SBA Economic Injury Disaster Loan Program
SBA is providing low interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. You can use the loan to cover accounts payable, debts, payroll and other bills the coronavirus has affected your ability to pay. Links for this program are:
Federal Stimulus Package (CARES Act)
Below is a brief summary of the relief offered by the CARES Act. U.S. Congressman Earl Blumenauer’s website has a good overview of the provisions of the CARES Act (scroll down to “Resources for employers”): https://blumenauer.house.gov/covid-19-economic-stabilizationresources.
- Emergency Grants: Up to $10,000 in emergency funds to cover immediate operating costs.
- Forgivable Loans: Up to $10M per business. Any portion of that used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven if workers stay employed through the end of June.
- $17B to cover 6 months of payments for businesses already using SBA loans.
Freddie Mac’s Forbearance Program
Below is a summary of the program and is informational only. For more information, click here.
- Freddie Mac will offer forbearance up to 90 days (three consecutive monthly payments). If the Borrower accepts this arrangement, Freddie Mac will also waive any associated late charges and default interest.
- Can only be taken in consecutive months
- Duration of the forbearance is between April and August
- The Borrower has a 12-month period to repay the total forborne amount, without additional interest or prepayment premium.
- Forbearance is only available on Performing Loans; any delinquent loans or loans with, for example, delinquent taxes or other performance-related issues are not eligible.
- Freddie will bear the cost – it will not impact the securitization trust or SSs
- Master will make the advances and will bill Freddie
- Advance interest will be paid by Freddie for the entire time; this will not negatively impact the trust
- The Borrower must agree that during the forbearance period it will not evict a tenant based solely on non-payment of rent occurring as a consequence of the COVID-19 emergency.
- The Borrower must provide the following:
- Forbearance Agreement – this agreement is non-negotiable
- Hardship Letter – expressing an inability to pay
- Delinquency Report (current rent roll or similar proof of inability to pay debt service or including a forecast that demonstrates inability to make debt service payment).
- At the end of 90 days, if loan payments do not restart, loan is transferred to Special Servicing.
- Freddie will be very flexible on all extensions.
- 60 day maturity extensions will be determined by the Servicer, with supporting information on take out permitted today; additional guidance forthcoming.
State and Local Resources
- Partnering with APANO to provide $150,000 in grants to businesses with Asian/Pacific Islander ownership, particularly those within the Jade District (centered on Southeast 82nd Avenue and Division Street) and in Old Town Chinatown. Businesses can apply here.
- Prepared to offer a three-month deferral of loan payments to its existing borrowers who request it and whose business have experienced a decline in revenue of 10% or more. Prosper is prioritizing public-facing businesses with annual revenues under $1 million.
- Offering rent relief to its commercial tenants. For businesses that have experienced a decline in revenue of 10% or more, Prosper is prepared to provide a three-month deferral of rent payments for April, May and June 2020. Find Prosper’s list of business resources here.
Additional Resource Links
- Greater Portland Business Resources lists hotlines businesses can call, and has links to Oregon/Washington as well as city-specific information: https://greaterportlandinc.com/covid-business-resources
- Business Oregon has many additional resource links, including for business planning and counseling: https://www.oregon4biz.com/Coronavirus-Information/
Federal and State Tax Changes
Federal Income Tax Filing and Payment Deadline Extension
The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.
Oregon Tax Return and Filing Deadline Extension
Oregon ordered an automatic extension of the 2019 tax year filing and payment due dates for the below taxpayers.
Personal Income Taxpayers:
- The Oregon return filing due date for tax year 2019 is automatically extended from April 15, 2020 to July 15, 2020.
- The Oregon tax payment deadline for payments due with the 2019 tax year return is automatically extended to July 15, 2020.
- Estimated tax payments for tax year 2020 are not extended.
- The tax year 2019 six-month extension to file, if requested, continues to extend only the filing deadline until October 15, 2020.
Corporate Income/Excise Taxpayers:
- The Oregon return filing due date for tax year 2019 is automatically extended from May 15, 2020 until July 15, 2020. Returns due after May 15, 2020 are not extended at this time.
- The Oregon tax payment deadline for payments due with the 2019 return by May 15, 2020 is automatically extended to July 15, 2020. Payments for returns due after May 15, 2020 are not extended at this time.
- Estimated tax payments for tax year 2020 are not extended.
Interest and Penalties:
- Because of the extension of the due dates for filing returns and making payments, any interest and penalties with respect to Oregon tax filings and payments extended by this order begin accruing on July 16, 2020.
- No automatic extension is provided in this order for the payment or deposit of any other type of Oregon tax or for the filing of Oregon information returns.
Washington Business Relief During Pandemic
Washington’s Department of Revenue is taking the following measures to provide relief of Covid-19 impacted businesses during the state of emergency.
Payment of monthly, quarterly or annual return:
The Department requests that businesses still file returns even if they are unable to pay.
- Monthly filers: Request an extension for paying tax returns (even if the request is after the due date) by sending an email in your My DOR account or by calling 360-705-6705.
- Quarterly filers: The Quarter 1, 2020 return is now due June 30, 2020.
- Annual filers: The Annual 2019 return is now due June 15, 2020.
Revenue will delay issuing new compliance assessments until mid-April and reassess then. This delay includes tax warrants, notices of withhold and deliver, and revocations.
Payment Plans and Interest
Upon request, Revenue will work with taxpayers impacted by Covid-19 to adjust payment plan amounts or extend payment dates 30-60 days. If the payment is extended, additional penalties that would have normally accrued will be waived.
The Department has authority to waive interest through April 17, 2020.
For business licenses that are renewed late, the department will waive BLS delinquency fee for late renewals through April 17, 2020.
The Department will also waive penalties for late non-profit applications and renewals for exempt property through April 17, 2020.
State Agency Links for Additional Tax Updates
Check with your state tax agency to find out if your business has more time to file or more time to pay state and local taxes this year as a result of the coronavirus. Several states have already aligned their tax filing and payment deadlines with the new federal deadline. States also may waive or reduce penalties on late tax payments.