The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was Enacted into Law.
On March 25, 2020, the Senate unanimously passed (96-0) the Coronavirus Aid, Relief, and Economic Security Act(“CARES Act”), commonly known as “Phase Three” of coronavirus economic relief. The CARES Act provides much needed stimulus to individuals, businesses, and hospitals in response to the economic distress caused by the coronavirus (COVID-19) pandemic. On March 27, 2020, the House of Representatives passed the CARES Act by voice vote. President Trump signed the bill into law that same day. Read more here.
Small Business Stimulus, Take-Two – Another round of fiscal stimulus is on the way, with $484 billion of new spending set to course through the economy. About $320 billion is destined for the Paycheck Protection Program (PPP), which provided loans to businesses in an effort to keep employees on payrolls instead of laid off. Loans obtained through PPP could be forgiven if businesses used the money for payroll and to keep employees on. The issue with PPP, however, is that the initial tranche of $350 billion ran out very quickly, with many small and mid-sized businesses complaining that loans were generated based on favorable relationships and access. In response to this, Congress apportioned $60 billion of the new funds to be set aside for small, midsize, and community lenders, and also created the Economic Injury Disaster Loan fund with $60 billion for grants and loans. The new fiscal stimulus also includes $75 billion for hospitals and $25 billion for testing, with $11 billion of that money going to states and localities to administer tests and conduct contact tracing.4 In the initial fiscal stimulus valued at over $2 trillion, over $70 billion of funds have still not been distributed to hospitals, meaning that they should see some $145 billion in new funds in the coming weeks and months.
Federal Government Resources
Main Street Lending Program - The Federal Reserve
has announced a $600 billion lending initiative designed for mid-sized businesses to ensure the easy flow of credit through the newly unveiled Main Street Lending program as part of a $2.3 trillion funding effort to minimize the financial impact of the coronavirus.The Fed is offering four-year loans to companies employing up to 10,000 workers and with revenues of less than $2.5 billion per year. The terms of those loans will also permit principal and interest payments to be deferred for a year. Read more here
Expanded access to Paycheck Protection Program Liquidity Facility (PPPLF) - SBA-qualified PPP lenders include depository institutions, such as banks and credit unions, as well as non-depository institution lenders, such as some Community Development Financial Institutions. Currently, only depository institutions are eligible to participate in the PPPLF, and over 1000 have already been approved to access the program. The SBA's PPP guarantees loans from qualified lenders to small businesses so that those businesses can keep workers employed. The PPPLF supports the PPP by extending credit to financial institutions that make PPP loans, using the loans as collateral. The additional liquidity from the PPPLF increases the capacity of financial institutions to make additional PPP loans. Additional details on eligibility will be announced shortly. Read more here
CARES Act can support small businesses through the Paycheck Protection Program (PPP) and through an expanded form of SBA’s Economic Injury Disaster Loans (EIDLs).
The expanded form of EIDLs
enables small businesses (with fewer than 500 employees) to apply for loans up to $200,000 without the need of a personal guarantee, and the loans can now be approved solely based on the applicant’s credit score. Borrowers can also receive emergency cash grants of up to $10,000 that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruptions, mortgage or lease payments, or repaying obligations that can’t be met due to loss of revenue. Read more here
.Agricultural Business Eligibility
- The U.S. Small Business Administration announced Monday that agricultural businesses are now eligible for the Economic Injury Disaster Loan and EIDL Advance programs. Read more here
sets aside $350 billion for loans up to $10 million (with an interest rate no higher than 4%) to small businesses with fewer than 500 employees. The loans are to ensure that small businesses can keep their staff employed. If used to maintain employees during the 8 weeks following the origination of the loan, the amount will be forgiven and converted to dollar-for-dollar grants. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. Read more here
.Paycheck Protection Program and Health Care Enhancement Act
- Additional Funding for PPP. The House passed the Paycheck Protection Program and Health Care Enhancement Act, which provides about $484 billion for small businesses, hospitals and COVID-19 testing. The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30AM EDT from approved lenders on behalf of any eligible borrower. Read more here
New SBA-backed Paycheck Protection
