COVID-19 Resources for Businesses

Business Continuity Resources During COVID-19

Resources updated as information becomes available. Last updated 4/27/2020

Download this page as a pdf  here.

  1. Paycheck Protection Program 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.   Congress has reauthorized another $310 billion for the program.  Businesses with employees, sole proprietors, independent contractors and nonprofits are eligible.
  2. Applications are accepted and processed by existing SBA 7(a) lenders or through any federally insured depository institution, federally insured credit union,  and Farm Credit System institution that is participating.
  3. Contact your current lender
  4. SBDC list of Regional Lenders
  5. Refer to this Sample Application

Information you need:  documentation of payroll such as Form 940, 941 or 944, Idaho payroll filing and other supporting forms, utility, rent bills, mortgage interest statements.

  1. Economic Injury Disaster Loan Emergency Advance . This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Additionally, the SBA’s Economic Injury Disaster Loan program provides small businesses and nonprofits working capital loans of up to $2 million.   Businesses must apply online with the for the advance and the loan through SBA’s EIDL Application   Information you need:   Your 2019 business tax return if filed, or your 2019 year-end profit and loss statement, along with your balance sheet and the most recently filed business tax return,  2020 year-to-date profit and loss statement.

 

  1. Employee Retention Tax Credit. If you are not able to secure a PPP consider this tax credit. The employee retention tax credit is a broad based refundable tax credit designed to encourage employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an employer whose business is fully or partially suspended because of COVID-19 or whose gross receipts decline by more than 50%.
    • The credit is available to all employers regardless of size including tax exempt organizations.To qualify, the employer must meet one of two alternative tests.  The tests are calculated each calendar quarter – Either
    • the employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter or
    • the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019  they no longer qualify after the end of that quarter.

The amount of the credit is 50% of the qualifying wages plus a portion of employer provided health care paid up to $10,000 in total, for wages paid after March 13th to December 31, 2020.  For employers with 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees whether they actually worked or not  — i.e. even if the employees worked full time and got paid for full time work, the employer still gets the credit.  Employers can be immediately reimbursed for the credit by reducing the amount of payroll taxes they have withheld from employees’ wages that they are required to deposit with the Treasury.

  1. All SBA COVID-19 resources can be accessed here

Idaho COVID-19 Resources

On March 25th, 2020, Governor Little issued a Stay-Home Order and signed an extreme emergency declaration. The stay-home order is effective immediately and in place until April 30. Idahoans may leave their residences only for essential activities, essential governmental functions, or to operate essential businesses. For answers to frequently asked questions, please review guidance from the Attorney General’s Office.  For the most up-to-date information from the State of Idaho and business resources, visit: Idaho Commerce Department COVID-19 .

The North Central Idaho Small Business Development Center is maintaining an updated page of resources, which may be accessed here.

CEDA Resources

CEDA Revolving Loan Fund is an existing alternative financing program when conventional banking can’t meet all your needs.

Does your small business need assistance in navigating resources? Contact Dodd Snodgrass, dsnodgrass@clearwater-eda.org

  1. Paycheck Protection Program 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.   Congress has reauthorized another $310 billion for the program.  Businesses with employees, sole proprietors, independent contractors and nonprofits are eligible.
  2. Applications are accepted and processed by existing SBA 7(a) lenders or through any federally insured depository institution, federally insured credit union,  and Farm Credit System institution that is participating.
  3. Contact your current lender
  4. SBDC list of Regional Lenders
  5. Refer to this Sample Application

Information you need:  documentation of payroll such as Form 940, 941 or 944, Idaho payroll filing and other supporting forms, utility, rent bills, mortgage interest statements.

  1. Economic Injury Disaster Loan Emergency Advance . This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Additionally, the SBA’s Economic Injury Disaster Loan program provides small businesses and nonprofits working capital loans of up to $2 million.   Businesses must apply online with the for the advance and the loan through SBA’s EIDL Application   Information you need:   Your 2019 business tax return if filed, or your 2019 year-end profit and loss statement, along with your balance sheet and the most recently filed business tax return,  2020 year-to-date profit and loss statement.

 

  1. Employee Retention Tax Credit. If you are not able to secure a PPP consider this tax credit. The employee retention tax credit is a broad based refundable tax credit designed to encourage employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an employer whose business is fully or partially suspended because of COVID-19 or whose gross receipts decline by more than 50%.
  2. The credit is available to all employers regardless of size including tax exempt organizations.
  3. To qualify, the employer must meet one of two alternative tests.  The tests are calculated each calendar quarter – Either
  • the employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter or
  • the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019  they no longer qualify after the end of that quarter.

