The COVID-19 pandemic has had a serious impact on millions of businesses across the US. Small businesses face potentially catastrophic financial crises, due to the fact that many consumers have practiced self-isolation in varying degrees since March to prevent the spread of coronavirus. There are 30 million small business owners in the US. If you are one of them and you are worried about how your business is going to weather COVID-19, be aware that there are avenues for financial assistance. Below we discuss some coronavirus relief ideas for small businesses.
The government is providing special loans for small businesses in order to combat the financial fallout from the pandemic. The U.S. Small Business Administration (SBA) has formulated a plan to assist small businesses that have been affected by COVID-19 through affordable loan programs. The Disaster Assistance Loans For Small Businesses Program offers interest rates of 3.75% for small businesses who don’t have credit options elsewhere, and interest rates of 2.75% for nonprofits. The SBA provides long-term repayment options on these loans of up to three decades. If your business has credit available elsewhere, however, it will not be eligible. The SBA also implemented several other coronavirus relief options that your business may qualify for. Make sure to look at all of the coronavirus relief options that SBA is offering to see if your business qualifies.
Leniency From Credit Card Companies
Several credit card companies have put out statements that they’ll be providing COVID-19 relief for small businesses. One of the ways they’re doing this is through waiving service fees for 30 days. Citibank, for example, recently stated that they’ll be waiving monthly service fees and any fees incurred for early CD withdrawal. Check with your credit card company or bank to see if they are providing any special services during the pandemic, or other business resources that could help your company. Many lenders and credit card companies are often willing to negotiate on payment fees and timelines during times of crisis.
State And Local Resources
Depending on where you reside, there are different levels of COVID-19 relief. Washington State, for example, is providing no-interest loans for businesses that are hit with financial difficulties due to the pandemic. New York City, moreover, has launched the Employee Retention Grant Program to help keep employees employed as businesses lose revenue. Take a peek through your state’s chamber of commerce website to see what financial assistance and loan options there are in your area for your small business.
Tax Payment Extension
The IRS is offering small business relief for COVID-19 by giving both businesses and individuals a 90-day extension to pay tax fees. Individuals can now delay making tax payments up to $1 million, and businesses can delay making payments up to $10 million. Everybody will still have to file their taxes by April 15, 2020, but won’t have to pay on any owed taxes until July 15.
Bechert & Associates is a top South Florida law firm offering full-service litigation for individuals and businesses alike. If you think you may be eligible for COVID-19 financial assistance, call Bechert & Associates for a free policy evaluation today.