Hampstead Merchants Association

March 31, 2020: Carroll County Board of Commissioners voted unanimously to establish Carroll County Small Business $500,000 COVID-19 Emergency relief Grant Fund.

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• https://www.carrollcountymd.gov/residents/county-news/county-news-releases/small-business-grant-moves-forward/

• Total amount included in this grant is $500,000, businesses must act quickly.

• Interested businesses should watch for information via the Department of Economic Development website at www.carrollbiz.org.  

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Carroll County Small Business Development Center

•  http://www.mdsbdc.umd.edu/locations/northern-region

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State of Maryland Business Relief Programs and Webinars

• https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-fund-programs

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March 27, 2020: President Trump signs Care Act. Small business programs included.

• The Payroll Protection Program

• Small Business Debt Relief Programs

• Economic Injury Loans and Grants Programs

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U.S Small Business Administration - Disaster Assistance 

• https://www.sba.gov/funding-programs/disaster-assistance

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SBA Economic Injury Disaster Loans (EIDL)

• Small business with fewer than 500 employees, and 501(c)s (including faith-based)

• 2.75% rate for nonprofits, up to $2 million in working capital loan

• Payments deferred for up to a year

• Up to $200,000 without personal guarantee

• Approval on credit score, no tax returns required

• Apply through SBA

• $10,000 emergency grant available within three days, does not have to repaid under any circumstances

  • If you get a PPP loan this amount will be included in that loan.  Can’t double dip.

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Paycheck Protection Program (PPP)

• Available to small business, including 501(c)(3)s with generally less than 500 employees

• Loans will be made through local and national lenders and should be available this Friday

• Maximum amount is lesser of $10 million or 2 ½ months of average payroll

• Loans convert to grants for amounts spent during 8 weeks after origination on payroll, rent, interest on mortgage, and utilities

• If number of Full Time Employees (FTEs) is reduced from base period or wages are reduced by more than 25%, loan forgiveness may be reduced

• Can bring back employees within 30 days and restore wages and maintain by June 30th

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*Other notes*

• Starting April 1 you can delay payment of employer payroll taxes thru 12/31/2020.  Talk to your payroll provider if they have not already reached out.

  • 50% of the taxes from 4/1/2020 – 12/31/2020 are due 12/31/2021

  • Remainder is due 12/31/2022

• Modification to Net Operating Loss (NOL) Limitations

  • Lifted restriction of NOL carry back.

  • This provision provides than an NOL generated in 2018, 2019 and 2020 may be carried back to the preceding five (5) tax years. 

    • If you have losses, may want to have your accountant first look @ applying to 2017 return since tax rate was higher that year.

• Charitable contribution limitation for corporation

  • Limited to 10% of taxable income increased to 25% for 2020 tax year.

• Business interest expense deductions

  • Limited to 30% of Taxable Income (TI).  Increased to 50% of TI for 2019 & 2020.

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References

• Paycheck Protection Program

  • U.S. Chamber of Commerce guide – https://www.uschamberfoundation.org/reports/coronavirus-emergency-loans-guide-and-checklist-smallbusinesses-and-nonprofits

  • Updated information from Treasury – https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

  • PPP application – https://www.sba.gov/document/sba-form--paycheck-protection-program-ppp-sample-application-form

• SBA Economic Injury Disaster Loans (EIDL)

  • Eligibility and application information

    • https://www.sba.gov/page/disaster-loan-applications#section-header-0

    • https://covid19relief.sba.gov/#/

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