At Chesser & Barr, we are familiarizing ourselves with what you and your small business can do to qualify for the resources being offered under various state and federal programs. Additional relief measures are being proposed in the Coronavirus Aid, Relief, and Economic Security Act (known as the “CARES Act”), which is currently working its way through Congress. While we intend to post additional information, especially as new resources become available, please consider the following:
Florida Small Business Emergency Bridge Loan Program: This is a program currently available to those maintaining a privately-held place of business in Florida. Qualified applicants must be a business with 2 to 100 employees. Most loans will max out at $50,000.00 and are designed to be a one (1) year loan with no interest for the first year. The rate jumps to 12% per annum if there remains a balance after the initial year. It is important to note that all applications must be submitted by May 8, 2020. Go to floridadisasterloan.org for more details.
U.S. Small Business Administration (“SBA”) Disaster Loans: The SBA was established in 1953 and is the only cabinet-level federal agency dedicated to small business. At this time, all small businesses in every state and territory are eligible to apply for what is described as a low interest loan. These loans are available through the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently enacted. Importantly, these loans can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the COVID-19 pandemic. The interest rate is 3.75% for small businesses and 2.75% for non-profit organizations. SBA’s Economic Injury Disaster Loans offer up to $2 million is assistance. You can apply online at sba.gov. There is also a customer service center at 1-800-659-2955.
Coronavirus Tax Relief: The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. If you are not yet aware, Tax Day has been moved to July 15, 2020. This applies to federal tax payments. A plan has been announced to implement coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing coronavirus-related leave. More information is available by visiting irs.gov/coronavirus.
There are many federal and state acts and orders being enacted and instituted in response to the coronavirus impact - the application periods for relief under these programs are not all the same.
As a small business owner, you may also have questions about the restrictions on your operations and the obligations you may have as an employer during this pandemic. If you need assistance during this uncertain time, we are here to help.
This article is for general information only and is not intended as and does not constitute legal advice or solicitation of a prospective client. It should not be relied on for legal advice in any particular factual circumstance.