(last updated 10/27/20)
You can find resources here that may be valuable to Social Enterprises during the Coronavirus outbreak. REDF will be updating this site regularly as we gather information from the field.
I need help with:
- REDF strongly recommends that ESEs apply to the Small Business Association (SBA) Paycheck Protection Program (PPP).The Small Business Administration will be accepting PPP loan applications from approved lenders on behalf of any eligible borrower the week of January 11th. REDF encourages you to start the conversation about PPP with your lender now. This program is available to ESEs who have had a PPP loan in the past (Second Draw loans) and ESEs who have never had a PPP loan (First Draw loan). This forgivable loan provides small businesses, including nonprofits, with fewer than 300 employees funds for payroll costs, interest on mortgages, rent, utilities, cloud server costs, property damage related to 2020 civil unrest, essential supplier costs, and worker protection costs. PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs. SBA, in consultation with the U.S. Treasury Department, will re-open the PPP loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA. (updated 1/14/21)
- Small Business Administration Economic Injury Disaster Loan (EIDL) – These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. 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. 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. (updated 5/21/20)
- Employee Retention Tax Credit – The Coronavirus Aid, Relief, and Economic Security (CARES) Act created a new Employee Retention Tax credit to encourage companies to continue paying their employees if the business has been closed, or there has been a significant decline in sales due to COVID-19. Employers cannot receive both the Paycheck Protection Program (PPP) loan and the Employee Retention Tax . If a business is not approved for the PPP loan, the Employee Retention Credit could be an alternative source of government assistance.
- ELIGIBILITY: The tax credit is available to any ESE that conducted business in 2020 and has either:
- Experienced more than 50% decline in sales revenue (called “gross receipts”) as compared to the same quarter in 2019.
- Reduced operations fully or partially as a result of orders from a government authority due to COVID-19, or
- See link for more info and availability. (added 4/20/20)
- ELIGIBILITY: The tax credit is available to any ESE that conducted business in 2020 and has either:
NATIONAL & AGGREGATE LISTS
- REDF strongly recommends that ESEs apply to the Small Business Association (SBA) Paycheck Protection Program (PPP).The Small Business Administration will be accepting PPP loan applications from approved lenders on behalf of any eligible borrower the week of January 11th. REDF encourages you to start the conversation about PPP with your lender now. This program is available to ESEs who have had a PPP loan in the past (Second Draw loans) and ESEs who have never had a PPP loan (First Draw loan). This forgivable loan provides small businesses, including nonprofits, with fewer than 300 employees funds for payroll costs, interest on mortgages, rent, utilities, cloud server costs, property damage related to 2020 civil unrest, essential supplier costs, and worker protection costs. PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs. SBA, in consultation with the U.S. Treasury Department, will re-open the PPP loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.. (updated 1/14/21)
- Small Business Administration Economic Injury Disaster Loan (EIDL) – These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. 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. 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.(updated 5/21/20)
- US Chamber of Commerce Foundation Save Small Business Fund – $5,000 Grants for small businesses that employ 3-20 people and are located in economically vulnerable community and impacted by covid-19. See website for eligibilty and application. Opens 4/20.
