Coronavirus Aid, Relief, and Economic Security (CARES) Act
This new legislation provides emergency relief, extension of social benefits, rebate payments to individuals, and expanded business support mechanisms, among a number of key economic policies (view bill here). Here’s what small businesses need to know…
Small Business Loan Disaster Program
- Extension of financing support to businesses with less than 500 employees, independent contractors, and other entities
- Waives certain rules for the program, including personal guarantees for loans of less than $200,000, timing, and credit availability tests, among others
- Loans may be utilized for sick leave pay related to COVID-19, payroll, rent, mortgage, and dent repayments due to lost revenue
- May be eligible for forgiveness based on employee retention formula and costs incurred
Employee Retention Credit
- 50% refundable payroll tax credit for businesses affected by COVID-19 and suffering at least 50% loss in gross receipts from same quarter in previous year
- Determined on qualified wages paid during economic crisis
- If business has less than 100 employees, the credit can be for all employees
- Allows for up to $10,000 in wages plus benefits paid per employee
Additional Business Tax Provisions
- Delay of employer-paid Social Security payroll tax payments
- Allowance of net operation losses from 2018, 2019, or 2020 and suspension of 80% of taxable income limits
SBA Economic Injury Disaster Loans now open for Indiana Small Businesses
Thanks to a concerted effort by our partners throughout the state, Indiana small businesses can now apply for SBA Economic Injury Disaster Loans (EIDL).
What’s an EIDL?
- The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.
- EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills.
- The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.
- EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower’s ability to repay.
How do I apply?
- Online at SBA.gov/disaster
- ADVICE: Review paper versions first. We’ve heard reports of trouble with the online application at this time. If you experience trouble, the SBA encourages small business to first take a look at the online resources and paper application. Preview forms, here: https://disasterloan.sba.gov/ela/Information/PaperForms
- Need help? Access these step-by-step online instructions
- Still need help? Call the SBA’s Disaster Customer Service Center at 800-659-2955 or email email@example.com. Individuals who are deaf or hard-of-hearing can call 800-877-8339.
- LOCAL ASSISTANCE: Business owners may want to contact their trusted advisors first: bankers, attorneys, CPAs, etc. Locally, the Small Business Development Center is also available for counseling. Request an appointment via their website, isbdc.org (select let’s work together) or email, firstname.lastname@example.org or call (812) 425-7232.
- The Southwest Indiana Chamber is also organizing this information and other COVID-19 resources on their website. .https://swinchamber.com/
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SBA to Provide Economic Injury Disaster Loans for Coronavirus Related Economic Disruptions
View this presentation from the SBA on loan terms, filing requirements and more. For additional information and business resources, including job postings, restaurant listings and more, visit: https://swinchamber.com
For detailed information on SBA programs for the coronavirus, visit www.sba.gov/coronavirus and for information on all federal programs, visit www.usa.gov/coronavirus or www.gobierno.usa.gov/coronavirus (en Español).
COVID-19 Guidance for Small Business
Counseling & Advice
- For no-cost, one-on-one virtual or telephone business advice regarding COVID-19 and other matters find an SBA Resource Partners near you at www.SBA.gov/local-assistance
- Locally, the suggestion for business owners is to contact their trusted advisors first: bankers, attorneys, CPAs, etc. Locally, the Small Business Development Center is also available for counseling. Request an appointment via their website, isbdc.org (select let’s work together) or email, email@example.com or call (812) 425-7232.
- For capital needs, Lender Match is SBA’s free online referral tool that connects small businesses with participating SBA-approved lenders. Lender Match can be accessed by small businesses any time, regardless of if or when disaster loans become available.www.SBA.gov/lendermatch
- Once a disaster declaration is made for Indiana, information on the application process for Economic Injury Disaster Loan (EIDL) assistance will be updated at www.SBA.gov/disaster. These loans up to $2 million may be used by small businesses as well as private nonprofits to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
- If a situation occurs that will prevent small businesses with federal government contracts from successfully performing, they should reach out to their contracting officer and seek extensions before they receive cure notices or threats of termination. SBA’s Procurement Center Analyst in Indianapolis can help affected small businesses engage with their contracting officer.
- IN.gov has excellent state-specific guidance and resources listed under several agencies including Indiana’s Department of Health, Department of Workforce Development, and Department of Homeland Security.
- The U.S. Department of Labor has resources to help workers and employers prepare for the COVID-19 virus, including use of Family Medical Leave
- New guidance outlines flexibilities that states have in administering their unemployment insurance programs to help Americans affected by coronavirus.
If you have any questions, the SBA Indiana District Office is standing by and can be reached at (317) 226-7272. You can also follow us on Twitter @SBA_Indiana.