^{Updated 4/6/2020 (but no April Fools)}

The Treasury has released the application for the Paycheck Protection Program. Please read ALL of the following three links before applying:

• Treasury Paycheck Protection Program details.
• Treasury PPP FAQ: Borrower information sheet. 
• PPP vs. EIDL: Small Business Owner's Guide to the CARES Act. See the next tab on this page for information on the EIDL and grant program.

PPP: WHERE TO APPLY 

To apply for a PPP loan, first try the bank you use for business banking. If they are not participating, 

If you need to find a bank where you don't have an existing relationship, try this list: Where to Apply for Payroll Protection Program.

The SBA also provides this reference: 100 Most Active 7(a) Lenders. 

WHO CAN APPLY

To qualify, you need to have been in business on February 15, 2020.

On the link above, the Treasury says small businesses and sole proprietorships with 500 or fewer employees can apply April 3, 2020. Independent contractors and self-employed individuals can apply beginning April 10, 2020.

This is not clear because sole proprietors are self-employed and independent contractors are often sole proprietorships. It could be interpreted to mean businesses with employees can apply April 3, and individual business owners can apply April 10, but it is not clear. Consult with your bank to see when they will allow you to apply.

HOW MUCH IS THIS LOAN?

This loan is based on payroll costs. You can borrow up to 2.5 times of your average monthly payroll costs (including your net income from self-employment).

To be forgiven, at least 75% of the loan amount must be used for payroll costs (including self-employment income), the other 25% can be used for business related rent, mortgage and utilities.

Payroll costs includes payroll, employee benefits, payroll taxes and for a sole proprietor or independent contractor it can include payroll or net earnings from self-employment. Payroll costs exclude any compensation in excess of $100,000/year. 

WHAT YOU NEED TO APPLY

To apply for a PPP loan you will need:

• A completed application which is found here: Application Form.
• Monthly payroll statements from January 2019 to February 2020 for any employees on payroll.
• For self-employed individuals not on payroll and owners of pass-through entities, a Profit & Loss Statements for 2019 and 2020 through February by month to calculate your net earnings from self-employment and/or 1099-MISC forms.

MORE INFORMATION:

The Coronavirus, Aid, Relief, and Economic Security (CARES) Act provides many forms of relief including enacting the Paycheck Protection Program (PPP).

The PPP is a loan program that will allow loan forgiveness for money that is used for payroll, rent, business mortgage and utilities.

The Small Business Owner Guide linked above states:

^{Updated 4/6/2020}

Please also read the PPP loan section before choosing an option.

IMPORTANT: If you apply for an EIDL, clicking the "advance" button where you enter your bank information will trigger the request for an up to $10,000 grant you do not have to repay.

UPDATE: Sources are reporting the EIDL Emergency grant will be $1,000 per employee up to $10,000 for 10+ employees. An owner will count as one employee. Thus, an owner with one employee would be eligible for $2k. Although not official and not confirmed yet, it is likely that two part time employees will be treated as one full time employee.

The Small Business Adminstration (SBA) is a federal program to assist small businesses with financial help. The SBA offers regular business loans and special economic injury disaster loans (EIDL) when a need arises. All U.S. states and territories have been declared a disaster during the coronavirus pandemic. 

To be eligible, a business must have been in operation on January 31, 2020.

The disaster loans need to be paid back.  The SBA also offers Emergency Economic Injury Grants which do not have have to be repaid. 

According to the Small Business Owner's Guide to the CARES Act: these grants, "provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments."

The guide also states:

^{Updated 3/30/2020}

Facebook has pledged grant money for small businesses. No details have yet been released but you can sign up on their grant page to be notified when details are available.

Facebook Small Business Grants Program

^{Updated 3/30/2020}

Some local governments are offering money to help keep small businesses in operation through the crisis. Google "coronavirus small business grants" and your city, county and state. Also look for local resource pages that may list a variety of resources for small businesses.

