Coronavirus Small Business Survival Guide
The coronavirus is causing financial difficulties for businesses everywhere. Here is a complete listing of all of the coronavirus resources for small businesses. (U.S. Chamber of Commerce)
NJEDA Small Business Assistance Loans
The N.J. Economic Development Authority (NJEDA) begins accepting applications for its Small Business Emergency Assistance Loans today. The $10 million program will provide working capital loans of up to $100,000 to small and mid-size businesses.
Unemployment Info for freelancers, independent contractors and gig workers
Workers eligible for special unemployment compensation known as Pandemic Unemployment Assistance are urged to begin the process. Freelancers, independent contractors and gig workers should apply for unemployment now. Their standard unemployment claim will likely be denied, but being ineligible for regular unemployment is a federal prerequisite to being eligible for the Pandemic Unemployment Assistance. These workers should also gather two years of income records, which will be used to calculate the amount of Pandemic Unemployment Assistance they are entitled to receive.
For the fastest, most efficient service the Labor Department recommends that you file online at myunemployment.nj.gov. Also recommended is that applicants read the department’s FAQs before filing a claim, to help ensure the application is filed correctly, which speeds processing time.
The department is also backdating claims to ensure that no one loses a week of benefits, even if they can’t get through right away. More employees are being brought online to help triage the volume of claims.
The state paid $283.9 million in unemployment benefits for the five-week period from March 2 through April 3.
Essential Business List
The New Jersey Regional Operations and Intelligence Center has complied a list of business types and indicated those businesses that are essential and meet the requirements of Executive Order 107 and all State of NJ administrative orders and may remain open. The list also indicates those businesses that must remain closed. Complete list.
US Chamber of Commerce
Coronavirus - Emergency Loans: Small Business Guide and Checklist
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued this guide to help small businesses and self-employed individuals prepare to file for a loan.
Every business has different circumstances so please evaluate your business’ needs before making the decision on which program you choose to select. Keep in mind choosing one may preclude you from others. Important to note, there could be some of forms of financial aid that must be paid back, so please check the details. And, certainly confirm your actions with your accountant.
It is the responsibility of your business, and the person within your business applying for the Federal and State programs to follow the guidelines and complete the application on a timely and accurate basis.
State of New Jersey
The State of New Jersey is providing guidance to all businesses being impacted by COVID-19. Topics covered include operations guidance, economic assistance for business, benefits for impacted individuals, and more.
Information from the New Jersey Economic Development Authority (NJEDA) on its new initiatives to support businesses impacted by COVID-19.
Initiatives to stimulate and support businesses impacted by the COVID-19 coronavirus
U.S. Small Business Administration
U.S. Small Business Administration will now offer low-interest federal disaster loans for working capital up to $2 million to New Jersey small businesses. Applicants may apply online and can download applications using the link below. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email the Small Business Association for more information on SBA disaster assistance.
Paycheck Protection Program
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.
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. The Paycheck Protection Program will be available through June 30, 2020.
Paycheck Protection Program (PPP)—PPP is offered by the Small Business Administration (SBA) through participating banks. These loans can be used to cover 2.5 months of payroll. There is no loan repayment required for 6 months. They can be forgiven (i.e. no requirement to repay) if businesses continue to retain their employees. Links to some of the banks that can provide these programs are listed below:
- Wells Fargo -You need to login to your online business banking account first then click on the get started link on the main page (see screenshot below)
- Bank of America
- M&T Bank
- Investors Bank
Economic Injury Disaster Loan Emergency Advance
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
SBA Debt Relief
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
SBA Tax Relief
The CARES Act allows employers and self-employed individuals to defer payment of the employer share (6.2%) of the social security tax they would be responsible for paying in 2020, effective for payments due after 3/27/20.
- 50% of the deferred amounts are due 12/31/21 and 50% are due 12/31/22.
- Receiving an SBA loans does not preclude the use of this deferral unless the SBA loan is subsequently forgiven. (So, if you defer social security payments loans from the SBA will not be able to be forgiven.)
2019 Federal tax filing and final payment is extended from April 15 to July 15
NJ Entreprenuer Support Programs
NJ Entrepreneur Support Program provides 80% loan guarantees for working capital loans to entrepreneurs.