- ICA Rapid Response Liquidity Fund: List of national and California-specific resources available for small businesses. Specifically to: Help assess the immediate liquidity needs of the business, Help access emergency relief funds from the SBA and other programs, Stretch the capital our small businesses currently have, and Start to rethink business strategies to respond to our new normal. (added 3/27/20)
- Open Road Alliance: For non profits and social enterprises – We are accepting COVID-19 related funding inquiries/applications for both grants and loans. However, please note that we will be applying a specific, exceptional set of criteria to these applications. We will finalize and publish our COVID-19-specific criteria by Wednesday, March 18th. (added 3/27/20)
- Facebook – Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where it operates. Funding for For-Profit Businesses only in specific geographies listed on the website (~34 US Cities). (added 3/30/20)
- Candid.Org – A list of funds specifically established in the wake of coronavirus. The list focuses on funds hosted at US-based foundations that serve nonprofits, though others outside of this criteria may appear as well. (added 4/10/20)
- Council on Foundations – 100+ aggregated funding opportunities. This is a list of global response funds and funding opportunities related to COVID-19 relief. (added 4/14/20)
- Case @ Duke – This comprehensive, searchable database includes grants, loans, and other cash equivalents that can help entrepreneurs, nonprofits, and businesses anywhere in the world. 4/14/20
- Community Foundation Initiative – This resource lists the nearly 190 U.S. community foundations in 49 states, plus the District of Columbia, that have created relief funds to support those affected by COVID-19 — directing critical relief to local nonprofits and partnering with local governments and health organizations to help contain its spread. (added 4/14/20)
- Albertson’s Companies Foundation – Nourishing Neighbors, a program of Albertsons Companies Foundation (a funder of the Congressional Hunger Center), has established a fund to help local families impacted by the current crisis. Funds will be used to support organizations in their effort to provide meals to school children, seniors, and others financially impacted or isolated individuals during this time. Applications can be made for up to $10,000 and are accepted and reviewed on a weekly basis.Be sure to select “COVID-19 Fund” and indicate that you were referred by the ‘Congressional Hunger Center’.See link for eligibility. (added 4/27/20)
- LISC + Verizon – Update: A Second wave of applications are expected to open mid-April. An investment of $2.5 million from Verizon is making it possible for LISC to begin offering critical relief and resiliency-building support to small businesses facing immediate financial threat because of the COVID-19 pandemic. The funding will go to make grants of up to $10,000, especially to entrepreneurs of color, women-owned businesses and other enterprises in historically under-served places who don’t have access to flexible, affordable capital. (added 4/27/20)
- Hello Alice: Hello Alice is offering $10,000 grants being distributed immediately to small business owners impacted by coronavirus, as part of our broader mission to ensure Business for All. In addition to funding, grant recipients will receive ongoing support from the Hello Alice community. (added 4/27/20)
- Aggregate List: Philanthropy CA – Vetted the list of response funds below to help you direct resources to the most vulnerable communities. This list is updated daily. (added 4/10/20)
- Bay Area Grant: Stupski Foundation – These initial, general-support investments will bolster urgent and critical efforts to create food assistance, COVID-19 testing centers, child care, and other necessary supports. (added 3/27/20)
- Bay Area Grant: San Francisco Foundation – Capacity building grants ($3,000 – $25,000) to nonprofit organizations in San Francisco, Alameda, San Mateo, Contra Costa, and Marin Counties addressing the following four issue areas, described in greater detail below: worker support, preventing homelessness and providing renter protection/housing security, ensuring food security, and addressing racial bias. (added 3/27/20)
- Bay Area Grant: United Way Bay Area COVID-19 Community Relief Fund – Brings together UWBA’s broad community network, knowledge of organized labor, our corporate partners, local government agencies, schools, and other community-based organizations.
- San Francisco Loan: Small Businesses Resiliency Fund– must: Have at least 1 employee and no more than 5 employees, Demonstrate a loss of revenue of 25% or more, Have less than $2,500,000 in gross receipts, Be engaged in activities that are regulated by the City and County of San Francisco, and have a license/permit associated to that regulation.
