Below is the most recent update on the Economic Injury Disaster Loans and the Paycheck Protection Plan. We will continue to update the Stimulus Plan as the guidance is published. Additionally, scroll down to see information for manufacturing and faith based organizations.
Helpful Links For Your Business
Economic Injury Disaster Loan program (EIDL)
Yesterday, the U.S. Senate passed a $480B spending bill that expands COVID 19 business relief programs. The latest round of federal funding will include an additional $310B for the Paycheck Protection Program (PPP) and $60B for Economic Injury Disaster Loans (EIDL), including $10B in grants. We expect final passage today. We'll keep you updated as information becomes available. Check back often for updates.
EIDL is a low-interest, working-capital loan for small businesses affected by COVID19. The loan provides temporary relief up to $2 million to assist qualifying businesses and private nonprofits in meeting their obligations. The first $10,000 can be obtained as an advance.As part of the CARES Act, the Congress created the new Employee Retention Tax Credit.It represents a 50% tax credit for the first $10,000 of compensation, including the employer portion of health benefits, for each eligible employee.• Compensation does not include paid sick or family leave for which the employer is reimbursed under the Families First Coronavirus Response Act• The credit only applies to wages paid after March 12, 2020 and before January 1, 2021
Paycheck Protection Program (PPP)Significant Changes to PPP Program – Still Accepting ApplicationsNEW UPDATE: The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020.Additionally, changes were made to the program to add more flexibility. Businesses that had decided to not participate should review the changes because the new flexibility may make a difference. The new law eases some of the program’s restrictions, giving small businesses more time to use their loans and letting borrowers spend more of their loans on non-payroll expenses. The changes include:Key Changes to the PPP include:• Extends the period to use PPP funds from 8 weeks to 24 weeks• Reduces the minimum payroll spend to 60% (from 75%)• Borrowers can now use the 24-week period to fully restore their workforce levels and wages (December 31 instead of June 30)• Businesses now have five years to repay the loan, instead of two yearsThe new legislation also includes a number of updates and exceptions related to loan forgiveness, the rehiring of employees, and the payment of payroll taxes. We encourage businesses to read the new legislation and work with a financial professional to ensure they fully understand the updated requirements.FOR PAYCHECK PROTECTION PROGRAM (PPP) LOAN FORGIVENESS:We encourage you to apply as quickly as you can.
Faith Based Organizations
Frequently Asked Questions for EIDL & PPP
US Chamber - Save Small Business Initiative
The US Chamber of Commerce announced their Save Small Business initiative (3-20 employees), offering 5,000 grants for small businesses who have been hit hard by COVID 19 and are located in these specific zip codes - 06508 and 06509. Find further information here.
SBA Bridge LoansThese loans authorize SBA Express Lenders (banks and nonprofit lenders) to provide expedited SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes to small businesses while those small businesses apply for and await long-term financing (including through SBA’s direct Disaster Loan Program, if eligible).
The State announced a $1.3 million dollar fund for Connecticut manufacturers.
Companies may apply for grants of up to $75,000 to assist in the production of critical equipment and supplies needed to respond to the COVID-19 emergency. The grants, offered through the state’s Manufacturing Innovation Fund Voucher Program, can be used for working capital, new equipment and other purposes that help companies build capacity or repurpose their operations.
Connecticut State Resources
Frequently Asked Questions
The Partnership Loan Program for Minority and Women-Owned Small Businesses in New Haven and Lower Naugatuck ValleyHEDCO, Inc., The Community Foundation for Greater New Haven, the City of New Haven, and The Amour Propre Fund are collaborating to provide financial relief and recovery resources to minority-owned and women-owned small businesses (the “Program”).Under the Program, a qualifying small business with 20 or fewer employees (1-20 employees) may apply for a four (4%) percent term loan for up to $25,000 (twenty-five thousand dollars).This $1.5 million Program will be initially allocated to minority-owned and women-owned small businesses based in New Haven and to minority-owned and women-owned businesses located the Valley with a priority to the towns of Derby or Ansonia. The program will be administered and underwritten by HEDCO, Inc.More information and the application are live here.
Open For Business - Rules & Information for Proctective MeasuresThe State Department of Economic and Community Development last night made significant revisions to mandatory rules outlining additional protective measures that every workplace in Connecticut deemed essential—and any other business or nonprofit allowed to remain open—must follow. As of Monday, April 20, all employees must wear a face mask or face cloth covering at all times in the workplace.
Personal Protective Equipment (PPE) Vendors
Connecticut ReopeningGovernor Ned Lamont's administration has released documents detailing specific rules that eligible businesses falling under phase 1 of Connecticut’s reopening plans must follow amid the ongoing COVID-19 pandemic. The first phase – which includes restaurants; offices; hair salons and barbershops; retail stores; and outdoor museums and zoos – is currently planned to take effect beginning May 20. The protocols for reopening were developed by Governor Lamont, members of his office, and the Department of Economic and Community Development, in consultation with legislators and recommendations made by the Reopen Connecticut Advisory Group, which consists of several of the state’s leading medical experts and representatives of several business and industry groups.