Coronavirus (COVID-19): Business Resources

Economic Injury Disaster Loans and Loan Advance

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19.

SBA is currently accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations.

If you have already applied via the streamlined application portal, please do not resubmit your application.

Credit Requirements:

• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. ( SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.)

Interest Rates:
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The interest rate for this program is 3.75 percent.

Loan Terms:
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the
financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the  administrative lending limit.

SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.

SBA Disaster Loan Assistance

SBA Extends Deferment Period for all COVID-19 EIDL and Other Disaster Loans until 2022

WASHINGTON – The U.S. Small Business Administration announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.

• All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
• All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment schedule with the payment immediately preceding March 31, 2022, unless the borrower voluntarily continues to make payments while on deferment. It is important to note that the interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

For questions about or relating to an EIDL loan application please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or email disastercustomerservice@sba.gov

Information updated 3.16.2021

The Paycheck Protection Program provided small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses. Up to 8 weeks of payroll, mortgage interest, rent, and utility costs could be forgiven. Payments on principal and interest are deferred for one year.

Paycheck Protection Program is currently closed. 

View more details directly from the U.S. SBA website: www.sba.gov

Application and additional information: U.S. Department of the Treasury

Information updated 2.23.2021

As of March 27^th, 2020

Overview
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for small businesses that have trouble covering payroll and operating expenses because of the COVID-19 pandemic. The new law creates a Small Business Administration (SBA) loan program, called the “Paycheck Protection Program” (PPP), that expands benefits and eligibility for SBA disaster loans, covers payments on existing SBA loans, and creates new tax credits to help cover the cost of paid leave and payroll.

Debt Relief for New and Existing SBA Borrowers

For small businesses that already have an SBA loan (such as a 7(a), 504, or microloan) or take one out within 6 months after the CARES Act is enacted, the SBA will pay all loan costs for borrowers, including principal, interest, and fees, for six-months. SBA borrowers may also seek an extension of the duration of their loan and delay certain reporting requirements.

Relief for Small Business Government Contractors

If you are a government contractor, there are a number of ways that Congress has provided relief and protection for your business. Agencies will be able to modify terms and conditions of a contract and to reimburse contractors at a billing rate of up to 40 hours per week of any paid leave, including sick leave. The contractors eligible are those whose employees or subcontractors cannot perform work on site and cannot telework due to federal facilities closing because of COVID-19. If you need additional assistance, please reach out to your local Small Business
Development Center, Women’s Business Center, SCORE chapter, or SBA District Office. You should also work with your agency’s contracting officer, as well as the agency’s Office of Small and Disadvantaged Business Utilization (OSDBU).

Employee Retention Tax Credit

The CARES Act creates a refundable payroll tax credit for businesses, large and small, that retain their employees during the COVID-19 crisis. Employers are eligible if they have been fully or partially suspended as a result of a government order, or they experience a 50% reduction in quarterly receipts as a result of the crisis. For employers with 100 or fewer full-time employees, they may claim a credit for wages paid to all of their employees, up to $10,000 a person. For employers with more than 100 employees, they may claim a credit for those
employees who are furloughed or face reduced hours as a result of the employer’s closure or economic hardship. The Department of the Treasury is authorized to advance payment of the employee retention tax credit. This tax credit is not available if the employer takes an SBA paycheck protection loan.

Payroll Tax Delay

The CARES Act allows employers to delay paying the employer-portion of payroll taxes through the end of 2020. The deferred amount is due in two installments—50% is due before December 31, 2021, and the other 50% is due before December 31, 2022. Deferral is not available if the employer takes an SBA paycheck protection loan.

Advance Payment of Tax Credits for Paid Leave

The CARES Act allows the Treasury to send advance payments of tax credits available to employers that are required to provide up to 12 weeks of coronavirus-related paid leave to their employees.

Business Tax Relief

The CARES Act provides other forms of tax relief for businesses, including loosening requirements for net operating losses, and limitations on business interest deductions. The CARES Act also permanently fixes the qualified improvement property (QIP) error in the 2017 tax law, so that QIP investments are entitled to 100% recovery over 15 years. Distillers are exempt from excise taxes on undenatured alcohol for the purpose of producing hand sanitizer.

Delay for Single Employer Pension Plans

Single employer pension plans are allowed to delay quarterly contributions for 2020 until the end of the year. Employers may also use 2019 funded status for the purposes of determining funding-based limits on plan benefits for the plan years that include 2020.

Details provided by Office of Senator Brian Schatz

Information Updated 3.31.2020

America’s SBDCs are working to help small businesses address the business challenges of the coronavirus disease 2019 (COVID-19) pandemic.

View more information regarding OSHA, Facebook for Business, and a COVID-19 Resources for Business booklet was developed by the California SBDC for California small businesses, but it contains information that is useful for businesses throughout the USA.

View more at America’s SBDC website

Below is a list of potential financial resources to assist with cash flow issues during this time:

• Local Lenders:
  First, visit with your current loan provider or personal banker.

