CARES ACT: ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND BUSINESSES

Following are assistance items for BUSINESSES that are included in the CARES Act & other resources as of Friday, March 27, 2020.

1. Employee retention credit for employers subject to closure due to COVID 19

The provision provides a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose (1) operations were fully or partially suspended, due to a COVID-19-related shutdown order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year. The credit is based on qualified wages paid to the employee. For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the COVID-19-related circumstances described above. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order. The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee. The credit is provided for wages paid or incurred from March 13, 2020 through December 31, 2020.

2. Delay of payment of employer payroll taxes

The provision allows employers and self-employed individuals to defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. Employers generally are responsible for paying a 6.2-percent Social Security tax on employee wages. The provision requires that the deferred employment tax be paid over the following two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. The Social Security Trust Funds will be held harmless under this provision.

3. Small Business Interruption Loans

*(We do not know at this time if borrowers will be eligible for both loans discussed below - at least to the extent that the use of proceeds is duplicative.)

a. SBA Economic Injury Disaster Loan Program: This loan is separate from the CARES ACT. For more information and to apply for this loan please refer to the SBA website at https://disasterloan.sba.gov/ela/

i. SBA EIDL loan limit is $2,000,000

ii. Maximum loan term of 30 years/Maximum interest rate of 4%

b. SBA Revised 7(a) loan under the CARES Act: See following overview of this loan

Overview of SBA Revised 7(a) loan under the CARES ACT

City and County of Denver Small Business Emergency Relief Program in Response to the COVID-19 Crisis

The Denver Economic Development & Opportunity, in partnership with Mile High United Way, is making available one-time business stabilization grants up to $7,500 for eligible small businesses most affected.

To be eligible the business must:

1. Operate with the City and County of Denver

2. Generate $2 million in annual revenue or less

3. Have 25 employees or fewer

4. Have experienced a 25% decline in revenue as a result of COVID-19 compared to an equal timeframe in the previous year.

5. Be registered with the Colorado Secretary of State’s Office

6. Be engaged in activities that are legal under Colorado and federal law

7. Meet program technical requirements including ability to provide financial records

8. Be in good standing with local, state and federal taxing and licensing authorities


To start the application process go to:
https://www.denvergov.org/content/denvergov/en/environmental-health/news/coronavirus-info/support-services/small-business-emergency-relief-program-form.html

Other Resources

Colorado Small Business Development Center (SBDC)

Coronavirus-related Paid Leave