Las Vegas, Nev. – In a Medium post published today, U.S. Senator Catherine Cortez Masto (D-Nev.) highlighted resources available to Nevada’s small businesses and nonprofits affected by COVID-19 and encouraged them to consult her Disaster Resource Guide for more information.
Full text of the post can be found here and below:
Help for Small Businesses During the Coronavirus Pandemic
By U.S. Senator Catherine Cortez Masto
For small business owners in Nevada and across the nation, this is an incredibly stressful time. Some have had to close their doors to protect public health; others have been deemed essential and are working overtime to help customers in need. All of them are coping with employees whose own lives have been affected by school closures, illness, and uncertainty. In these difficult circumstances, small business owners should know about the many resources available to them from government and private sources. My office has recently published a Disaster Resource Guide with important information to help all Nevadans navigate this crisis.
Every Nevada business needs to understand the new provisions, detailed in the guide, of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which makes several different types of small business loans available. The CARES Act provides $350 billion to create a Paycheck Protection Program (PPP) to offer forgivable loans to small businesses that continue to pay employees. The Small Business Administration (SBA) will administer these zero-fee loans—up to $10 million per small business or nonprofit—that retain their employees at the employees’ existing salary level.
Not all businesses and nonprofits will participate in the PPP. If your business or nonprofit is suffering because of the coronavirus pandemic, you might be eligible for a tax credit for wages you’ve paid to furloughed employees or employees whose hours you’ve had to reduce, up to an overall limit per employee. In addition, for businesses that don’t participate in the PPP, some payroll taxes will be deferred through the end of 2020.
Small business owners who’ve been affected by the coronavirus crisis can also take advantage of billions in Small Business Administration disaster loans that Congress has made available to reduce the economic impact on businesses—and this includes nonprofits. The CARES Act also allows $10,000 emergency advances to small business and nonprofits applying for SBA economic injury disaster loans (EIDLs). These advances are available within three days of applying for a loan. My Disaster Resource Guide has information about the amount and terms of the loans and how you can apply.
If you already have an SBA-guaranteed loan, you may be eligible for debt relief. The CARES Act includes $17 billion so that the SBA can cover all loan payments for existing SBA borrowers for six months, including principal, interest, and fees. In addition, many banks and credit card companies have stated they are willing to work with small businesses to reduce fees or provide credit during this period.
Congress has also made funds available so that your employees can take sick and family leave. The Families First Coronavirus Response Act is designed to help workers affected by the COVID-19 outbreak in the United States. The legislation requires employers to grant paid leave to employees who are sick, quarantined, or taking time to care for family members who are sick or out of school. The important thing to know here is that the Act reimburses businesses dollar-for-dollar for that leave via payroll taxes—up to $511 per day for sick employees and $200 per day for employees caring for family members or children. In addition to the payroll tax credits available to small business employers, the IRS has announced that the filing deadline for 2019 taxes has been pushed back to July 15, 2020, giving businesses more time to file.
In addition to loans, many grants are available to both for-profit and nonprofit businesses. Federal agencies award millions of dollars to businesses in grants every year, both through ordinary processes and on an emergency basis. My office can provide Nevadans with help in navigating the grant application process. Companies from Facebook to Yelp are also providing private grant support to a range of businesses.
If all this sounds like a lot to navigate, it may help to keep in mind the many resources that provide advice and support to small businesses. Nevada’s Chambers of Commerce can help, as can small business counseling organizations like SCORE and the Nevada Small Business Development Center. The CARES Act has expanded resources for business counseling services like these, providing $250 million to SBDCs nationwide, as well as to Women’s Business Centers. I’m committed to making sure that Nevada’s small businesses, a key pillar of our economy, have options to cope with the economic impact of this unprecedented health crisis.
Nevada SBA District Offices: Northern Nevada: (702) 388-6611 • Southern Nevada: (702) 388-6611
SCORE: Northern Nevada (702) 388-6104 • Southern Nevada: (775) 784-4436
Nevada SBDC: https://nevadasbdc.org/
Nevada Women’s Business Center: https://nevadawbc.org/
Las Vegas Chamber of Commerce: https://www.vegaschamber.com/
Reno + Sparks Chamber of Commerce: http://www.thechambernv.org/