loan program will help small businesses pay for expenses.Loans taken by small businesses to keep employees on payroll may be forgiven.501(c)(3)s will also be eligible for this program.Federal government will forgive 8 weeks of cash flow, rent, and utilities at 100% up to 2.5x average monthly payroll.The law provides $350 billion for this loan program. . Businesses and 501(c)(3)s with less than 500 employees are eligible for this new loan. Sole proprietors, independent contractors, and self-employed individuals may also be eligible. Physician practices are eligible regardless of how they are structured.Small businesses in the hospitality and food industry that have less than $500 million in gross receipts with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means that each store location could be eligible. If your franchisor appears in the SBA's National Franchise Directory, assistance will extend down to the franchisee at the store or location level. Read more here
.Paycheck Protection Program and Health Care Enhancement Act - Additional Funding for PPP
- The House passed the Paycheck Protection Program and Health Care Enhancement Act, which provides about $484 billion for small businesses, hospitals and COVID-19 testing. The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30AM EDT from approved lenders on behalf of any eligible borrower. Read more here
.Automatic deferment of previous SBA loans
- U.S. Small Business Administration Administrator Jovita Carranza announced changes to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Now, borrowers of home and business disaster loans do not have to contact SBA to request deferment. Read more here
Post-Shutdown Resources NEWPPP Loan Forgiveness ExplanationPPP Loan Forgiveness ApplicationChecklist to Reopen Your Small Business
Congress passed the Paycheck Protection Program Flexibility Act
, which will make it easier for small business owners who have received a Paycheck Protection Program (PPP) loan to qualify for loan forgiveness. Some key changes include an extension from the 8-week forgiveness period to a 24-week forgiveness period, a decrease in the minimum amount that must be spent on payroll from 75% to 60%, an increased loan maturity from 2 years to 5 years for new PPP loans and an extended deadline to rehire staff. Also, new are safe harbors for small businesses unable to return to previous business levels or unable to rehire or find new, qualified employees, allows borrowers to use 60% of the loan amount for payroll costs and up to 40% for debt obligations, including interest on a mortgage, renty payment, or utility payments. Details here
PPP CalculatorsIntuit Aid Assist
—a free service for everyone—helps U.S.-based businesses, self-employed, contractors, freelancers, and gig workers understand different business relief programs * Read more here
SBA APPROVED PPP LENDERSSBA PPP Lenders
Other PPP LendersPayPalSquareIntuit
SBA DISASTER LOANS
The Small Business Association (SBA) is offering disaster assistance loans up to $2 million for small businesses affected by COVID-19. These low-interest loans are available to businesses that have sustained “substantial economic injury” due to the spread of the virus. Read more here to determine if your business is eligible.
If your business is not
eligible for SBA’s disaster loan, see here
for their alternative loan resources.
Use their search tool
to find local assistance.
Plans for federal assistance for small businesses are still being determined. Read the full proposal here
.SBA Disaster AssistanceFlorida Disaster AssistanceEconomic Injury Disaster Loan InformationSBA FAQs for Faith-Based Organizations (in PPP & EIDL)SBA Lenders in North FloridaSBA Lenders by StateSBA Micro Loan LendersSBA Lenders – top 100 by volume of loansIMPORT / EXPORT
Minority Business Development Agency
MBE Grant for Enterprising Women of Color - MBDA seeks to fund Business Center(s) with a particular focus on supporting minority women entrepreneurs in the U.S. and its territories to build their businesses, secure contracts and capital, and increase employment opportunities. The primary drivers of the MinorityBusiness Center – Enterprising Women of Color are: (i) capacity building, and (ii) job creation/retention resulting from facilitating contracts and financing for medium-sized minority businesses.
Department of Housing and Urban Development
Mortgage Relief- Implemented a standard forbearance protocol for FHA multifamily mortgages per the CARES Act. Read more here.
USDA Rural Development
Direct and Guaranteed Loans - Effective March 19, borrowers with USDA single-family housing Direct and Guaranteed loans are subject to a moratorium on foreclosure and eviction for a period of 60 days. This action applies to the initiation of foreclosures and evictions and to the completion of foreclosures and evictions in process.
Guaranteed Loan Program:
- Guaranteed Loan borrowers who are in default or facing imminent default due to a documented hardship can have payments reduced or suspended by their lender for a period not to exceed 12 months delinquency. Guaranteed Loan servicing questions should be directed to: email@example.com.
Direct Loan Program:
- USDA has waived or relaxed certain parts of the application process for Single-Family Housing Direct Loans, including site assessments, and has extended the time period that certificates of eligibility are valid. • A Direct Loan borrower who is experiencing a reduction of income by more than 10 percent can request a Payment Assistance package to see if he/she is eligible for payment assistance or for more assistance than currently received.
- Moratorium Assistance is available for Direct Loan borrowers experiencing medical bill expenses (not covered by insurance) or job loss because of COVID-19.
