Other Relief Programs
SBA EIDL (SBA Economic Injury Disaster Loan and GRANT):
(“EIDL”)The Small Business Administration is easing requirements for Economic Injury Disaster Loans (“EIDL”); these loans, up to $2 million, are available with interest rates of 3.75% for businesses and 2.75% for nonprofits affected by the COVID-19 pandemic. The principal and interest payments on EIDL Loans will be deferred up to 4 years. PLUS, the CARES Act has specifically created a new emergency EIDL GRANT of $10,000 for small businesses that apply for an SBA economic injury disaster loan (EIDL). IMPORTANT: the EIDL GRANT does not need to be repaid even if the applicant is denied an EIDL LOAN. A small business may apply for both an EIDL GRANT and a Paycheck Protection Program (“PPP”) Loan; the $10,000 EIDL GRANT will simply be subtracted from the amount of the Paycheck Protection Program Loan that is forgivable.
www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
You can receive BOTH the PPP and EIDL, however cannot use funds from both loans for the same purposes. Since the PPP and EIDL cannot be used towards the same expenses, the best practice is to use the PPP for any payroll expenses and the EIDL for all other working capital. This will ensure that you can get the PPP forgiven while still covering your business expenses.
Also, you can NOT use EIDL funds for certain ineligible expenses such as: * Dividends and bonuses * Disbursements to owners * Repayment of stockholder/ principal loans * Expansion of facilities or acquisition of fixed assets * Repair or replacement of physical damages * Refinancing long term debt * Relocation
Employee Retention Tax Credit:
If a business opts not to take advantage of the Payroll Protection Program (“PPP”) described above, then it may receive an Employee Retention Tax Credit. The CARES Act has crafted a payroll tax credit program, if the business retains its employees during the pandemic. The business is eligible if the company has been fully or partially suspended as a result of a government order or has experienced a 50% reduction in quarterly receipts over a same comparable quarter from 2019 as a result of the crisis. For businesses with 100 or fewer full-time employees, they may claim a credit for wages paid to all of their employees, up to $10,000 a person. For businesses with more than 100 employees, they may claim a credit for those employees who are furloughed or face reduced hours.
https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act
Employee Retention Payroll Tax Deferral:
The CARES Act allows employers to defer paying the employer-portion of the 6.2% of social security tax through the end of 2020. This deferral is not available to businesses if they participate in the SBA Payroll Protection Program (“PPP”) listed above. The employer-portion of the deferred amount will now be due in two installments – 50% is due before December 31, 2021, and the other 50% is due before December 31, 2022.
Business Tax Relief:
The CARES Act provides several forms of tax relief for businesses, including greatly expanding tax deductions for interest from 30% to 50% and expanding the ability to deduct losses from taxable income (modifying NOL carrybacks and carry-forwards). Some industries, such as retailers, restaurateurs, and hotels, will be able to immediately deduct property improvements from their taxes. The CARES Act also permanently fixes the qualified improvement property (QIP) error in the 2017 tax law, so that businesses with QIP investments are now entitled to 100% recovery over 15 years.
NJ - Garden State Relief Fund – Working Capital Loans:
NJ - THRIVE South Jersey Fund:
NJ - NJEDA Entrepreneur Guarantee NOW ACCEPTING Applications
(“EIDL”)The Small Business Administration is easing requirements for Economic Injury Disaster Loans (“EIDL”); these loans, up to $2 million, are available with interest rates of 3.75% for businesses and 2.75% for nonprofits affected by the COVID-19 pandemic. The principal and interest payments on EIDL Loans will be deferred up to 4 years. PLUS, the CARES Act has specifically created a new emergency EIDL GRANT of $10,000 for small businesses that apply for an SBA economic injury disaster loan (EIDL). IMPORTANT: the EIDL GRANT does not need to be repaid even if the applicant is denied an EIDL LOAN. A small business may apply for both an EIDL GRANT and a Paycheck Protection Program (“PPP”) Loan; the $10,000 EIDL GRANT will simply be subtracted from the amount of the Paycheck Protection Program Loan that is forgivable.
www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
You can receive BOTH the PPP and EIDL, however cannot use funds from both loans for the same purposes. Since the PPP and EIDL cannot be used towards the same expenses, the best practice is to use the PPP for any payroll expenses and the EIDL for all other working capital. This will ensure that you can get the PPP forgiven while still covering your business expenses.
Also, you can NOT use EIDL funds for certain ineligible expenses such as: * Dividends and bonuses * Disbursements to owners * Repayment of stockholder/ principal loans * Expansion of facilities or acquisition of fixed assets * Repair or replacement of physical damages * Refinancing long term debt * Relocation
Employee Retention Tax Credit:
If a business opts not to take advantage of the Payroll Protection Program (“PPP”) described above, then it may receive an Employee Retention Tax Credit. The CARES Act has crafted a payroll tax credit program, if the business retains its employees during the pandemic. The business is eligible if the company has been fully or partially suspended as a result of a government order or has experienced a 50% reduction in quarterly receipts over a same comparable quarter from 2019 as a result of the crisis. For businesses with 100 or fewer full-time employees, they may claim a credit for wages paid to all of their employees, up to $10,000 a person. For businesses with more than 100 employees, they may claim a credit for those employees who are furloughed or face reduced hours.
https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act
Employee Retention Payroll Tax Deferral:
The CARES Act allows employers to defer paying the employer-portion of the 6.2% of social security tax through the end of 2020. This deferral is not available to businesses if they participate in the SBA Payroll Protection Program (“PPP”) listed above. The employer-portion of the deferred amount will now be due in two installments – 50% is due before December 31, 2021, and the other 50% is due before December 31, 2022.
Business Tax Relief:
The CARES Act provides several forms of tax relief for businesses, including greatly expanding tax deductions for interest from 30% to 50% and expanding the ability to deduct losses from taxable income (modifying NOL carrybacks and carry-forwards). Some industries, such as retailers, restaurateurs, and hotels, will be able to immediately deduct property improvements from their taxes. The CARES Act also permanently fixes the qualified improvement property (QIP) error in the 2017 tax law, so that businesses with QIP investments are now entitled to 100% recovery over 15 years.
NJ - Garden State Relief Fund – Working Capital Loans:
- Eligibility: NJ based small businesses with 3 to 50 employees.
https://www.newjerseycommunitycapital.org/initiatives/garden-state-relief-fund - No fee loan, no repayment for 6 months. Remainder of loan is 3% over 36 month term. Applications processed in 14 days. This can provide working capital.
- Print this two page application:
https://www.newjerseycommunitycapital.org/sites/default/files/Small%20Business%20Emergency%20Loan%20Application_COVID19_FINAL_0.pdf - Email the completed application to: Relief@NJCLF.com
NJ - THRIVE South Jersey Fund:
- This is the same working capital loan as above BUT if your business is in Gloucester, Salem, Cumberland or Western Atlantic Counties, there is no interest on the 36 month loan. Details here:
https://www.newjerseycommunitycapital.org/initiatives/thrive-south-jersey
NJ - NJEDA Entrepreneur Guarantee NOW ACCEPTING Applications
- If you are a private company with at least one equity investor, have less than 25 employees, are based in NJ and are in one of the fields identified by Governor Murphy as Food or Beverage, Film or Digital Media, Advanced Manufacturing, Information/Technology, Life sciences, Finance and Insurance, or Clean Energy, then you should consider this financing opportunity which just OPENED!
