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 Washington, DC 20005

©2020 by CFO Services Group

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Covid-19 (Cornoavirus)
Business & Employer Resources

The recent outbreak of the COVID-19 Virus (also known as the "coronavirus") has caused a massive shock to our economy.  Small businesses and small non-profit organizations will feel this effect more than any other sector.  Because this is our direct client base, we wanted to put together a list of resources that are available to you. 

 

We will be updating this page regularly so please check back frequently to get the latest information.

If you know of any other resources or any updated information, please share with us so we can post and get the word out.  We need to come together as a community to ensure our health and our economy is protected.

Email us at:  info@cfoservicesgroup.com

Coronavirus Aid, Relief, and Economic Security (CARES) Act:

Paycheck Protection Program (PPP) Loans

(info last updated March 28, 2020)

The Federal government is providing relief to small businesses and 501(c)(3) non-profit organizations that have been severely impacted by the Coronavirus (COVID-19).  The purpose of the loans is to help these businesses keep their workers employed.

The loan amount is calculated (at least in part) based on your average monthly payroll, with a maximum eligibility of 2.5 times your average monthly payroll.  The details of the exact calculation for the amount you will ultimately get are unknown to us at the moment.

The good news is that the loans can ultimately be forgiven by the Federal government IF the business maintains their employees during this period of time.  This essentially means that the business can be forgiven if it does not lay off employees or reduce wages during this time (or if it has, it restores everything back to normal by June 30).

The loans themselves will be administered through private SBA-approved lenders.

IMPORTANT:  A business cannot have both a Paycheck Protection Program Loan (PPP, through the CARES act) and an Economic Injury Disaster Loan (EIDL, through the SBA) at the same time.  If you apply for and get accepted for both, you will have to choose one.  If you already have an EIDL loan, you will have to roll your existing loan into the the new PPP loan.  Contact us to discuss your best options.

Coronavirus Aid, Relief, and Economic Security (CARES) Act:

Employee Retention Credit

(info last updated March 28, 2020)

Eligible employers that retain their employees during this pandemic can now seek additional relief.in the form of a payroll tax credit.  The credit is against the employer's Social Security tax, and is equal to 50% of qualified wages paid between 03/09/20 and 12/31/20, up to a maximum of $5,000 per employee.

An eligible employer is one that had business operations partially or fully suspected due to the Coronavirus outbreak, or who experienced a loss 50% or more of their gross receipts when compared to the prior quarter.

Furthermore, employers can delay paying their share of the Social Security tax on employees' wages from 03/27/20 through 12/31/20.  The amounts do ultimately have to be paid over to the IRS: 50% by 12/31/21 and the other 50% by 12/31/22.  Employers will not be eligible for this if they get a loan under the PPP program (above) and it is forgiven.

Small Business Administration (SBA):
Economic Injury Disaster Loan (EIDL) Program

(info last updated March 28, 2020)

The SBA will provide targeted, low-interest loans to small businesses and non-profit organizations that have been severely impacted by the Coronavirus (COVID-19).

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 

Interest rates are low (3.75% for private businesses and 2.75% for non-profits)...
and repayment periods are long (30 years).

The CARES act expanded the EIDL program, to allow small businesses to ask for an advance of $10,000 while their application is pending.  If the loan is ultimately denied or the borrower decides to get the PPP loan isntead of the EIDL loan, the $10,000 advance is forgiven.

IMPORTANT:  A business cannot have both a Paycheck Protection Program Loan (PPP, through the CARES act) and an Economic Injury Disaster Loan (EIDL, through the SBA) at the same time.  If you apply for and get accepted for both, you will have to choose one.  If you already have an EIDL loan, you will have to roll your existing loan into the the new PPP loan.  Contact us to discuss your best options.

Federal Sick Leave & Family Leave Policy
Payroll Tax Credit

(info last updated March 23, 2020)

Congress has enacted a Federal sick leave and family leave policy for employees that are affected by the coronavirus.  Employers are required to provide:
 

  • Two weeks of paid sick leave at 100% of normal pay.

  • Twelve weeks of paid family leave at 67% of normal pay.

Employers are required to pay the leave up-front, and then can apply for a credit against their payroll taxes to offset 100% of the cost.  In other words, employers will ultimately not have to bear the burden of this payment; however they will need to front the funds.

Small businesses with under 50 employees may be exempt from doing this if it will create a "financial burden" for them.  No further guidance has been given on this at this time - We await the IRS to provide further guidance.

If you need help applying for the payroll tax credit, please reach out to us.

Government of Washington DC:
Small Business Recovery Grants

(info last updated April 1, 2020)

*** APPLICATIONS ARE NOW CLOSED AS OF 6PM EST MARCH 31 2020 ***

(we are keeping this up for reference purposes)

Washington DC is now offering recovery grants for small businesses (including independent contractors) 

and non-profit organizations affected by the COVID-19 shut-down. 

A grant is money that you do NOT have to pay back (as opposed to a loan).

