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COVID-19 Economic CARES ACT Going Live April 3rd

COVID-19 Cares Act Going Live April 3rd

VERY IMPORTANT – MONEY SHOULD BE AVAILABLE ON APRIL 3RD-

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

The best way to get relief funds from the CARE ACT is to go to your local bank first and see if they can help. If not we can assist you with application w/ no fees charged.  Please enter your info in our contact form if you need help

reactrelief.info/contact-us/

We have recently been provided with information we wanted to share to help our small business clients and referral partners. Here is a summary of what we have learned. Please note this still a fluid situation and some of these items might be subject to change:

A few important notes:

  • The Payroll Protection Loan Program will be rolled out on April 3rd (this Friday). Any non-lending institution soliciting applications is trying to collect data as there is no formal way to apply (yet). The approved lenders will be able to take and process applications starting on this date. 
  • The loan will be fully forgiven if the funds are 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 loan will be fully forgiven if the funds are 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.
  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • More information can be found here (including a sample application): 

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
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List Of Coronavirus (COVID-19) Small Business Relief Programs

Article originally published here: https://www.forbes.com/sites/advisor/2020/03/20/list-of-coronavirus-covid-19-small-business-relief-programs/#4cbc5410e89d

Brianna McGurran Forbes Staff

Small businesses have been hit hard by mandatory closures and safety measures required to slow the spread of the coronavirus (COVID-19). 

In a March 18 letter to President Trump, the National Restaurant Association estimated that the restaurant industry would lose $225 billion over the next three months alone, leading to the loss of five to seven million jobs. Many other industries are suffering, too.

But businesses have a growing number of resources and relief programs to turn to, including emergency funding from the government, protection from eviction and business loan deferment. The FDIC is encouraging banks to work with customers to provide coronavirus-related assistance, related to both personal and business finances. 

Below is a list of federal, state and lender-specific support to pursue, which will be updated to include programs as they’re released and refined. Return to this page regularly.

Federal Coronavirus Small Business Assistance

If you need cash to offset lost revenue and help keep your business afloat, the programs below can help. The U.S. Small Business Administration (SBA) coronavirus resource page provides a list of relief programs, and it offers guidance to small business owners during this crisis.

SBA Economic Injury Disaster Loan Program

As part of its disaster assistance program, the SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus.

These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. 

Who’s Eligible

  • As of March 23, businesses in every state plus American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands can apply.
  • You can use the loan to cover accounts payable, debts, payroll and other bills the coronavirus has affected your ability to pay.

How to Apply

  • Apply online and select “Economic Injury” as the reason you’re seeking assistance. 
  • You’ll need to supply required supporting documentation that could include the business’s most recent tax returns, a personal financial statement and a schedule of liabilities that lists all your current debts. 
  • Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 for help with your application.

Federal Income Tax Filing and Payment Deadline Extension

The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.

Check with yourstate tax agency to find out if your business has more time to file or more time to pay state and local taxes this year as a result of the coronavirus. Several states have already aligned their tax filing and payment deadlines with the new federal deadline. States also may waive or reduce penalties on late tax payments.

State and Local Coronavirus Small Business Assistance

States and municipalities are adding programs by the day. Check your governor’s website for up-to-date information about relief available in your area. The National Governors Association offers a list of governors’ websites

California

San Francisco COVID-19 Small Business Resiliency Fund

Businesses with between one and five employees can apply for up to $10,000 in emergency funding to help cover rent and employee salaries.

Who’s eligible: You must show that you lost 25% or more of your revenue, that you have less than $2.5 million in gross receipts and that you’re properly licensed to operate in San Francisco.

How to apply: The quickest way is to fill out an online application form and email it to investsf@sfgov.org. You’ll need to supply proof of payroll costs and lost revenue.

The City of San Francisco has also initiated a moratorium on evictions for small- and medium-sized businesses whose revenue has been affected by the coronavirus. It’s effective for 30 days starting March 17, and the mayor has the capability to extend it for another 30 days. 

City of Los Angeles Small Business Emergency Microloan Program

Businesses and microenterprises in Los Angeles that are responsible for providing low-income jobs can get an emergency microloan of $5,000 to $20,000. Loans with repayment terms of six months to one year carry an interest rate of 0% and five-year loans have interest rates of 3% to 5%. 

Who’s eligible: To get a loan, you must meet requirements including having “reasonable and responsible” individual credit history, committing to use the loan for working capital only and ensuring your business is located within the City of Los Angeles. If you own 20% or more of the business, you must guarantee the loan.

How to apply: Apply online and provide supporting documentation including business and personal tax returns, three months of bank statements and business and personal financial statements.

Los Angeles has also instituted a moratorium on evictions of businesses impacted by the coronavirus through March 31.

