The 10 Things in the COVID-19 Stimulus Package that Capital Region Businesses Must Know
Congress passed a $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act. Many Capital Region businesses will need the funding and financial tools it provides to recover from the economic disruptions caused by COVID-19. The Center for Economic Growth is helping local businesses identify stimulus-related funding programs as well as private financing options that can help save their operations and retain their employees.
1. Through a new Paycheck Protection Program (PPP), small businesses (<500 employees) can receive SBA 7(a) loans up to $10 million that can go toward payroll costs, group health care benefits, mortgage, rent and utilities.
2. The amount of a PPP loan that went toward payroll, rent, mortgage and utility obligations during the eight-week period after origination may be forgivable.
3. PPP loans are also available to independent contractors, sole proprietors and the self-employed as well as certain Small businesses cannot apply for both PPP loans and COVID19-related Economic Injury Disaster Loans (EIDLs),
4. Businesses can receive a 50 percent payroll tax credit for the first $10,000 in wages paid to each employee.
5. Businesses can defer 50 percent of their 2020 employer payroll taxes to December 31, 2021, with the other half being owed by December 31, 2022.
6. For the 2018, 2019 and 2020 tax years, employers can carry back net operating losses by up to five years.
7. Businesses and nonprofits that apply for an EIDL can receive up to a $10,000 emergency grant that can go toward paying paid sick leave, payroll for employee retention, meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains, making rent or mortgage payments, and repaying obligations that cannot be met due to revenue losses.
8. SBA will pay the principal, interest, and fees on pre-existing SBA loans taken out small business for a six-month period.
9. The alcohol that distillers use to make FDA-compliant hand sanitizers will be exempt from excise taxes for the period between December 31, 2019 and January 1, 2021.
10. The maximum weekly unemployment benefit amount is increased for four months by $600 above the base unemployment compensation benefit.
CEG can help you navigate your businesses COVID-19 response and recovery. Schedule a consultation with CEG today.