Coronavirus (Covid-19) Financial Relief – Information and Resources
New information is being updated constantly so please make sure you double-check any of the following information.
Individual Benefits Summary
Recent legislation called the Families First Coronavirus Response Act and the Coronavirus Security (CARES) act provides some financial and tax relief to individuals. Below are some highlights of the relief available and resources for individuals. This list is not meant to be all inclusive. You should seek legal advice for a complete analysis of your eligibility and opportunities for federal assistance and benefits under the new legislation.
Small Business Owners
Small Business Benefits Summary
Recent legislation called the Families First Coronavirus Response Act and the Coronavirus Security (CARES) act provides some financial and tax relief to small businesses. Below are some resources for small businesses and 501(c) 3 nonprofits with less than 500 employees. This sheet is not meant to be all inclusive. You should seek legal advice for a complete analysis of your eligibility and opportunities for federal assistance and benefits under the new legislation.
Tax Return Filing
- Filing and Payment Deadline for filing federal income tax returns has been postponed to July 15th, 2020 as well as any estimated tax payments for Q1 that were due on April 15th, 2020. Second quarter estimated tax payments remain due June 15th, 2020.
- Contributions for IRAs and HSA accounts for tax year 2019 have also been postponed to July 15th, 2020
- Recovery rebates of $1,200 for individuals and $2,400 for joint filers, plus an additional $500 per child under age 17 will be direct deposited for consumers who have that information on file. For those receiving paper checks, payments can be delayed until August.
- Eligibility is for all US residents with adjusted gross income up to $75,000 ($112,500 for Head of Household, $150,000 Married Filing Jointly), who are not claimed as a dependent or other taxpayer and have a work-eligible Social Security Number.
- The rebate is reduced by $5 for each $100 that your AGI exceeds the phaseout threshold. The rebate is completely phased-out at $99,000 (Single), $146,500 (HOH), and $198,000 (MFJ).
- No action is required in order to receive the recovery rebate.
Retirement Plan Distributions
- Retirement Plan Distributions – the 10% early withdrawal penalty is waived for COVID-19 related distributions up to $100,000 from qualified retirement plans or IRAs. Income from a withdrawal is included in income ratably over a 3-year period. The withdrawn amount can also be recontributed over three years without regard to annual contribution limits.
- Retirement Plan Loans – plan loan limits are increased to $100,000 and loan repayment can be delayed for one year.
- RMDs are waived for calendar year 2020.
- HSA Accounts can be used to purchase over the counter medicines.
- Unemployment benefits are available for individuals not normally eligible, such as self-employed, independent contractors, and those with limited work history. There is also an additional $600 payable weekly in addition to amounts individuals qualify for – which varies by state.
- Student loan payments for federal student loans are suspended until September 30th, 2020. No interest will accrue during this time. For loans not held by the Federal government, consumers can call and request payment deferments.
Paycheck Protection Program – capital to cover the cost of retaining employees
- If employers maintain their payroll, the loans would be forgiven. No SBA fees, and at least 6 months of payment deferrals with a maximum deferral of up to one year.
- Businesses and entities that have been in operation on February 15th, 2020.
- Sole proprietors and independent contractors are eligible.
- Maximum loan size is $10 million and is calculated as 250% of your average monthly payroll costs between February 15, 2019 and June 30th, 2019. If you were not in business at that time, your max loan is 250% of average monthly payroll between January 1, 2020 and February 29,2020.
- Economic Injury Disaster Loans can be added to the payroll sum.
- For more information, download the US Senate Committee Guide to the CARES act.
Economic Injury Disaster Loans (EIDL)
- EIDLs are low interest loans of up to $2 million, with principal and interest deferred at the Administrator’s discretion. Funds to be used to pay expenses that could have been covered if the disaster had not occurred.
- Businesses with 500 or fewer employees are eligible, including sole proprietorships, independent contractors, and others not normally covered.
- You cannot use an EIDL loan to cover the same costs covered with a PPP loan.
Emergency Economic Injury Grant – a quick infusion of cash to cover you right now.
- Provide an emergency advance of up to $10,000 to small businesses and private non-profits. To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments.
Small Business Debt Relief Program
- Provides immediate relief to small businesses with non-disaster SBA loans. It will cover all loan payments on these SBA loans for six months.
- Loans made under the PPP are not eligible
- 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
Small Business Tax Provisions
- This provision provides a refundable payroll tax for 50 percent off wages paid by eligible employers to certain employees during the Covid-19 crisis.
- The credit is NOT available to employers receiving assistance through the Paycheck Protection Program.
- This provision will allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, and the other at the end of 2022.
Note: No guidance has been provided on how to implement this provision.
Small Business Owner’s Guide to the CARES Act
Paycheck Protection Program FAQs for Small Businesses
For information about coronavirus for small businesses from the U.S. Chamber of Commerce
or information about the CARES Act loans
For information about the Families First Coronavirus Response Act
IRS link to CARES Act