- Los Angeles Loan: City Small Business Emergency Microloan Program – Primary business operation must be located within City of Los Angeles boundaries. Microloan Use of Funds must be for reasonable and eligible working capital expenses. Microloan Requirement job retention. Loan Limits $5,000 to $20,000. Eligible Uses: Working Capital Only. (added 3/27/20)
- Los Angeles Loan: EWDD LA City – Small Business Loan Program for commercial business locations in the City of Los Angeles (http://zimas.lacity.org/). Annual revenue must not exceed $10 million and have no more than 500 employees. Must create one permanent full-time equivalent job for every $35,000 in financial assistance received from the City. Loan Limits: $50,000 to $500,000. Term/Amortization: 3-10 Years. Interest Rate: 5.5%, fixed for 12 months then adjusts to 2.5% +10yr US t-note rate. (added 3/27/20)
- San Diego Grant: San Diego Foundation – Grant funding will focus on three critical areas: food security, rental and utility assistance, and income replacement or gap funding. A new category of assistance has also been added: no-interest loans for nonprofit organizations to provide business and community service continuity. (added 3/27/20)
- Chicago Loan – Chicago Small Business Resiliency Fund: As a direct response to COVID-19, The City of Chicago is establishing a $100 million fund which will help to provide small businesses AND non-profits with emergency cash flow during this immediate health crisis. Funds will be provided to eligible businesses as low-interest loans. The Resiliency Fund is structured to complement the new federal Paycheck Protection Program that the Small Business Administration (SBA). Apply here. (added 4/14/20)
- Illinois Loan – Illinois Small Business Emergency Loan Fund: $60 million fund will support low-interest loans of up to $50,000 for small businesses in every industry. (added 4/14/20)
- New York City Loan: NYC Gov – New York City government will offer businesses with few than 100 employees small grants and interest-free loans of $75K. (added 3/27/20).
- New York City Loan: Renaissance Economic Development Corporation – Loans for restaurants, retail stores, service businesses. Initial 6 months of P&I deferment and a total term of 48 months. Businesses must demonstrate at least a 25% decrease in sales due to COVID‐19. (added 3/30/20)
- New York City Grant: NYC COVID-19 Response & Impact Fund – The NYC COVID-19 Response & Impact Fund is a $75 million (and growing) effort to aid nonprofit service providers struggling with the health and economic effects of the coronavirus. To be eligible for the loan, you are 501(c)(3) nonprofit organization, based in New York City, have annual non-governmental revenue of $20 million or less, receive New York City or New York State government funding, and have a track record of delivering effective programs and services equitably for New York City residents. These loans are geared toward nonprofits with an annual revenue of at least $750,000. (added 3/30/20)
- Seattle Grant: Amazon: Amazon announced that small businesses located in Seattle’s South Lake Union and Regrade neighborhoods can apply for a grant from Amazon. Amazon will prioritize grants for businesses that rely on foot traffic to attract customers and that can provide information showing how much revenue they expect to lose this month. Amazon says it will disperse the grants in April. (added 3/27/20)
To some extent, almost all businesses may be exercising cash controls in the coming weeks. We recommend starting the process sooner rather than later.
- Call lenders and request a grace period for making any debt payments
- Call creditors and ask for line extensions
- Call suppliers and service providers to request a longer payment period for bills due
- If possible, consider reducing hours of operation with little revenue generation
- See if your enterprise is available for emergency small business funding. The SBA and many state and city small business development centers have opened emergency loan funds to support businesses experiencing significant losses. Check your local SBDC for the latest fund availability, as legislation is being passed each day.
- Consider running a short-term campaign to support employee wages, or asking donors who have pledged for this year to send their payments in now. Sara Gibson, founder of 20 degrees, lists out several other creative ways nonprofits can build resilience amidst the coronavirus pandemic.
OTHER RESOURCES ON CASH CONTROLS
- Nonprofit Finance Fund – This is part 1 in an ongoing series of advice for nonprofits during COVID-19. (added 4/14/20)
- Spectrum Nonprofit Services – From Sustainability to Survivability,
How Nonprofits Can Manage Uncertainty Amid Crisis. (added 4/14/20)
- Umbrex.com – Umbrex has established a Pandemic Playbook as well as a Task Force of volunteer consultants which is providing pro bono coaching to owners of small businesses and directors of non-profits affected by COVID-19. (added 4/14/20)
- California Department of Insurance – The Department of Insurance is responding to COVID-19 with a series of steps to protect public health and maintain a strong insurance market to serve consumers. (added 4/24/20)
- Westaway Law (Kyle Westaway) – The Entrepreneur’s COVID-19 Playbook: Kyle Westaway is a prominent startup thought leader, attorney, and social impact investor. He and his team assembled a free guide to stimulus money, tax breaks, and legal tips to help enterprises survive and thrive during the pandemic. (added 4/27/20)
- Whole Whale Digital Agency – A guide for Non-Profits to implement work from home policies, including a list of discounted/free technology products. (added 3/27/20)
- Zoom Blog – Best Practices for Hosting a Digital Event (added 4/14/20)
- Craft Ventures – Happy Talk vs. Hard Talk: There’s a lesson in here for founders. We are not called to lead national emergencies, but we do face frequent existential challenges for our companies, with life-or-death consequences for the business. A recurring problem — probably the #1 killer of startups — is Happy Talk, a basic failure to admit problems until it is too late. (added 4/27/20)
- National Council of Nonprofits – Technology tools for remote work and events: (added 4/27/20)
- Google Hangouts Premium is free through July 1.
