COVID-19 RESOURCES TO HELP YOUR BUSINESS
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
The advance is available to anyone who applies for an EIDL, regardless of whether the application was declined or is still pending.
Deferral of Payment of Employer Payroll Taxes
Pursuant to this provision, an employer may delay payment of the employer’s 6.2% of the Social Security (Old-Age, Survivors, and Disability Insurance) tax (“Employer-Side SS Tax”).
For the period beginning March 27, 2020 and ending before January 1, 2021 (“Deferral Period”), payment of applicable Employer-Side SS Tax owed during the Deferral Period is due by:
Employee Retention Credit - For employers subject to closure
The CARES Act wants you to keep your employees on the payroll during this time, for obvious economic reasons. When you do that, you will receive a refundable credit equal to 50% of the "qualified wages" for each employee up to a maximum of $10,000. That means a $5,000 benefit per employee to the employer.
* You cannot apply this credit against your payroll tax liability if you acquired a PPP loan - even if you do not receive forgiveness.