- Direct Loan questions should be directed to USDA’s Customer Service Center at 800-414-1226 (7:00 a.m.-5:00 p.m. Eastern Time Monday-Friday) or here . Read more here
Rural Business-Cooperative Services
- Beginning immediately, through July 31, 2020, USDA Business and Industry Loan Guarantees (B&I) and Rural Energy for America Program (REAP) Guaranteed lenders may assist borrowers experiencing temporary cash flow issues by deferring payments for a period no longer than 120 days. The lender must notify The Agency in writing of any payment deferments. Read more here
Loan Relief - Extending the deadline for applicants to complete farm loan applications. FSA is extending deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. Guarantee lenders can self-certify, providing their borrowers with subsequent-year operating loan advances on lines of credit and emergency advances on lines of credit. Read more here
Additional Information & Resources
The IRS has extended the deadline to file federal tax returns to July 15, 2020.
The deadline for tax payments up to $10 million for businesses has also been extended to July 15, 2020.
The below states have also reduced or waived penalties on late tax payments:
- Alabama State Tax deadline for individual income tax is extended to July 15.
- Arizona State Tax deadline for individual income tax is extended to July 15.
- Arkansas State Tax deadline for individual income tax is extended to July 15.
California State Tax deadline for all individuals and business entities is extended to July 15
- Colorado State Tax deadline for individual income tax is extended to July 15. Interest from the due date of the payment until July 15, 2020 is waived.
Connecticut provides extension for certain business taxes by at least 30 days.
- Delaware State Tax deadline for individual income tax is extended to July 15.
- District of Columbia State Tax deadline for individual income tax is extended to July 15.
- Georgia State Tax deadline for individual income tax is extended to July 15.
- Hawaii State Tax deadline for individual income tax is extended to July 20.
- Idaho extended the deadline to file state income tax returns and to apply for property-tax relief to June 15. Tax returns filed by June 15 will have no interest or penalty charged.
- Illinois State Tax deadline for individual income tax is extended to July 15.
- Indiana State Tax deadline for individual income tax is extended to July 15.
- Iowa has extended the filing and payment deadline for income, franchise, and moneys and credits taxes to July 31.
- Kansas State Tax deadline for individual income tax is extended to July 15.
- Kentucky State Tax deadline for individual income tax is extended to July 15.
- Louisiana State Tax deadline for individual income tax is extended to July 15.
- Maine State Tax deadline for individual income tax is extended to July 15.
Maryland has extended business-related tax filing deadlines until June 1st
- Massachusetts State Tax deadline for individual income tax is extended to July 15.
- Michigan State Tax deadline for individual income tax is extended to July 15.
- Minnesota State Tax deadline for individual income tax is extended to July 15.
- Mississippi State Tax deadline for individual income tax is extended to July 15.
- Missouri State Tax deadline for individual income tax is extended to July 15.
- Montana State Tax deadline for individual income tax is extended to July 15.
- Nebraska State Tax deadline for individual income tax is extended to July 15.
- New Jersey State Tax deadline for individual income tax is extended to July 15.
- New Mexico State Tax deadline for personal, fiduciary, and corporate income tax returns, return payments, and estimated payments, is extended to July 15.
- New York State Tax deadline for individual income tax is extended to July 15.
North Carolina State Tax deadline for individual income tax is extended to July 15 for individual, corporate, and franchise taxes.
- North Dakota State Tax deadline for individual income tax is extended to July 15.
- Ohio State Tax deadline for individual income tax is extended to July 15.
- Oklahoma State Tax deadline for individual income tax is extended to July 15.
- Oregon State Tax deadline for individual income tax is extended to July 15.
- Pennsylvania State Tax deadline for individual income tax is extended to July 15.
- Rhode Island State Tax deadline for individual income tax is extended to July 15.
South Carolina is offering an extension for state tax returns and payments.
- Tennessee deadline for filing and paying franchise and excise tax is extended to July 15.
- Utah State Tax deadline for individual income tax is extended to July 15.
- Vermont State Tax deadline for individual income tax is extended to July 15.
- Virginia individual income tax filings are due May 1, and late payment penalties will not be charged if payments are made by June 1.
Washington is allowing business to request a filing extension or a late payment penalty waiver request.
- West Virginia State Tax deadline for individual income tax is extended to July 15.
- Wisconsin State Tax deadline for individual income tax is extended to July 15.
White House - Healthcare waivers - The Secretary of Health and Human Services will be able to immediately waive provisions of applicable laws and regulations to give doctors, all hospitals, and healthcare providers maximum flexibility to respond to the virus and care for patients. (3/13) Read more here.
