COVID-19 Relief and Resources for Taxpayers and Small Businesses
Resources for Taxpayers/Individuals
The tax filing and payment deadline is extended until July 15, 2020. We are still open for taxes, so call us today to schedule an virtual drop-off!
First and Second quarter estimated tax payments are also extended until July 15, 2020.
Economic Impact Payments– No action needed, if you qualify the IRS will direct deposit the payment. Payments will begin being dispersed on April 9. Lots of info in the link as to who qualifies, how to get your banking info to the IRS, etc… Link to a helpful visual here.
The IRS has halted most collection activity including Offer-in-Compromise and Installment Agreements. Payments will be postponed from April 1 – July 15.
Federally-funded student loan payments suspended from March 13 – September 13.
Borrowing restrictions on retirement plans eased. – Penalties waived, maximum loan amount increased, payback period extended.
Unemployment – 4/10/20 – Governor Hogan (MD) announced that Maryland has begun implementation of the Federal Cares Act programs connected to Unemployment. The additional $600 federal dollars will be in your next regularly scheduled unemployment check. MD has expanded to Saturday hours for unemployment claims.
UPDATE: MD website is ready to accept applications for self employed individuals. http://www.labor.maryland.gov/employment/unemployment.shtml
Resources for Employers
Maryland- COVID-19 Layoff Aversion Fund apply and learn more here.
Employee Retention Credit – A refundable tax credit of 50% up to $10k in wages (per employee) for businesses affected by COVID. Cannot take this credit if you have been approved for PPP.
Qualified Disaster Payments– this is not a government link, but we have vetted this program. Allows employers to make direct, non-taxable payments to affected employees. Payments are tax-deductible to employer.
Template letters for laying off employees.
Emergency Sick Leave (FFCRA) template request form.
Emergency Paid Medical Leave (EPMLA) template request form
Resources for Small Businesses
There are a ton of local, state and federal COVID-19 relief options. Check back often for updates and additional resources!
Latest interim clarity statement from SBA regarding employees who will not return to work:
Question: Will a borrower’s PPP loan forgiveness amount (pursuant to section 1106 of
the CARES Act and SBA’s implementing rules and guidance) be reduced if the borrower
laid off an employee, offered to rehire the same employee, but the employee declined the
Answer: No. As an exercise of the Administrator’s and the Secretary’s authority under
Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis
exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue
an interim final rule excluding laid-off employees whom the borrower offered to rehire
(for the same salary/wages and same number of hours) from the CARES Act’s loan
forgiveness reduction calculation. The interim final rule will specify that, to qualify for
this exception, the borrower must have made a good faith, written offer of rehire, and the
employee’s rejection of that offer must be documented by the borrower. Employees and
employers should be aware that employees who reject offers of re-employment may
forfeit eligibility for continued unemployment compensation.
Note: Employers should make their offer to rehire in writing, and document the employees refusal to accept employment.
Not sure where to start? Check out these links:
- PPP Now What pdf April 29, 2020
- PPP Now What Slides April 29, 2020
- PPP What Now Video April 29, 2020
- COVID-19 Relief for Small Business PDF April 1, 2020
- COVID-19 Relief Webinar Slides April 1, 2020
- COVID-19 Webinar Video April 1, 2020
Paycheck Protection Program (PPP)
Forgivable SBA-backed loan specifically intended to cover payroll, mortgage, rent and utilities. Forgiveness is only extended if certain criteria related to retaining employees are met.
Apply for the Paycheck Protection Program (PPP) with your local banks:
Additional funding entities for PPP: (may require that you be or become a customer of this service). There are many other funding sources, these are just a few that we have been made aware of.
- Heartland – Contact BMC for Heartland contact info
- The SmartAsset website has compiled a robust list of PPP lenders.
Economic Injury Disaster Loans (EIDL)
EIDL is an SBA-backed loan up to $2 million, with a forgivable advance of up to $10000. The advance is available within three days of a successful application and will NOT have to be repaid. Any costs paid by EIDL funds cannot be claimed under the PPP loan.
Apply for the SBA’s Economic Injury Disaster Loan (EIDL) here.
UPDATE: SBA has reopened EIDL program for Agricultural entities only.
State & Local Relief
Three new business assistance programs offered by Maryland (grants and loans). Learn more and apply here. FAQs on the program here.
(As of 5pm 4/6/20, the Maryland Covid-19 grant was no longer accepting applications).
Montgomery County relief grant up to $75k (apply here)
Ogden News (Frederick News Post) 1 million marketing grant program – link
INC Magazine link with additional funds – link