Eligibility:

  • Business or non-profit is located in Washington DC with a current business license

  • More than 50% of business owners, employees or gross receipts are based in DC

  • For non-profits: Your services cannot extend beyond the DMV area

  • At least 25% of revenue is lost as a result of the COVID-19 pandemic.

*** APPLICATIONS ARE NOW CLOSED AS OF 6PM EST MARCH 31 2020 ***

Government of Washington DC:
COVID-19 Response Emergency Amendment Act of 2020

(info last updated March 20, 2020)

Provides several measures of relief to businesses and individuals who reside in the District of Columbia.
Of note to businesses:

  • Businesses will be able to defer their February/March sales tax until July 20, 2020 (all businesses other than hotels and motels).

  • Prohibits evictions during the public health emergency for non-residential tenants.

  • Authorizes the Mayor to extend licenses and registrations that may be due for renewal during the public health emergency.

The bill also authorizes the Mayor of DC to create a new program to push grants out the door to small businesses, self-employed individuals, and non-profits. However, we're not certain when she will have that up and running, what the benefits will be, or how much money she will put into it.  Stay tuned on further updates.

State of Maryland

Small Business COVID-19 Emergency Relief  Loan & Grant Fund

(info last updated March 23, 2020)

This fund offers working capital to assist Maryland small businesses and nonprofits
with disrupted operations due to COVID-19. 

Maryland is providing two options for relief:
a loan (which has to be paid back) and a grant (which does not have to be paid back).

Loan Highlights:

  • Loans up to $50,000 for Maryland businesses

  • Must have 50 or fewer employees

  • 0% for the first 12 months, and 2% for the remaining 36 months.

  • Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.

Grant Highlights:

  • Grants up to $10,000 for Maryland businesses and nonprofits

  • Must have 50 or fewer employees

  • Annual revenues cannot exceed $5 Million

In all cases, business must demonstrate "demonstrate financial stress or disrupted operations" related to COVID-19.

Unemployment Benefits Guide
in the D/M/V (DC, VA, MD)

(info last updated March 28 2020)

Unemployment benefits are complicated, and the recent outbreak has made these benefits even more complex.  As an employer, you should be aware of the qualifications for unemployment that are available to your employees, should you have to reduce operations.

Here's a quick guide:

District of Columbia

  • Eligibility: Anyone who has lost their job and has worked there for 30 days or more is eligible. This also includes employees who has been quarantined or isolated by a District or federal agency, an employee who has self-quarantined or self-isolated, an employee of an employer that ceased or reduced operations due to an order from the Mayor, or one an employee whose employer has seen a reduction in business revenue resulting from this public health emergency. 

  • Reduced Hours: (nothing specified that we can find...please alert us if this is not accurate)

  • Payment: Maxed at $444 per week for 26 weeks

Virginia

  • Eligibility: Only those who have worked in Virginia over the last 18 months are eligible. A worker may be eligible if they’ve received a notice to self-quarantine and are not receiving sick or medical leave pay from their employer. They also may be eligible if they are home caring for an ill family member and are not receiving paid family medical leave from their employer. Unemployment benefits “might be available” for those who have to take time off to care for their child due to their school or daycare closing. 

  • Reduced Hours: If you are filing because of a reduction in hours, you will not receive benefits unless your gross earnings are less than your weekly benefit amount.

  • Payment:  Maxed at $378 per week for 26 weeks.

Maryland

  • Eligibility: If you have worked in a state other than Maryland sometime in the last 18 months, you are not eligible for benefits from Maryland.  You are also not eligible if you are out of work due to contracting COVID-19. Employees who self-quarantine are not eligible, though those in mandatory quarantine or those told by a public health official “may be” eligible depending on paid sick leave.

  • Reduced Hours: If your employer shuts down operations, lays off employees, or cuts hours due to the outbreak, you may be eligible as well.

  • Payment: Maxed at $430 per week for 26 weeks.

Extensions under the CARES Act:

Under the Federal CARES act, unemployment benefits have been extended:

  • Self-employed people can now apply for unemployment benefits

  • Part-time workers are now eligible to apply for unemployment

  • The amount of unemployment is increased by $600 per week.

  • Benefits are extended by 13 weeks (for a max of 39 weeks)

Facebook Financial Assistance Program
(coming soon)

(info last updated March 20, 2020)

Facebook announced a new $100 million program to help small businesses impacted by COVID-19.  Grants will be available for up to 30,000 eligible small businesses in over 30 countries. That would be an average of $3,333 per business.

 

Facebook said they will begin taking applications in the coming weeks.  They are not available as of today.  
Stay tuned on further updates.

Free Disaster Planning Session
with CFO Services Group

(info last updated March 20, 2020)

We are providing a FREE disaster planning session with a Chief Financial Officer (CFO) to any small business or non-profit organization.  We are doing this to ensure the stability of our small business community.  United we stand!

Upcoming FREE Webinars
What Are My Loan Options?
Disaster Planning In Uncertain Times (Live w/ Q&A)

Disaster Planning Tips

(on our YouTube Channel)