- Microsoft Teams is available for free for six months.
- GoToMeeting tools for working remotely (for video conferencing, webinars, and virtual events) are free for three months).
- Dropbox Premium is free for three months for nonprofits focused on fighting COVID-19.
- Higher Logic is providing its tools for virtual event communities free for the remainder of this year.
- LiveSafe is providing a free communications tool, which can help connect people with the latest credible information, as well as allow you to broadcast information to your staff or people your nonprofit needs to stay in touch with.
- Nonprofit Pro – Effective Marketing Communication Strategies for Nonprofits: Strategies nonprofits can implement to set them up for success both now and after the pandemic subsides. (added 4/27/20)
OPERATIONS & HUMAN RESOURCES
- Pacific Community Ventures – How to set up a paid leave program for your employees. (added 3/27/20)
- Cooley LLP – Applicability of Force Majeure and Related Doctrines in Response to COVID-19: Applicability of Force Majeure and Related Doctrines in Response to COVID-19. While every contract will be different, and the law can vary significantly between jurisdictions, this user’s guide outlines the basic steps and analytic process businesses can use to approach their particular problem. (added 4/24/20)
- Cooley LLP: Insurance Checklist for COVID Losses: When it comes to maximizing returns from a company’s insurance portfolio, every business should be thinking about these critical steps. (added 4/24/20)
- COVID19 Business Center, powered by Hello Alice – Updated daily, with real-world funding, resources, and support for small business owners adapting to the impacts of coronavirus. Topic range from accessing federal stimulus funding, to establishing and online presence, to anxiety and mental health support for staff. (added 4/27/20)
- Rescue Time – Work from home productivity data: Why you (and your manager) shouldn’t be afraid of remote work: The data shows us that people who work from home are more productive and less likely to spend all day on email and chat. But that’s only the case if they have the tools and systems they need to be efficient with their time. (added 4/27/20)
- Resources for Leading and Managing Remote Workers – A guide on best practices for leading and managing remote teams for ESEs going virtual (and potentially for the first time). (added 4/27/20)
- Coro Northern California – Tips for Anyone Trying to Lead During Pandemics. (added 3/27/20)
- Deloitte – Five fundamental qualities of resilient leadership distinguish successful CEOs as they guide their organisations through the COVID-19 crisis. (added 4/14/20)
- Sea Change – Executive Directors and Boards will need to take decisive and difficult action if the nonprofits they lead are to survive the COVID-19 crisis. This briefing note summarizes the advice and best practices SeaChange is seeing in the field. (added 4/14/20)
- Harvard Business Review – Anxiety is Contagious, here’s how to contain it. (added 4/24/20)
- KonTerra Group – Mental Health/Wellness Resources for leaders, managers, and employees: During this global pandemic, we are offering free webinars led by KonTerra expert consultants to help guide you in navigating the stressors and feelings that accompany the public health crisis we are facing together. (added 4/24/20)
- Steve Blank – The Virus Survival Strategy for Startups: With the Covid-19 virus a worldwide pandemic, if you’re leading any startup or small business, you have to be asking yourself, “What’s Plan B? And what’s in my lifeboat?” Here are a few thoughts about operating in uncertainty in a pandemic. (added 4/24/20)
- Tom Tunguz – Six Disciplines for Challenging Times: In speaking with dozens of startups, Tom collected a list of disciplines that are going to become very important this year and beyond. (added 4/24/20)
- Stanford Social Innovation Review – Rethinking Social Change in the Face of Coronavirus: In this series, SSIR will present insight from social change leaders around the globe to help organizations face the systemic, operational, and strategic challenges that will test the limits of their capabilities. (added 4/27/20)
