Update On Other COVID-19 Aid Programs Available To U.S. Businesses
The U.S. government has a few other aid programs for businesses in addition to the Paycheck Protection Program, the Main Street Lending Program, and the Employee Retention Tax Credit.
The Economic Injury Disaster Loan (EIDL) program offers low-interest aid, and an up-to $10,000 grant, for businesses that are “experiencing temporary difficulties” as a result of COVID-19. Unfortunately, according to news reports, the U.S. Small Business Administration is now limiting EIDL loans to only $150,000 and, as of May 4, is only taking applications from agriculture-related businesses. The U.S. Chamber of Commerce’s guide to this program is here.
Congress also authorized a net operating loss (NOL) carryback provision that allows companies to use tax losses from 2018, 2019, and 2020 to offset income from the prior five years. A new tax deadline extension also allows firms to delay certain estimated tax payments. Per the IRS, “any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.” The IRS has announced it will be accepting claims by fax, rather than hard-copy mailing, for net operating loss refunds. More information on the temporary faxing process can be found here. Click here to read the IRS’s FAQ about NOL. Click here to read more from the U.S. Chamber of Commerce.
For more information on these programs, and for other important advice on how to lead and manage through this crisis, MSCI recommends visiting BDO’s COVID-19 portal, available here.