COVID-19 has affected the world much more than initially anticipated. A lot more businesses are being affected than originally thought with the majority having to close down. Some are staying open for now by using janitorial services in order to ensure the required cleanliness standards are kept to help workers and customers feel safe. Nonetheless, some businesses require more support now than ever before. As a result, many people are using sites like GoFundMe to support those who have been worse affected financially and it is nice to see communities pull together and support each other. Even those businesses have survived and remained open must ensure they’re following government guidelines and that they are giving their workers the proper equipment – like providing them with an n95-mask or other protective clothing. These businesses have an obligation to look after their staff at this time, including providing PPE, offering financial support, ensuring that (where possible) jobs aren’t lost, and informing workers at risk of the Coronavirus what they should and shouldn’t be doing to protect themselves and others.
As we navigate the ongoing impact of the Coronavirus, we are assisting our clients who are suffering from the loss of clients/customers during this time. Below are several options for assistance currently available for small businesses in addition to information being given by the Maryland Department of Commerce and the CDC. As more resources become available we will update this list.
- Sales and Use Tax in Maryland:
- Businesses who paid their Maryland and Sales Use taxes for March early may request a refund of their payment by emailing taxpayerrelief@marylandtaxes.gov or by calling 410-260-4020
- SBA – Disaster Loan Assistance Business Disaster Loans – https://www.disasterassistance.gov/get-assistance/forms-of-assistance/4479
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- Businesses of all sizes, as well as private non-profit organizations, may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, and inventory and other business assets.
- In some cases, SBA may be able to refinance all or part of a prior mortgage or lien. We may also be able to increase the loan up to 20% of the confirmed physical losses.
- You could use the loan increase to make improvements that reduce the risk of damage by future disasters. This could include improvements like retaining walls, seawalls, sump pumps, safe rooms, and storm shelters.
- The SBA offers Economic Injury Disaster Loans (EIDL) up to $2 million to help meet working capital needs caused by the disaster. The program limit for business loans is $2 million. This applies to all combined funding paid to a business and its affiliates for each disaster.
- To qualify, your business or private non-profit organization must have physical damage or economic harm and be located in a declared county.
- SBA – Economic Injury Disaster Loans – https://disasterloan.sba.gov/ela/Information/EIDLLoans
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- The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
- The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan.
- A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.
- Facebook – Small Business Grants Program – https://www.facebook.com/business/boost/grants
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- Facebook announced $100 million in grants for small businesses in a blog post on March 17.
- They are offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where they operate.
- These grants can be used to keep your workforce going strong, help with rent costs, connect with more customers, and cover operational costs.
- They will share more details as they become available. You can sign up to receive updates in the link provided.
- IRS – Coronavirus Tax Relief – https://www.irs.gov/coronavirus
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- The Treasury Department and IRS just announced a three-month delay for any tax payments owed up to $1 million.
- Returns still need to be filed by April 15, 2020 but will have until July 15 to pay.
- This will apply to individual tax returns but should also cover many pass-through entities and small businesses.
- American Express Financial Hardship – https://thepointsguy.com/news/amex-waiving-interest-late-fees-accounts-requesting-covid-19-relief/
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- Amex is evaluating accounts on a case-by-case basis under its Financial Hardship Relief program to provide support for cardholders impacted by Coronavirus.
- Interest rates may be lowered to rates as low as 0%, and you may receive a waiver on late and other account fees.
- If you accept the relief, your accounts are frozen and may not be used further until they are paid off. Your Membership Rewards points are also frozen and cannot be used.
- The issuer may notify the credit bureaus that your account limits were lowered.
- American Express Working Capital – https://www.americanexpress.com/us/business/financing/working-capital-terms/index.html
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- Amex business cardholders can enroll with no credit check and get ongoing access to funds used for vendor payments between $500 and $150,000 with repayment terms of 30, 60 or 90 days.
- These charge a fixed fee between 0.6% and 5.25%.
- Once enrolled, easily add vendors by providing their business and bank information. For your protection, they may need up to an additional 2 business days to verify the vendor information you provide.
- Amex will send payment to your eligible vendor via ACH within 2 business days and make it clear the payment came from your business.
- The amount you requested plus your fixed fee are auto-debited from your bank account at the end of the term.
- Request to pay as many eligible vendors as you want, as many times as you want up to your available borrow amount.
- Chase – Fee and Interest Relief – https://www.chase.com/digital/resources/coronavirus
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- You can call the number on the back of your card and ask to speak with an account representative about the possibility of relief from fees and interest.
- Several people have reported success in having interest and late fees waived due to hardship related to COVID-19.
- They will also help you prepare and manage through potential business disruptions.
We will continue to update this information as more programs become available.