SBA Disaster Loan
The U.S. Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans (EIDL) for businesses and private non-profits in declared zones. The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with:
Working capital loans of up to $2 million to help overcome the temporary loss of revenue due to COVID-19.
Loans can be used to pay fixed debts, payroll, accounts payable, or other bills that cannot be paid
The interest rate on these loans are 3.75 percent for small businesses and 2.75 percent for private, non-profit organizations
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.
All loan terms will be the same for everyone.
Payroll costs are capped at $100,000 on an annualized basis for each employee.
Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
The loan amounts will be forgiven as long as:
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made;
Employee and compensation levels are maintained.
This credit is designed to encourage businesses to keep employees on their payroll by providing a refundable tax credit of 50% of up to $10,000 (per employee) in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.
Qualifying employers must fall into one of two categories:
The employer's business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
The employer's gross receipts are below 50% of the comparable quarter in 2019. Once the employer's gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.
Deferral of Payment of Employer Portion of 2020 Social Security Tax
The CARES Act permits any employer to defer payment of the employer portion of Social Security taxes regardless of whether the employer is affected by COVID-19. More info
A variety of tax-filing and payment deadlines falling on or after April 1, 2020, and before July 15, 2020, are postponed until July 15, 2020. This means that federal tax payments can be deferred to July 15 without penalties and interest, regardless of the amount owed.
This deferment applies to all taxpayers, including individuals, trusts, estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
Sales tax relief
The Texas Comptroller is urging businesses to file and pay sales taxes on time but is offering short-term payment agreements to businesses struggling to pay the full amount of sales taxes collected prior to April 1, 2020, because of COVID-19. In most instances, it will also provide waivers of penalties and interest. More info
Franchise tax relief
The filing and payment deadline for franchise tax is automatically extended to July 15, 2020. Additional details.
GBCOC is seeking your input about the impacts you're seeing due to the Coronavirus (and recent decisions which deeply impact our community), how we might adjust our program of work to best serve you, and other ideas you have that will allow us to best support our members during this time. We hope that through collective action, we can ease the burden and make