- Medito – Free Non-Profit Meditation App (added 6/4/20)
- Federal Stimulus Payments – You are probably eligible* for a $1,200 stimulus payment. If you claimed a child under age 17 on your tax return, you may be eligible for an additional $500 per child. (added 4/22/20)
- What to Do When… You’ve Lost Your Job or Your Hours Have Been Cut – Expanded unemployment insurance will likely replace most or all of your earnings temporarily and a federal stimulus payment is probably on its way. However, it might take a month or more for funds to arrive. This is what you need to do to get through these tough times. (added 4/22/20)
- Root and Rebound – Root & Rebound’s Bay Area, Northern California, Los Angeles and South Carolina services will be offered remotely (through phone, video and mail) for re-entry or incarcerated related issues. (added 3/27/20)
- CA EDD: Employers planning a closure or major layoffs as a result of the coronavirus can get help through the Rapid Response program. Rapid Response teams will meet with you to discuss your needs, help avert potential layoffs, and provide immediate on-site services to assist workers facing job losses. (added 3/27/20)
- LA Jobs Portal: For Angelenos whose jobs have been impacted by COVID-19, this website enables unemployed or underemployed Angelenos to find and apply for emergency resources and job opportunities across all industries, so they can start working right now. (added 3/30/20)
- One Fair Wage – Service Workers Support Fund: One F0air Wage is providing cash assistance to restaurant workers, car service drivers, delivery workers, personal service workers and more whose incomes were significantly and abruptly impacted by the COVID-19 outbreak. (added 3/30/20)
- Homebase – This list, updated regularly, summarizes federal, state and private company responses to offset the economic impact of the COVID-19 outbreak for hourly and shift workers. (added 4/14/20)
- Freelancers Relief Fund – Freelancers Relief Fund will offer financial assistance of up to $1,000 per freelance household to cover lost income and essential expenses not covered by government relief programs, including: Food/food supplies, Utility payments, and Cash assistance to cover income loss. (added 4/14/20)
- Grantspace – Grantspace by Candid has aggregated a comprehensive list of 211.org and private funds that have been set up to support individuals and families impacted by the COVID-19 outbreak. (added 4/14/20)
- IRS.gov – To help millions of people, the Treasury Department and the Internal Revenue Service launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return. The non-filer tool provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers. (added 4/14/20)
REDF is hosting a Q + A conversation for ESEs on Shoptalk Here
Cara Plus – To continue to help other practitioners, Cara Plus will be sharing out different practices and step-by-step guides on how they’re navigating COVID-19, as well as practices they adopted in the last recession to help get people back to work via otheir new page on LinkedIn. They kicked this off last week with a guide on how they developed our $90k Emergency Fund.
Congress has so far passed six coronavirus response packages. Below you’ll find highlights of what’s been included in the passed bills as it is relevant to your employment social enterprise, in addition to what is being discussed right now. This analysis does not include all the provisions that came out of the packages.
FY’21 Omnibus/COVID-19 – Consolidated Appropriations Act of 2021, (H.R.133)
Latest Action: Signed into law on Tuesday, December 27, 2020
- $900 billion in emergency coronavirus relief – one of the largest relief packages in history
- Extensions of Pandemic Unemployment Benefits:
- For salaried/hourly workers, the Pandemic Emergency Unemployment Compensation (PEUC) program has been extended up April 5, 2021, once the applicant exhausts their state Unemployment Insurance (UI).
