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HomeCOVID-19

COVID-19 RESOURCES

Michigan COVID-19 Resources Wiki

Anything highlighted in orange is new information. 

For question contact: Michigan SBDC | sbdcmichigan.org | Spencer Field | smfield@wccnet.edu | (734) 477-8766



Need Help with Your Preparedness Response Plan?

If you or your customers are looking for assistance with the Preparedness and Response Plan required under the governor'sExecutive Order, our friends at the Michigan Chamber of Commerce have put together somesample plansto assist businesses. The four available samples are based on risk level - from offices to manufacturing plants. Agency offices most likely fall into the lower risk level.
 
I believe James is spearheading the COVID 19 information page and 
Shasta the newsletter 
 
Here is the link to lead you to the sample plans, feel free to share with our membership
 
 



Funding

1. Federal Funding

SBA Express Bridge Loans

SBA Small Business Debt Relief Program

Small Business Administration Economic Injury Disaster Relief Loans (SBA EIDL)

General Information

EIDL 10K Grant

EIDL Updates

EIDL Application Tips

Paycheck Protection Program (PPP) Loan

2. State

3. Local

4. Private Sector Funding

Taxes / Tax Credits

Federal Taxes

Federal Tax Filing Delayed

Employee Retention Credit under the CARES Act

Refundable Payroll Tax Credits

State Of Michigan Taxes

HR Issues

Unemployment Overview

Workshare Program

Freelancer Unemployment

Termination Of Sick or Potential Sick Employees

FMLA

Questions

Can My Team Keep Working Given The Michigan Governors Executive Order?

Other Questions

Fraud

Other Helpful Tools

Stimulus Payment Checks

Helpful Trainings

Coronavirus Relief Bill, The CARES Act. Federal Stimulus Bill


Funding

1. Federal Funding



SBA Express Bridge Loans

SBA Small Business Debt Relief Program

Economic Injury Disaster Loan

Paycheck Protection Program (PPP)

Summary

Bridge loan for disaster-related purposes to small businesses while those small businesses apply for and await long-term financing. Lender must have existing banking relationship with applicant.

SBA is required to pay the principal, interest, and any associated fees owed on all 7(a) and 504 loans in regular servicing starting with the next payment due for existing and new borrowers. Below are the three scenarios clearly outlined in the Act:


Existing loan; six-month payment relief begins with the next payment due


Existing loan on deferment; six-month payment relief begins with the next payment due on the loan after the deferment period ends


New loans made within six months of the date of enactment of the Act (3/27/2020); six months of payments beginning with the first payment due on the loan

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.


The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.


The Paycheck Protection Program will be available through June 30, 2020.

Covered Period

March 13, 2020 - September 13, 2020


January 31, 2020 – December 31, 2020

April 1, 2020 – June 30, 2020

Eligibility

Any business in operation before March 13, 2020, that (1) has fewer than 500 employees or (2) otherwise meets the SBA’s existing Size Standard (predicated or NAICS code and annual revenue). Credit not available elsewhere.

7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible

Any small business or private nonprofit organization that meets SBA’s Size Standard (predicated or NAICS code and annual revenue) that has suffered Substantial Economic Injury due to COVID-19.

A business has suffered “substantial economic injury” when it is unable to meet its financial obligations, pay ordinary and necessary operating expenses or has a reduction in working capital.

Businesses are ineligible that have not complied with a previous SBA loan.

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.


Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.


Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

Permited Ues

Proceeds must be used by the borrower to support the survival and/or reopening of the business.


Proceeds may be used to pay fixed debts, payroll, accounts payable, rent, utilities and other bills that cannot be paid because of the disaster’s impact.

Funds may be used for payroll, rent, mortgage interest, or utilities.

Loan Amount

UP TO $25,000


Up to $2,000,000 but determined by the SBA Underwriter. The SBA determines final loan terms on a case-by- case basis after evaluating each applicant’s needs. Ultimately, loan terms are predicated on the economic injury sustained and an applicant’s ability to payback its obligations.

The lesser of: 250% of the average total monthly payments by the applicant for payroll costs incurred during the 1-year period before the date on which the loan is made; and $10,000,000.


