COVID Relief Still Available for Small Businesses
The absolute worst of COVID might be over, but COVID isn’t done – and neither is the pain it has inflicted on a large number of small businesses.
Fortunately, those firms still have access to some aid.
Some of the major sources of small business COVID relief have lapsed. The Paycheck Protection Program (PPP) loan program lapsed on May 31. The Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund have both stopped accepting applications, too.
But while we’re more than a year and a half into the pandemic, a few sources of COVID relief persist. If you’re a small businesses that still needs a hand, read on as we explore some of these programs.
Economic Injury Disaster Loans (EIDL)
The COVID-19 Economic Injury Disaster Loan (EIDL) program is available to small businesses and nonprofits in all 50 states, the District of Columbia and American territories.
In EIDL, the Small Business Administration issues 30-year loans of up to $2 million. The money can be used to make regular payments for operating expenses and to pay off business debt, regardless of whether that debt was incurred in the past or will be in the future.
Small businesses will pay a fixed interest rate of 3.75%, while nonprofits will pay a fixed 2.75%. Payments are deferred for the first two years, then must be paid off across the next 28 years of the loan.
As of this writing, EIDL is expected to run until all funds are distributed or until Dec. 31, 2021 — whichever comes first.
EIDL Advances
Also still available are Targeted EIDL Advances and Supplemental Targeted Advances.
The Targeted EIDL Advance is a $10,000 infusion of capital that doesn’t have to repaid. Applicant businesses must be in a low-income community; demonstrate a 30%-plus reduction in revenue during any eight-week period beginning March 2, 2020, or later; and have 300 or fewer employees.
Supplemental Targeted Advances are a similar $5,000 payment meant for exceptionally hard-hit small businesses. To qualify for a Supplemental payout, businesses must come from a low-income community; be able to prove a 50% economic loss during the aforementioned period; and have 10 or fewer employees. To be considered for this COVID relief, a business must first complete a Targeted EIDL Advance application.
Employee Retention Credit
The Employee Retention is a payroll tax offset that lets small businesses recoup as much as $7,000 per employee per quarter. And thanks to the American Rescue Plan, the ERC will be available through at least December 2021.
To be eligible, a small business must have suffered a minimum 20% decline in gross receipts during a single quarter.
Paid Leave Credit
Employers have just a little bit of time left to claim the Paid Leave Credit. In short, small and midsize businesses can collect dollar-for-dollar tax credits for up to $5,000 in wages if it offers paid leave to employees who are sick or quarantining. But this COVID relief expires soon: Businesses can only claim the credits for wages paid through the end of September.
State COVID-19 Relief
Individual states have also offered up varying amounts and types of COVID-19 relief. You’ll want to see whether your own state still provides any sort of small business aid, but here are a few examples to give you an idea of what’s available:
If you’re doing all you can to make your numbers add up, consider bringing in someone who specializes in numbers. McManamon & Co. offers a number of services to small- and midsize businesses, including accounting and tax services — areas in which our seasoned professionals can help you achieve meaningful savings over the long term. Reach out to us at 440.892.8900 or contact us online today.
Tags: McManamon, McManamon & Co., small business, small business finances | Posted in McManamon & Co., small business, Small business finances