Helpful Information about the Coronavirus for Small Businesses

Helpful Information about the Coronavirus for Small Businesses

Essential Services

Governor Charlie Baker has issued an emergency order requiring all businesses and organizations that do not provide “COVID-19 Essential Services” to close their physical workplaces and facilities to workers, customers and the public. These businesses are encouraged to continue operations remotely. Governor Baker's order has been extended until May 18th.

Frequently Asked Questions

Essential Services Order for Businesses

Essential Services List

Essential Services Designation Request Form

Small Business Loans

The U.S. Small Business Administration (SBA) Economic Injury Disaster Loan program offers small businesses working capital loans up to $2 million to cover losses resulting from the coronavirus emergency period.  Small businesses that have been approved for an Economic Injury Disaster Loan can apply for a loan advance of up to $10,000.

The CARES Act provided $275 million for SBA’s Resource Partners to provide vital guidance and expertise to small business owners and entrepreneurs impacted by COVID-19. Small Business Development Centers, Women’s Business Centers (https://www.awbc.org/), and SCORE (https://www.score.org/) counselors are available to help guide small businesses with their specific questions about their eligibility and the application process. 

SBA Resumes Accepting PPP Applications

The U.S. Small Business Administration (SBA) will accept applications for the second round of funding of the Paycheck Protection Program (PPP) from lenders beginning Monday, April 27th at 10:30 am. It is critically important that small businesses impacted by the COVID-19 pandemic work with their lender to apply for the Paycheck Protection Program as soon as possible. Businesses can access the SBA’s Find A Lender tool at https://www.sba.gov/paycheckprotection/find

Additionally, using SBA data, the Executive Office of Housing and Economic Development has published this list (https://www.mass.gov/doc/ppp-eligible-lenders-and-first-round-participants-sba-data) of institutions that provided loans to Massachusetts companies in the first round of the Paycheck Protection Program. The list also includes all entities that appeared on the SBA’s approved lenders list, which was last updated on April 13, 2020. 

Any small businesses in need of application translation services or other technical assistance should access Massachusetts Growth Capital Corporation’s online resources, including a list of technical assistance providers who can help businesses apply for PPP in languages other than English: https://empoweringsmallbusiness.org/resources/covid-19-small-business-resources

To connect a small business with a local resource partner for COVID-19 advice please click here: https://smallbusiness.house.gov/uploadedfiles/lead_small_business_development_centers.pdf

Click here to access the Small Business Guide to the Coronavirus, which provides detailed information about each CARES program: https://smallbusiness.house.gov/uploadedfiles/small_biz_cares_guide_update_4-6.pdf

Apply for an Economic Injury Disaster Loan

FAQ Injury Disaster Loans

US Small Business Administration Fact Sheet on Economic Injury Disaster Loans

The SBA now provides an application tracker for those who have applied for loans: https://disasterloan.sba.gov/ela/Account/Login

Paycheck Protection Program

The Paycheck Protection Program will provide funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.  Funds are provided in the form of loans that will be fully forgiven over time for ongoing businesses when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. No government or lender fees will be charged.  

Those considering applying should contact their primary bank for information and procedures for submitting an application. Not all banks are qualified to offer these loans. 

  • Starting April 3,  small businesses and sole proprietorships can apply. 

  • Starting April 10,  independent contractors and self-employed individuals can apply.

US Dept of Treasury Information on Paycheck Protection Program

Apply for the Paycheck Protection Program
 

Administrative Tax Relief Measures

The Baker-Polito Administration today announced administrative tax relief measures for small local businesses which have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors. This tax relief includes postponing the collection of regular sales tax, meals tax, and room occupancy taxes that would be due in March, April and May so that they will instead be due on June 20. Additionally, all penalties and interest that would otherwise apply will be waived.

  • Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending February 29, 2020 will be eligible for relief for sales and meals taxes, and business that paid less than $150,000 in room occupancy taxes in the year ending February 29, 2020 will be eligible for relief with respect to room occupancy taxes.

Sales and Use Tax Emergency Regulation

Meals Tax and Room Occupancy Excise Technical Information

Updates from the Department of Revenue

Employee Retention Tax Credit

The Employee Retention Tax Credit is a tax incentive to encourage employers to keep employees on their payroll during the coronavirus emergency period. Note: This credit is not available for businesses participating in the Paycheck Protection Program (PPP) 

FAQ on the Employee Retention Tax Credit Under the CARES ACT

 
 
 
 
 
 

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