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COVID-19 Helpful Information and Resources
SBA Disaster Loans
Economic Injury Disaster Loan:
- Loans are up to $2 million
- Term rate is 30 years
- Interest rate is 3.7% for businesses or 2.75% for non-profits
- First payment is deferred for a full year from the date of the note
- No loan fees, guarantee fees, or prepayment fees
- Must have under 500 employees
- Sole Proprietors with no employees are eligible
- Must be a non-governmental agency
- Must have been in business before 01/01/2020
Where to Apply:
FMLA & Sick Pay Credits
Families First Coronavirus Response Act:
- The United States has enacted the Families First Coronavirus Response Act, which will require employers with fewer than 500 employees to provide paid leave to employees who are impacted by COVID-19 and offer tax credits to employers that do so. The law expires on December 31, 2020.
- Paid Leave for Workers and Tax Credit for Small and Midsize Businesses
- Families First Coronavirus Response Act: Q & A
Paycheck Protection Program:
- Most important provision in the new stimulus bill for most small businesses
- This is a SBA Loan Program, similar to the SBA 7(a) loan
- 100% guaranteed by the SBA
- Available to businesses with less than 500 employees, and certain businesses with less than 1,500 employees
- Maximum loan amount: $10 million
- Maximum interest rate: 4%
- No personal guarantee or collateral needed for the loan
Loan Proceeds are Forgivable:
- Payments for payroll costs, mortgage interest, rent, & utility
- This is covering an eight week period from the origination of the loan
- Must continue paying employees within 25% of the pre-economic injury levels
- Payroll costs eligible are limited to compensation levels under $100,000
How to Apply:
- Apply with your bank.
- Likely needed documentation includes:
- 3 Years Business and Personal Tax Returns
- 2019 941s, 940s or 944
- Last 12 months payroll reports
- 1099s for 2019 Independent Contractors that would otherwise be employees for your business (not for services)
- Documentation showing total of all health insurance premiums paid by company owners under group health plans
- Documentation of the sum of all retirement plan funding that was paid by the company owner (401k match, PSP)
State of Illinois Small Business Relief
Governor Pritzker announced new programs on March 25th to help small businesses affected by COVID-19. For more information, visit: Emergency Small Business Grants and Loans Assistance. The following sections include a brief overview:
Hospitality Emergency Grant Program (restaurants, bars and hotels)
- This is specifically for bars, restaurants and hotels. It is valid for bars and restaurants who generated less than $1 million in revenue in 2019, hotels less than $8 million. You must have a valid license to apply.
- This is a GRANT, to be used for working capital to support payroll, rent, accounts payable, job training, retraining and technology to support shift of operations to pick up and delivery.
- Apply by 5:00 pm on April 1st. This will be awarded based on a lottery system. Businesses that are selected will be notified on April 4th.
- Amounts awarded are up to $10,000 for bars and restaurants whose revenue is under $500K, up to $25,000 for revenue $500K to $1 million, and hotels with less than $8 million can receive up to $50K
- Apply Online
Illinois Small Business Emergency Loan Fund (DCEO)
- This Fund is available through DCEO and Illinois Department Department of Financial & Professional Regulation (IDFPR) with loans up to $50,000.
- Businesses outside the City of Chicago with fewer than 50 employees and less than $3 million in revenue in 2019 are eligible to apply.
- This is a five-year loan with the first payment due in six months.
- Interest rate is TBA, but will be below market rate.
- To apply, complete an interest form
- There is a similar program for City of Chicago: COVID-19 Chicago
Downstate Small Business Stabilization Program
- This Fund supports small businesses in downstate and rural counties across Illinois.
- This Fund will offer small businesses of up to 50 employees the opportunity to partner with their local government to obtain grants of up to $25,000 in working capital.
- These grants will be offered on a rolling basis.
- How to apply: businesses should work with their local governments to submit applications. The program Guidebook and Application materials can be found here.
Sales Tax Deferral – For All Registered Illinois Retailers Operating Eating and Drinking Establishments
Income Tax – extended 04/15 deadline to 07/15
- Interest and penalties will not accrue until 07/16/20
- Underpayment interest will not apply to calendar 2019 income/franchise tax returns or returns with a due date of 04/15/20
- No underpayment interest on pass-through withholding tax returns due 04/15/20
- First estimated payment for income/franchise tax is extended to 07/15/20
- To move a payment already scheduled, call 608-266-2772 to cancel the payment. Payments cannot be rescheduled. You can also go online at: https://tap.revenue.wi.gov/pay/
- No extension for contributions to Wisconsin college savings accounts
- Contributions to IRAs are allowed up to 07/15/20
- Contributions to HSAs are allowed up to 07/15/20
- You may request a one month extension to file a withholding deposit report – done via My Tax Account or email DORRegistration@wisconsin.gov. Email must include taxpayer name, address, id number, and reporting period for which the extension is requested. This is not an extension to pay; interest will be accrued.
- Pass-through payments on an extended return are due 02/15/21
- The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest disaster federal loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19).
- Where to apply: Wisconsin SBDC
Sales Tax Deferral
- Sales Tax – Extension to file returns due 03/31/20 to 04/30/20 and due 04/30/20 to 06/01/20
- No late filing fees or penalties if returns are filed by 04/30 and 06/01
- 12% interest will be accrued vs. 18% unless legislature changes the law to waive the interest
- Request needs to be sent to: DORRegistration@wisconsin.gov
- Wisconsin Department of Revenue Informational Bulletin