On April 9, 2020, the Federal Reserve announced details of its Main Street Business Lending Program. The Fed said it will offer four-year loans to companies with 500 to 10,000 workers and less than $25 billion in revenue. The Main Street loans would be a minimum of $1 million and a maximum of either $25 million or an amount that when added to the Eligible Borrower’s existing outstanding and committed but undrawn debt, does not exceed four times the Eligible Borrower’s 2019 earnings before interest, taxes, depreciation, and amortization, whichever is less. Terms would see an interest rate equal to the Fed’s Secure Overnight Financing Rate, currently 0.01%, plus 250-400 basis points with a four-year maturity. Click Here

The CARES Act provides immediate relief to small businesses with existing SBA loans that were borrowed prior to the COVID-19 pandemic. Under this program, the SBA will cover all loan payments on these loans—including principal, interest and fees—for six months. This program will provide immediate relief to small businesses with existing SBA loans made prior to March 27, 2020. If you are seeking a subsidy for an existing loan, you should contact your existing lender. (Reference Page 6 in the following link) Click Here

The IRS Employee Retention Credit is 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. The credit is available to all employers, regardless of size. An exception is a small business that takes a small business loan.

For an FED that is an essential business, the gross receipts must be below 50% of the comparable quarter in 2019. Once the employer's gross receipts go above 80% of a comparable quarter in 2019, the business will no longer qualify after the end of that quarter.

• Instructions for IRS Form 7200 - Click Here
• IRS Form 7200 - Click Here

The U.S. Department of Labor (DOL) developed guidance for states regarding Unemployment Insurance and the relevant provisions of the CARES Act. The DOL web page is intended to provide guidance on the administration of, and eligibility criteria for, state unemployment insurance programs. Click Here

President Trump issued a nationwide emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, thereby opening up the opportunity for employers to provide tax-free assistance to employees under Section 139 of the Internal Revenue Code.

Section 139 provides that qualified disaster relief payments, from any source reimbursing or paying an individual for certain expenses in connection with a qualified disaster, are not subject to income or employment taxes (Social Security, Medicare, and federal unemployment taxes). Possible expenses could include medical expenses that are not covered by insurance (co-pays, deductibles, over-the-counter medicines), child care, tutoring services, and expenses incurred to allow the employee to work from home (personal computer, printer, supplies, internet service), caregiver services, and others.

• General Information Click Here
• 26 U.S. Code § 139.D Click Here

The Paycheck Protection Program (PPP) is designed to provide loans for small businesses to keep you in business and your workers on the payroll. You can apply for a loan through any existing SBA 7(a) lender or through any federally insured depository institution, any federally insured credit union, and any Farm Credit System institution (that is participating). You should consult with your local lender to see if they are participating. PPP will be available through June 30, 2020. SBA will forgive loans, if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

• Overview of the Paycheck Protection Program (PPP) - Click Here
• Information for Businesses Applying for PPP Loans - Click Here
• PPP Application Form for Borrowers - Click Here
• PPP Fact Sheet - Click Here
• PPP Interim Final Rule - Click Here
• PPP On-Demand Webinar - Click Here
• PPP Loan Forgiveness:
  • To Apply - Click Here
  • For More Information - Click Here