COVID Resources Available for Businesses

As the City of Beckley, we wanted to make sure that we reached out to our taxpayers with the available resources that the Federal Government is currently offering that can assist you in continuing to operate your business through this economic situation. We also want to let our businesses know that we have extended our Business and Occupation tax deadline to May 15, 2020 for our first quarter filing in order to help ease the burdens associated with this difficult time.

Small Business Economic Injury Disaster Loans –

The Small Business Administration is offering low-interest federal disaster loans for working capital for West Virginia small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus since Jan, 31, 2020 may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.

Eligibility for Economic Injury Disaster Loans are based on the financial impact of the Coronavirus. The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations. The SBA offers long-term repayment options to keep the payments affordable.

There is a possibility of an advance of these funds up to $10,000 to provide rapid economic relief to businesses that are currently experiencing temporary loss of revenue.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Small Business Paycheck Protection Program Loans –

The Small Business Administration is offering the Paycheck Protection Program. This is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. This program provides loans of up to 2.5 times the monthly payroll expenses of businesses and nonprofit organizations employment fewer than 500 people (where the loan amount is the lesser of $10 million or the sum of 2.5 times the average total monthly payroll costs for the prior year). The Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.

The Paycheck Protection Program will be available through June 30, 2020.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

Contact the SBA disaster assistance customer service center at 1-800-659-2955 or by e-mail at disastercustomerservice@sba.gov

Treasury Employee Retention Tax Credit –

This provides a refundable tax credit equaling 50 percent of up to $10,000 in wages paid after March 13 and before December 31, 2020 by all employers, regardless of size, whose business has been financially impacted by the Coronavirus. These retention credits are only available to small businesses if they forgo taking the new Small Business Administration loans. This credit can be taken immediately by reducing the amount of taxes paid to the US Treasury.

https://home.treasury.gov/system/files/136/Employee-Retention-Tax-Credit.pdf