In response to the current COVID-19 pandemic, Federal, State and Local governments are ushering in an array programs and tax relief measures to help mitigate the adverse economic impact of COVID-19 on business and nonprofit entities.
This Alert identifies and provides an overview of available economic programs, tax relief measures, and deadline extensions for applicable Pennsylvania and Philadelphia organizations effected by the COVID-19 pandemic and closures:
1. Economic Programs: Grants and Loans
a. Small Business Administration (SBA) Economic Injury Disaster Loan Program (EIDL).
i. Overview: Federal Disaster Loans to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the entity sustained physical damage;
ii. Loan Amount: Up to $2 million;
iii. Interest Rate: Not exceed 4 percent per year;
iv. Term: Determined by applicant’s ability to repay the loan; and
v. Other: No upfront fees or early payment penalties charged by SBA. The disaster loan program is the only form of SBA assistance not limited to small businesses.
vi. More Information: Please see our more comprehensive Alert on this particular program at: https://www.duanemorris.com/alerts/small_business_administration_offers_economic_injury_disaster_loans_0320.html or
2. New Jersey Programs: Please see our earlier Alert on this topic, but in summary:
A new package of initiatives from the NJEDA includes a grant program for small businesses, a zero-interest program for mid-size companies, ,support for private-sector lenders and Community Development Financial Institutions (CDFIs), funding for entrepreneurs.
a. Small Business Emergency Assistant Grant Program– A $5M program that will provide grants up to $5,000 to small businesses in retail, arts entertainment, recreation, accommodation, food service, repair, maintenance, personal and laundry services.
b. Small Business Emergency Assistance Loan Program -A $10M program that will provide working capital loans of up to $100,000 to businesses with less than $5M in revenues. 10 year terms with zero percent for first 5 years.
c. CDFI Emergency Loan Loss Reserve Fund – A $10M capital reserve fund to take a first loss position on CDFI loans.
d. CDFI Assistance Grant Program– A $1.25M program that will provide grants of up to $250,000 to scale operations or reduce interest rates.
e. NJ Entrepreneur Support Program– A $5M program to encourage continued capital flows to new companies.
f. Small Business Emergency Assistance Guarantee Program– A $10M program that will provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in NJEDA’s existing Premier Lender or Premier CDFI programs.
g. Emergency Technical Assistance Program– A $150,000 program that will
support technical assistance to New Jersey based companies applying for State and US SBA programs
h. NJEDA Moratorium/Loan Fee Forgiveness Program– NJEDA has approved a 3-month payment moratorium of eligible businesses on direct loans and premier participation loans, and waiving late fees on loan repayments and loan modification fees for impacted businesses.
To see more about these programs, use the NJ COVID-19 Business Support Eligibility Wizard.
3. New Jersey COVID related Legislation:
a. NJEDA Programs – Pursuant to A3845, the NJEDA has been authorized to make grants during a state of emergency or public health emergency declared by the Governor. Allows Economic Development Authority to grant certain business documentation submission deadline extensions. Please see our earlier Alert on this topic.
b. Broadband – AJR 158 Urges Federal Communications Commission to take temporary measures to secure broadband access for those affected by COVID-19.
c. Telemedicine; Health Insurance – AB 3843 Requires health insurance and Medicaid coverage for testing of coronavirus disease 2019 and for telemedicine and telehealth during coronavirus disease 2019 state of emergency.
d. School Meals – AB 3840 Requires school districts to provide school meals or meal vouchers to students eligible for free and reduced price school meals during school closures due to COVID.
e. Time Off from Work – AB 3848 Concerns time off from work in connection with infectious disease.
f. Telehealth – AB 3860 Establishes certain requirements to use telemedicine and telehealth to respond to coronavirus disease 2019 (COVID-19).
g. Specimen Collection – AB 3854 Authorized all licensed health care facilities and labs to collect specimens to test for COVID 19; allows staffing ratio waivers.
h. Retail Returns – AB 3865 Limits the return of items purchased from retail food stores during a state of emergency declared in response to COVID-19.
i. SNAP Benefits – AC 165 – Urges Department of Human Services to apply for federal waivers to facilitate and increase access to SNAP benefits during coronavirus disease 2019 outbreak.
j. Personal Protective Equipment (PPE) – Executive Order No. 109, requires any business, non-hospital health care facility, or institution of higher learning in possession of personal protective equipment (PPE), ventilators, respirators or anesthesia machines not required for the provision of critical health care services to undertake an inventory of these supplies and send the information to the State by 5:00 pm on Friday, March 27. 2020.
k. Residential Eviction Moratorium – Pursuant to Executive Order No. 106, any lessee, tenant, homeowner or any other person shall not be removed from a residential property as the result of an eviction or foreclosure proceeding. This is a 90-day eviction moratorium. This applies only to residential mortgages, not businesses, as of yet and has received the support of Citigroup, JPMorgan Chase, U.S. Bank, Wells Fargo and Bank of America.
About Duane Morris:
Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.
For Further Information:
If you have any questions about this Alert, please contact James Greenberg, Sandra G. Stoneman, Brad A. Molotsky, Dan Mita or any member of the COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact.
Be Safe. Stay Vigilant.