Business Survival List for COVID-19

The Business Survival List

Use these resources to build a bullet proof business during and beyond COVID-19

US Government Support

 

SBA Forgivable Loans Up To $10,000,000*

  • What is it: The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19)
  • How does it work: Upon a request received from a state’s or territory’s Governor, the SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
  • Who is it for: Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
  • Where do I go: https://www.sba.gov/disaster-assistance/coronavirus-covid-19

 

SBA Emergency Grant Up Tp $10,000*

  • What is it: The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EID)
  • How does it work: Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:
  • Business entities with 500 or fewer employees
  • ​Sole proprietorships, with or without employees
  • ​Independent contractors
  • ​Cooperatives and employee owned businesses
  • ​Tribal small businesses
  • ​Private non-profits of any size
  • Additionally, you must have been in business as of January 31, 2020. Expanded eligibility criteria and the emergency grants are only available between January 31, 2020 and December 31, 2020. 
  • Update – This has now been disclosed by the SBA to be $1,000 per employee up to a max of $10,000
  • Where do I go: https://www.sba.gov/funding-programs/disaster-assistance

 

Withdraw Retirement Penalty Free Up to $100,000*

  • What is it: A provision in the relief bill allows Americans to take penalty-free distributions from IRAs and qualified retirement plans up to $100,000. The standard 10% penalty for withdrawals under age 59.5 (except in the event of death or disability) is waived.
  • How does it work: The no-penalty allowance applies to “coronavirus-related distributions” – i.e. people who are diagnosed with COVID-19 or have experienced financial hardship from quarantine, layoffs, reduced hours, or furlough between now and December 31, 2020.
  • Who is it for: People with eligible plans and are diagnosed with the virus are eligible, along with anyone who “experiences adverse financial consequences” as a result of the pandemic, including an inability to find work or child care.
  • Where do I go: Contact your pension provider

 

SBA Disaster Loans Up To $2,000,000

  • What is it: The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19)
  • How does it work: In most cases, loan amounts are up to one half of the prior year’s gross profit not to exceed $500,000, but if more is needed there is a more detailed calculation that may allow for up to $2,000,000 (historically 95% have been under $500,000).
  • Who is it for: Eligible borrowers are small business (determined by the SBA size standard corresponding to the business’ NAICS code) and private non-profits (must sell something to generate revenue) who have suffered substantial economic injury as a result of a declared disaster (in this case, COVID-19). Substantial economic injury means the business is unable to meet its obligations and to pay ordinary and necessary operating expenses.
  • Where do I go: https://www.sba.gov/disaster-assistance/coronavirus-covid-19

 

Defer Payroll Taxes Sec 2201 To 2021/2022*

  • What is it: The Senate’s $2 trillion stimulus package designed to contain the economic damage from coronavirus will postpone payroll taxes for employers.
  • The bill will allow companies to pay their 2020 payroll taxes through the end of 2022. They will have to pay 50% by the end of 2021.
  • How does it work: Companies will still be withholding employees tax from paychecks and remitting that to the IRS, but their half of payroll taxes will be delayed. Qualifying companies will be able delay their share of Social Security payroll taxes to the IRS. They would be delayed until Jan. 1, 2021, with 50% owed by the end of 2021 and the other half due Dec. 31, 2022.
  • Who is it for: Businesses that continue to employ workers through the coronavirus crisis.
  • Where do I go: Nowhere, just don’t need to send the check right now.

