Information & resources on coronavirus
Resources for Delaware small businesses and non-profits
The Delaware district office of the Small Business Administration (SBA) offers daily calls to provide small business owners and nonprofits the latest information on SBA programs. Each weekday at 3 PM, Delaware SBA staff are available on an open call to those with questions about new or changing programs. Please join in at 3 PM daily by calling 1-202-765-1264 and entering the conference ID#: 827 299 626.
The Delaware SBA office can also connect you with resource partner organizations that provide advice and guidance to small businesses, including SCORE Delaware, SBDC Delaware, and the Women's Business Center at True Access Capital.
For more information on how the CARES Act affects your small business, see the Small Business Owner's Guide here.
The Association of Women’s Business Centers and America's SBDC have consolidated information on COVID-19 resources from federal agencies. Visit this page to inform your small business or nonprofit operation: https://covid-sb.org/
Paycheck Protection Program
The CARES Act established the new Paycheck Protection Program (PPP). The PPP is providing much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. The PPP has been appropriated $659 billion to date.
The maximum loan amount for most borrowers is 2.5 times payroll costs in a typical (pre-pandemic) month. A large portion of the loan will be forgivable based on the extent to which the borrower retains or rehires workers. Loans require no collateral or personal guarantees, carry a 1% interest rate, and come with an automatic 6-month deferment.
The best way to apply is to consult your existing bank. If it is not offering PPP loans, ask which banks in your community are, or you may want to consider online lenders, which include some popular ta and accounting websites.
Here is a list of banks that are accepting PPP applications for new customers.
The Small Business Administration (SBA) released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. Download the application PDF here.
Other Small Business Loans and Grants
The first coronavirus supplemental bill funded Economic Injury Disaster Loans (EIDLs), which are currently available in Delaware. These loans provide small businesses with working capital of up to $2 million, at a low rate of 3.75% for businesses and 2.75% for nonprofits, to help overcome the temporary loss of revenue. Business must be deemed creditworthy and may have to provide collateral. A major attraction of this loan is that many applicants, even if eventually denied the loan, are eligible to receive an up-front grant up to $10,000, which does not need to be repaid. To apply, visit the SBA Disaster Assistance website. Applicants must separately request the grant after filing for an EIDL. You may also contact the Delaware SBA office at: https://www.sba.gov/offices/district/de/wilmington.
The CARES Act, the third COVID-19 response package, includes debt relief for businesses with an existing SBA-backed loan, which includes debt relief for businesses with an existing SBA-backed loan, which includes 7(a), 504, and microloans. This provision, authored by Senator Coons, requires SBA to automatically cover your loan payments (principal and interest) for six months. Talk to your lender about this relief.
Businesses that are too large for or otherwise ineligible for these programs should talk to their lender. The Department of Treasury and Federal Reserve are supporting low-cost, streamlined borrowing opportunities throughout the banking system via the Main Street Lending Program.
SBA programs for most small businesses and nonprofits are below. The SBA will continue to update its website with further information here.
- New Paycheck Protection Program
- Enhanced Economic Injury Disaster Loans and Loan Advance
- SBA Debt Relief
- Enhanced SBA Express Bridge Loans
Employee Retention Tax Credit
Businesses that do not receive a PPP loan are eligible for the Employee Retention Credit. The Employee Retention Credit is a fully refundable tax credit for employers that must fully or partially suspend their business or experience a significant decline in gross receipts due to COVID-19. The credit is equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees, up to $10,000 per employee.
Delaware small businesses in the hospitality sector
Information on the newly created State of Delaware program for small businesses in the hospitality sector can be found here.
Delaware’s rural businesses
Many small businesses impacted by COVID-19 might also be able to qualify for USDA Rural Development programs as well. Additionally, a number of small businesses and agriculture concerns don’t always qualify for SBA programs, but are still impacted, and USDA is also helping rural businesses and farmers. More can be found about USDA’s Rural Development programs in Delaware here: www.rd.usda.gov/de.
