One North Fulton • Regarding COVID-19 (coronavirus)

SMALL BUSINESS RESOURCES

Unemployment Benefits

A business can file unemployment for their staff and encouraged to do so online. Individuals can file directly as well. Benefits are available within 48 hours to help and all online. https://www.dol.state.ga.us/fileaclaim/

 

Small Business Resources:

  • The Small Business Owners Guide to the CARES Act – Link
  • COVID-19 Navigation Guide for Small Businesses – Link
  • Frequently Asked Questions on the Paycheck Protection Program Loans – Department of Treasury – Link
  • Coronavirus Emergency Loans Small Business Guide and Checklist – U.S. Chamber of Commerce – Link
  • Disaster Loan Assistance – U.S. Small Business Administration – Link
  • What Small Businesses Need to Know – Link

Georgia Resources:

 


“Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” Summary
Distressed Sectors of Economy – $150 Billion

Established an exchange stabilization fund to provide $150B in collateralized loans and loan guarantees to industries affected by COVID-19, including Hotels.

No entity receiving assistance can increase compensation for or provide “golden parachutes” to executives for two years.

An entity is only eligible for relief if the Treasury Secretary determines its continued operations are jeopardized as a result of losses stemming directly from the Coronavirus (COVID- 19) outbreak.

Where applicable, allows the government to get an equity stake for the risk assumed in making loans and loan guarantees to the entity.

 

Small Business Loans – $300 Billion

Allows small businesses, private nonprofits, and public nonprofits to receive SBA 7(a) loans through the end of 2020.
Increased maximum loan amount from $5 Million to $10 Million.

  • For these new loans, all loan fees are waived, borrowers can defer repayment for up to 12 months, and there are no penalties for prepayment through the end of the year.
  • Loans can be used for long-term or short-term working capital; for refinancing; or to cover recurring obligations (including employee salaries, paid leave and group health care benefits, mortgage payments, rent, utilities, and other debt obligations).
  • Eligible recipients are those that were operational as of March 1, 2020 and have fewer than 500 employees for which the recipient pays payroll taxes.
  • Borrowers can get tax-free debt forgiveness for the portion of the loan used to maintain payroll (not including the cost of any paid leave for which a tax credit is allowed) and
    pay debt obligations between March 1st and June 30th, 2020, conditional upon them retaining employment and wage levels for employees making less than $33,333 over that period (or less than $100,000 last year).
  • Businesses with tipped employees can get debt forgiveness on any additional wages paid to those employees between March 1st and June 30th, 2020.
  • SBA Express Loans: Increases the maximum loan amount for an SBA Express loan from $350,000 to $1 Million. These loans currently have a much faster approval process through SBA and provide borrowers with revolving lines of credit for working capital purposes

 

Relief for Individuals, Families and Businesses

Individuals
Recovery checks up to $500 per child, $1,200 per individual and $2,400 for family. Checks go down if a taxpayer’s gross income for 2018 was $75,000 or $150,000 for joint filers. Amount completely phased out for individuals whose income exceeds $99,000 or $198,000 for joint filers. Extends Tax filing date from April 15th to July 15th.

Business Provisions
Delay of estimated tax payments for corporations until October 15, 2020.
Defers Social Security Tax payment; half paid on Dec 31, 2021 and other half on Dec 31, 2022. o 5 year carry back for Net Operating Losses.
Increase business expensing from 30% limitation to 50% of taxable income for 2019 and 2020.
Qualified Improvement Property Fix – allows for immediate expensing for qualified improvements to property.

Labor
Creates a limitation stating an employer shall not be required to pay more than $200 per day and $10,000 in the aggregate for each employee on paid family and medical leave.

Creates a limitation stating an employer shall not be required to pay more than $511 per day and $5,110 in the aggregate for paid sick leave or more than $200 per day and $2,000 in the aggregate to care for a quarantined individual or child for each employee.

Expands the authority for the Secretary of Labor to regulate to exempt small businesses with fewer than 50 employees from paid leave provisions.

Allows the Director of the Office of Management and Budget to exclude for good cause certain Executive Branch employees from the Paid Family Leave mandate.

Allows the Director of the Office of Management and Budget to exclude for good cause certain Executive Branch employees from the Paid Sick Leave mandate.

 

SBA Loan Application Information

SBA disaster assistance is now available to the entire state of Georgia. The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Georgia small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These loans can provide vital economic support to help small businesses overcome the temporary loss of revenue they are experiencing. Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

 

Department of Labor Assistance for Employees

Governor Brian Kemp and Labor Commissioner Mark Butler issued a statement regarding the Georgia Department of Labor Assisting Workers during this difficult time. Commissioner Butler is mandating that all employers electrically file a partial claim on behalf of their employees if the current situation has deemed it necessary for you to significantly reduce hours or temporarily lay off workers.

Please go to https://dol.georgia.gov/ to begin the process.