Pandemic Resource Update 3-30-20
Dear Clients,
I have a lot of new information for you tonight. Please let me know if you have questions…
Articles detailing SBA Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program Loans (PPP):
TAKE ACTION NOW: $10,000.00 Economic Injury Grants:
Many businesses qualify for this grant and details are noted below.
If you already completed the EIDL, take the following steps ASAP, complete the application again at https://www.sba.gov/disaster-assistance/coronavirus-covid-19.
-They have simplified the process of applying and the application should take ~10 minutes to complete.
-You will have the option to select the grant as part of this process.
-You will need to provide revenue for 2019 and also the number of staff you employee.
If you just want to apply for the $10,000 Economic Injury Grant and not a loan, you will need to apply for the EIDL at the following link: https://www.sba.gov/disaster-assistance/coronavirus-covid-19
ALSO – PLEASE NOTE: The SBA EIDL application has been updated, and is apparently WAY easier and faster to complete, so that is good news for those that haven’t applied yet.
Unemployment
The CARES Act does provide some unemployment options for the self-employed and contractors. I have not been able to find any information on how to apply yet, but I will send something out when those resources become available to me. In the meanwhile, here are some good resources for employers.
FAQ page on UI: https://dwd.wisconsin.gov/covid19/public/ui.htm
The CARES Act also expands unemployment benefits in a number of meaningful ways:
For states that agree to waive the normal seven day waiting period, the federal government will pay the full cost of the first week of benefits. In Wisconsin, Governor Evers has asked the legislature to waive the waiting period, but the legislature has not yet acted.
In states that agree, a lump sum of $600 (funded by the federal government) will be added to employees’ maximum weekly benefit through July 31, 2020. Wisconsin’s maximum weekly benefit is currently $370, which means the enhanced maximum weekly benefit in Wisconsin will temporarily increase to $970.
An additional 13 weeks of extended unemployment benefits (for a total of 39 weeks in Wisconsin) are available for employees unemployed or underemployed due to certain COVID-19-related reasons. These extended benefits are available to employees who have exhausted or are otherwise ineligible for regular unemployment benefits, and self-certification requirements apply. Extended benefits are not available to employees who are able to telework or who are receiving other paid leave from their employer.
Via - https://www.gklaw.com/All-In-A-Days-Work/CARES-Act-expands-and-extends-jobless-benefits.htm
Wisconsin Sales Tax deferments
Via Greater Madison Chamber of Commerce:
The Wisconsin Department of Revenue (DOR) has announced new measures to assist small businesses and other employers impacted by the COVID-19 outbreak. That includes allowing small businesses to request an extension to file sales and use tax returns due tomorrow (March 31) until April 30 and file sales and use tax returns due April 30 until June 1.
As part of this change, DOR won’t charge late filing penalties if returns are filed by April 30 or June 1. By law, 12 percent interest will accrue beginning on the respective March 31 and April 30 due dates, unless the legislature enables DOR to waive interest. Extension requests can be submitted here.
In addition, DOR is taking steps including lowering the interest rate from 18 to 12 percent on unpaid balances on sales and use tax returns due March 31 and April 30 (email here after you receive your bill to request a rate reduction), delaying the start of most new small business audits and relaxing collection activities on delinquent amounts due between now and July 15. More details on these and other measures can be found here.
For audit assistance, contact 608-266-2486 or DORIncome@wisconsin.gov. For appeals assistance, contact 608-266-0185 or DORAppeals@wisconsin.gov. For overdue tax or debts assistance, contact 608-266-7879 or DORCompliance@wisconsin.gov.
Predatory Lenders
Please be extra cautious during this time as there will be numerous predatory lenders including those disguised as operating from the SBA. We are working closely with the SBA on updated information and further details on the specifics of the PPP loan administration. We will continue to provide updates as information becomes available. As always, please let me know if you have any questions.