COVID-19 RESOURCE GUIDE FOR NY EMPLOYERS
ECONOMIC INJURY DISASTER LOAN PROGRAM | Up to $2M
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.
SBA EXPRESS BRIDGE LOANS | Up to $25k
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
TERMS
Up to $25,000
Fast turnaround
Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.
NYC SMALL BUSINESS CONTINUITY LOAN FUND
Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible to apply for zero interest loans of up to $75,000 to help ensure business continuity.
Eligibility:
Be located within the five boroughs of New York City
Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue Employ 99 employees or fewer in total across all locations
Demonstrate ability to repay the loan
Have no outstanding tax liens or legal judgements
Pre-Application for the NYC Small Business Continuity Loan Fund
As part of the applications, you will be required to demonstrate a revenue decrease by providing documentation such as: point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements. You can begin to gather these documents in preparation.
General benefits (NY State)
a.Banks institutions must waive ATM, overdraft, and late credit card payment fees.
b. Per a March 19 directive from DFS: there should be no late fees or fees associated with online payment for 90 days; those seeking to trial loan modifications should get a 90-day grace period to do so; and banks should not report late payments to credit agencies.
c. Collections on state-owned debts — including fees owed to state agencies and debt on property damage, breach of contract, oil spill cleanup and removal — are frozen for at least 30 days, Attorney General Letitia James and Governor Andrew Cuomo announced March 17.
d. There can be no evictions or foreclosures, commercial or residential, for 90 days, per DFS' March 19 directive.
e. Per a March 21 executive order, banks regulated by the state must grant businesses and people hit by Covid- 19 forbearance for 90 days, or risk committing “unsafe and unsound business practice” under New York’s banking law.
General benefits (Federal)
a. Deadlines. The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. + Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. + Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.
b. For employers who pay 80 hours of paid sick leave: Employers receive 100% reimbursement for paid leave pursuant to the Act. Health insurance costs are also included in the credit. Employers face no payroll tax liability. Self-employed individuals receive an equivalent credit. + Reimbursement will be quick and easy to obtain. An immediate dollar-for-dollar tax offset against payroll taxes will be provided. Where a refund is owed, the IRS will send the refund as quickly as possible.
For an employee who is unable to work because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, eligible employers may receive a refundable sick leave credit for sick leave at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days.
For an employee who is caring for someone with Coronavirus, or is caring for a child because the child's school or child care facility is closed, or the child care provider is unavailable due to the Coronavirus, eligible employers may claim a credit for two-thirds of the employee's regular rate of pay, up to $200 per day and $2,000 in the aggregate, for up to 10 days. Eligible employers are entitled to an additional tax credit determined based on costs to maintain health insurance coverage for the eligible employee during the leave period.
c. Payroll taxes: To take immediate advantage of the paid leave credits, businesses can retain and access funds that they would otherwise pay to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS by submitting a streamlined claim form that will be released next week.
d. FICA Payments: Employers can defer payment of the employer share of the Social Security tax. The deferred employment tax be paid over the following two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022.
General “costs” – Federal program
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 takes effect on April 1, 2020 and expires on December 31, 2020. Employees are entitled to use the leave when-
Use of paid sick leave:
a. The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19 or is caring for an individual who is subject to such an order.
b. The employee has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19 or is caring for an individual who has been advised to self-quarantine.
c. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
d. The employee is caring for their child due to their school or place of care being closed, or their childcare provider is unavailable, due to COVID-19 precautions. [Employers with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or child care is unavailable in cases where the viability of the business is threatened.]
e. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
f. Note: Employers are prohibited from requiring an employee to use other paid leave provided by the employer prior to using paid sick leave required by the Emergency Paid Sick Leave Act. Employers are also prohibited from requiring workers to find a replacement to cover their hours during their time off.
Pay rules during sick leave:
a. During the sick leave, the employer must generally pay employees their regular rate of pay (as defined by the Fair Labor Standards Act) or the applicable minimum wage, whichever is higher, up to a maximum of $511 per day (and a total of $5,110). However, leave to care for an individual on quarantine/isolation/self-quarantine or to care for a child whose school or daycare is closed or whose childcare provider is unavailable may be compensated at 2/3 of the employee's regular rate of pay, up to a maximum of $200 per day (and a total of $2,000).
b. For employees with variable work schedules, the determination of hours to be paid is based on the average hours the employee was scheduled per day over the six-month period ending on the date on which the employee takes such leave, including hours for which the employee took leave of any type. If the employee does not have six-months of work history with the employer, hours are based on the employee's reasonable expectation at the time of hire of the average hours the employee would normally be scheduled to work.
c. Employers must post a notice describing the paid leave requirements in a conspicuous place on their premises. Click here to download the notice. For telecommuting employees, an employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information website, according to the DOL's guidance.
SOURCES:
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources 2. https://sbshrs.adpinfo.com/covid193. http://www.nyssbdc.org/CoronaSBupdates.html4. http://www.nyssbdc.org/EIDL.html
https://www.crainsnewyork.com/coronavirus/here-are-bills-you-need-pay-and-those-you-dont-during-lockdown https://www1.nyc.gov/site/sbs/businesses/covid19-business-outreach.page