NYC Grants for businesses with 1-4 employees

San Francisco resource page, includes grants and loan opportunities

^{Updated 3/30/2020}

Nonprofit organizations can take advantage of most if not all the same provisions in various coronavirus legislation. 

To further assist nonprofits in evaluating their options, see the resources below:

How Nonprofits Can Utilize the New Federal Laws Dealing with COVID-19

National Council of Nonprofits CARES Act summary

^{Updated 3/30/2020}

There are two provisions of the CARES Act that impact the employer portion of payroll tax. These provisions do not impact the self-employment tax paid by self-employed individuals, only employer portion of payroll tax. 

Retention Credit
Certain employers can receive a refundable payroll tax credit equal to 50% of the first  $10,000  wages paid between March 12, 2020 and January 1, 2021. 

Employers can receive this credit if either 1) business operations were suspended under government order or 2) had a decline in gross receipts when compared to the same period in 2019 of at least 50% decline and not more than 80% of the prior year.

The full credit is available to impacted employers with up to 100 employees. For employers over 100 employees, only employees who could not work due to the crisis are eligible for the credit.

In other words, if your business was significantly impacted by the economic shutdown from mid-March and December 2020, you will not have to pay as much payroll tax and/or you will get money back if you did pay the full payroll tax. 

The IRS will provide tax forms or schedules to help with calculating the credit, which are not yet available.

NOTE: This credit is not available to employers receiving assistance through the Paycheck Protection Program (PPP).  

Delayed Payroll Tax

Employers can delay paying the portion of employee payroll tax related to social security. Employers still must pay the portion of Medicare tax that is due to the IRS.

Unpaid social security payments can be made over the next two years, by the end of 2021 and 2022. The full amount is owed but employers have more time to pay these amounts.

^{Updated 4/28/2020} 

The IRS will be sending relief payments to qualified individuals. Payments are anticipated to start mid-April.

You do not apply for this. If the IRS thinks you qualify they will direct deposit the money into your account or send you a check.

Adults can get up to $1,200 and parents of children age 16 and younger can get up to $500 per child.

Eligibility 
Individuals with a valid social security number who have filed taxes in either 2019 or 2018 are eligible to receive a payment. Note: if you are eligible to be claimed as a dependent on someone else's tax return, you do not quality for the relief payment.

A child age 16 or younger with a valid social security number, or a child in the process of adoption with an adoption taxpayer ID (ATIN), can qualify for the child payment of $500.

Those who have a valid social security number but did not file taxes in 2018 or 2019 will be eligible to receive the credit when they file their 2020 tax returns.

The following taxpayers are not eligible:

• nonresident aliens
• taxpayers without a valid social security number or ATIN
• taxpayers age 17 and up who qualify as a dependent of another taxpayer 

Income restrictions
Tax payers who make over a certain Adjusted Gross Income (AGI) will receive a reduced or no payment. There is no minimum AGI.

Single filers will be eligible to receive $1,200 if their AGI is $75,000 or under. They will receive a portion of the payment if their AGI is over $75,000 but under $99,000.

Head of household filers will be eligible to receive $1,200 if their AGI is $112,500 or less; they can receive a portion if their AGI is between $112,500 and $146,500.

Married taxpayers who file jointly are eligible to receive $2,400 if their AGI is $150,000 or less; they can receive a portion if their AGI is over $150,000 but under $198,000.

Tax year 
The IRS will look first to see if the taxpayer has filed a 2019 return. If so, the income limits will be applied to 2019 AGI.

If there is no 2019 return, the IRS will use the 2018 return on file and apply the AGI limits to that year. 

If there is no 2018 or 2019 return, the IRS will use 1099-SSA (social security payments) or 1099-RRB (railroad retirement).

If the taxpayer does not qualify based on either the 2018 or 2019 information on file with the IRS, the taxpayer may qualify when filing their 2020 return. This is how it works: there will be a credit on the 2020 tax return. If you qualify, it will ask if you already received the full amount you qualify for. If you already received it, you are set. For anyone who qualifies based on 2020 income but did not already receive the relief payment, they will get the credit at that time, either refunded to them or offset against other taxes owed.

