Small Business Guidance for Coronavirus Response
The U.S. Department of Treasury released the Paycheck Protection Program application. See below and scroll down for even more information on eligibility and guidelines.
Application Form: The U.S. Department of Treasury released the Paycheck Protection Program application and supplemental information on their business support website. Beginning on April 3, small businesses, eligible nonprofits, and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders (local banks). Independent contractors and self-employed individuals can apply beginning April 10.
Telephone Town Hall for Small Business Owners
On Tuesday, our office hosted a telephone town hall for small business owners to address their unique needs and answer specific questions. If you didn't get a chance to tune in, you can listen to the telephone town hall here or below.
Small Business Resources and Assistance
Contact the U.S. Small Business Administration to apply for low-interest loans.
For additional guidance on the Paycheck Protection Program, the Economic Injury Disaster Loans and Loan Advance, or the SBA Express Bridge Loans, please visit the SBA's webpage here or dial 800-659-2955.
North Carolina also offers a Rapid Recovery Small Bridge Loan Program. Golden LEAF funding will support the N.C. COVID-19 Rapid Recovery Loan Program by enabling loans to be made to eligible businesses for up to $50,000 with zero interest and no payments for six months. If not repaid in six months, the loan will automatically convert to a term loan.
Visit their webpage here or dial 800-228-8443.
Paycheck Protection Program
The recently passed CARES Act allocates $350 billion for the Paycheck Protection Program. This initiative provides 100% federally guaranteed loans to small businesses. These loans may be forgiven if borrowers maintain their payrolls during the Coronavirus pandemic or restore their payrolls afterward.
If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020.
Who is eligible? Small businesses with fewer than 500 employees that would normally qualify for loans from the SBA. Plus, this loan program expands eligibility to 501 c3 nonprofits with fewer than 500 employees, certain veterans organizations, sole proprietors, the self-employed, and individual contractors (1099 workers).
These loans will be available through lenders. The Administration will release more details, including the list of lenders under the program. In the meantime, the U.S. Chamber of Commerce offers guidance on eligibility and a checklist for small business owners here.
PPP loans come through an SBA 7a lender, but the SBA has made a sample application available. It will help to review in preparation for meeting with a lender. The Sample Application can be found here.
Application Form: The U.S. Department of Treasury released the Paycheck Protection Program application and supplemental information on its business support website. Beginning on April 3, small businesses, eligible nonprofits, and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders (local banks). Independent contractors and self-employed individuals can apply beginning April 10.
Information for Non-Profits
The CARES Act also addressed the unique needs of our non-profits. Specifically, there are opportunities to receive forgivable loans, unemployment relief for workers, a limited charitable deduction for 2020 and several appropriations for non-profits.
The North Carolina Center for Non-Profits offers more information here.
The National Council of Non-Profits has also released guidance here.
For information from the IRS regarding Payroll Tax Credits, click here.
For information from the IRS regarding Paid Leave, click here.
To register as an Essential Business, click here.
If you are in need of unemployment benefits, North Carolina is here to help.
The fastest way to apply for benefits is online at des.nc.gov. If you do not have access to a computer or have trouble with the online portal, you can also dial 919-707-1150 for assistance.
Frequently Asked Questions
For frequently asked questions regarding unemployment benefits, please visit N.C. Department of Commerce Employment Security's webpage here.
Our office does not dispense legal advice, but we encourage small business owners with questions to check out the National Federation of Independent Business' (NFIB) webpage here.
How Can You Help?
If you are a manufacturer and would like to connect with others to help produce needed materials, please email the National Association of Manufacturers at firstname.lastname@example.org.
You can also visit their webpage here.
Essential Business Designation
Here are basic facts about Governor Cooper’s Stay At Home Order. If you do not believe your business is included in the list of the essential services, and think it should be, you may apply online to be designated by the NC Department of Revenue. Until your exemption is reviewed, you may continue to operate as long as your business can accommodate social distancing in the workplace.
Disclaimer: our office does not dispense legal advice. These documents serve only as guidance. If you have specific questions, please contact the relevant local state or municipal officials.