Every person and business, no matter their size or location, has been affected in some way by the current COVID-19 pandemic, except for a few that provide the necessities of daily life. We are all going through this crisis together, and most companies need extra help at this time. Businesses, especially small businesses, need support from the government at times like this. The American government is providing certain resources to small businesses like ours, and we would like to share this information so that any other small business can get the help they need.

The US government just passed a coronavirus stimulus package, which includes protections for small businesses. One of these protections is the Paycheck Protection Program for Small Businesses. According to the latest news from the Treasury Secretary, the program will become available on Friday 4/3/20. This program will essentially provide loans to small business so that they can continue to cover payroll, health benefits, rent, and other costs. The following list provides more details; please click here for even more information.

• Amount: 2.5x the average monthly payroll from 2019
• Interest Rate: may not exceed 4%
• Eligible Uses of Loan:
  • payroll costs
  • costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums
  • employee salaries, commissions, or similar compensations
  • mortgage interest payments (but not any prepayment of or payment of principal on a mortgage obligation)
  • rent
  • utilities
  • interest on any other debt obligations that were incurred before the Covered Period.
• Forgiveness: Borrower may be eligible for forgiveness and cancellation of indebtedness for up to the full principal amount. Forgiveness amount is based on:
  • total costs incurred and payments made during the Forgiveness Period for (1) payroll, (2) mortgage interest, (3) rent and (4) utilities
  • forgiveness period – the 8-week period beginning on the date a Paycheck Protection Loan is funded
• Qualifications:
  • your business must have fewer than 500 employees
  • less than $7.5 million revenue on average each year for the past three years
  • your net income must be under $5 million (after taxes and not counting carry-over losses)

A small note on loan forgiveness: it essentially means that if you meet certain criteria, you do not have to pay back the loan. This is often seen in student loans, but in an emergency situation like the COVID-19 pandemic, it will certainly be an option for many people.

The federal government has also postponed the date that federal taxes are due; Tax Day is now July 15. This is an effort to support businesses and people alike. At a time when people are having trouble making money, it helps to not have to use their limited supply of money on taxes. Most states have postponed their state filing deadlines as well. However, not every state is following the same schedule for all forms of taxes. Please make sure to research your own state’s regulations!