The federal government is taking action to reduce the impact of the COVID-19 pandemic on small businesses. While the information and guidance is fluid and changes almost hourly, Davenport Evans lawyer Brendan W. Reilly has prepared the following non-exclusive list of some federal programs either already implemented or being considered to assist small business owners:
- SBA Disaster Assistance in Response to the Coronavirus: The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
- Tax Credits for Paid Sick, Paid Family and Medical Leave: The House passed H.R. 6201, Families First Coronavirus Response Act, which, among other things, provides for a refundable tax credit equal to 100% of qualified paid sick or family leave wages paid by an employer for each calendar quarter. Certain caps and limits apply.
- Defer Tax Payments beyond April 15: As of today, the deadline for filing your individual federal income tax returns remains at April 15, 2020. However, President Trump has announced he will instruct the Treasury Department to allow individuals and businesses negatively affected by the Coronavirus to defer their tax payments beyond the April 15 filing deadline. Stay tuned for further guidance.
- No Payroll Tax Cuts – Yet. President Trump called for payroll tax relief but neither party in Congress seems inclined to agree. Many critics say it is an expensive solution that takes too long to implement and make an impact on the economy. Once again, stay tuned.
This is by no means meant to be an all-inclusive list of potential small business relief. However, it does provide a glimpse into the various types of programs available to small businesses during these unsettled times. Please contact us to help you navigate through the federal, state and local programs in place to support your small business.
Davenport Evans lawyers are here for you. COVID-19 raises new employment, tax, and business questions. We remain available to help your company through these uncertain times. Like most of you, our law firm has made some adjustments. We are no longer seeing clients in the building, but are holding meetings by phone, video conference, and conference call, and are exchanging documents by email and fax. Some of our attorneys and staff are working remotely until the crisis subsides. All have secure, remote access to our systems consistent with our data privacy and security policies. You can call our main number, 605-336-2880, email [email protected], or reach a specific lawyer, through our Our Lawyers directory page. Thank you for choosing Davenport Evans, and please be well.
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