Loans from the US Small Business Administration (SBA)
Various programs designed to provide businesses with immediate relief to help mitigate the impact of COVID-19 pandemic. Loans are to help small businesses, small agricultural cooperatives and most private nonprofit organizations with working capital and debt service immediately and over the next 6 months. Programs include:
- Paycheck Protection Program (forgiveable loans) – Direct incentive for small businesses to keep their workers on payroll by providing loans for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.
- Economic Injury Disaster Loans (EIDL) & Loan Advance – Program provides small businesses with working capital loans to help overcome the temporary loss of revenue they are experiencing.
- Loans are at a 3.75% fixed interest rate (2.75% for nonprofits) up to 30 year term
- Loans less than $25,000 can be unsecured. Loans over $25,000 will require collateral such as business real estate, personal residence or personal real estate.
- Loan advance is $10,000 to small businesses and nonprofits that apply for an EIDL within three days of applying for the loan.
- SBA Debt Relief and Express Bridge Loans – Provides immediate relief to small businesses with non-disaster SBA loans.
If you’re wondering what program is best for you, below are a few resources to help:
- Fact Sheet – On the Small Business Owner’s Guide to the CARES Act with Q&As on the three programs listed above.
- Webinars – From the Small Business Development Center
- Webinar from Kansas officials including the Secretary’s of Commerce and Labor and the Director of Unemployment Services
For assistance with loans from the SBA, contact:
- SBA-Wichita District Office: 316-269-6571 (ask for Christie or Janelle)
- Debra Peters with the North Central Regional Planning Commission in Beloit – https://www.ncrpc.org/services/business/
- Kansas Small Business Development Center: https://www.kansassbdc.net/covid-19
To get started with an SBA loan, click here: https://disasterloan.sba.gov/ela/
Loan Deferrals through Local Banks
Businesses may be able to defer loan payments for a short period of time for those facing financial hardship because of an interruption in income due to the COVID-19 pandemic. Contact your local bank for information:
PENDING – NCK Business Relief Loan Program-COVID-19 Pandemic
The North Central Regional Planning Commission (NCRPC) in Beloit is hoping to offer a new program around May 1st to small businesses. The loan would be up to $25,000 at 0% interest, up to 10 years repayment period, with up to 12-month deferral of monthly payments.
Paid Leave related to Coronavirus Pandemic (Families First Coronavirus Response Act)
The U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).
The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
More info here: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus
Helpful info related to CARE Act and Family Medical Leave:
- Employee Rights Poster: https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf
- Employer Paid Leave Requirements: https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
- General Q & A’s: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
- Other US Dept of Labor info: https://www.dol.gov/coronavirus
- Employer’s Guide to COVID-19 Webinar: https://www.kansassbdc.net/covid19
Shared Work Program from the Kansas Dept of Labor (KDOL)
This program provides an alternative to businesses considering a layoff of employee(s) in order to reduce labor costs in a way that is helpful to both the employer and the employee. The program allows employers to reduce the number of employees’ overall work hours while extending unemployment insurance benefits to those employees to make up the difference for the loss in hours. More info here: https://www.dol.ks.gov/employers/shared-work-program
Rapid Response for Laid Off Workers from KansasWORKS
This program is the state’s pro-active, business-focused and flexible strategy to respond to pending layoffs and plant closings by quickly coordinating services and providing immediate aid to businesses and their affected employees. More info here: https://www.kansascommerce.gov/programs-services/workforce-services/rapid-response/
Contact Tucky Allen with the Rapid Response program at (316) 303-2906 or [email protected]
Assistance from the KS Department of Agriculture (KDA)
Excerpt of email from Kerry Wefald, Agriculture Marketing Director – The Kansas Department of Agriculture is working diligently with state and Federal leaders to ensure our food and agriculture supply chains are operating at full capacity without distraction. At this time our meat and poultry processing, food safety and lodging and animal health program areas are working as essential to support Kansas agriculture and communities across the state. Additionally, we have Division of Water staff on call should there be any need for emergency water permitting. Please know that Secretary Beam and our leadership team stand to assist should anyone experience disruption in the food/animal health chain supply due to Covid-19. This includes anything from supply and demand for ingredients and inputs to availability and transportation/distribution of food and feed (for both human and livestock) to supply and demand and everything in between. No questions are too large or small; simply call upon KDA should there be a need (or even before a need arises as a precaution).
More info from KDA here: https://agriculture.ks.gov/
State and Federal Income Tax Deadlines
Both the IRS and the Kansas Department of Revenue have extended the deadline for filing 2019 tax returns. Taxpayers will now have until July 15 to file their returns. People can still file their taxes by the original April 15 date if they are expecting a refund.
- IRS tax relief programs related to CPVID-19 – Includes information on filing deadlines, paid leave for workers and tax credits for small and midsize businesses. More info: https://www.irs.gov/coronavirus
- Kansas Dept of Revenue information: https://www.ksrevenue.org/
Find Employees through Kansas WORKS
If your business is ramping up services and needs to hire employees, KansasWorks can help you promote your job listings and connect with job seekers. More info here: https://www.kansasworks.com/ada/r/
Hospitality Industry Relief Emergency (HIRE) Fund* from the Kansas Dept of Commerce (KDOC)
This program provides bridge loans for Kansas’ hospitality sector during the COVID-19 crisis. Examples of hospitality businesses include restaurants, bars, lodging facilities, conference centers and event centers. These funds can be used as working capital for business expenses. More info here: https://www.kansascommerce.gov/covid-19-response/hospitality-industry-relief-emergency-hire-fund/
*Due to the overwhelming initial response, the KDOC’s initial funds available through for the program have been allocated at this time. However, the KDOC is keeping their form open and will continue to collect information should additional funding become available from Kansas hospitality businesses on the losses they are facing due to the COVID-19 pandemic.
Facebook’s Small Business Grants Program
The company is looking to provide financial support to businesses impacted by the COVID-19 pandemic. They are offering $100M in cash grants and ad credits to help during this challenging time. They will begin taking applications in the coming weeks. More info: https://www.facebook.com/business/boost/grants
Connection to all Kansas resources related to COVID-19 pandemic: https://www.kansastogether.com/families
Unemployment Insurance from the Kansas Dept of Labor
- File for Unemployment Insurance here: www.getkansasbenefits.gov.
- COVID-19 Fact Sheet related to Unemployment Insurance: https://www.dol.ks.gov/docs/default-source/default-document-library/ui-covid19-faqs.pdf?sfvrsn=3b4c881f_10
Families First Coronavirus Response Act
Employee Paid Leave Rights: https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
General Q & A’s: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
Other US Dept of Labor Info: https://www.dol.gov/coronavirus