COVID Biz Update - 2.2 Trillion ReliefRelease Date: 0001-01-01
My heart goes out to everyone that is affected by this crisis. My team and I have been working very hard to find ways to help our community and that includes helping to protect our small businesses. With forced closures and everyone doing their part to stay Safer at Home, it is harder than ever for our small business owners to make ends meet. We did our part to delay rent, mortgage, and credit card payments on a local level but we all knew that the Federal Government was going to have to step in and help with direct funding opportunities and today they have done exactly that.
While the CARES Act still needs to be signed into law, please see below for links and information that can directly help you, your small business, and our community as a whole survive this crisis. As always, if you have any questions please reach out to my office directly at (562) 570-6919 or email District1@LongBeach.gov.
Stay safe and stay healthy.
Helpful Links for Small Businesses
What is Available:
*Paycheck Protection Loans: The U.S. Small Business Administration (SBA) will guarantee loans with terms of up to 10 years and interest rates of up to 4% to businesses with fewer than 500 employees. Businesses can qualify for loans of up to $10 million, and the loans will be provided by lenders including banks and credit unions. Eligible businesses can get loan deferment for six months to a year, and the loan may be forgiven if the businesses maintains its payroll for eight weeks at employees’ normal salary levels.
*Expanded access to U.S. Small Business Administration Economic Injury Disaster Loans: As part of its disaster assistance program, the SBA is providing working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. The stimulus updated the program so that sole proprietors and businesses with fewer than 500 employees qualify, and applicants don’t need to provide a personal guarantee on loans under $200,000. Payments can also be deferred for up to four years.
*Emergency grant of $10,000 to SBA Economic Injury Disaster Loan applicants: Even if your business is denied a loan, you can still access this grant, which can be used to provide employee sick leave, maintain payroll or meet other needs like paying rent.
How to Apply
The U.S. Small Business Administration (SBA) coronavirus resource page provides a list of relief programs, and it offers guidance to small business owners during this crisis. It is not yet updated to reflect the stimulus’ provisions, as the stimulus hasn’t yet been signed into law.
Reminder: Federal Income Tax Filing and Payment Deadline Extension
The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.