Changes to Tax Filing
The IRS tax filing deadline for individuals and households has been moved back: Tax Day is now July 15, 2020. This applies to individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The IRS still encourages filing as soon as possible, and says that refunds are still being processed quickly.
The deadline for businesses is pushed to July 15, as for individuals. Businesses claiming COVID-19-related tax provisions will need to adjust their tax returns accordingly.
Employers that do not receive a PPP loan may also defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Deferral is not provided to employers that avail themselves of SBA 7(a) loans designated for payroll.
Small Business Tax Credits for New Paid Sick Leave Requirements
The Families First Coronavirus Response Act (FFCRA), H.R. 6201, mandates that employers with 500 or fewer employees are required to provide two workweeks of paid sick leave to full time employees taking leave for purposes related to COVID-19. The legislation also expands job-protected Family and Medical Leave Act (FMLA) leave for childcare responsibilities affected by COVID-19. For both paid sick and family leave, the bill includes provisions that may exclude healthcare providers, emergency responders, and employees in certain small businesses from leave requirements.
To help alleviate some of the burden of the leave requirement on employers, the newly enacted legislation provides business tax credits. This credit is for small nonprofit and for-profit businesses with fewer than 500 employees. Those with fewer than 50 may claim an exemption.
How it works:
Employers will be required to initially pay for the new sick and family leave benefits, but a large portion of the costs will be paid back through refundable tax credits against the 6.2% Social Security payroll tax imposed on employers.
- For the new sick leave benefits, the credit is limited to $511 per day per employee for workers taking leave because they are sick, have been advised to quarantine, or are experiencing COVID-19 symptoms. The credit is capped at a $5,110 total per employee. For workers who are taking leave to care for an individual with COVID-19 or related symptoms, the credit is limited to $200 dollars per day per worker. The credit is capped at a total of $2,000 per employee.
- For the expanded FMLA benefits, the credit is limited to $200 per day per employee for workers taking leave because they must care for their own child whose school or childcare has been closed due to or related to COVID-19. The credit only begins after the worker has taken 10 days off in the form of unpaid leave, paid vacation, personal leave, or another form of paid leave. The credit can't exceed $10,000 in total for any worker.
Those self-employed can receive refundable tax credits against the self-employment tax that are similar to those allowed for employers. The credit is limited to $511 per day for sick leave and $200 per day for workers taking qualified family leave. The number of eligible days is 10 sick days per worker and 50 days for family related leave.
How to claim:
Employers will be able to reduce their semi-weekly or monthly payroll tax payments by the amount of their anticipated credit. The provisions are effective on April 1, 2020 and apply to leave taken between April 1, 2020 and December 31, 2020. Guidance has been issued here for both employers and employees on qualifying reasons for leave, eligible employees and employers, duration of leave, calculation of pay, and available tax credits. The IRS is also continuously updating www.irs.gov/coronavirus with information to help taxpayers, businesses, and others affected by COVID-19. I will continue to share updates with you as they become available.
The Federal Emergency Management Agency (FEMA) has provided the following information regarding medical supplies, equipment, and services for companies interested in coordination.
- To sell medical supplies or equipment to the federal government, please email specifics to email@example.com
- If you have medical supplies or equipment to donate, please provide us details on what you're offering.
- If you are a private company that wants to produce a product related to the COVID response, please email firstname.lastname@example.org
- If you are a hospital or other company in need of medical supplies, contact your State Department of Public Health and/or Emergency Management
- For non-medical supplies, services, or equipment, if you are interested in doing business with FEMA, visit the FEMA Industry Liaison Program.
- Summary of Federal Resources for U.S. Small Businesses
- Small Business Owner's Guide to the CARES Act
- Small Business Administration (SBA) coronavirus hub
- Delaware SBA District Office website
- IRS Coronavirus Tax Relief
- List of banks offering PPP loans to new customers
- Department of Labor FFCRA Questions & Answers
- IRS FAQ on Employee Retention Credit
- Paid Leave and Unemployment Insurance Responses to COVID-19
- Tax Credit for Paid Sick and Family Leave in the Families First Coronavirus Response Act