- All recipients of unemployment, including qualified self-employed gig works, will receive an extra $300/week in unemployment benefits until March 14, 2020. Between March 14 and April 5th, existing recipients who have not yet exhausted their benefits may continue to receive them, absent the $300 boost.
- “Mixed earners” with both 1099 and W2 income who receive state unemployment insurance will qualify for a new $100 weekly supplement available through March 14th (on top of the weekly $300 boost) if they can demonstrate at least $5,000 in self-employment income in the taxable year prior to their application for unemployment. Note the following states have opted out of the $100 supplement: Idaho, Mississippi and South Dakota.
- States are given the ability to waive collecting overpayments of unemployment in cases where the claimant is not at fault or if repayment would be contrary to equity and good conscience.
- A “benefit year fix” will allow eligible long-term unemployed to keep collecting benefits with amounts based on the original year in which they qualified.
- Direct Payments: Second round of direct payments at $600/person (phasing out after $75,000 AGI for single filers and $150,000 AGI for joint filers). Additional $600 for each eligible dependent under age 17. Payments not made by the IRS by 1/15/21 will have to be claimed when filing 2020 taxes. Can also use tax filing to claim or correct first round payments. Those also claiming the EITC or Additional Child Tax Credit should not expect tax refunds until at least March.
- Rental Assistance: $25 billion for rent and utility assistance, prioritizing households below 50% Average Median Income and unemployed for at least 90 days. Additionally, CDC Eviction Moratorium extended to January 31, 2021.
- SNAP (Supplemental Nutrition Assistance Programs): $13 billion for SNAP and other nutrition programs. Increases benefit levels by 15% through June 30, 2021. Specifies that the extra $300/week in unemployment benefits should not be included in income for SNAP eligibility or benefit determination.
- EITC and Child Tax Credit: Provides for a temporary “lookback” period, allowing lower-income taxpayers to choose to use their 2019 income to determine credit eligibility for 2020.
- Broadband Provisions: $3.2 billion for low-income families to access broadband through an FCC fund and a $1 billion tribal broadband fund. Under the $3.2 billion fund, individuals are eligible for a $50 monthly internet subsidy and providers can be reimbursed up to $100 for issuing a Wi-Fi connected device (one per household). Individuals/families are also eligible if a member of their family has participated in the free and reduced price lunch program or received a Federal Pell grant.
- Childcare: $10 billion emergency cash to assist both providers and families.
- Paycheck Protection Program: $284 billion for first and second draw of forgivable loans. No fee to apply.
- Eligibility: Remains available for Schedule C gig and self-employed workers, Nonprofits & Corporations with a maximum of 300 employees.
- Priority given to first time loan applicants, minority businesses, recipients with 10 or fewer employees, businesses located in low and moderate income neighborhoods
- Must has proven revenue loss of 25% or more in one of the four quarters in 2020 compared to the same quarter in 2019. Seasonal companies can pick a customized 12-week period.
- Maximum loan amount of $2 million.
- Destination marketing firms, news media companies, and 501(c)(6) nonprofit organizations are now eligible to apply.
- Must have been in business operation no later than February 15, 2020.
- Cannot also receive one of the new Shuttered Live Venue Grants
- Deadline to apply: March 31, 2021 (Treasury to release guidelines in early January.)
- No need to certify forgiveness of first loan before applying for second loan/draw.
- Covered Period: 8 to 24 weeks.
- Loan Amount: Avg monthly payroll x 2.5 months. Restaurants & Lodging can multiply by 3.5 months.
- Covered Expenses: Still must certify minimum of 60% for payroll & maximum of 40% for non-payroll.
- Covered Non-Payroll Cost Categories Expanded for New and Old PPP Loans:
- Operations costs for software and cloud servers for accounting, inventory, delivery, etc.
- Property damage costs related to vandalism due to public disturbances in 2020
- Supply costs of goods that were essential to the business and had pre-existing contracts
- Worker protection costs, both operating and capital costs needed to comply with CDC, HHS, OSHA, and/or local and state government health ordinances.
- Still includes the original non-payroll covered costs for rent, interest, and utilities.
