Resources for businesses financially impacted by COVID-19

City of Tacoma Offers COVID-19 Stabilization Loans to Tacoma’s Small Businesses

City of Tacoma Offers COVID-19 Stabilization Loans to Tacoma’s Small Businesses

TACOMA, Wash. — In an effort to mitigate the negative economic impacts of COVID-19 on Tacoma’s small businesses, the City of Tacoma’s Community and Economic Development Department has established a COVID-19 Stabilization Loan Program.

“We know that small businesses are the lifeblood of our local economy and an essential part of the character of our city, and we are here to help,” said Tacoma Mayor Victoria Woodards. “As we’ve seen in other cities across our nation, Tacoma’s small businesses have also had a challenging few weeks. Under rapidly shifting conditions created by the COVID-19 pandemic, our small business community is continuing to innovate, activate contingency plans, and generously serve a wide range of community needs. While the full economic impacts of the pandemic are difficult to measure at this stage, we want to do what we can to help our small businesses remain viable amidst the restrictions that have become necessary to stem the spread of COVID-19 in Tacoma and across Washington state.”

Loans for working capital up to $15,000 are available to small businesses with brick-and-mortar establishments within Tacoma city limits and 10 or fewer employees. They must have been operating in Tacoma for at least a year and, as part of the application process, they must be able to document a significant loss in revenue or sales due to COVID-19. There is no cost to submit an application.

With a five-year amortization period at a fixed interest rate of 75 percent of prime rate and no pre-payment penalties, loan payments will be deferred for 12 months after loan closing. This means that if a small business is approved for a loan and that loan closes in April 2020, the small business will not have to make any monthly payments until April 2021.

More information regarding the COVID-19 Stabilization Loan is available at makeittacoma.com, which also offers information about other available business resources. Questions regarding the the COVID-19 Stabilization Loan program should be emailed to covid19loan@cityoftacoma.org.

As the situation evolves, general information about the City’s response to COVID-19 will be posted on the “What’s Going On” section of the City’s website. Information about COVID-19 is available at TPCHD.org/coronavirus.

– City of Tacoma

Small Business Paycheck Protection Program

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

Fully ForgivenFunds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

All Small Businesses Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.

When to Apply

Starting April 3, 2020, small businesses and sole proprietorships can apply.

Starting April 10, 2020, independent contractors and self-employed individuals can apply.

We encourage you to apply as quickly as you can because there is a funding cap.

How to Apply

You can apply 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. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.

All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov. The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information

Notes: Economic Injury Disaster Loan (and EIDL grant) application HERE: https://covid19relief.sba.gov/#/

Paycheck Protection Program Loan (PPPL) Borrower information HERE: https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf

Paycheck Protection Program Loan (PPPL) Application HERE: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

– Lakewood Chamber of Commerce

U.S. Chamber of Commerce Creates COVID-19 Benefits Guide for Washington

Every industry, business, and state is facing a financial impact, but small businesses are bearing the brunt of the disruption from COVID-19. The U.S. Chamber of Commerce has created a guide to help small businesses, independent contractors, and gig economy workers prepare to file for a coronavirus relief loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Access the Emergency Loan Small Business guide and checklist here. This guide outlines the steps small businesses should take now and prepare to access much-needed funds to help keep their workers on the payroll during this disruptive period.

“The U.S. Chamber of Commerce is working with state and local chambers across the country to provide businesses with the information they need to stay afloat and keep people employed during the pandemic,” said Suzanne Clark, President of the U.S. Chamber of Commerce. “This comprehensive guide ensures small business owners fully understand what aid is available to them and how to access those funds as quickly as possible. We remain committed to ensuring no family or business goes bankrupt due to financial hardships associated with the coronavirus.”

Additionally, to help small businesses, the U.S. Chamber of Commerce has compiled an interactive map to show the aid available to them on a state-by-state basis. For more information on all 50 states, see here.

The U.S. Chamber of Commerce is committed to helping American businesses respond to the coronavirus so they can support their employees, customers, and communities. We are equipping businesses with tools, resources, and information to help them navigate the challenges of the pandemic in real time. Learn more at uschamber.com/coronavirus.

– U.S. Chamber of Commerce

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

WASHINGTON — The Treasury Department and the Internal Revenue Service have 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.

Does my business qualify to receive the Employee Retention Credit?

The credit is available to all employers regardless of size, including tax-exempt organizations.

There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories:

The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.

The employer’s gross receipts are below 50% of the comparable quarter in 2019.

Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

These measures are calculated each calendar quarter.

How is the credit calculated?

The amount of the credit is 50% of qualifying wages paid up to $10,000 in total.

Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit.

Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.

How do I know which wages qualify?

Qualifying wages are based on the average number of a business’s employees in 2019.

Employers with less than 100 employees: If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not.

If the employees worked full time and were paid for full time work, the employer still receives the credit.

Employers with more than 100 employees: If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

I am an eligible employer. How do I receive my credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter.

If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts?

Updates on the implementation of this credit, Frequently Asked Questions on Tax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.

– IRS.gov

The CARES Act establishes a new $349 billion Paycheck Protection Program

WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.

The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said Administrator Carranza. “Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”

“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

Loan Terms & Conditions

– Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries

– Maximum loan amount up to $10 million

– Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)

– All loans under this program will have the following identical features:

– Interest rate of 0.5%

– Maturity of 2 years

– First payment deferred for six months

– 100% guarantee by SBA

– No collateral

– No personal guarantees

– No borrower or lender fees payable to SBA

SBA’s announcement comes on the heels of a series of steps taken by the Agency since the President’s Emergency Declaration to expeditiously provide capital to financially distressed businesses affected by the Coronavirus (COVID-19) pandemic. Since March 17, SBA has taken the following steps:

– Declared all states and territories eligible for Economic Injury Disaster Loan assistance

– 1-year deferment on Economic Injury Disaster Loans provided due to COVID-19

– Automatic deferment of previous disaster loans for homeowners and businesses through 2020

– Waiver of garnishments through 2020

Visit SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.

– SBA/ Small Business Administration

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