COVID-19 Business Resources
(as of May 14, 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.
The IRS announced on April 14 that the deadline for nonprofit tax filings will also be extended to July 15, 2020. This applies to form 990 and 990-T that would normally be due between April 1 and July 15. Be sure to still check you state filing requirements as the state deadline may not have changes.
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 program funding was extended and applications are currently being accepted.
The Treasury has set up this site with the current information that is available to the public.
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. the Economic Injury Grants are a $10,000 advance paid to qualified applicants to the loan program that do not 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, you may only defer their payroll tax payments up until their PPP loan is forgiven. Once a PPP loan is forgiven by the bank, recipients will no longer be eligible to defer employer FICA payments.
The Unemployment provisions in the CARES Act will provide states with funding to add $600 per week to every unemployment recipient. 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%.
National Endowment for the Arts Funding The NEA will distribute $75 million in disaster assistance to arts organizations. Full information about the program which is open to current or recent NEA grantees can be found here
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 If your organization receives federal funds you will want to keep an eye out for updated regulations that are being adjusted in response to the coronavirus outbreak and resulting shut-downs. OMB has issued 3 memos 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) 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
State Resources Gusto has set up this page with links to each state's COVID 19 resource website. Use this to find resources in your state.
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.