White House Office of Science and Technology Policy - COVID-19 technology initiative. American technology companies were called on to make online learning resources more accessible for teachers, parents, and students. As a result, the technology industry has launched a new resource for educators, administrators, and public officials who are turning to online learning as coronavirus response disrupts the school year. Read more here.
CFPB - The Consumer Financial Protection Bureau (Bureau) has recently released several resources to help consumers take steps to protect their finances during the COVID-19 pandemic, including how to avoid financial scams and submit complaints to the Bureau.
- Protect yourself financially from the impact of the coronavirus. Read more here.
- The CFPB continues to help consumers make informed financial decisions with up-to-date information and resources. Read more here
- Protecting your credit during the coronavirus pandemic. Read more here
- Coronavirus and dealing with debt: Tips to help ease the impact. Read more here
- Tips for financial caregivers during the coronavirus pandemic. Read more here
USDa, HHS, FMAP, Labor - Families First Coronavirus Response Act
- Social Safety Net — The package provides $1.25 billion in supplemental assistance for those impacted by the epidemic, waives requirements for participation in the National School Lunch Program, SNAP, and other programs, and provides for emergency expanded SNAP eligibility for children facing school closure who would otherwise receive free meals.
- Viral Testing — The package requires insurers to cover COVID-19 testing without cost sharing and waives cost sharing and provides $1 billion for compensating providers for testing of uninsured individuals. Read more here
USDA Rural Development
Rural Business - Cooperative Services - USDA extended the application deadline for the Rural Business Development Grant (RBDG) program to no later than April 15, 2020. Contact the Rural Development office for the deadline in your state.USDA announced the extension in an Unnumbered Letter posted March 19, 2020.• USDA extended the application deadline for the Rural Energy for America Program (REAP) to April15, 2020. For additional information, see page 16925 of the March 25, 2020, Federal Register. Read more here
USDA 'Meals for kids when schools are closed' - Food Relief - The U.S. Department of Agriculture (USDA) announced the launch of an online tool – the “Meals for Kids” Site Finder – to help families find meals for children while schools are closed during the coronavirus pandemic. The “Meals for Kids” interactive map directs people to local sites where kids can get free meals. The site finder currently lists more than 20,000 meal sites from 23 states, and more sites will be added as states submit data each week. The map is available in both English and Spanish here In an effort to minimize the potential exposure of the novel coronavirus (COVID-19), USDA has granted a nationwide waiver that grants states the flexibility to serve after school snacks and meals outside of a structured environment and without an educational or enrichment purpose. This waiver allows for the following child nutrition programs: National School Lunch Program, School Breakfast Program, Child and Adult Care Food Program, and Summer Food Service Program, to serve snacks and meals outside of the standard after school setting. These waivers are effective immediately, and remains in effect through June 30, 2020, or until expiration of the federally declared public health emergency, whichever is earlier. Read more here
SNAP Online Pilot Program - The SNAP online pilot is currently operational in Alabama, Iowa, Nebraska, New York, Oregon, and Washington State. The authorized retailers working with all pilot states are Amazon and Walmart, while Wrights Market and ShopRite are working with Alabama and New York respectively. USDA previously announced Arizona, California, Florida, Idaho, North Carolina, the District of Columbia, and West Virginia would also be joining. With these 16 states, more than half of all households receiving SNAP will have access to online purchasing. Though the U.S. Department of Agriculture (USDA) Food and Nutrition Service (FNS) is receiving interest to expand the SNAP online pilot program, the responsibility is on state agencies, their third-party processor, and any retailers who wish to participate. To ease the process, FNS put together a simplified template for states who wish to enter the online pilot which is provided as an attachment to this letter. Read more here
Coronavirus Food Assistance Program - CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals.
Direct Support to Farmers and Ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
USDA Purchase and Distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need. Read more here
OSHA Guidance on Preparing Workplaces for COVID-19
U.S. Department of Labor – Coronavirus Resources
Department of Labor
Families First Coronavirus Response Act - the Act provides that employees of covered employers are eligible for:
- Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
- Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor; and
- Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
- Covered Employers: The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to certain public employers, and private employers with fewer than 500 employees. Most employees of the federal government are covered by Title II of the Family and Medical Leave Act, which was not amended by this Act, and are therefore not covered by the expanded family and medical leave provisions of the FFCRA. However, federal employees covered by Title II of the Family and Medical Leave Act are covered by the paid sick leave provision.
- Small businesses with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern. Read more here
USDa, HHS, FMAP, Labor - Families First Coronavirus Response Act
- Worker Protections — The package requires employers to provide two weeks paid sick leave and up to three months of paid family leave for employees affected by the virus, the cost of which could then be claimed by the employer as a tax credit.