- Covered Payroll Costs Expanded for New and Old PPP Loans: Includes group life, disability, vision, dental & health insurance
- New Forgiveness Application: Will be issued within 24 days of enactment to further simplify old and new PPP loans up to $150,000
- Tax Bonus applicable to Both New and Old PPP Loans:
- Forgiven PPP loans should not be included in the recipient’s gross income
- PPP funds used to pay for covered business expenses can still be fully tax deducted
- PPP & Employee Retention Tax Credit (ERTC): The bill’s new change states that employers who receive PPP loans may still qualify for the ERTC with respect to wages that are not paid for with forgiven PPP proceeds
- Economic Industry Disaster Loans (EIDL) Advances: $20 billion for new EIDL advances through the Small Business Administration
- EIDL Advances would not be included in recipient’s taxable gross income.
- EIDL Advances would not be subtracted from the amount eligible for PPP forgiveness.
- Employee Retention Tax Credit (ERTC): ERTC is a refundable payroll tax credit of up to $5,000 for each employee on the payroll when certain conditions are met. The bill extends the earlier credit for retaining employees for six months (to 7/1/2021) and expands the usefulness of the refundable payroll tax credit, particularly for nonprofits excluded from Paycheck Protection Program (PPP) participation. It reduces the required decline in gross receipts from 50% to 20%, increases the refundable payroll tax credit from 50% to 70%, and covers up to two quarters for a total benefit of $14,000 per covered employee. It also provides that employers who receive PPP loans may still qualify for the ERTC with respect to wages that are not paid for with forgiven PPP proceeds.
- Paid Sick and Family Leave Employer Tax Credit: The bill extends through 3/31/2021 the refundable payroll tax credits for paid sick and family leave that were established in the Families First Coronavirus Response Act. However, employers are no longer required to give paid sick and family leave. The bill also extends through 2025 the 12.5% to 25% income tax credit for paid family and medical leave originally enacted in the 2017 tax law.
- Charitable Tax Deduction: Re-establishes the $300 above-the-line and allows a $600 deduction for taxpayers filing jointly instead of limiting it to only $300 per tax return.
Paycheck Protection Program (PPP) Fix – Paycheck Protection Program Flexibility Act of 2020 (H.R.7010)
Latest Action: Signed into law on Friday, June 5, 2020
- Lengthens the time small businesses have to use the PPP loans in order to have them forgiven from eight weeks to 24, reflecting the longer-than-expected length of the coronavirus countermeasures.
- Reduces a requirement that companies use 75 percent of the loan funds on payrolls to 60 percent.
- Lengthens the repayment term for unforgiven loans to five years, which will lower the size of each payment, making the unforgiven debt easier to manage.
COVID-19 Relief Supplemental Package #4– Paycheck Protection Program and Health Care Enhancement Act, (H.R.266)
Latest Action: Signed into law on Friday, April 24, 2020.
- Paycheck Protection Program (PPP)
- $310 billion to the Paycheck Protection Program, the SBA’s short-term forgivable loan program for small businesses and nonprofits with less than 500 employees.
- Of the $310 billion total:
- $30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion; and
- $30 billion for loans made by Community Financial Institutions (including CDFIs and Minority Depository Institutions), Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion.
- Economic Injury Disaster Loan (EIDL)
- $50 billion for EIDL loans, administered directly by the Small Business Administration.
- $10 billion for Emergency EIDL Grants of up to $10,000 each.
COVID-19 Relief Package #3– Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R.748)
Latest Action: Signed into law on Friday, March 27, 2020.
- Includes $2 trillion in emergency funding – largest fiscal bill in US history.
- Emergency Small Business & Nonprofit Loans ($377 billion): This consists of the following:
- $350 billion in loan forgiveness grants (Paycheck Protection Program, PPP) to small businesses and nonprofits to maintain existing workforce and help pay for other expenses like rent, mortgage, and utilities.
