We want to provide some helpful information relating to relief and assistance for small businesses during this coronavirus outbreak. There is a significant burden being placed on many businesses during this time and we wanted to let you know there are some valuable resources available to you.
What we cover in this episode:
- 00:33 – Intro
- 02:00 – IRS Tax Relief Information
- 03:47 – Families First Coronavirus Response Act
- 09:02 – SBA Economic Injury Disaster Loan Program
- 11:33 – Facebook Small Business Grants Program
IRS Tax Relief Information
One of the first measures of relief was granted through an extension of the annual tax payment deadline for individuals. Typically the due date for all payments related to your tax return are due on April 15th, even if you file an extension. Although your tax return is still due by April 15th, the payments related to those returns are extended 90 days and are now due by July 15, 2020. In addition, federal estimated tax payments have been extended until July 15th as well. The goal of this is to keep additional money in the pockets of Americans during this tough time. You can find more information related to this on the IRS website – Coronavirus Tax Relief.
Families First Coronavirus Response Act
Also, the recent passing of the Families First Coronavirus Response Act, just passed this week, provides free testing of Covid-19 to all Americans. It also includes paid emergency sick leave if needed. This would provide individuals with up to two weeks of paid sick leave if they are being tested or treated for coronavirus or have been diagnosed with it. You would also be eligible for this relief if you have been told by a doctor or government official to stay home because of exposure or symptoms.
SBA Economic Injury Disaster Loan Program
The Small Business Administration (SBA), the US small business administration, is doing their part to help businesses as well. They have created an Economic Injury Disaster Loan Program which offers up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 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. The interest rate for non-profits is 2.75%. SBA also offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. If you’d like to apply, you can find more information here.
Facebook Small Business Grants Program
We also recently learned that Facebook Small Business Grants Program will be offering grants to businesses impacted by the coronavirus. The social networking giant said it is establishing a $100 million aid program for 30,000 small businesses in over 30 countries consisting of cash grants and ad credits. The money, which would average around $3,300 per recipient, could be used to keep workers on the payroll, cover rent, communicate with customers, or cover operational costs.
There will likely be more aid and relief coming out in the days and weeks to come but we wanted to get this information to you right away and some of it can benefit you immediately.
Links mentioned in this episode: