NSA Update #25 – COVID-19 Economic Relief Applications and Enrollment Dates

NSA members:

Applications are available for:

  • Employee Retention Credit (Application Enrollment OPEN)
  • Paycheck Protection Program (Application Submission Starts April 3, 2020)
  • Economic Injury Disaster Loans and Loan Advance (Application Enrollment OPEN)

NSA members are encouraged to review these programs and apply as soon as possible if they meet program eligibility requirements.

Employee Retention Credit available for many businesses financially impacted by COVID-19: Application Enrollment Currently Open

The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

PROGRAM INFORMATION: https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19

APPLICATION FORMS: https://www.irs.gov/forms-pubs/about-form-7200

FAX COMPLETED FORM TO: (855) 248-0552.

PAYCHECK PROTECTION PROGRAM (PPP): Application Enrollment STARTS APRIL 3, 2020 (Starts April 10, 2020, for independent contractors and self-employed individuals). Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.

PROGRAM INFORMATION: https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf

APPLICATION FORM: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, or Farm Credit System institution that is participating. LOCAL ASSISTANCE & OFFICES:  https://www.sba.gov/local-assistance

The Paycheck Protection Program authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as the loan is used to cover payroll costs, most mortgage interest, rent, and utility costs incurred over the 8-week period after the loan is made; as long as employee and compensation levels are maintained.  Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.  Loan payments will be deferred for 6 months.

COVID-19 Economic Injury Disaster Loan & Loan Advance: Application Enrollment Currently Open

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

ONLINE PROGRAM INFORMATION AND APPLICATION:  https://covid19relief.sba.gov/#/

The loan advance will provide economic relief to businesses that are currently experiencing a 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.

Economic Injury Disaster Loans are also available to residents in declared disaster areas. To view the full list of disaster declarations, click here. To apply for a disaster loan unrelated to COVID-19, click here.