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The information provided on this website does not, and is not intended to, constitute legal advice or tax advice.  The content and materials available on this site are for general information only, and may not constitute the most up-to-date legal, tax, or other information.  This website contains links to other third-party websites.  Such links are only for the convenience of the reader, user or browser, without any specific endorsement from LRCDC and its directors.  No action should be taken in reliance on the information contained on this website and LRCDC and its directors disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law.

 

Dear Business Owner and Resident of the Greater Lititz, Warwick and Elizabeth Township region,

 

Despite challenging times, good news is on the way for those of us who have been adversely impacted by the Coronavirus via recent action taken by the Federal and State government.

 

On Friday, March 27th, President Trump signed into law the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act). This Act provides $2.2 trillion dollars in economic relief to individuals and businesses alike. Click here to view the U.S. Senate’s “Small Business Owner’s Guide to the CARES Act”: https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf

 

Similarly, the Commonwealth of Pennsylvania has also enacted four laws to provide more funding to purchase medical supplies and equipment, amend the Unemployment Compensation law to ease eligibility requirements for affected workers, extend the deadline for certain state and local income tax payments and filings, change the School Code to waive requirements pertaining to instructional time, and move the date of Pennsylvania’s primary election from April 28th to June 2nd. Click here to learn more about these programs: https://www.pasenategop.com/blog/senate-republican-leaders-pa-senate-approves-covid-19-response-measures/.

 

Here are some highlights we think might be of interest to you and a 3 Step Process to follow as you begin the application process, and working with your local financial institutions:

 

***Please note that details for each program identified below may still be under development and are subject to change. Further, pursuing one program may make you ineligible for another, so please read program guidelines carefully and consult a professional as necessary. Please read our disclaimer at the bottom of this webpage.***

 

Step 1 – Pull Together Key Financial Documents and Begin a Dialogue with Your Bank and Business Partners

 

This first step shouldn’t be too difficult or time consuming since most of us have already completed or are in the process of doing this for our tax returns, and we are in regular contact with our bank and business partners.

 

Common documents that may be asked for include:

• Tax returns (personal and business)

• Business financial statements (balance sheet and income statement)

• Business payroll and expense documentation for 2020

• Personal financial statement

 

We also recommend starting a conversation with your bank for several reasons. First, they have a long standing relationship with you and/or your business, and understand your needs. Second, they might be willing to assist you immediately by deferring an existing loan payment for three months. Many banks are agreeing to do this. And third, they are going to be the primary conduit for the Federal Small Business “Paycheck Protection Program” loans.

 

Lastly, try to negotiate a deferral of payment with your landlord, vendors, etc., and ask your insurance agent if by chance there is insurance coverage for anything associated with this event.

 

And don’t forget to seek advice from professionals!

 

Step 2 – Review Federal and State COVID-19 Relief Programs Made Available to Taxpayers

 

Over the past two weeks, many financial stabilization programs have been enacted and made available to individuals and businesses who have been adversely impacted by the Coronavirus. Here is a list of programs that may be of most interest to you by stakeholder group and assistance category.

 

Business Owners

 

• Immediate Access to Capital to Maintain Payroll and Operations

 

••• Loan programs for businesses, non-profits and sole-proprietors

 

••• Three programs to choose from based on your needs

•••••••••• Small Business “Paycheck Protection Program” (up to $10,000,000 for companies of 500 employees or less, and in some cases up to 1,500 employees)

To learn more, click these links: https://www.sba.gov/funding-programs/loans/paycheck-protection-program

https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

••• Small Business Administration Economic Injury Disaster Loans (up to $2,000,000)

• To learn more, click here: https://www.sba.gov/page/disaster-loan-applications#section-header-0

•••••••••• Pennsylvania Industrial Development Authority COVID-19 Working Capital Assistance Fund Loans (up to $100,000 for companies of 100 employees or less)

• To learn more, click here: https://dced.pa.gov/programs/covid-19-working-capital-access-program-cwca/

 

••• No personal guarantees or collateral required (Small Business “Paycheck Protection Program”; also true for Small Business Administration Economic Injury Disaster Loans if $200,000 or less)

 

••• Deferral of fees, principal and interest (in most cases)

 

••• Targeted to cover payroll costs, mortgage, rent, and utility payments

 

••• Can be 100% forgiven if certain criteria followed (Small Business “Paycheck Protection Program” and up to $10,000 for the Small Business Administration Economic Injury Disaster Loan)

• Retention Credits Given to Businesses Due to COVID-19 Closures

••• Permits fully refundable 50% tax credit applicable to the employer’s share of payroll up to $10,000 of wages per employee.

••• To learn more, click here and go to Page 11: https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf

• Delayed Payment of Business Payroll Taxes

 

••• Businesses may defer payment of the employer share of the Social Security tax due between now and January 1, 2021 to December 31, 2020 (50% due) and December 31, 2021 (remaining due December 31, 2020).

