Small Business & Non-Profit Resource Guide
As New York State and the Federal Government continue to respond to the Coronavirus pandemic with widespread efforts to prevent the spread of this disease, I recognize the toll this is taking on many local employers, small businesses, and Central New York’s workforce.
I have worked to provide vital relief to our community. Recently, I supported passage of COVID-19 relief legislation that provides relief to small and medium-sized businesses that have been crippled in recent weeks.
This page contains information to help provide local businesses and 501c3 nonprofits with important information and resources. If you have questions or concerns, please do not hesitate to reach out to my Syracuse office at (315) 423-5657.
Notice to District Businesses on Federal Programs in Response to COVID-19
Access to Capital
Paycheck Protection Program
Under the Consolidated Appropriations Act, 2021, the Paycheck Protection Program (PPP) will reopen and provide loans for first-time borrowers and specified businesses that qualify for a second PPP loan. Established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, PPP loans are available through the Small Business Administration’s 7(a) program to cover payroll costs and other specified business expenses for qualifying employers.
Through PPP, small businesses can receive forgivable loans equal to 2.5 times their average monthly payroll costs. PPP loans have a minimum maturity of 5 years and will be available at a 1% interest rate. Businesses will be eligible for full or partial loan forgiveness based on their adherence to the program’s conditions, including specific requirements related to the maintenance of employee payroll headcount over a specified period and the use of loan proceeds for qualifying expenses.
For information regarding PPP terms and conditions under the CARES Act and other subsequent legislation, please click here. Additional information regarding the renewed availability of PPP loans will become available in the coming days.
Notable changes to the program under the Consolidated Appropriations Act, 2021, include:
Second Draw PPP loans of up to $2 million will be available to businesses with less than 300 employees and a decline in gross receipts of more than 25% for any quarter of 2020.
PPP recipients will be able to claim tax deductions for business expenses covered by a forgiven PPP loan.
Simplified forgiveness applications will be available for PPP recipients with loans under $150,000.
Loans of up to 3.5 times average monthly payroll costs will be available to food service and accommodation businesses under North American Industry Classification System (NAICS) Sector 72.
PPP eligibility is expanded to qualifying 501(c)6, destination marketing, housing cooperative and news organizations.
The SBA’s Economic Injury Disaster Loan (EIDL) Program provides small businesses and non-profit organizations with working capital loans to help overcome temporary loss of revenue. The loans may be used to pay fixed debts, payroll, accounts payable, or other bills that can’t be paid because of the COVID-19 outbreak. The interest rate is 3.75% for small businesses and the interest rate for non-profits is 2.75%. The maximum term is 30 years.
Following the enactment of the CARES Act, SBA provided grants of up to $10,000 to qualifying EIDL applicants through the EIDL Advance program. Under the Consolidated Appropriations Act, 2021, EIDL Advance applicants that did not receive the full $10,000 may reapply to receive the difference between their initial advance amount and the full $10,000 amount.
Additionally, further EIDL Advances will be made available to small businesses in low-income communities.
Additional information regarding SBA’s EIDL and EIDL Advance program is available here.
IRS Tax Filings and Tax Relief
Employee Retention Tax Credit
Established under the CARES Act, the Employee Retention Tax Credit (ERTC) provides a refundable tax credit against certain employment costs for employers that experience a significant decline in gross receipts or a partial or full shutdown as a result of COVID-19.
Under the Consolidated Appropriations Act, 2021, eligible employers may claim a payroll tax credit of up to $7,000 per eligible employee per quarter, calculated as 70% of up to $10,000 in qualified wages. Eligible employers will be able to claim the ERTC through June 30, 2021. Additionally, certain businesses with PPP loans will also be able to qualify for the ERTC, but not on the same wages.
Further information on the ERTC can be found here.
Tax Credits for Paid Sick and Family Leave
Under the Consolidated Appropriations Act, 2021, private employers with less than 500 employees will be able to claim a 100% refundable tax credit for wages paid under the following policies:
2 weeks paid sick leave at an employee’s regular rate of pay (capped at $511/day and $5,110 total) for a full-time employee who:
Is subject to a federal, state or local quarantine related to COVID-19.
Has been advised by a health provider to self-quarantine.
Is experiencing symptoms of COVID-19 and is seeking a medical diagnosis.
2 weeks paid sick leave at 2/3 of an employee’s regular rate of pay (capped at $200/day and $2,000 total) for a full-time employee who:
Is caring for an individual who is subject to a qualifying quarantine or self-quarantine.
Is caring for a child whose school or care provider is unavailable due to COVID-19.
10 weeks paid family and medical leave at 2/3 of an employee’s regular rate of pay (capped at $200/day and $10,000 total) for a full-time employee who is unable to work because their child’s school or child care provider is unavailable due to a public health emergency.
Additional information regarding employer eligibility and credit availability can be found here.