Categories
Tools for Financial Recovery

Disaster Relief Available from SBA

To many of business owners, the Stay At Home order heavily impacted their livelihood. SBA offers relief to help you survive this difficult time. Please visit https://www.sba.gov/funding-programs/disaster-assistance to see if these programs are for you.

Categories
Tools for Financial Recovery

City of Wheat Ridge Sales Tax Deferral Program

In a cooperative effort with licensed Wheat Ridge businesses and to acknowledge the economic burden the COVID-19 emergency has put on Wheat Ridge businesses, the City of Wheat Ridge is offering temporary relief of time to make payment of a timely filed tax return through a Petition for Extension to Pay Sales and Use Tax.

Extension Guidelines:

  • An Extension does not waive or forgive the amount owed.
  • An approved Extension does not relieve the taxpayer from filing a return on time.
  • An approved Extension is for one filing period only.
  • Three filing periods are included in the Extension program: March, April and May.
  • A new Request for Extension must be submitted for each filing period.
  • An approved Extension is valid for 90 days from the filing due date. For example, anapproved extension for April 20 would be valid until July 20.
  • Default in payment of an amount owed under an approved Extension will result in a LatePenalty of 10 % of the amount owed and interest will accrue at 1 % per month until paid.

More information and to apply, visit: https://www.ci.wheatridge.co.us/1770/Business-Continuity-Support

Categories
Tools for Financial Recovery

Overview of the Paycheck Protection Program from SBA.gov

Program Overview

  • The Paycheck Protection Program 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.
  • The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply

  • This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
  • Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

How to Apply

  • You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
  • Lenders may begin processing loan applications as soon as April 3, 2020.

Loan Details and Forgiveness

  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
  • This loan has a maturity of 2 years and an interest rate of .5%.

If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you. 

Other SBA loans, debt forgiveness, grants, and resources:

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