 

••• To learn more, click here and go to Page 11: https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf

 

Residents (Individuals and Family Members)

 

• Direct Cash Payments from the Federal Government

••• ACH payments to taxpayers’ bank accounts equal to $1,200 per individual ($2,400 joint return), plus $500 per child

 

••• Benefits are phased out for incomes above $75,000 for individuals or $150,000 for couples

 

••• To learn more, please click these links:

https://www.irs.gov/coronavirus

 

https://www.finance.senate.gov/chairmans-news/cares-act-recovery-check-faq

 

• Enhanced and Extended Unemployment Benefits

••• Unemployment compensation is available for those ineligible for regular/traditional Unemployment Insurance, including those who are self-employed or may have exhausted their benefits

 

••• Extended unemployment insurance payments up to 39 weeks

 

••• Increased payment amount of an additional $600 per worker per week until July 31st

 

••• To learn more, please click these links: https://www.uc.pa.gov/Pages/covid19.aspx

https://www.pachamber.org/email_assets/ga/C19%20UC%20summary.pdf

 

• Delayed Mortgage Payments

••• Individuals with Federally backed mortgage loans may request forbearance regardless of delinquency status for 60 days (2 months) with extensions up to 4 months without adversely affecting their credit scores

••• To learn more, please click here: http://www.freddiemac.com/

 

• Deferral of Student Loans

••• Individuals may defer loan payments, principal and interest on their student loans through September 30th without adversely affecting their credit scores

••• To learn more, please click here: https://studentaid.gov/announcements-events/coronavirus

 

• Paid COVID-19 Related Emergency Sick Leave

••• To learn more, please these links: https://www.dol.gov/agencies/whd/pandemic   https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employee_Paid_Leave_Requirements.pdf

 

• Paid COVID-19 Family Medical Leave for Up to 12 Weeks

••• To learn more, please click here: https://www.dol.gov/agencies/whd/fmla/pandemic

 

• Penalty Free Distributions from Tax-Favored Retirement Plans

••• Individuals may take COVID-19-related early distributions up to $100,000 from tax-favored retirement plans

••• To learn more, please click here: https://www.marketwatch.com/story/coronavirus-stimulus-package-tax-relief-withdraw-100k-from-your-ira-and-repay-in-3-years-with-zero-tax-liability-2020-03-27

 

All Taxpayers

 

• Delayed Federal, State and Local tax payment and filing deadlines

••• Moved from April 15th to July 15th

••• To learn more, please click these links:

https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020

 

https://www.revenue.pa.gov/Pages/COVID19.aspx#PITDeadline

 

Step 3 – Submit Your Applications

 

Here are the direct links to COVID-19 relief programs that require an application by stakeholder group and assistance category.

 

Business Owners

 

• Immediate Access to Capital to Maintain Payroll and Operations

••• Small Business “Paycheck Protection Program” (up to $10,000,000 for companies of 500 employees or less, and in some cases up to 1,500 employees)

•••••••••• Click here to find eligible lending institutions: https://www.sba.gov/funding-programs/loans/paycheck-protection-program

••• Small Business Administration Economic Injury Disaster Loans (up to $2,000,000)

•••••••••• Click here to apply: https://covid19relief.sba.gov/#/

••• Pennsylvania Industrial Development Authority COVID-19 Working Capital Assistance Fund Loans (up to $100,000 for companies of 100 employees or less)

•••••••••• Click here to apply: http://edclancaster.com/wp-content/uploads/2020/03/Application-EDC-Finance-PIDA-COVID-19v2.pdf.

 

Residents (Individuals and Family Members)

 

• Enhanced and Extended Unemployment Benefits

••• Click here to apply: https://www.uc.pa.gov/unemployment-benefits/file/Pages/File%20an%20Initial%20Claim.aspx

 

• Delayed Mortgage Payments

••• If you want to request an administrative forbearance, you should request one by contacting your loan servicer (the company listed on your mortgage statement).

••• If you are unsure your mortgage is federally backed, click here to see if your loan is owned by Freddie Mac: https://ww3.freddiemac.com/loanlookup/

 

• Deferral of Student Loans

••• If you want to request an administrative forbearance, you should request one by contacting your loan servicer. If you do not know who your servicer is or how to contact them, visit www.studentaid.gov/login or call us at 1-800-4-FED-AID (1-800-433-3243; TTY for the deaf or hearing-impaired 1-800-730-8913) for assistance.

 

Finally, to stay up to date with all related U.S. and Pennsylvania Coronavirus news matters, please use the following links:

United States Government

https://www.coronavirus.gov/

Commonwealth of Pennsylvania

https://www.governor.pa.gov/

https://www.pa.gov/guides/responding-to-covid-19/

https://www.health.pa.gov/topics/disease/coronavirus/Pages/Coronavirus.aspx

 

The information provided on this website does not, and is not intended to, constitute legal advice or tax advice. The content and materials available on this site are for general information only, and may not constitute the most up-to-date legal, tax, or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser, without any specific endorsement from LRCDC and its directors. No action should be taken in reliance on the information contained on this website and LRCDC and its directors disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law..