If you receive a payment now and it turns out in 2020 you were not eligible, you likely get to keep it. There's supposedly no giving back money from this payment in 2020 at least as of now. This can be confirmed when the 2020 tax forms are created later in the year.

Direct deposit
The IRS is planning to set up a portal for people to update their current banking information so they can receive their payments quickly. It is not established yet. 

See the FAQ on the IRS website here: Economic impact payments: What you need to know

^{Updated 3/30/2020}

Unemployment benefits have been expanded under the CARES Act. The federal government is giving additional money to the states to fund these programs.

To qualify for the additional benefits below, you must to certify you are available to work but cannot for a coronavirus or economic shut down related reason. If you are able to work remotely with pay or are on paid leave, you do not quality for unemployment benefits.

The CARES Act passed late in the day on Friday, March 27, 2020. State unemployment offices cannot implement such drastic changes overnight. The first step is to find your state unemployment website and check it for updates regularly.

This site can help you find your state unemployment website: Department of Labor guide to state programs and services.

Extra $600/week
Those receiving unemployment benefits can receive an additional $600 per week through the end of July 2020. This is on top of benefits you would normally get under your state unemployment benefits. 

Extended 13 extra weeks
Recipients of unemployment benefits are eligible to receive benefits 13 weeks longer than  state unemployment programs typically allow, if there is a need.

Waiting period waived
States that have a one-week waiting period to receive benefits can now waive that waiting period and the federal governments will pay for that week of benefits.

Partial unemployment
Some states allow workers to receive partial unemployment by allowing their employers to reduce employee hours rather than fully laying off employees. These programs are called Short-Time Compensation (STC) and work-share programs. 

Under the CARES Act the federal government will fund STC program and pay states that do not already have an STC program to create them.

If you think you may be eligible for partial unemployment, the first step is to determine if your state already has an STC or work-share program. This website will help you find the existing state program: WorkforceGPS: STC State Websites. Keep in mind many more states may be adding these programs following implementation of the CARES Act.

Self-employed eligible
If you are a self-employed business owner or independent contractor you do not pay into the unemployment system. However, the CARES Act has made these individuals eligible for unemployment temporarily. These benefits will be in place during the COVID-19 economic crisis. Use the link at the top of this section to find your state unemployment website to get more information.

^{Updated 4/10/2020}

The IRS has moved the official tax day from April 15, 2020 to July 15, 2020. You can file your 2019 taxes any time leading up to or on July 15, 2020. 

2020 estimated tax for the self-employed which would have been due on April 15, 2020 and June 15, 2020 are also moved to July 15, 2020.

The second estimated tax payment, usually due June 15, 2020 was moved to July 15 by the IRS on 4/9/2020 in this notice: IRS Extends More Tax Deadlines.

Updates on IRS changes can be found here: IRS.gov Coronavirus Tax Relief.

Your state may or may not have changed its income tax filing deadline. The best source for your state deadline is your state Department of Revenue website. The IRS maintains a list of state websites: State Government Websites.

^{Updated 3/30/2020}

If you have a student loan owned by the U.S. Department of Education, interest on your student loan is temporarily waived.

During this time, auto-debit for payments on federal loans are cancelled and if you are or become 31 days delinquent on your payments, the loan will be placed on administrative forbearance automatically.

The halting of interest and payments will last for 60 days from the date it was ordered on March 13, 2020, but may be extended if the economic shut down continues.

If you continue to make payments on federal student loans during the economic shut down, the entire payment will be applied to the principal balance.

If you are pursuing Public Service Loan Forgiveness or Income-Driven Repayment (IDR) forgiveness, any time your loans spend in administrative forbearance due to COVID-19 do not count to the 120 required payments. However, forbearance during the economic shut down does not disqualify you from this program. Further, if your income has changed your payments may be reduced to zero, and zero payments do count toward the 120 required payments.

