**SBA is unable to accept new applications at this time based on lack of funding.
Save Small Business Fund.
New Grants of $5,000 available from the US Chamber of Commerce. The Fund is providing $5,000 short-term relief to employers across the USA.
- Must have between 3 – 20 employees and operate in economically vulnerable community.
Application available on Monday, April 20th, beginning at 2:00pm.
Go Here for more information and to apply.
New Emergency Relief Grants of $10,000 available for women-owned businesses available through Texas Woman’s University. Go Here for more information.
- Existing woman-owned business (at least 51% owned or controlled by one or more women) located in Texas
- For-Profit Business
- Business must be suffering hardship because of COVID-19
- Other requirements.
Licensed Beauty Professionals:
$500 available through the Professional Beauty Association. Go Here for more information and to apply.
1031 Exchange Deadline Changes:
- 45-day identification period changes: If your identification period is set to expire between April 1 and July 15th, then the 45-identification period is automatically extended to end on July 15th.
- 180-day exchange period changes: If your 180-day exchange period is set to expire between April 1 and July 15th, then the 180-day period is automatically extended to end on July 15th.
Re-Opening of Non-Essential Retail:
- Governor’s Executive Order allows non-essential retail to open for to-go and delivery services on April 24th. Here is the Governor’s Order.
- If you are a “Re-Opening Service, you can find guidance for doing this Here.
Paycheck Protection Program (PPP):
Snapshot: The CARES Act which has allocations for emergency loans for small businesses/non-profits to help keep workers employed. The loan program is known as the Paycheck Protection Program. Borrowers are eligible to have the loans forgiven if the loans were made in the covered period (February 15 – June 30) and the funds are used for the correct purposes.
Eligible Entities/People: Here is who is eligible (if in existence on January 31, 2020):
Businesses (and 501(c)(3)) with fewer than 500 employees
Individual who operates as a sole proprietor, an independent contractor, or is self-employed and regularly carries on any trade or business
Special Rules – if you are in the accommodation or food service sector the 500-employee rule is applied on a per physical location basis.
Note – 500 employee threshold includes all employees (full, part, other)
Loan Terms: A couple highlights of the terms of the loan:
Loan Amount: 2.5x the borrowers average monthly payroll costs.
Program open only until June 30, 2020.
The debt forgiven is not included in taxable income.
Any amount un-forgiven will be required to be paid back in 2-years and bear interest at 1%. The payments will be deferred for 6 months.
No personal guarantee required.
No collateral required.
No origination fees or prepayment penalties.
How are Payroll Costs Calculated?
- For employers – these count as payroll costs:
- the sum of any compensation with respect to employees that is a salary, wage, or similar compensation;
- the payment of cash tip;
- payment for vacation, parental, family, medical or sick leave;
- payment for providing group health care benefits, including insurance premiums; and
- payment of any retirement benefit.
- For sole proprietors, independent contractors, self-employed individuals – these count as payroll costs:
- The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment or similar compensation (not more than $100k in one year), as prorated for the covered period.
Note – these are not included as payroll costs: a) compensation of any individual employee in excess of $100k annual salary; b) payroll taxes; c) income taxes; d) compensation for an employee who lives outside of the USA; or d) qualified sick leave wages under the Families First Coronavirus Response Act.
Loan Fund May Be Used For:
- Payroll Costs
- Interest on mortgage obligation
- Rent under a lease
- Utilities (electric, gas, water, phone, internet, and transportation)
Note – not more than 25% of the forgiven amount may be used for non-payroll costs.
- Borrowers are eligible for loan forgiveness equal to the amount Borrower spent on the proper loan fund uses during the 8-week period beginning on the date of the origination of the loan.
- Forgiveness will be reduced if the Borrower reduces number of employees or reduces employee wages by more than 25%.
- If Borrower eliminates the reduction in employees or wages by June 30, 2020 then the loan forgiveness will not be reduced.
Check out This Guide for very valuable information and resource.
Click HERE for a more detailed overview of the Paycheck Protection Program from the Treasury Department.
Click HERE for an Application Form for the Paycheck Protection Program. This Application Form will be completed and submitted to your SBA Participating Lender.
CLICK HERE for helpful information about calculating payroll costs.