20), Idaho (June 15), New Hampshire (June 15), Mississippi (May 15), Oregon (April 30), Washington ( June 15).

Recovery Rebate

  • $1,200 lump sum check for single filers plus an additional $500 for each child. Assistance is expected to be phased out for income levels above $75,000 for single filers and $150,000 for joint filers and assistance will not apply for single filers with income of $99,000 and joint filers with income over $198,000.
  • Eligible individuals must have a valid social security number.
  • The rebate is available to individuals with no income as well as those whose income is from non-taxable means-tested benefit programs, such as SSI.
  • Nonresident aliens and dependents are ineligible to receive the payment. 
  • The cash payments will be based on the recent tax information available to the IRS based on the 2019 tax return, or if not yet filed, the 2018 return.  This is subject to a “true-up” based on 2020 tax information. 
  • To check the status of your payment, you can go click on this link.

Unemployment

  • Unemployment benefits may be expanded an additional 13 weeks for up to 39 weeks in total
  • Self-employed workers, independent contractors, part-time workers, and those who cannot reach their place of work for various reasons are generally eligible to receive unemployment.
  • Additional Federal Pandemic Unemployment Compensation (FPUC) of $600 per week is being provided for up to four months.
    • Applications will receive the additional $600 per week as long as they are receiving at least $1 of unemployment benefits.  This means that part-time workers may be eligible.

Retirement Plans

  • Required Minimum Distribution rules for qualified plans and retirement accounts are suspended for 2020. 
  • Any taxpayer who took their Required Minimum Distribution this year will have until August 31st to re-contribute the funds.
  • Taxpayers can take up to $100,000 in coronavirus-related distributions from retirement plans without being subject to the 10% penalty.  Distributions are subject to ordinary income tax payable over three years but can be re-contributed within three years.
  • Loans of up to $100,000 may be taken from qualified plans.

Charitable Contributions

  • Charitable deduction limits for cash contributions to public charities (other than Donor Advised Funds and Private Foundations) is increased from 60% to 100% of Adjusted Gross Income (AGI) for 2020.
  • Up to a $300 charitable contribution can be taken as a deduction in calculating AGI.

Health Plans

  • High-deductible health plans are amended to cover telehealth and other remote care services without a deductible.
  • Permanently restores the ability to use health savings accounts and flex spending to purchase over-the-counter medicine.

Student Loans

  • Payments on student loans owned by the Department of Education have been suspended through September 30, 2020.  
  • No interest on federal student loans will accrue through September 30, 2020.
  • The suspended payments will count towards the 120 required payments for the Public Service Loan Forgiveness Program.
  • Certain employer payments of employee student loans up to $5,250 prior to January 1, 2021 tax 

Mortgage Relief

  • Borrowers with federally backed mortgages loans, experiencing a financial hardship as a result of COVID-19 may request a forbearance regardless of their delinquency status.
  • Servicers of federally backed mortgage loans may not foreclose of loans for a period of 60 days beginning March 18th.
  • Individual states have also taken measures to provide relief for those affected by COVID-19.

How are States Responding?

New York

NYC Small Business Continuity Loan Fund

  • Provides relief for small businesses with fewer than 100 employee whose sales have decreased 25% or more.
  • Zero interest loans up to $75,000 to help retain employees and ensure business continuity.
  • Can be deployed for a number of uses including working capital, inventory, or other investments.

NYC Employee Retention Grant Program

  • Provides grants up to $27,000 to cover 40% of payroll costs for two months to small businesses with 1-4 employees located within the five boroughs of New York City to help retain employees.
  • The business must have been in operation for at least 6 months.

California

San Francisco – Small Business Resiliency Fund

  • Provides small business owners with between 1 and 5 employees access up to $10,000 for employee salaries and rent.
  • To qualify, the business must have less than $2.5 million in gross receipts and a loss of at least 25% of revenue.

Los Angeles – City of LA Small Business Emergency Microloan

  • Businesses and microenterprises in LA that will retain low-income jobs may apply for a loan of $5,000 to $20,000 for working capital.
  • Interest rates range from 0% – 5%.
  • Repayment terms of 6 months to five years.

Colorado

Denver Small Business Emergency Relief

  • Provides grants up to $7,500 to small businesses that have lost the ability to operate.
  • Grants are distributed monthly, the first one on March 31st.

Florida

Small Business Emergency Bridge Loan Program

  • Provides short term loans from $50,000 to $100,000 to small businesses with 2 – 50 employees affected by COVID-19.
  • Loans are interest free for one year, after which interest rates rise to 12%.

Illinois

Chicago Small Business Resiliency Fund

  • Loans from $50,000 are available for small businesses with less than $3 million in revenue and fewer than 50 employees that have experienced a drop in revenue at least 25%.
  • Repayment term up to 5 years.
  • Proceeds are required to be used for working capital.

Oregon

Beaverton Emergency Business Assistance Program

  • Provides grants up to $2,500 per month in rent or mortgage reimbursements while the city is a declared state of emergency.
  • Small businesses with 50 employees of fewer with commercial storefronts in Beaverton and rental lease or mortgage on the property that have been ordered to change services may apply for the grant.

Hillsboro Small Business Emergency Relief Program

  • Provides grants up to $5,000 to offset losses.
  • Small businesses with 10 employees will be prioritized.

Michigan

Michigan Small Business Relief Program: Grants

  • Provides grants up to $10,000 to small businesses with 50 employees of fewer.
  • Grants may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other expenses that occur in the ordinary course of business.

Michigan Small Business Relief Program: Loans

  • Provides grants up to $10,000 to small businesses with 50 employees of fewer.
  • Interest rate charged is .25% per annum.
  • Interest only for 60 months following loan closing followed by a fully amortizing 60 month term.
  • Loan proceeds may be used for working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other expenses that occur in the ordinary course of business.

Disclosure: GMAG does not provide any express or implied guarantees that the information contained herein is accurate or complete. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information contained herein, by GMAG, its members, partners or employees, and no liability is accepted by such persons for the accuracy or completeness of any such information.

GM Advisory Group does not provide tax, legal, or accounting advice. This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting professionals before establishing any plan or engaging in any transaction.