The amount of the credit is 50% of the qualifying wages plus a portion of employer provided health care paid up to $10,000 in total, for wages paid after March 13th to December 31, 2020.  For employers with 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees whether they actually worked or not  — i.e. even if the employees worked full time and got paid for full time work, the employer still gets the credit.  Employers can be immediately reimbursed for the credit by reducing the amount of payroll taxes they have withheld from employees’ wages that they are required to deposit with the Treasury.

  1. All SBA COVID-19 resources can be accessed here

Idaho COVID-19 Resources

On March 25th, 2020, Governor Little issued a Stay-Home Order and signed an extreme emergency declaration. The stay-home order is effective immediately and in place until April 30. Idahoans may leave their residences only for essential activities, essential governmental functions, or to operate essential businesses. For answers to frequently asked questions, please review guidance from the Attorney General’s Office.  For the most up-to-date information from the State of Idaho and business resources, visit: Idaho Commerce Department COVID-19 .

The North Central Idaho Small Business Development Center is maintaining an updated page of resources, which may be accessed here.

CEDA Resources

CEDA Revolving Loan Fund is an existing alternative financing program when conventional banking can’t meet all your needs.

Does your small business need assistance in navigating resources? Contact Dodd Snodgrass, dsnodgrass@clearwater-eda.org

 

 

Business Triage – Suggested Action Items

A quick guide in response to the evolving COVID-19 situation.

 

Check Your Business Insurance

Business insurance is often going to be the quickest source of funds to recover from an economic loss. In order to be covered for losses due to a communicable disease, such as COVID-19, you would need to have purchased an additional endorsement to your policy. Contact your insurance agent or insurance company directly to find out if you already have this added coverage.

Existing Debt and Fixed Expenses

If you have an existing loan with a bank, reach out to them to see if revising current loan agreements is feasible.  If you have a lease, see if you can negotiate a reduction

Reach out to the utility company if paying the bill is likely to be an issue.  Here’s Avista’s COVID-19 page: https://www.myavista.com/safety/covid-19-response.

Review Your Cash Flow Forecasts

Now is the time to review and adjust your cash flow forecasts to determine what effect a reduction in sales will have on your ability to pay overhead, vendors and repay debt.

Conserve Your Cash

Cut all variable expenses that you can. If you have an SBA or other loan, contact your lender and see if they can modify your loan for temporary relief from payments due to lost revenues.   Consider reducing operations or temporarily close if that is an option

Explore Tax Relief

Taxing authorities are developing programs to offer deferral of the payment of taxes which can help businesses retain cash to meet operating expenses.

  • The Federal Government tax relief programs will be updated on the IRS website
  • Washington State assistance programs are summarized on the Governor’s Office website
  • Idaho has not adopted specific tax relief programs

Local Lending Options

These local banks and credit unions are rolling out emergency funding options:

  • Washington Federal(offering a 5-year business line of credit with no interest for 90 days)
  • Banner Bank (offering existing consumer & business clients 90 day payment deferrals on their loans or credit cards).
  • P1FCU (members can get up to 2 months of skipped payments to certain loans interest free)
  • US Bank (reduction in loan interest rates and small business quick loans)
  • CEDA Revolving Loan Fund (an existing alternative financing program when conventional banking can’t meet all your needs)

What Should I Do About My Employees?

Labor is often the largest single expense item for businesses and if revenues have dropped due to forced closures and reductions in consumer spending then now is the time to look at workforce reduction options.

The Idaho Department of Labor has a site dedicated to claimant information for Unemployment Insurance: https://idahoatwork.com/2020/03/18/faqs-about-unemployment-insurance-and-covid-19/

Washington’s Employment Security Department has programs to assist businesses and workers during this crisis. If you are affected by COVID-19, Employment Security has programs that may be able to help. They have adopted a series of emergency rules to relieve the burden of temporary layoffs, isolation and quarantine for workers and businesses. You can get more information at: https://esd.wa.gov/newsroom/covid-19

What About Paid Family & Medical Leave?

Congress has approved emergency support for up to 10 weeks of protected paid leave to eligible employees for a coronavirus related reason. This includes staying home from work because of the coronavirus, caring for a close family member under quarantine (or isolation) or caring for a minor child who cannot go to school or daycare because of a public health emergency caused by the coronavirus.  Full-time employees are also provided up to 80 hours (two weeks) of paid sick leave for basically the same coronavirus related reasons as outlined in the family and medical leave extension.

Washington state provides additional information  here: https://paidleave.wa.gov/coronavirus/

Additional Business Resources

General Public Information