Colorado

Denver Small Business Emergency Relief

This program offers cash grants of up to $7,500 to businesses in industries particularly hard-hit by the coronavirus.

Who’s eligible: Small businesses that have lost the ability to operate, including restaurants, retail shops, barbershops and nail salons. 

How to apply: Grants will be distributed monthly, and the first applications will be due March 31. Details are sparse, but fill out an interest form to get more information from the city. 

Florida

Florida Small Business Emergency Bridge Loan Program

Loans of up to $50,000 — $100,000 in certain special cases — are available to coronavirus-affected small businesses. The loans are meant to serve as short-term funding that can be repaid once businesses can access alternative funding. Loans are interest-free for one year; after that, the interest rate rises to 12%.

Who’s eligible: For-profit small businesses with two to 50 employees. Any previous bridge loans a business has taken out must be paid off.

How to apply: Submit an application by May 8, 2020, along with supporting documents including business tax returns, individual tax returns and employer tax documentation.

Illinois

Chicago Small Business Resiliency Fund

Starting March 31, small businesses in Chicago can apply for low-interest loans of up to $50,000 with repayment terms of up to five years. The amount of the loan you’ll qualify for depends on your revenues before business was affected by the coronavirus.

Who’s eligible: You must demonstrate a 25% drop in revenue, have less than $3 million in revenue and fewer than 50 employees, and have no current tax liens or legal judgments.

How to apply: Apply online and include your most recent tax return, bank statements going back to October 2019 and photo ID.

Michigan

Michigan Small Business Relief Program

The State of Michigan will provide both grants and loans to small businesses affected by the coronavirus starting on or around April 1. Grants will be available in amounts of up to $10,000 to help cover working capital. Loans will be available in amounts from $50,000 to $200,000 at interest rates of 0.25%.

Who’s eligible: Companies with 50 employees or fewer can qualify for grants, while loans are targeted at companies with 100 employees or fewer that can’t get credit elsewhere. In both cases, businesses must show income loss.

How to apply: Applications aren’t yet available, but check Michigan Economic Development Corporation for updates.

New York

New York City Employee Retention Grant Program

Small businesses with one to four employees can apply for a grant of up to $27,000 that covers 40% of payroll costs over the course of two months. You must show that you lost 25% of your revenue due to the coronavirus. Refer to New York City’s coronavirus resource page for small businesses for more information.

Who’s eligible: Businesses must be located in one of New York City’s five boroughs, have been operating for six months or more and have no current tax liens or legal judgments.

How to apply: Apply online through the New York City Department of Small Business Services website. You’ll submit financial documentation showing your revenue decrease and how it compares to this time last year, plus payroll records and bank account information.

New York City Small Business Continuity Fund

If your business has fewer than 100 employees, you can get up to $75,000 in interest-free loans from the city to cover revenue losses.

Who’s eligible: Businesses within the five boroughs that have experienced at least a 25% reduction in revenue can qualify. You must have no tax liens or legal judgments against you, and you must prove a loss in revenue and that you are able to repay the loan.

How to apply: Applications aren’t yet open, but fill me out an interest form on the New York City Department of Small Business Services website to get more information when it’s available. In the meantime, gather documents that show your decrease in revenue including 2019 tax returns, bank statements and point-of-sales reports.

Oregon

Beaverton Emergency Business Assistance Program

Businesses in Beaverton that were ordered to close as a result of government coronavirus guidelines can apply for $2,500 per month in rent or mortgage reimbursement while the city is in a declared state of emergency.

Who’s eligible: Businesses with fewer than 50 employees that have been ordered to change their services due to the coronavirus. They must have a commercial storefront in Beaverton and a rental lease or mortgage on the property.

How to apply: Submit an application online; funds are awarded on a first-come, first served basis.

Hillsboro Small Business Emergency Relief Program

From March 23 to April 20, businesses in Hillsboro can apply to receive a $5,000 grant to offset losses associated with the coronavirus. Priority will be given to restaurants, bars, education facilities and businesses that serve large groups of people.

Who’s eligible: Businesses with 10 or fewer employees will be prioritized.

How to apply: Submit a W-9, federal tax ID number and Hillsboro business license number along with an online application.

Jade District-Old Town COVID-19 Small Business Response Fund

In Portland, small businesses in the Jade District and Old Town Chinatown neighborhoods can apply for emergency funding to support their businesses by March 23. Up to $190,000 total is available from local government sources. Priority will be given to Asian- and Pacific Islander-owned businesses.

Lender and Corporate Small Business Assistance Programs

Many banks have offered deferment and forbearance to business loan customers having trouble making payments. Check Forbes’ list of banks offering relief. You can also search for your bank on the American Bankers Association’s ongoing A-Z list of coronavirus response programs.  

