COVID 19 Loans/Grants for Business Owners
Below is a list of the major federal programs available to business owners. Your individual state/community might have more.
SBA Economic Injury Disaster Loan and Loan Advance:
Business owners in all states qualify to apply for this. This includes sole proprietors/independent contractors. The information required to apply is basic and takes just a few minutes. The terms are long and the rates are low. If you need to borrow, this is a great place to start. The loan advance portion of this is $10,000 that can be in your bank with in days of getting approved and it does not have to be paid back.
Apply for this loan here:
https://www.sba.gov/page/disaster-loan-applications
SBA Paycheck Protection Program:
This is a fantastic program for employers that are retaining staff. The amount you can receive is equal to 2.5 times your average monthly payroll, and as long as you use at least 75% on wages within 8 weeks or receiving the loan, the entire amount is forgiven. To apply for this funding you have to go through a participating SBA lender, you cannot apply directly on the SBA site. Business owners should first contact their banking institution to see if they are processing these applications. If not, most major banks, including Wells Fargo, participate. Banks will start accepting applications for this program on Friday April 3, and they are on a first come first served basis, so this should be the first thing on the priority list right now. Every bank will have a different process for submitting the application so make sure you find out how yours will be accepting them. Wells Fargo will have an online portal through which to apply. We will update this post to include a link to that as soon as it is available (we have no affiliation with, and do not personally endorse Wells Fargo). Please note that if you receive a SBA loan, you cannot take part in this program as well.
In order to be prepared with the information you will need to apply for this, you can print out and complete the sample application here:
https://www.sba.gov/document/sba-form--paycheck-protection-program-ppp-sample-application-form
Employee Retention Credit:
This is a credit that reimburses employers for 50% of wages payed to employees between March 12 and December 31 2020, so even if you have currently closed your business, if you paid wages after March 12, you qualify. The max credit is $10,000 and it does not have to be paid back. There is a requirement that your gross receipts for the quarter in which you claim the credit must be down at least 50% compared to that quarter last year. This credit is claimed by reducing your current payroll tax deposit payments. Contact your payroll processor/administrator to make sure you are getting this credit. More info can be found here:
Paid Sick/Family Leave Refundable Credit:
If you had an employee that missed work due to COVID 19 (whether this was because they were ill, had symptoms of being ill, had to care for a child due to lack of daycare, or many other reasons) and you continued to pay them, you are entitled to a credit of 100% of those wages (subject to certain limits). This is another credit generated through payroll remittance, so get with your payroll admin to make sure you get this if you qualify.
Deferral of Employer Payroll Taxes:
Employers can now hold on to their portion of employer payroll taxes (Social Security and Medicare). This is not a grant, and has to be paid back starting in 2021 (half in 2021 and half in 2022). Please note that if you get funding under the Paycheck Protection Program above, you are not eligible for this extension as well.