 

Recovery Rebates $2,400 MFJ/$1,200 Single*

  • What is it: The economic relief package contains what have been called “recovery rebates.” These rebates would provide a one-time cash payment to individuals in order to help households cover necessary expenses during the coronavirus outbreak.
  • How does it work: These rebates would be paid out as advanced refunds. Individuals do not need to wait until the next tax filing season (January 2021) to get the rebate. The payments will either be sent as a check or directly deposited into a taxpayers’ bank account.
  • Who is it for: The rebate for a household is equal to $1,200 ($2,400 for married couples filing jointly). The rebate is increased by $500 per child in the household and there is no cap to the number of children that qualify.
  • Where do I go: N/A – Automatically done by the government
  • What if I haven’t filed ’18 or ’19, Where do I go: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
  • If I receive SSA or VA benefits and do not need to file, What do I do?: Nothing.  The IRS will use your SSA or VA direct deposit information
  • Can I check on the status of my recovery rebate check?: Yes, go to https://www.irs.gov/coronavirus/get-my-payment to check the status.

 

Get Cash For NOLs In ’18, ’19, ’20*

  • What is it: By giving businesses current access to future tax “assets”-deductions and credits the businesses will be allowed or owed overtime any way under current law-instead of making them wait. Allows firms a 2020 cash payment of their past and current-year losses at the statutory marginal tax rate they would face in a profitable year (e.g., up to the top 21 percent for a corporation, or the marginal tax rate applicable to a pass-through business).
  • How does it work: Restoring carryback to raise current cash for strapped businesses without permanently reducing federal revenue. It is a sound tax policy akin to firms being taxed on average profitability.
  • Who is it for: Business owners effected by COVID-19.
  • Where do I go: N/A

 

Employee Retention Credit Up To $10,000/employee*

  • What is it: The employee retention credit is a payroll tax credit equal to 50 percent of “qualified wages” paid by “eligible employers” to certain employees during the COVID-19 crisis.
  • How does it work: The credit applies against the employer’s share of FICA (social security) tax. The credit is capped at $10,000 per employee.
  • Who is it for: For both eligible large employers and eligible small employers, “wages” has the meaning used for FICA tax purposes. Qualified wages also include the employer-paid portion of the employee’s group health plan premiums.
  • Where do I go: https://www.sba.gov/funding-programs/disaster-assistance
  • *NOTE: The credit would be available to businesses that do not receive Small Business Administration loans. Business owners would be able to choose whether an SBA loan or employee retention credit is better suited to their situation

 

Sick Employee Payroll Tax Credit Up To $2,000/employee/qtr

  • What is it: For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees’ children’s schools are closed or child care providers are unavailable.
  • How does it work: The Payroll Tax Credit is equal to (i) one hundred percent (100%) of qualified PSL and FMLA+ wages (subject, in each case, to the above-noted caps) that are paid by an employer for each calendar quarter, plus (ii) the costs to maintain health insurance coverage for the eligible employee during the applicable leave period. Employers may retain the full amount of the Payroll Tax Credit from the payroll taxes they are otherwise required to withhold and/or pay to the Internal Revenue Service (“IRS”) (i.e., withheld federal income taxes, employee share of Social Security and Medicare taxes and employer share of Social Security and Medicare taxes, in each case, with respect to all employees (and not just employees who have taken PSL or FMLA+)).
  • Who is it for: PSL is available to all employees regardless of tenure if, due to COVID-19, such employee is: (1) required to quarantine; (2) advised to self-quarantine by a health care provider; (3) experiencing symptoms and seeking a medical diagnosis; (4) caring for an individual required to quarantine or advised to self-quarantine by a health care provider; (5) caring for a child due to school closure or unavailability of the child care provider; or (6) a substantially similar condition specified by the Secretary of Health and Human Services. PSL is available to all employees regardless of tenure and is paid at one hundred percent (100%) of the employee’s regular rate of pay if for reasons (1), (2) or (3) (capped per employee at US$511 per day or US$5,110 in the aggregate), or sixty-seven percent (67%) of the employee’s regular rate of pay if for reasons (4), (5) or (6) (capped per employee at US$200 per day or US$2,000 in the aggregate).
  • Where do I go: https://www.sba.gov/funding-programs/disaster-assistance
  • NOTE: Information may differ depending on which state your business and taxes are based in.