The federal government has responded to the coronavirus pandemic by offering resources and assistance for small business to help them respond to impacts. Financial assistance has been provided through existing resources as well as new authorized programs specifically created for the pandemic. 

The CARES Act provides loans via Small Business Administration (SBA) in conjunction with local lenders. If you are considering a Paycheck Protection Program Loan, you should immediately contact your principal lender to begin the application process.   

• Loans will be available on a first-come basis and demand is expected to be high.  
• PPP Loans do not require collateral or personal guarantees, and interest rates cannot exceed 4.0%.   
• All or a portion of this loan may be forgiven – effectively making the loan a grant. The loan forgiveness amount will be equal to the amount spent by the borrower during the eight-week period following loan origination on rent, payroll costs (subject to certain conditions and definitions), interest on a mortgage, and utility payments.   
• Loan proceeds may be used for eligible expenses during the period from February 15, 2020 through June 30, 2020.    
• Any company that employs no more than 500 employees, was operational on February 15, 2020, and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor, may be eligible for the PPP Loan program.  Eligibility is determined by your lender.  
• Here is a Department of Treasury backgrounder on PPP. 
• Here is the final borrower form. 
• Here is the PPP website. 
• Here is the Department of Treasury’s Interim Final Rule on the PPP Program

Delayed payment of employer share of social security tax.   The Cares Act allows employers to defer payment of the employer share of the social security tax it would otherwise be responsible for paying in 2020, effective for payments due after March 27, 2020.  Making use of the deferral may help you to conserve cash flow in the near term.   If PPP loan forgiveness occurs, the ability to defer ceases.   

• Fifty percent of the deferred payroll taxes are due on December 31, 2021, and the remaining amounts are due on December 31, 2022.   

Eligible employers may receive a refundable credit against payroll tax liability equal to 50% of the first $10,000 in wages per employee (including the value of health plan benefits) which results in an estimated possible $5,000 per employee employment tax credit.    

•  Available for businesses whose operations were fully or partially suspended due to coronavirus.   
• The credit is capped at the first $10,000 of compensation, including health benefits.   
• The provision is effective for wages paid or incurred from March 13, 2020 through December 31, 2020.  
• This credit would be unavailable if you obtain a Paycheck Protection Program loan.  
• Here is a link to an IRS webpage with more information on the tax credit.

The Families First Coronavirus Response Act (FFCRA) provides certain tax credits to offset private employers’ cost of paying emergency sick leave wages, which are capped at either $511 or $200 per day, depending upon why emergency sick leave is available, for eight days.   

• Here is a link to the US Department of Labor (Wage & Hour Division) webpage with much more information and resources on FFCRA. 
• Here is a link to the IRS Q&A factsheet on FFCRA.  

Here is a link to the SBA Coronavirus Small Business Guidance & Loan Resources.

Here is a link to the SBA Disaster Loan Assistance Application webpage.