Congress has passed three aid packages amounting to more than $2 trillion in funding to help businesses respond to and recover from the coronavirus pandemic. The third part alone is one of the largest pieces of legislation in Congressional history. We’re here to help you wade through it and access the resources you need.
Loans and grants through the Small Business Administration
- Economic Injury Disaster Loan
- This program provides working capital loans of up to $2 million to help you overcome the temporary loss of revenue.
- Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
- Paycheck Protection Program
- Helps you fund payroll and other critical expenses like rent, utilities, health insurance premiums, and more for up to 8 weeks.
- Loans of up to $10 million are determined by your 8 weeks of prior average payroll plus an additional 25%.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan that covered payroll and other critical expenses.
- Bridge Loan
- Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
- These loans can be term loans or used to bridge the gap while applying for an Economic Injury Disaster loan, and be repaid in full or in part by proceeds from the EIDL loan.
- Debt relief
- For six months, the SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
- Varies some by program, but generally, businesses with fewer than 500 employees
- Nonprofit employers
- Sole proprietors, independent contractors, and others who are self-employed
- Those who already have SBA loans
Where to apply:
Payroll tax credits and payment deferrals
- A payroll tax credit has been authorized for wages paid by businesses that fully or partially close due to Coronavirus.
- Businesses are also authorized to defer payment of payroll taxes owed in 2020: half would be payable in December 2021 and the other half in December 2022.
- Businesses not receiving other EIDL or Paycheck Protection Loans
Where to apply:
The application processes for both programs are currently being developed.
- Congress has authorized billions in additional funds for unemployment insurance.
- Congress has also approved an increase of $600 per week to individual workers.
- Workers laid off or furloughed due to coronavirus
- Workers who may not have been fired but are unable to work as a result of coronavirus — because they are sick, quarantined or need to take care of a child
Where to apply:
- Colorado is expected to receive $2.5 billion for state needs. These funds are exempt from TABOR restrictions.
- The tax law of 2017 limited to 30 percent the amount firms could deduct off their interest. To improve business liquidity, the that number has been increased to 50 percent. It also gives firms greater ability to deduct losses against taxable income, which proponents say will primarily help unprofitable firms weather the downturn.