COVID-19 Business Resources
(as of August 11, 2020)
We will be updating this document as new information becomes available.
We are also providing links to our key sources so you can find the most up-to-date information.
Executive Order Payroll Tax Deferral signed August 9, 2020
An Executive Order was issued ordering the Treasury to set up the option for payroll tax deferrals from September 1 - December 31, 2020. The Treasury Department is expected to issue regulations on this program prior to September 1. In the meantime, we are advising employers to make no commitments about the order until more information is available.
Federal Funds Resources:
The CARES Act passed on March 27, 2020 and the Families First Coronavirus Response Act passed March 18, 2020 have a number of provisions to help nonprofits.
The Paycheck Protection Program is a loan program to provide forgivable loans to support payroll and occupancy costs. The SBA will be accepting applications for the program until August 8.
If you have not already applied and need to find a bank, this site is tracking information including a list of lenders identifying banks that are still accepting applications.
If you have received funds under the PPP Program, click here to go to our page with information on how to manage your loan and maximize forgiveness.
The general assistance phone line for SBA is 800-827-5722.
Economic Impact Disaster Loans (EIDL) and Economic Injury Grants EIDL loans are low-interest loans which usually issued by SBA after a natural disaster. This program has been opened up to nonprofits impacted by the COVID-19 pandemic. The loans are low-interest loans that can have a long term (up to 30 years) and require collateral for loans over $25,000, so they are not for every organization. SBA is no longer issuing the EIDL advances which were a portion of the loan that didn't have to be repaid.
Nonprofits can apply for EIDL loans directly on the SBA website. You can find the application here . Note that while nonprofit organizations to not have "owners" the online system will require you to enter an "owner" with their social security number in order to submit the applications. We recommend that you submit an application for this loan and grant program as soon as possible. SBA has this phone line to help applicants for this program: 800-659-2955.
Employer FICA tax extensions to pay: The CARES Act allows employers who are shut down or have lost 50% of their revenue to defer payment of the employer portion of the social security tax (6.2% payroll). The IRS issued this guidance . and this article provides a useful overview. Your payroll service should provide you with this option now. This is a good option for companies facing short term cash flow issues because it is, in effect, a 0% interest loan. 50% of the deferred amount will be due December 31, 2021 and 50% by December 31, 2022.
Note that the IRS has issued form 7200 to allow employers to receive tax credits in advance of the quarterly 941 filing. Click here for more information on Form 7200
Note for PPP loan recipients: If you have a PPP loan, the PPP Flexibility Act passed June 5, allows you to defer payroll taxes in addition to receiving a PPP loan. This is an update to the original CARES act that did not allow one company to use both.
The Unemployment provisions in the CARES Act will provide states with funding to add $600 per week to every unemployment recipient until the end of July 2020. The law also expands who can apply for benefits to include self-employed contractors.
Paid Sick and FMLA leave: The Families First Coronavirus Response Act requires employers with less than 500 employees to provide paid sick and FMLA leave through the end of 2020. The government will provide payroll tax credits to support the cost. The law went into effect on April 1, 2020. Requirements and resources are posted on this Department of Labor site. Information regarding the tax credits available to support the cost of this paid leave requirement can be found on the IRS website here. Payroll providers are rolling out tools to allow employers to claim the tax credits.
The Labor Department has also issued this notice that employers are required to post in a conspicuous place on its premises to send by email or post on an internal or external company website.
Note that the Interim Final Rule clarifies that employers with less than 50 employees (ie. 50 people, not 50 FTEs) may be exempt from the paid FMLA for employees taking time to care for a child under certain conditions. There is no exemption from the paid sick leave if the employee or a person they care for is diagnosed with COVID-19 or under quarantine due to symptoms. Please seek legal counsel regarding your obligations under this act if you seek to exempt your organization from the requirement.
Charitable Contribution Provisions The CARES Act provides that all US taxpayers will be able to deduct $300 in charitable contributions in 2020 even if they take the standard deduction. It also lifts the maximum contribution deduction for individuals who itemize from 60% to 100% of Adjusted Gross Income and corporations from 10% of taxable income to 25% and food donations from 15% of taxable income to 25%.
Employee Retention Payroll Tax Credit For organizations that are not awarded funds under the Paycheck Protection Program and are closed by the government OR experience at least a 50% drop in income, there is the ability to get a payroll tax credit of up to $5,000 per employee (section 2301 of the Cares Act). Details of the program can be found here.
OMB Guidance to Federal Agencies OMB has issued guidance to federal agencies allowing them to grant leniency on a number of important issues during the state of emergency. Some examples include:
Ability to use federal funds to pay workers unable to perform duties due to the state of emergency
Ability to use funds for COVID-19 related expenses
Ability to reallocate funds without prior approval
Extension of reporting deadlines (including financial reports extended 3 months and the Single Audit deadline extended 6 months for reports due from March to June and 3 months for reports due July to September) as well as no-cost extensions for grant awards ending between March and December 2020.
You can find the full text of the memos here
The Texas Department of Economic Development has set up this web page with information on state resources. Texas Employers also have the option of signing up for updates on this site.