In the flurry of government relief that has been announced in the past couple of weeks, there are a variety of options available to help businesses cover their expenses and support their workers during this time. Last week, we summarized the Families First Coronavirus Response Act, which established paid sick leave and expanded FMLA for workers. The logistics of that act are becoming clearer, and the Small Business Administration has announced relief for small businesses in the form of loans. If you’re running a small business that’s impacted by the coronavirus pandemic, here’s what you need to know.
Small Business Loans
The Small Business Administration is making loans to small businesses, and states also have their own loan programs. For businesses in Florida, emergency bridge loans are available to businesses with 2 to 100 employees, and applications must be submitted by May 8 (contingent upon the availability of funds). These are called bridge loans because they aren’t intended to provide long-term relief. The goal is to provide short-term funding while businesses put other measures into place (including borrowing from other sources).
Businesses that have an established relationship with the Small Business Administration may be able to apply for express loans from the federal government under the Express Bridge Loan Pilot Program. Longer-term assistance in the form of low-interest disaster loans may allow you to repay these short-term bridge loans with a lower interest rate.
If your business requires a loan to make it through this period, we strongly recommend that you act quickly. If you haven’t completed applications for state and/or federal funding before, they tend to be similar to most government paperwork—complex and easy to misunderstand. Our team is experienced in applying for these types of loans and is actively helping businesses identify the appropriate funding source, gather the necessary information, and quickly complete all paperwork. Contact us to schedule a consultation.
Paying for the Cost of Employee Leave
With the Families First Coronavirus Act providing paid sick leave for affected employees, the IRS is creating new guidelines ensuring employers receive quick access to needed funds. Eligible employers who provide paid leave will be able to deduct the full cost against their quarterly payroll taxes. Should the amount exceed the payroll taxes, the business can file a request for accelerated payment in the form of a refund from the IRS. The IRS has stated it expects to process such requests in under two weeks and will be announcing procedural details soon.
More Tax Deadline Updates
As you’ve likely heard, the April 15 federal income tax filing deadline has been extended to July 15. First-quarter estimated taxes that would’ve been paid on April 15 are also now due on July 15. Second-quarter taxes, however, remain due June 15, which means that the two quarterly tax deadlines will fall much closer together than usual.
If you need assistance filing applications, understanding your obligations, or making a plan to pay what you owe, please contact us. We are still working at full capacity and are well-equipped to assist you.