April 6, 2020
Covid-19 Challenge: Available Financial Relief
The financial response of the U.S. Congress, New York State and New York City to the Coronavirus Crisis has been swift and multi-pronged. There is a great deal of information across the internet on assistance, which we are continuing to synthesize and deliver to NoMad in a timely but concise fashion. Even non-governmental sources have devised aid programs to help the business community weather this challenge.
As the situation develops, we will continue to post additional financial information that may help you, including news of new aid and loan programs and additional sources of advice as to how to secure this assistance.
Federal, State and City Government Business Assistance Programs
The United States Chamber of Commerce has a very helpful list of things small business owners should be doing right now in terms of seeking financial assistance and taking action to sustain their businesses. We suggest you review the Chamber’s Covid-19 Coverage Page.
The Chamber also has a concise guide to help you apply for assistance Coronavirus Emergency Loans Small Business Guide and Checklist
If you need help applying for assistance, contact:
- Your banking institution.
- The Small Business Administration (Its Covid-19 Page had a list of contact methods if you need help).
- The Flatiron Bid at Covid19@FlatironDistrict.nyc.
- Manhattan Chamber of Commerce Help Desk at firstname.lastname@example.org or call (212) 473-7875.
Federal Business Assistance
CARES Act: The Federal government CARES Act represents more than $376 billion in relief for small businesses and nonprofits (under 500 employees, including startups, the self-employed, and cooperatives). A thorough and helpful guide: The Small Business Owner’s Guide to the CARES Act published by the U.S. Senate Committee on Small Business & Entrepreneurship
Paycheck Protection Program (PPP): The Paycheck Protection Program provides small businesses and nonprofits with funds to pay up to eight weeks of payroll costs including benefits, rent, utilities, and interest on mortgages. Funds are provided in the form of loans, but are fully forgiven when used for payroll costs and employees are kept on the payroll or rehired quickly. Program applications are expected to open Friday, April 3. Application are to be made through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Applications can be submitted through June 30, 2020, however applicants are encouraged to apply in a timely manner given the funding cap and lenders’ timing to process loans
SBA Economic Injury Disaster Loan: As a small business or nonprofit affected by COVID-19, you may be eligible to borrow up to $2 million in working capital from the U.S. Small Business Administration’s Economic Injury Disaster (EID) Loan program. The interest rate is 3.75% for small businesses, 2.75% for nonprofits. The SBA recommends that all EID Loan applications be submitted online and envisions a processing time of two to three weeks. For additional help, call (800) 659-2955 or email email@example.com.
State Business Assistance
Quarterly and annual sales tax filers unable to file or pay by March 20 due to COVID-19 may request a waiver from penalty and interest. This relief is not available for sales tax vendors who file returns monthly or participants in the Promptax program for sales and use tax or prepaid sales tax on fuel. Returns must be filed and the amount due must be paid within 60 days of the due date. Click here for additional details.
New York State has extended the deadline for personal income tax and corporation tax returns from April 15, 2020 to July 15, 2020. For additional information on this JD Supra advisory page or the New York State information page.
City Business Assistance
Small Business Employee Retention Grant:
APPLICATIONS CLOSING AT 5:00 P.M. MARCH 3
The City is also offering eligible small businesses with fewer than five (i.e., 1-4) employees a grant to cover 40% of payroll costs for two months to help retain employees.
NYC Small Business Continuity Fund: Businesses with fewer than 100 employees, seeing a documented decrease in sales up to 25% or more, are eligible for zero-interest loans up to $75,000 to help mitigate losses in profit.
For more information, please visit the NYC Department of Small Business Services (SBS) Assistance & Guidance for Businesses webpage.
Assistance with Taxes. New York City Department of Finance has announced that taxpayers may request a waiver of penalties on late-filed extensions or returns of business and excise taxes due March 16 – April 25. Interest must be paid on all tax payments due after the original due date. For more information click here.
Assistance with Property Tax Payments. The Department of Finance also offers several programs to assist property owners who face hardships making their property tax payments including the Property Tax and Interest Deferral Program, Exemption Programs, and Standard Payment Plans.
Non-Governmental Organizations Assistance Programs
Bloomberg Philanthropies & NY Community Trust: The NYC COVID-19 Response & Impact Fund was created to aid nonprofit service providers struggling with the health and economic effects of the coronavirus. Priority will be given to nonprofits addressing essential healthcare and food insecurity as well as arts and culture. The new $75 million fund will provide grants and loans to small and medium-sized nonprofits.
Manhattan Chamber of Commerce Help Desk: For expert advice on a variety of small business topics (funding, legal issues, government regulations, staffing, marketing, real estate, health care, technology, etc.), businesses can utilize the Manhattan Chamber of Commerce Help Desk. The Help Desk is currently open to all who need it. Contact the Help Desk at (212) 473-7875 or firstname.lastname@example.org
Facebook Small Business Grants Program: Facebook is offering $100 million in cash grants and ad credits for up to 30,000 businesses in countries around the world affected by COVID-19. Applications will open in the coming weeks. You can sign up for updates at the site.