The amount of "Payroll related costs" is defined as the sum of payments of any compensation with respect to employees that is a salary, wage, commission, tip, vacation, parental, family, medical leave, sick leave, allowance for dismissal or separation, group health care benefits, retirement benefits and state or local taxes

Interest Rate

Not to exceed Prime + 6.5%, fixed or variable.


Not to exceed 3.75% for business and 2.75% for nonprofits.

0.5%

Term

Maximum of 7 years. Must be structured as a term loan, not a revolving LOC


Up to 30 years

2 Years

Collateral

None


Yes, for loans over $25,000

None

Guarantee

Not specified


Yes, for loans over $200,000

None

Application Process

Follows SBA Express processing procedures. Program forms can be found on the SBA website.


Applicants exclusively deal with the SBA. Applications are submitted electronically.

Required to provide:

· Business tax returns for three prior years

· Personal tax returns for each principal owning 20% or more of the applicant

· 2019 Federal Tax Returns

· Personal Financial Statements (SBA Form 413) for each applicant and principal owning 20 % or more of the applicant

· Applicant’s debt Schedule (SBA Form 2202)

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.


Lenders may begin processing loan applications as soon as April 3, 2020.


If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.

Affiliation

Not specified


When determining eligibility, the SBA aggregates and reviews the applicant and all of its “affiliates” as one entity. In determining affiliation, SBA will consider whether ownership, ownership options and changes of legal structure, management, identity of interest and licensing agreements.

Not specified

Forgivness




The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months.


Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Application Form/Link



Application Link

Application Form

Program Website

https://www.sba.gov/document/support--express-bridge-loan-pilot-program-guide

https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act

https://covid19relief.sba.gov/#/

https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp


SBA Express Bridge Loans

SBA Small Business Debt Relief Program

  • Need To Add Information

Small Business Administration Economic Injury Disaster Relief Loans (SBA EIDL)

We are hearing from the SBA that once you apply for EIDL that is will be 3-6 weeks before you applications even makes it to a Loan Officer. This means you need to have a 30-60 day plan in place

General Information 

EIDL 10K Grant

  • We are hearing that the first 10K of the EIDL funds need to be used 100% for payroll only. We haven’t seen this in writing and are looking for clarification. 

  • There seems to be a correlation between the size of the grant you would receive and the amount you spend on payroll. Low payroll most likely will lead to a low grant amounts. 

  • We are hearing that applications submitted at the end of March will not get to a loan office 3-6 weeks. We are seeking further clarification. 



EIDL Updates

EIDL Application 

  • Ensure you save your verification code when you apply for the EIDL. This will be helpful down the road,

  • SBA - EIDL Application

Paycheck Protection Program (PPP) Loan

Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.


Note: Application Process for PPP now active. Read the US Department Of Treasure document below. 


Information


Application


Questions

These answers are options. Review the above US Department Of Treasure for more information. 

  • Can owners draw be part of the payroll expense. Yes

  • Can PPP money be used for uses that are not stated in the loan. No

  • Can you hire people back even if you don’t have work for them? Yes

  • If a company pays their workers as 1099´s these do not count as employees in the ppp.  The 1099 have to file on their own. YES

  • How do I find a lender? SBA will publish a list if don’t have one. 



2. State

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy.



County

URL

Updates:

Jackson

http://www.enterprisegroup.org/msbrp

04/01/2020 - 07:49:16 PM - Spencer Field - Created

Hillsdale

https://www.hillsdaleedp.org/

04/01/2020 - 07:49:16 PM - Spencer Field - Created

Lenawee

http://www.lenaweenow.org/covid19

04/01/2020 - 07:49:16 PM - Spencer Field - Created

Monroe

https://monroecountybdc.org/covid-19/

04/01/2020 - 07:49:16 PM - Spencer Field - Created

Livingston

https://annarborusa.org/news/michigan-small-business-relief-program/

04/01/2020 - 07:49:16 PM - Spencer Field - Created

Washtenaw

https://annarborusa.org/news/michigan-small-business-relief-program/

04/01/2020 - 07:49:16 PM - Spencer Field - Created


3. Local


Region

Name

Summary

URL

Geographical Area

Updates:

