Business Assistance

Many businesses are being impacted by the COVID-19 pandemic. The bipartisan CARES Act offers relief through new large funding streams to help bridge our businesses through this health crisis.

Senator Manchin has prepared fact sheets on business tax benefits and Small Business Administration loans that have been made available to businesses through the CARES Act.

Small Business Administration

SBA Paycheck Protection Program (PPP) Loans

SBA Paycheck Protection Program (PPP) Loans would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during the COVID-19 pandemic. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy.

Under the Paycheck Protection Flexibility Act which was signed into law on June 5, 2020, the covered period for using a PPP loan has been extended from 8 to 24 weeks or December 31, 2020, whichever is earlier. Up to 40 percent of the PPP loan may be used for non-payroll costs and still be eligible for total loan forgiveness. The terms of the PPP loans that are not forgiven is changed from 2 to 5 years.

New EZ version of the PPP Loan Forgiveness Application 

The SBA released a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

More information

Paycheck Protection Flexibility Act Fact Sheet: https://www.manchin.senate.gov/download/ppp-flexibility-act-one-pager  

PPP Overview https://www.manchin.senate.gov/download/ppp-overview

PPP Borrower Information Fact Sheet https://www.manchin.senate.gov/download/ppp-borrower-information-fact-sheet

PPP Lender Information Fact Sheet https://www.manchin.senate.gov/download/ppp-lender-information-fact-sheet

PPP Borrower Application https://www.manchin.senate.gov/download/ppp-application

PPP Lender Application https://www.manchin.senate.gov/download/ppp-lender-application-form

SBA Economic Injury Disaster Loans Program

** NOTE: As of June 15, 2020, SBA is once again accepting EIDL applications from eligible applicants**

West Virginia small businesses (according to SBA’s size standards) and most private non-profits with substantial economic injury due to COVID-19 can now apply for LOANS of up to $2 million.

What's an EIDL?

  • The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.
  • EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills. 
  • The interest rate is 3.75% for small businesses and non-profits is 2.75%.
  • EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower's ability to repay.

How do I apply?

Still need help?  Call the SBA's Disaster Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov

PDF Application forms can be found by clicking below:

Economic Injury Disaster Loan Supporting Information (Phase 1) P 019

Instructions IRS Form 4506T - Disaster

Request for Transcript of Tax Return (IRS 4506T) (002)

SBA Form 5 - Disaster Business Loan Application

SBA Form 5C - Sole Prop Application

SBA Form 413 D - Personal Financial Statement

SBA Form 1368 - Monthly Sales Figures

SBA Form 2202 - Schedule Of Liabilities

Schedule of Liabilities Instructions

A West Virginia specific Fact Sheet on the SBA’s EIDL program can be found here.

Training

The U.S. Small Business Administration's West Virginia District Office and the West Virginia Small Business Development Center will hold electronic trainings on the Economic Injury Disaster Loan (EIDL) program.

Trainings will be held on a regular basis. Registration is not required however sessions are limited to the first 100 participants. If the session is full please join a session at another time. 

To learn more about upcoming training opportunities, click here: https://www.sba.gov/offices/district/wv/clarksburg/resources/west-virginia-small-business-training-opportunities

EIDL Loans for Agricultural Businesses

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. 

SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.

The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.

  • Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
  • SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.

At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

Eligible agricultural businesses may apply for the Loan Advance here.

SBA Emergency Economic Injury Grants (Must Apply for SBA EIDL Loans)

These grants provide an emergency advance of up to $10,000 to small businesses and eligible 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 the 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.

SBA Small Business Debt Relief Program

This program provides immediate relief to small businesses with current non-disaster SBA loans, in particular 7(a), 504, and microloans. SBA will cover all loan payments on these SBA loans, including principal, interest and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the CARES Act signed into law.

More Information

Paycheck Protection Flexibility Act Fact Sheet (PDF)

CARES Act SBA Loans One-Pager (PDF)

U.S. Department of Labor

The US DOL’s Wage and Hour Division (WHD) recently published additional implementation guidance pursuant to the Families First Coronavirus Response Act (FFCRA). Information for employers can be found here. www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Tax Provisions for Small Businesses

The CARES ACT include the Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship as a result of the COVID-19 pandemic.

The tax provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.

Wages of employees who are furloughed or face reduced hours as a result of their employer’s closure or economic hardship are eligible for the credit. For employers with 100 or fewer full-time employees, all employees’ wages are eligible, regardless of whether an employee is furloughed. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. Wages do not include those taken into account for purposes of payroll credits for required paid sick leave or required family leave, nor for wages taken into account for the employer credit for paid family and medical leave.

THE CREDIT IS NOT AVAIABLE TO EMPLOYER RECEIVING ASSISTANCE THROUGH THE PAYCHECK PROTECTION PROGRAM. THE CREDIT IS PROVIDED THROUGH DECEMBER 31, 2020.

Delay of Payment of Employer Payroll Taxes

This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, and the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes, and half of SECA tax liability. Deferral is not provided to employers receiving assistance through the Paycheck Protection Program.

Other Resources

Facebook Small Business Grants Program

As a result of the COVID-19 global outbreak, Facebook has dedicated $100 million towards assisting impacted small businesses. Additional information on this program can be found by visiting www.facebook.com/business/grants.

 

Other Resource Sites for Business and Industry

US Small Business Administration www.sba.gov

US Economic Development Administration www.eda.gov/coronavirus

USDA Rural Development https://rd.usda.gov/coronavirus

US Department of Labor www.dol.gov/coronavirus

Internal Revenue Service www.irs.gov/coronavirus

Appalachian Regional Commission www.arc.gov/coronavirus.asp

West Virginia Development Office www.westvirginia.gov/covid19

WV Small Business Development Center www.wvsbdc.com

U.S. Chamber of Commerce Coronavirus Small Business Guide https://www.chamberofcommerce.org/coronavirus-small-business-guide

National Consortium of Entrepreneurship Education COVID-19 Video Series for Businesses: https://www.entre-ed.org/covid19

** As we receive further information, we will continue to update this page.

Updated June 19, 2020

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