SBDC: Financial Assistance Updates for Coronavirus Relief

courtesy of Aberdeen SBDC News and Notes email

Well, the last couple of weeks have been a whirlwind of activity for businesses, bankers and government program delivery systems. By now, you have likely heard that some of the specials funds for small businesses have been exhausted. There are discussions ongoing and many are hopeful that there will be additional funds committed to these programs so stay tuned. Here's an updates on what we know as of today!

EXPANDED UNEMPLOYMENT BENEFITS Starting 4/20/20, the SD Department of Labor will begin accepting applications from business owners under the Pandemic Unemployment Assistance (PUA) Program. Weekly benefits will include calculated state benefits plus $600 in federal benefits for up to 4 months (July 31, 2020). Visit SD Department of Labor to learn details about how to apply and the documentation required.

SMALL BUSINESS RELIEF FUND The Governor's Office of Economic Development is administering a $10.5 million loan pool to offer 0% interest loans to businesses impacted by the COVID-19 pandemic. Loans range from $5,000 to $75,000 for a max of three months of operating costs. Businesses must have been in operation by March 1 and have 250 or fewer employees. Details and application can be found at sdgoed.com/covid-19/.

SBA DISASTER LOAN and GRANT (Currently Suspended) The Economic Injury Disaster Loan (EIDL) provides cash flow to allow small businesses to cover operating costs while experiencing decreasing sales. The $10,000 advance will be prorated based on $1,000 per employee. Processing of submitted applications is underway, however many local applicants are still waiting for a response to and funding of their applications submitted prior to the funding lapse.

PAYCHECK PROTECTION PROGRAM (Currently Suspended) This program is deployed through your local SBA approved lender and is designed to help small businesses maintain their employees on staff during the pandemic. National lenders have also signed on including Intuit, PayPal and Square for those who may not have a local bank to work with. See more at the SBA website.

OTHER FEDERAL RELIEF

DEBT RELIEF FOR SBA BORROWERS SBA will cover loan payments for existing SBA borrowers with standard SBA 7(a), 504, or microloans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out an SBA loan by September 27, 2020. Does not apply to PPP loans or SBA disaster loans.

EMPLOYEE RETENTION CREDIT A refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is not available to employers receiving assistance through the Paycheck Protection Program. The credit is provided through December 31, 2020.

EMPLOYER PAYROLL TAX DEFERRAL Taxpayers can defer paying the employer portion of certain payroll taxes through the end of 2020 (beginning with April taxes). All 2020 deferred amounts are due in two equal installments, one at the end of 2021, the other at the end of 2022.

PRIVATE FUNDING PROGRAMS

Facebook Grants – A pledge of $100 million to small business grants and advertising credits. Learn more at www.facebook.com/grantsforbusiness.

Save Small Business Fund - (currently suspended) U.S. Chamber of Commerce Foundation, with founding partner Vistaprint, has launched a grant program to provide $5,000 grants to small employers in economically vulnerable communities impacted by the coronavirus pandemic. Visit savesmallbusiness.com to learn more.

To visit the South Dakota Small Business Development Center, visit the South Dakota Business Help website https://sdbusinesshelp.com/.

Last updated 4-22-2020

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