• SBA Disaster Relief program:
  See the first section on this page for more detail and application.

• CRF USA:
  Community Reinvestment Fund, USA works to address social and economic inequity through new financial solutions that help empower people, build sustainable communities and inspire systemic change.

• People Fund:
  In addition to the normal financial options we offer for business owners (find a list of our loans here) we are providing free business coaching, disaster preparedness information and we can help you find the resources you need. To take advantage of this help via Zoom meeting or phone call, please submit a request at https://peoplefund.org/edclient/.

• LiftFund:
  A Small Business Lender With A Social Impact

• BCL of Texas Small Business COVID-19 Relief (CDFI)
  BCL of Texas has been front and center during multiple economic and disaster recoveries to help small businesses and local communities get back on their feet. BCL of Texas has the experience and partnerships to help small businesses weather the storm and connect to the resources you need for your small business. Contact: 214-688-7456 Dallas | 512-912-9884 Austin
  Apply at: https://bcloftexas.org/lending/lending-inquiries

• Tom Green County Revolving Loan Fund:
  Contact person: Albert Rodriguez email: albert.rodriguez@cvcog.org

• The Rural Business Revolving Loan Fund
  The Fund is self-perpetuating through loan repayments by borrowers where the revolving characteristic will allow it to serve as a long term loan source for start-up and expanding business in the future. The Fund is capitalized at $68,600 grant funding provided by the U. S. Department of Agriculture where $53,000 of in-kind contributions were provided from local units of government, economic development entities, chambers of commerce, industrial foundations and businesses (Regional Economic Development Council) in preparation of implementing a Revolving Loan Fund (RLF).

• For the Rural Areas
  You should also consider discussing resources available in your specific area with your local EDC or Chamber of Commerce.

• SOAR Fund
  The Southern Opportunity And Resilience (SOAR) Fund provides flexible, affordable capital and free business support services to small businesses and nonprofits across the south and southeast to help them navigate and rebuild from the Covid-19 economic crisis.

The Shared Work program provides Texas employers with an alternative to layoffs. TWC developed this voluntary program to help Texas employers and employees withstand a slowdown in business.

Shared Work allows employers to:

• Supplement their employees’ wages lost because of reduced work hours with partial unemployment benefits.
• Reduce normal weekly work hours for employees in an affected unit by at least 10 percent but not more than 40 percent; the reduction must affect at least 10 percent of the employees in that unit.

Learn more by contacting TWC directly:

• Call TWC’s Shared Work Department at 512-340-4337
• Email: ui.sharedwork@twc.state.tx.us
• Website: https://twc.texas.gov/businesses/shared-work

General information provided to employers from the TWC: https://twc.texas.gov/news/covid-19-resources-employers

National Federation of Independent Business Resources:

NFIB Getting your Business Ready for Coronavirus

NFIB Study: Coronavirus Impact on Small Businesses

The NFIB Research Center’s new survey on the current impact of Coronavirus on small businesses. NFIB will continue to survey small business owners to hear how it has affected them first-hand.

NFIB Legal Resource: How Small Business Can Prepare for Coronavirus

The NFIB Small Business Legal Center provided information on other employment laws owners should consider during this time including the Americans with Disabilities Act, the Family and Medical Leave Act, and the Occupational Safety and Health Act.

See all resources provided by the NFIB

President Trump signed a coronavirus relief package into law on Wednesday night (March 18th) that provides paid leave benefits and additional unemployment benefits for U.S. workers.

There are six qualifying reasons for coverage under this bill. The National Law Review Describes them as follows:

1. The employee is subject to a federal, state, or local quarantine or isolation order related to Covid-19;
2. the employee has been advised by a health care provider to self-quarantine due to concerns related to Covid-19;
3. the employee is experiencing symptoms of Covid-19 and seeking medical diagnosis;
4. the employee is caring for an individual who is subject to a federal, state, or local quarantine order, or the individual has been advised to self-quarantine due to concerns related to Covid-19;
5. the employee is caring for the employee’s son or daughter, if the child’s school or child care facility has been closed or the child’s care provider is unavailable due to Covid-19 precautions; or
6. the employee is experiencing any other substantially similar condition specified by Health and Human Services in consultation with the Department of the Treasury and the Department of Labor.

View in detail information provided by the Department of Labor:

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Fact Sheets

The U.S. Department of Labor has resources to help workers and employers prepare for the COVID-19 virus (also known as novel coronavirus).

Wages, Hours and Leave
The Wage and Hour Division is providing information on common issues employers and workers face when responding to COVID-19, including the effects on wages and hours worked under the Fair Labor Standards Act and job-protected leave under the Family and Medical Leave Act.

Unemployment Insurance Flexibilities
NOTE:Check with your state’s unemployment insurance program regarding the rules in your state.

The Employment and Training Administration announced new guidance outlining state flexibilities in administering their unemployment insurance programs to assist Americans affected by the COVID-19 outbreak.

