April 21, 2024

Federal Sponsored Resources

A new $484 billion relief package was signed into law on Friday, April 24. This bill replenished funds for small businesses, hospitals, and testing efforts seeking assistance due to the pandemic.

This is how the money will be distributed:

  • The Paycheck Protection Program (PPP) will receive $310 billion, of which $60 billion is reserved for small and community lenders.
  • 75 billion dollars for hospitals
  • Test efforts to be supported by $25 billion
  • Emergency disaster loans and grants worth $60 billion

On April 27, at 10:30 am, the SBA resumed accepting applications from lenders for its Paycheck Protection Program.

Businesses can apply to any SBA 7(a), federally insured depository institutions, federally insured federal credit unions, or Farm Credit System institutions participating. Once approved and enrolled, other regulated lenders can make these loans.

Small Business Administration

Notice of lapse in appropriations: The SBA published a statement on its website, stating that it was unable to accept any new applications for the PPP program or the Economic Injury Disaster Loans (EIDL) – COVID-19 related Assistance Program (including EIDL advances), due to a lack of funding. Congress passed the bill outlined in the above section.

Continue reading for more information on the CARES Act and EIDL Programs.

Coronavirus Aid, Relief and Economic Security Act

Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES) on 3/27. This bill combines two previous versions, making it the most extensive stimulus package ever in the history of the United States. The bill approved funds worth $2 trillion to try and offset the economic losses caused by the Coronavirus (COVID-19 pandemic).

Paycheck Protection Program (PPP) was created to assist small businesses with payroll and other expenses. The PPP allows firms to receive up to $10M in compensation tied to payroll costs and can cover employees earning up to $100K annually.

Economic Injury Disaster Relief Lending Program

Small businesses financially hurt by COVID-19 can apply for low-interest loans through the SBA’s Coronavirus Economic Injury Disaster Relief Lending Program.

Families First Coronavirus Response Act H.R.6201

Families First Coronavirus Response Act is a response to the Coronavirus (COVID-19), which has caused an outbreak. It provides paid sick leave, free Coronavirus tests, increases food assistance and unemployment benefits, and requires employers to provide extra protections for healthcare workers. The bill, signed into law by President Trump on March 18, will go into effect on April 2, 2020.

Federal Tax Relief

The Internal Revenue Service and Treasury Department have announced that the due date for federal income tax returns has been extended to July 15, 2020.

Verifying your state’s requirements is essential by contacting their tax agency. You can find the websites of individual tax agencies.

State & Local Sponsored Resources

According to the SBA, small business owners from all states and territories in the United States are eligible to apply for low-interest loans due to Coronavirus. Click Here for more information and to apply.

Many states and cities are also offering financial assistance to affected businesses. These include grants, loans, and other types of relief. Here is a list that highlights the programs that have already been announced:

Alabama: Alabama’s Department of Revenue waives late sales tax fees for small retail and hospitality businesses through June 1, 2020. These taxpayers will be penalized for late payments on June 1, 2020.

  • Birmingham, The Birmingham Strong Emergency Loan Fund, offers zero-interest 180-day loans of up to $25,000. The first round has closed, but Click here can be added to the second round if they get more funding.
  • West Alabama The Community Foundation of West Alabama offers grants to businesses suffering from COVID-19.

Alaska: Alaska Small Business Development Center supports small businesses through its COVID-19 resource center and various workshops.

Arizona: Local First Arizona and its community partners have created a relief fund that provides mini-grants to businesses with between 0 and 3 employees and a revenue of less than $250,000.

Arkansas Visit the COVID-19 resource pages to find helpful information on financing for employees and businesses.

California, The Governor’s Office of Business and Economic Development has compiled valuable resources for California business owners and workers.

  • Berkeley: The Berkeley City Council approved $3 million for emergency relief grants distributed to small businesses, nonprofit arts organizations, and residential tenants most affected by the COVID-19 Pandemic.
  • IBANK The California Infrastructure and Economic Development Bank offers a 95% guarantee on loans of up to $1,000,000 to small businesses in disaster zones.
  • Los Angeles: Los Angeles businesses that provide low-income employment can receive a microloan between $5,000 and $20,000.
  • Oakland: Oakland will waive late payment penalties for taxes due March 1, 2020, to small businesses affected by COVID-19. To apply, call (510) 238-3704 or email BTwebsupport@oaklandca.gov. Companies can also visit www.oaklandbusinesscenter.com to see how Oakland’s Business Assistance Center for additional resources and assistance.
  • San Francisco San Francisco Office of Economic and Workforce Development provides resources and support to small businesses affected by COVID-19. The program is designed to help with rent and employee salaries.

 

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