*Please note that the information below is not, nor should it be construed as, legal advice. We encourage you to consult with your attorney, financial institution, or accountant.
Second Coronavirus Relief/Stimulus Bill
By now, many of you are already familiar with the first Coronavirus relief package - the Coronavirus Aid, Relief, and Economic Security Act (CARES) – which was signed into law on March 27th, 2020. This legislation created the Paycheck Protection Program (PPP), authorized direct payments to individuals from the IRS, and much more.
We understand that many of you have heard that Congress has been discussing a potential second relief package and that you may be looking for more information.
At this point in time, no bill has been introduced that has passed both the House and Senate. We will continue to monitor any future relief packages and will distribute information in a timely manner via our Daily Dose e-Newsletter and website. Check back frequently.
New York Forward
For employers and employees, the most up-to-date information on Coronavirus in New York State can be found on the New York Forward website. Check back often as the website is updated daily.
Paycheck Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
The U.S. Small Business Administration (SBA) will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.
Deadline to Apply
The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.
Who Can Apply?
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Sole proprietors, independent contractors, and self-employed persons
- 501 (c)(3) nonprofit organizations and 501(c)(19) veterans organizations
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
How to Apply:
These loans can be accessed through SBA approved lenders (federally insured banks and credit unions). It is our understanding that the following member banks and credit unions are SBA participating lenders but you should first consult with your lender to determine if they are participating in the program.
- Adirondack Bank
- Adirondack Regional Federal Credit Union
- Champlain National
- Community Bank NA
- Dannemora Federal Credit Union
- Glens Falls National Bank
- TD Bank
- SeaComm Federal Credit Union
To find participating lenders near you, click here.
For more information on the Paycheck Protection Program, click here.
To access the PPP application, click here.
To access the PPP forgiveness applications, click here.
Economic Injury Disaster Loans
The Economic Injury Disaster Loan (EIDL) is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments.
Deadline to Apply
As of June 15th, the SBA has resumed accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, nonprofits, and agricultural businesses. There is no official deadline to apply; applications will continue to be accepted until funding has been exhausted.
Note on the EIDL Advance: All available funds for the EIDL Advance program have been allocated. By law, SBA is not able to issue EIDL Advances once program funding has been obligated and is no longer available. EIDL loan applications will still be processed even though the Advance is no longer available.
How the EIDL Advance Worked: The amount of the EIDL Advance was determined by the number of employees indicated on the EIDL application at $1,000 per employee, up to a maximum of $10,000. The EIDL Advance does not have to be repaid. Recipients did not have to be approved for an EIDL loan in order to receive the EIDL Advance, but the amount of the loan advance is be deducted from total loan eligibility.
Who Can Apply?
- Small business owners with not more than 500 employees
- Agricultural businesses with not more than 500 employees
- Sole proprietorships, with or without employees, and independent contractors
- Agricultural businesses with 500 or fewer employees
- Private non-profit organization with 501 (c), (d), or (e) IRS designation
How to Apply:
Eligible small businesses, private non-profits, and agricultural businesses can apply for the Economic Injury Disaster Loan online, via the SBA web-portal system here.
For more information on the EIDL, click here.
Local & Regional COVID-19 Loan Funds
We’ve all heard about the Paycheck Protection Program (PPP) & the Emergency Injury Disaster Loans (EIDL) and many businesses have applied for assistance through those federal programs.
But here in the North Country we’ve always come up with creative solutions when disaster strikes and this crisis is no different. Several North Country organizations have created loan funds to help fill the gaps left between the assistance available through the U.S. government and the needs of local businesses. We’ve listed some below:
The funds include:
- Franklin County Small Business Relief Loan Fund: $5,000-$25,000, base interest rate 4.25%, principal and interest moratorium for first 3 months then interest only for subsequent 6 months, open to businesses and 501(c)3 entities with under 100 employees, available in Franklin County only
- Lake Champlain-Lake George Regional Planning Board COVID-19 Micro-Loans: Working Capital, $5,000-$25,000, 5% fixed rate interest, first 6 months interest only, 24-60 month loan term, must show job retention, available in Clinton, Essex, Hamilton, Warren and Washington counties.
- North Country Alliance COVID-19 Emergency Business Relief Program: Maximum loan $25,000 based on demonstrated need for 6 months working capital, 5% interest, principal and interest moratorium for first 3 months then principal and interest only for subsequent 6 months, open to for-profit and not-for-profits entities with under 100 FTEs, available in Clinton, Essex, Franklin, Hamilton, Jefferson, Lewis, and St. Lawrence counties.
These are just the basics of the loan programs. Contact information and more about the terms, benefits, and eligibility criteria for each type of loan are listed on the fact sheets. Thank you to all of these organizations for quickly putting together these assistance programs for our small businesses and not-for-profit organizations.
New York Forward Loan Fund
The New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE. The NYFLF targets the state’s small businesses with 20 or fewer full-time equivalent (FTE) employees (90% of all businesses), nonprofits and small landlords that have seen a loss of rental income. The NYFLF is specifically timed to support businesses and organizations as they proceed to reopen and have upfront expenses to comply with guidelines (e.g., inventory, marketing, refitting for new social distancing guidelines) under the New York Forward Plan.
Pre-applications for the New York Forward Loan Fund are now open. Priority will be given to industries and regions that have been reopened. This is not a first-come, first-served loan program. Applications will be reviewed on a rolling basis as regions and industries reopen.
For small businesses and nonprofits that are in industries and regions that have not yet reopened, you are encouraged to prepare your pre-application in advance by taking advantage of the application preparation resources available here.
- Small businesses and nonprofits must employ 20 or fewer full-time equivalent (FTE) employees;
- Small businesses must have gross revenues of less than $3 million per year;
- Nonprofits must provide direct services and have an annual operating budget of less than $3 million per year; and
- Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020.
For more information, click here.
To apply, click here.
Employee Retention Tax Credit
The Employee Retention Credit (ERTC) is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.
For more information, click here.
For a flow-chart on the program, click here.
Other Useful Links for Employers/Employees:
- IRS Information on Direct Payments to U.S. Residents
- NYS Paid Sick Leave
- Federal Employer Paid Sick Leave
- Federal Family and Medical Leave Act
- NYS DOL Unemployment Work Share
- NYS Unemployment Insurance and Pandemic Unemployment Assistance
- Link to Empire State Development web page for questions and inquiries
- Small Business Counseling - SCORE
- US Small Business Administration Guide
- FAQ regarding COVID-19 and the Fair Labor Standards Act
- OSHA Preparation Guide
Other Useful Links:
- Coronavirus Tax Relief: The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus (this page will be updated as new information is available).
- NYS Department of Financial Services Business Interruption Insurance FAQs
- Protect yourself financially from the impact of the coronavirus!
For more information on other Coronavirus related topics, visit our home page HERE.
Have questions? Let us know! Email us and we will do our best to find the answer.