COVID-19: Federal Resources

PAYCHECK PROTECTION PROGRAM GUIDE TO FORGIVENESS

The U.S. Chamber published a new guide to provide businesses with an easy to understand explanation of what they need to do to apply for forgiveness of their PPP loans. Please note, this guide will be updated as new guidance is issued by the Department of Treasury.

DOWNLOAD THE GUIDE

Salt Lake Small Business Development Center (Salt Lake SBDC) created the PPP Loan Forgiveness Tool; which allows the borrower to enter their employee, payroll and other cost data. The model will then calculate all the necessary numbers to enter into the PPP Loan Forgiveness Application.

DOWNLOAD PPP LOAN FORGIVENESS TOOL

In the video below, a representative from Salt Lake SBDC provides a walkthrough of the PPP Loan Forgiveness Tool as well as insight on filling out your application.

SEE VIDEO

PAYCHECK PROTECTION PROGRAM (PPP)

The House passed H.R. 7010, the Paycheck Protection Program Flexibility Act on May 28, 2020. The bill makes the following changes to the program:

  • Extends the loan term from 8 weeks to 24 weeks;
  • Lowers the percentage of loan proceeds that must be used on payroll from 75% to 60% and
  • Extends the PPP from June 30 to Dec. 31, 2020

H.R. 7010 must now pass the Senate. See news here.

An additional $310 billion in Paycheck Protection Program (PPP) funding has been approved. Applications will be accepted beginning on Monday, April 27 at 10:30 a.m. EDT Companies should complete a PPP loan application with a lender or agent.

These loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

Eligible organizations:

  • A small business with fewer than 500 employees
  • A small business that otherwise meets the SBA’s size standard
  • A 501(c)(3) with fewer than 500 employees
  • An individual who operates as a sole proprietor
  • An individual who operates as an independent contractor
  • An individual who is self-employed who regularly carries on any trade or business
  • A Tribal business concern that meets the SBA size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard

SMALL BUSINESS GUIDE & CHECKLIST

TOP 4 FAQs ABOUT PPP

TREASURY RESOURCES

  • A top-line overview of the program can be found here.
  • If you’re a lender, more information can be found here.
  • If you’re a borrower, more information can be found here.
  • The application for borrowers can be found here.

*To assist with obtaining financial aid, we recommend that you reach out to the financial institution where you currently have a business relationship. If you do not currently have a connection, here is a list of Chamber organizations that can assist you.

U.S. CHAMBER SAVE SMALL BUSINESS FUND

Funded by corporate and philanthropic partners, the Save Small Business Fund is a collective effort to provide $5,000 grants to as many small employers as possible.

To qualify you must:

  • Employ between 3-20 people
  • Be located in an economically vulnerable community
  • Have been harmed financially by the COVID-19 pandemic

A short application will go live on this page on April 20, 2020, at 12:00om PT / 3:00pm ET. All you will need to apply is your business’s W-9 form.

savesmallbusiness.com

FEDERAL STIMULUS PACKAGE

  • $250 billion to make unemployment insurance available to more categories of workers and to extend the duration of benefits to 39 weeks from the 26 weeks typical in most states. It would also provide an extra $600 a week for four months.

  • $301 billion in direct payments to households.

  • $349 billion in loans to small businesses, with the amount spent on payroll, rent or utilities converting into grants that don’t have to be repaid.

  • $500 billion for loans, loan guarantees or other aid to businesses, states and municipalities—including the possibility that the government will take direct equity stakes in distressed companies. Of the total, $29 billion is set aside for cargo and passenger airlines, and $17 billion is for businesses deemed critical to national security, such as Boeing. The remaining $454 billion would go to backstop losses in lending facilities established or expanded by the Federal Reserve.

  • $32 billion in grants to cover wages at passenger air carriers, cargo air carriers, and contractors.

  • $150 billion in direct aid to states, distributed according to population size. A municipality could apply to receive aid directly, reducing the amount available to the rest of the state.

  • $221 billion in a variety of tax benefits for businesses, including allowing businesses to defer payroll taxes, which finance Medicare and Social Security, for the rest of the year. It would also temporarily allow businesses to claim deductions using today’s losses against past profits to claim quick refunds for cash infusions.

  • $340 billion in supplemental spending, which includes $117 billion for hospitals and veterans’ care. It also includes $25 billion mostly for public transit to make up for revenue lost because of dwindling ridership.

SMALL BUSINESS OWNER’S GUIDE TO THE CARES ACT

U.S. DEPARTMENT OF TREASURY RESOURCES

SBA ECONOMIC INJURY DISASTER LOAN PROGRAM (EIDL)

Small businesses and nonprofits located in all Utah counties are now eligible to apply for low-interest loans through the Small Business Administration. Details of the loan:

  • Loan amounts up to $2 million per business

  • Repayment terms up to 30 years

  • 3.75% interest rate for small businesses, 2.75% interest rate for nonprofits​

For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 or your local SBDC.

SMALL BUSINESS GUIDE TO SBA’S EIDL PROGRAM

THREE STEP PROCESS

SBA LOAN APPLICATION

UTAH SBA LENDERS

*To assist with obtaining financial aid, we recommend that you reach out to the financial institution where you currently have a business relationship. If you do not currently have a connection, here is a list of Chamber organizations that can assist you.

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

On March 18, 2020, President Trump signed the Families First Coronavirus Response Act, which provides paid leave under the Family Medical Leave Act and paid sick leave for absences resulting from COVID-19.

  • The law goes into effect on April 2, 2020, and ends on December 31, 2020. It applies to all employers with 500 employees or less. Employees with 30 days of employment are eligible for benefits.

  • Emergency FMLA – Job-protected family leave is provided to employees to take care of a child under 18 years of age who is home because their school or daycare has been closed because of COVID-19. The first 10 days of this FMLA leave is unpaid. Thereafter, employees must be paid up to two-thirds of their salary and benefits will vary between full-time and part-time employees. This number is capped at $200 per day and $10,000 in total for each employee. Employers with 50 employees or less can apply for an exemption to the law if they can show that paying this benefit would “jeopardize the viability of the business.” Employers with 25 employees or less are exempt if an employee’s position is eliminated due to economic conditions.

  • Paid Sick Leave – The law provides 80 hours of paid sick leave to full-time employees. Paid sick leave is also available for part-time employees on a pro-rata basis. The leave can be used because an employee has been ordered the government or a health care provided to quarantine if they are seeking medical assistance because of COVID-19 symptoms, if they are taking care of an individual who has been quarantined or ordered to self-quarantine, or if they are taking care of a child whose school or daycare has closed because of COVID-19. Paid sick leave is to be paid at the employee’s salary with the following caps: $200 per day and $2,000 total per employee to care for a child or family member; $511 per day and a total of $5,110 total per employee to care for themselves. Employers with 50 employees or less can apply for an exemption if paying sick leave would “jeopardize the viability of the business.”

  • Tax Credits – Employers are eligible for reimbursement of 100% of the amount paid under this emergency legislation through tax credits.

Additional resources can be found at www.employerscouncil.org

FACT SHEET FOR EMPLOYERS

FACT SHEET FOR EMPLOYEES

QUESTIONS & ANSWERS

GUIDE TO EMPLOYEE RETENTION TAX CREDIT

FEDERAL INCOME TAX FILING & PAYMENT DEADLINE EXTENSION

The new federal tax return deadline is now July 15, 2020.

IRS WEBSITE