Things are ever-changing right now, but we are working to give you as up-to-date information as possible on the impacts of COVID-19 and options for you as business owners.
- SBA Coronavirus Relief Options
This is an overview page of the various options provided by the SBA, including the EIDL & PPP, below.
- Economic Injury Disaster Loan (EIDL) Emergency Advance
Small businesses are eligible for an Emergency Advance of up to $10,000 as part of an EIDL. This “emergency advance” is considered part of a future loan, but repayment on this portion of the loan will not be required. Also, businesses do not have to take out the future loan, if approved. The SBA is funding this program directly and the application can be found here.
- There is a backlog of applications and the turn around time on this is unknown, but disbursements are supposed to be starting the week of April 7th.
- The Massachussettes SBA sent out a bulletin stating that the advance would be limited to $1,000 per employee, up to the $10,000 max.
- Applications will be accepted through December, 2020.
- Payroll Protection Program
*You must apply through a lending partner*
This loan can provide relief for up to 8 weeks of payroll and overhead (overhead cannot exceed 25%). There is currently a backlog on this, however you can apply for this and the EIDL with no conflict. If you apply for and receive the PPP you are ineligible for the “Employee Retention Credit,” described below under Tax Benefits.
- PPP for self-employed: You CAN apply for this if you are self employed; you will need your Schedule C information to show your businesses profits for 2019, as that will dictate how much you can apply for.
- Lendio – Lendio is one of the approved PPP processors and lenders.
- PayPal – PayPal is also an approved PPP processor and lender through their “LoanBuilder” program.
- BENCH Webinar on PPP & Self Employment
This is a link to a recording of a Webinar hosted on Thursday, April 9th. They talk in-depth about the $350 billion small business relief program, and how you can take advantage of it if you are a sole proprietor, an independent contractor, or a gig worker.
- Honeycomb Relief Loan To help the community of small businesses affected by this uncertain time, starting immediately, Honeycomb Credit is offering the Honeycomb Relief Loan program. These loans up to $50,000 will offer a 45-day payment free period and a six-month interest-only period. If you’re a small business, visit: honeycombcredit.com/relief
- KIVA CrowdLending Kiva is a crowdfunded lender. You can get a loan of up to %15,000 at 0% interest, with a 6 month grace period for repayment. This link will take you to the Covation Center’s Trustee gateway, where we can help you through the application and set-up process. If you have a loyal customer base, this is an affordable option.
- Employee Retention Credit
The CARES Act provides tax benefits for businesses that have fully or partially suspended operations or have experienced a “significant decline in gross receipts in the calendar quarter.” See the IRS FAQ linked above for more information. The maximum credit for an Eligible Employer for qualified wages paid to any employee is $5,000 per employee.
- Additionally, certain businesses can defer payment of portions of their payroll taxes with 50% due December 2021, and the balance due December 2020. Consult a tax professional for further information on these provisions.
- A business is eligible for this tax credit/deferment if they do NOT receive loan forgiveness under the PPP described above.
- PA Department of Labor and Industry Information for PA Employees Impacted by COVID-19
If you have to reduce hours or close your business due to COVID-19, your employees may be eligible for Unemployment Compensation. The Department of Labor & Industry will continue to provide important employment benefit updates as the situation evolves.
- PA Department of Labor and Industry Employer UC & COVID-19 FAQs
Frequently asked questions regarding PA Unemployment Compensation.
Other Potential Funding:
- Quickbooks and GoFundMe have teamed up to create a Small Business Relief initiative, essentially crowdfunding “grants” to the businesses that have been shut down unexpectedly.
- Facebook Small Business Grants Program
Facebook is offering $100M in cash grants and ad credits to help small businesses experiencing disruptions resulting from the global outbreak of COVID-19.
- The Red Backpack Fund
GlobalGiving will be making 1,000 grants of $5,000 each to female entrepreneurs in the U.S. to help alleviate the immediate needs and support the long-term recovery of those impacted by this crisis. They began accepting applications at noon ET on April 6. They will receive additional applications starting May 4, June 1, July 6, and August 3.
Informational and Educational Resources:
- DCED Business Resource Page
PA Department of Community and Economic Development’s page with links to local assistance partners.
- Google for Small Business COVID-19 Resources
Google has compiled tips, resources, and recommendations to help small businesses navigate COVID-10 for their employees and customers.
- SCORE Guidance for Small Businesses During the Coronavirus Outbreak
SCORE if a free mentorship program, and is sharing the latest business resources, assistance and guidance during this emergency.
- PA Chamber Business Resources for Corona Virus
The Pennsylvania Chamber of Business and Industry is dedicated to helping business across the Commonwealth. The Chamber will have resources for businesses owners on how to help their business, families, and employees.
- PA Department of Health PA COVID-19 Updates
Check here for the latest information regarding the impacts of COVID-19 across the state.
- PA Department of Health Information: Coronavirus Business Fact Sheet
This fact sheet has key information to help your business prepare for the spread of COVID-19. Please visit the Centers for Disease Control and Prevention (CDC) COVID-19 webpage for frequently updated information, guidance, and materials.