Under the guidance, federal law permits significant flexibility for states to amend their laws to provide unemployment insurance benefits in multiple scenarios related to COVID-19. For example, federal law allows states to pay benefits where:

• An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work;
• An individual is quarantined with the expectation of returning to work after the quarantine is over; and
• An individual leaves employment due to a risk of exposure or infection or to care for a family member.

In addition, federal law does not require an employee to quit in order to receive benefits due to the impact of COVID-19.

Learn how to file for unemployment insurance benefits.

The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This page will be updated as new information is available. Visit: https://www.irs.gov/coronavirus for more information about IRS related news.

• IR-2020-58, Tax Day now July 15: Treasury, IRS extend filing deadline and federal tax payments regardless of amount
• IR-2020-57, Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave
• Treasury News Release: Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak
• IR-2020-54, IRS: High-deductible health plans can cover coronavirus costs

For businesses that find themselves having difficulty submitting collected taxes, visit with the Texas Comptroller’s Office they are offering assistance in the form of short-term payment agreements and, in most instances, waivers of penalties and interest. They ask that you contact our Enforcement Hotline at 800-252-8880 to learn about your options for remaining in compliance and avoiding interest and late fees on taxes due. In addition, they have a variety of online tools for businesses seeking assistance. See COVID-19 emergency response webpage for access to online tools, tutorials and other resources for tax services, and to establish 24/7 online account access with Webfile.

The following article showcases many tools and programs that can be utilized to convert to remote work situations.

Please contact an SBDC advisor if you need assistance accessing, installing, and utilizing any online tool.

Avoid COVID-19 scams!
Scammers are using the Small Business Administration’s (SBA) name to con small businesses and individuals during the COVID-19 crisis through phone calls, emails, text messages and letters.

Please note:

• If you are contacted by someone claiming to be from the SBA, suspect fraud.
• Emails from SBA or other legitimate government agencies will always end in .gov.
• There is no cost to apply for a COVID-19 Economic Injury Disaster Loan and SBA will never ask you to provide a credit card.
• Do not release any private information (social security number, date of birth, etc.) or banking information in response to an unsolicited caller, letter, email, or text.
• If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with your application number.
• An SBA logo on an email or webpage does not guarantee the information is accurate or from the SBA.
• Check for spelling and grammatical errors in an email and be wary of clicking on any links or attachments.
• For help with applying for an Economic Injury Disaster Loan, call 800-659-2955 or email disastercustomerservice@sba.gov. You can also use a text telephone (TTY) by calling 1-800-877-8339.
• For inquiries regarding support for small businesses, send an email to answerdesk@sba.gov
• Visit the Small Business Cybersecurity site to learn more about small Business Cybersecurity tips, common threats, training, and best practices.
• Visit the U.S. Department of Homeland Security’s Cyber Infrastructure site for small business resources.
• Trust your instincts! If something seems too good to be true, then it probably is too good to be true.
• Starting September of last year, there have been more than 200,000 complaints to the US Federal Trade Commission on scams related to COVID-19. Learn more about how to avoid these scams courtesy of the National Council for Safety, Protection and Wellness.

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Below are some examples of the types of scams you should be on the lookout for:

1. Websites that appear to be from organizations such as Johns Hopkins University, CDC (Centers for Disease Control), or the WHO (World Health Organization). These malicious websites can infect users to steal banking, credit card, and personal sensitive information.
2. Emails that appear to be from organizations such as the CDC or the WHO. The scammers change emails to make them appear to come from these sources, but they actually contain malicious phishing links or dangerous attachments.
3. Emails that ask for charity donations for studies, doctors, or victims that have been affected by the COVD-19 Coronavirus. Scammers often create fake charity emails after global disasters or health scares.
4. Emails that claim to have a “new” or “updated” list of cases of Coronavirus in your area or new maps of infections. These emails could contain dangerous links and information designed to scare you into clicking on the link. We have also seen many examples of misinformation being spread via these methods as well, so keep checking your sources!
5. Emails and websites claiming to help you work remotely. There are scammers even creating software that sounds useful but has malicious intent behind it.

Remember to remain cautious! And always remember the following to protect yourself from scams using these methods:

• Never click on links or download attachments from an email that you weren’t expecting.
• If you receive a suspicious email that appears to come from an official organization such as the WHO or CDC, report the email to your IT department or provider
• If you want to make a charity donation, go to the charity website of your choice to submit your payment. Type the charity’s web address in your browser instead of clicking on any links in emails or other messages.

COVID Related Webinars

• On-Demand Webinars
• Upcoming Webinars

Please refer to the Center for Disease Control and Prevention website for up to date reports on COVID-19. Including a page dedicated to Guidance for businesses and employers.

The following handouts can be disseminated to employees and hung in the workplace:

• COVID-19 - Stop The Spread Of Germs At Work
• COVID-19 Fact Sheet
• Stop The Spread Of Germs At Work - SHRM Resource