Amazon Neighborhood Small Business Relief Fund

Businesses in Bellevue, Wash. and the South Lake Union and Regrade neighborhoods of Seattle — particularly those that rely on foot traffic — can apply online for a grant from Amazon’s $5 million fund. Amazon will determine on a case-by-case basis the amount of the grant your business qualifies for. Only businesses with 50 employees or less, or that take in less than $7 million in annual revenue, qualify.

Facebook Small Business Grants Program

Facebook has committed to offering up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. The grants will be provided to businesses in more than 30 countries. Information is limited, but sign up to get more details from the company when they’re available.

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Your Money And Coronavirus: A Financial Protection Guide

https://www.forbes.com/sites/advisor/2020/03/22/your-money-and-coronavirus-a-financial-protection-guide/#7c6733e9306a

As layoffs spread and businesses shut down, many Americans face sudden and severe financial challenges. While the pain is widespread, so too are the relief efforts. This Forbes guide aims to cut through the confusion and help you protect your finances in these uncertain times. Check back frequently. We’ll update this page with the latest information and advice on everything from stimulus checks to tax, student loan, mortgage and small business relief, to the smartest ways to spend now, protect your retirement and to help others.

Income Replacement

Unemployment Insurance: What You Need To Know

What The 2020 Stimulus Check Might Look Like—And What To Do With It

Do You Qualify For Paid Sick Leave Under The Families First Act?

Taxes

Updated List Of State And Federal Tax Office Closings, Extensions And Relief

The Delayed Federal Tax Filing And Payment Deadline

With Stock Market Crashing, A Primer On Taxation Of Gains And Losses

Little Known 9/11 Tax Provision Should Allow Employers To Help Workers With Disaster Expenses, Tax Free

Proposed Stimulus Check Is Actually A Tax Credit Advance

Housing

Mortgage Payment Relief Tracker

Student Loans

With New Relief For Federal Student Loans, Don’t Rush To Refinance

What You Need To Know Before Opting For Student Loan Forbearance

How To Stop Or Lower Student Loan Payments

Banking

How To Get Cash And Bank Services As Branches Close

What Banks Are Doing For Customers In Need

Credit Cards & Spending

A Budget-Friendly Guide To Streaming Services While You’re Stuck At Home

The Best Credit Cards For Food Delivery Services

What To Do If You Have A Negative Balance On Your Credit Card

Credit Cards That May Come In Handy If You’re Quarantined While Traveling

How To Earn Rewards Now That You Can Use Once Travel Is Back

March Apple Card Payments And Interest Waived For Those Affected By Crisis

Insurance

You May Have Longer To Make That Insurance Payment 

Consumers Are Panic Shopping For Life Insurance

What May And May Not Bungle Your Life Insurance Application Right Now

Retirement

What You Should—And Should Not—Do With Your Retirement Accounts

If You’ve Still Got A Job, Should You Stop Contributing To Your 401(k)?

It’s Time To Have An Updated Living Will, Health Proxy And HIPAA Release

With Coronavirus Shutting Social Security Offices, Here’s How To Get Help

Boomers’ Retirements Will Be Permanently Altered. Here’s How

Small Business

Updated List Of Small Business Relief Programs

Helping Others

Where, What & How To Donate (And Deduct)

Lending To Family? Avoid These Tax Landmines

How To Make Masks For Healthcare Workers

Travel 

Flight Cancelled? Don’t Rush To Rebook Or Accept A Voucher

Master List Of All Major International Airline Change And Cancellation Policies 

How Online Travel Agencies Like Airbnb And Travelocity Are Handling Bookings

Answers to Travel Insurance Questions

Master List: How Airline And Hotel Loyalty Programs Are Responding.

© 2020 Forbes Media LLC. All Rights Reserved. Forbes.Com Forbes Advisor Forbes Staff Advisor Contributor Group

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SBA: Disaster Loan Assistance

https://disasterloan.sba.gov/ela/Declarations

Disaster Loan Information

SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory and business assets. https://disasterloan.sba.gov/ela/Information/Index

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Facebook Small Business Grants Program

https://www.facebook.com/business/boost/grantge

Facebook has committed to offering up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. The grants will be provided to businesses in more than 30 countries. Information is limited, but sign up to get more details from the company when they’re available.

© 2020 Forbes Media LLC. All Rights Reserved. Fabienne Goldgaber Forbes.Com

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Amazon Neighborhood Small Business Relief Fund

Businesses in Bellevue, Wash. and the South Lake Union and Regrade neighborhoods of Seattle — particularly those that rely on foot traffic — can apply online for a grant from Amazon’s $5 million fund. Amazon will determine on a case-by-case basis the amount of the grant your business qualifies for. Only businesses with 50 employees or less, or that take in less than $7 million in annual revenue, qualify.

© 2020 Forbes Media LLC. All Rights Reserved. Fabienne Goldgaber Forbes.Com