Washtenaw Region

Washtenaw Small Business Emergency Relief Fund


https://www.washtenawsbf.com/


04/01/2020 - 07:33:44 PM - Creation - Spencer Field


Detroit Small Business Stabilization Fund


https://techtowndetroit.org/detroit-small-business-stabilization-fund/


04/01/2020 - 07:35:19 - Creation - Spencer Field


Oakland County Stabilization Fund


https://www.oakgov.com/covid/businessrelief/Pages/medcstabilizationgrant.aspx


04/01/2020 - 07:35:19 - Creation - Spencer Field

Washtenaw Region

Jackson Dream Fund


https://www.dreammakerfund.org/


04/01/2020 - 07:35:19 - Creation - Spencer Field

Washtenaw Region

Monroe County Business Development Corporation


https://monroecountybdc.org/covid-19/


04/01/2020 - 07:35:19 - Creation - Spencer Field

Washtenaw Region

Lenawee Now


https://www.lenaweenow.org/covid19/


04/01/2020 - 07:35:19 - Creation - Spencer Field

Washtenaw Region

Enterprise Group Jackson


https://enterprisegroup.org/


04/01/2020 - 07:35:19 - Creation - Spencer Field


Kalamazoo Small Business Loan Fund

Low-interest loans between $5,000 and $50,000 will be available for businesses that meet the following requirements: •Provides support to impacted employee(s), especially employees who are in the ALICE population; minority- and women-owned businesses; and businesses that are in the food/beverage, retail, manufacturing and service industry.•Is located in the City of Kalamazoo. •Has 50 FTE employees or less. Has annual revenue of $2.5 million or less. •Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business. •Needs working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business. •Is able to demonstrate an income loss as a result of the EO, or the COVID-19 outbreak.

https://changethestory.org/kalamazoo-small-business/


04/01/2020 - 07:35:19 - Creation - Spencer Field


4. Private Sector Funding 


Name

Summary

URL

Geographical Area

Updates:

Business For All / Alice


https://businessforall.helloalice.com/








 


Taxes / Tax Credits

Federal Taxes

Federal Tax Filing Delayed  

The deadlines to FILE and PAY federal income taxes are extended to July 15, 2020.

IRS - Coronavirus Tax Relief

Turbotax  - Is the Tax Deadline Delayed? What to Know About Coronavirus (COVID-19) and Your Taxes

Intuit - What to know about COVID-19 and taxes: deadline delays, the CARES Act and more. 


Employee Retention Credit under the CARES Act

An alternative to PPP: Employee Retention Credit. If an eligible employer is not able to keep headcount/salaries equal to last year, 50% of eligible payroll costs (max $10K per employee) may be covered through tax credit and refund. Info and FAQ:

Refundable Payroll Tax Credits

Two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.


State Of Michigan Taxes

Effective immediately, state of Michigan and city of Detroit income tax returns and payments due on April 15 are now due before midnight on July 15.

HR Issues

Unemployment Overview

Workshare Program

Work Share is a program that permits employers to maintain operational productivity during declines in regular business activity instead of laying off workers. With the plan, rather than being laid off, eligible employees work a reduced number of hours in the workweek and receive a portion of weekly unemployment benefits.

Freelancer Unemployment

Freelancers in Michigan will be eligible for unemployment in the state of Michigan but this program is not active yet. The process will run through the Michigan UIA.  



Termination Of Sick or Potential Sick Employees 

FMLA

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their

employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19.


Questions

Can My Team Keep Working Given The Michigan Governors Executive Order?

Other Questions

Fraud

Many business owners are worried about being “fraudulent” with the money from the PPP or EIDL. To be legally considered fraud there needs to be a reasonable amount of evidence that you willfully and intentionally acted to deceive others for personal gain. If you’re doing the best you can do with the information you have and are documenting your good faith effort then fraud is not something you should be worried about. Let’s get your business some money and then worry about what to do with it. 

Other Helpful Tools

Stimulus Payment Checks



Helpful Trainings


Coronavirus Relief Bill, The CARES Act. Federal Stimulus Bill

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. 


 Employee Retention Credit vs 


https://www.irs.gov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19