This site has a FAQ with further information on how your loans may be impacted: StudentAid.gov Borrower Questions.

Private loans are not required to halt interest or payments, but if you cannot pay your loans you can contact your loan servicer and inquire about options.

^{Updated 3/30/2020}

The U.S. federal government has enacted legislation and offers additional assistance to help people stay in their homes during the economic shut down. Some resources are listed below. 

The federal government does not control private lenders. If you have a private mortgage or lease and need assistance to get through the economic shut down, contact your landlord or lender as soon as possible. They may offer programs to help.

The U.S. Department of Housing and Urban Development (HUD) has approved counselors that offer low or no cost advice on mortgage terms you may be considering: Find a housing counselor. 

Relief for mortgages backed by Fannie Mae and Freddie Mac
Mortgage payments can be suspended, foreclosures are delayed, credit reporting and late fees are stopped for Fannie Mae and Freddie Mac mortgages. 

Fannie Mae information
Freddie Mac information

Mortgage relief for multi-family properties
Owners of multi-family properties backed by Fannie Mae or Freddie Mac can get mortgage forbearance if they agree not to evict tenants during the crisis. 

Visit the FHFA Mortgage-Coronavirus page for a full list of assistance available for federally backed loans and housing. 

^{Updated 3/30/2020}

Several changes were made under the CARES Act to rules for early distributions, loans, required minimum distributions.

Retirement distributions
Typically early retirement distributions are subject to a 10% penalty. Under certain conditions, distributions made during 2020 in an amount up to $100,000 are not subject to penalty, if:

• Taxpayer, their spouse or dependent was diagnosed with COVID-19 or SARS by a CDC approved test.
• Taxpayer was adversely financially impacted by COVID-19 such as they could not work or had to work reduced hours.

Distributions may be taxable as income. Consult with your tax preparer before deciding to take a distribution so you know how it will impact your taxes. 

It is also wise to discuss any early distribution with your financial adviser before making this decision. Even without a penalty there are other implications for your future financial picture.

If you need help finding a financial planner, see the Simple Profit Blog: Financial Planning Experts: What to Look For

If you need help finding a tax preparer, see the Simple Profit Blog: Interview a Tax Preparer: Questions to Ask. 

Retirement loans
Loans made within 180 days of enactment of the CARES Act are not treated as distributions if under $100,000. Taxpayers have a 1-year extension on certain loan repayments. 

Required minimum distributions (RMDs)
The CARES Act provides a waiver of required minimum distributions in 2020. 

^{Updated 3/30/2020}

For taxpayers who are able to make charitable contributions, the federal government has relaxed the rules for deduction. 

Taxpayers usually would have had to itemize deductions in order to deduct charitable contributions on their IRS tax return. Under the CARES Act, taxpayers can deduct up to $300 in cash contributions made to qualified charities.

Individuals are usually not able to deduct more than 50% of their Adjusted Gross Income in the form of a charitable contribution. For 2020 this limit is waived.

Pass through entities are not able to make charitable donations. If you own a pass through entity, you will make charitable donations as an individual.

C-Corporations are usually limited to donations of up to 10% of taxable income. For 2020, this limit is increased to 25%. 

United Way COVID-19 Community Response

^{Updated 4/21/2020}

Scams will become more prevalent as scammers pray on vulnerable people, including those in crisis. Scams sometimes appear to offer help but then take advantage.

This Bankrate article has information on Coronavirus scams: 

3 types of coronavirus scams to watch out for

DO NOT CLICK ON EMAIL LINKS! If you get an email about relief money go to the official government or charity website, verify the phone number, and avoid using any links or numbers in the email itself that may contain viruses or take you to a place to enter your personal information so it can be stolen. Beware many scams have email addresses that look official but are not. Many web pages will appear official and are not. Check and verify.

Here are some resources to avoid scams:

Federal Trade Commission (FTC): Coronavirus: Scammers Follow the Headlines

Yahoo: Coronavirus: 6 Scams to Watch Our For

IRS Tax Scams/Consumer Alerts