U.S. Small Business Administration (SBA)
In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak.
Economic Injury Disaster Loan Emergency Advance - This initiative 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. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for non-profits. For information in Spanish, please click here.
Paycheck Protection Program (PPP) - PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. For a fact sheet on PPP, see HERE. For answers to frequently asked questions about PPP, see HERE.
SBA Express Bridge Loans - Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
SBA Debt Relief - As part of SBA's debt relief efforts,the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Florida Small Business Emergency Bridge Loan Program
- The bridge loan program provides short-term, interest-free loans to small businesses that experienced economic injury from coronavirus.
- Florida small businesses with two to 100 employees that suffered an economic loss can apply for up to a $50,000 interest-free loan with a one-year term.
- The application period is open and runs through May 8, 2020.
- Interested businesses should click here for more information.
Tax Filing Season Update
- In response to the coronavirus crisis, the IRS has announced changes to the 2020 tax season.
- All taxpayers have a 90-day extension on the deadline for filing their tax returns this year, postponing the due date to July 15, 2020, because of the coronavirus outbreak.
- Individuals who owe up to $1 million in federal income tax (or estimated federal income tax) now have a 90-day extension to pay their balance without worry of being charged late payment penalties or interest.
- If you cannot file a return by that date, you can request an extension by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, for an automatic extension until October 15, 2020.
- The form is available on IRS.gov, as well as additional information on filing for an extension.