BusinessOwnerSpace.com | Money for Businesses Impacted by COVID-19
This document is intended to provide businesses in the greater San Jose area with a quick summary of sources of working capital funding during the pandemic.
BusinessOwnerSpace.com | Business Impacts of Changes to SCC’s stay-at-home order
Santa Clara County has updated its stay-at-home order in some key ways that affect business, and we want you to be aware of it. Information about these changes include the types of “essential” businesses allowed to operate, and also require posting of social-distancing plans at those businesses.
CARES ACT - SMALL BUSINESS
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress and signed into law by President Trump on March 27th, 2020. This $2 trillion+ economic relief package provides fast and direct economic assistance for American workers, families, and small businesses, and preserve jobs for our American industries.
The Paycheck Protection Program established by the CARES Act, is implemented by the Small Business Administration with support from the Department of the Treasury. This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
U.S. Department of the Treasury | Paycheck Protection Program for Small Businesses
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Funds are provided in the form of loans that will be fully forgiven when 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. The Paycheck Protection Program has resumed as of 04/27/20.
Payroll tax payment deferrals, payroll support programs, Employee Retention Tax Credits, and special loan programs for identified eligible affected industries.
Information on Tax Return filing extensions, special Employee Retention Tax Credit, Coronavirus-Related Paid Leave for Workers and related Tax Credits, and other Tax related information for Small- and Mid-Size Businesses.
The CARES Act included important new tax provisions for businesses. The Internal Revenue Service (IRS) has now published FAQ’s for many of these measures.
Employee Retention Credit -
The refundable tax credit is 50% of up to $10,000 in wages per employee paid by an eligible employer whose business has been financially impacted by COVID-19. This Employee Retention Credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. For more information refer to the IRS Frequently Asked Questions (FAQ) document on the Employee Retention Credit.
Payroll Tax Payments Deferral -
Employers and self-employed individuals can defer payment of the employer share of Social Security taxes incurred to December 31, 2020. The amount owed can be paid over the following two years. For more information refer to the IRS FAQ on Payroll Tax Payments document.
Net Operating Losses (NOLs).
Any business that claimed a loss in tax year 2018, 2019, or 2020, may be able to carry that loss back five years. Filing an amended tax return could generate immediate refunds. More information is in the IRS Net Operating Losses FAQ document.
Business Interest Modification.
The amount allowed for business interest deductions enacted as part of the 2017 Tax Cuts and Jobs Act has been increased from 30% to 50% of taxable income for 2019 and 2020.
City of San Jose | Summary of Business Support from Cares Act Provisions
This document provides businesses in the greater San Jose area with a quick summary of the
CARES Act and how the program can be used by businesses.
SMALL BUSINESS ADMINISTRATION RESOURCES
Small Business Administration (SBA) | COVID-19 Business Guidance & Loan Resources
Primary website from the U.S. Small Business Administration for public information and updates relative to the COVID-19 virus for Small Business Assistance including Guidance for Businesses and Employers, Local Assistance, Coronavirus Funding Options, the SBA's Relief Efforts, and SBA Products and Resources.
Find out how much you could qualify for using the NAV.com CARES Act SBA Loan Calculator
SBA | Disaster Loan Assistance
Information about Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners, and Renters
SBA | Apply for a Disaster Loan
Information on all of their loan types, and option to apply online for all types of SBA disaster assistance loans
OTHER FINANCIAL ASSISTANCE SOURCES
Thanks to a $7.5 million investment from Verizon, LISC is offering grants of up to $10,000 to businesses facing immediate financial pressure because of Covid-19—especially entrepreneurs of color, women-owned businesses and other enterprises in historically underserved communities who don’t have access to flexible, affordable capital. Grant funds may be used for: paying rent and utilities, meeting payroll, Paying outstanding debt to vendors, or other immediate operational costs. The next round will open on May 14th.