- $10 billion for SBA Economic Injury Disaster Loans (EIDL) which eliminates creditworthiness requirements and appropriates an additional $10 billion to the EIDL program so that eligible nonprofits and other applicants can get checks for $10,000 within three days to provide immediate relief for small businesses and nonprofits operating costs.
- $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans.
- Industry, State, Local, Tribal, and large nonprofits bailout loans: $504 billion fund for industries, with transparency measures and restrictions on use of funds. Of the funds above, $454 billion supports lending facilities that would be leveraged to provide up to $4.5 trillion in lending for distressed businesses as well as states, municipalities, tribes and large nonprofits that have between 500 and 10,000 employees.
- Economic Development Administration: $1.5 billion to support economic development grants for states and communities suffering economic injury as a result of the coronavirus.
- Community Development Block Grant (CDBG): $5 billion. CDBG is a flexible program that provides communities and states with funding to provide a wide range of resources to address COVID-19, such as services for senior citizens, the homeless, and public health services. Funding will be distributed using formula.
- Dislocated Worker National Reserve: $345 million for states and communities to respond to the workforce impacts and layoffs resulting from the coronavirus.
- Charitable Giving Incentive: Includes a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year. The bill also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the bill raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap.
- Employee Retention Payroll Tax Credit: Creates a refundable payroll tax credit of up to $5,000 for each employee on the payroll when certain conditions are met. The entity had to be an ongoing concern at the beginning of 2020 and had seen a drop in revenue of at least 50 percent in the first quarter compared to the first quarter of 2019. The availability of the credit would continue each quarter until the organization’s revenue exceeds 80 percent of the same quarter in 2019. For tax-exempt organizations, the entity’s whole operations must be taken into account when determining the decline in revenues. Notably, employers receiving emergency SBA 7(a) (Paycheck Protection Program) loans would not be eligible for these credits.
- Direct Payments to adults of $1,200 or less and $500 per child ($3,400 for a family of four) to be sent out in weeks. The amount of the payments phases out based on earnings of between $75,000 and $99,000 ($150,000 / $198,000 for couples).
- Expanded Unemployment Insurance: Includes coverage for workers who are furloughed, gig workers, and freelancers. Increases payments by $600 per week for four months on top of what state unemployment programs pay.
- Amendments to the New Paid Leave Mandates: Lowers the amounts that employers must pay for paid sick and family leave under the Families First Coronavirus Response Act to the amounts covered by the refundable payroll tax credit – i.e., $511 per day for employee sick leave or $200 per day for family leave.
- State and local government Funding – $139B. The bill stipulates that within 30 days of enactment the Treasury secretary shall distribute funds to state and local governments. Amounts going to each of the 50 states will be determined in proportion to the population, with no state government receiving less than $1.25 billion. Eligible local governments are defined as any governing body below the state level having more than 500,000 people under its purview. The inspector general of the Treasury is charged with conducting oversight of receipt and distribution.
COVID-19 Relief Package #2 – Families First Coronavirus Response Act (FFCRA) (H.R.6201)
Latest Action: Signed into law on Wednesday, March 18, 2020.
- Expands emergency paid sick leave and family medical leave.
- Provides emergency unemployment stabilization (including grants to States for activities related to disbursing unemployment benefits).
COVID-19 Relief Package #1 – Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R.6074)
Latest Action: Signed into law on Friday, March 6, 2020.
The bill includes provisions for the implementation of SBA Economic Injury Disaster Loans (EIDL) for both small businesses and nonprofits. Loans are available at up to $2 million at 2.75% interest for nonprofits.
PAID SICK & FAMILY MEDICAL LEAVE
Families First Coronavirus Response Act (FFCRA) – the second stimulus bill – included paid sick and family leave. The paid leave requirements are being administered by DOL. The act becomes effective April 1, 2020 and expires on December 31, 2020. The act is also not retroactive; if an employee is currently out due to the following qualifying reasons, they will not receive retro payments.
Here are key components of the paid sick leave program:
- Employers affected by the law.
- Employers with less than 500 employees
- Small business with fewer than 50 employees may qualify for exemption if the expanded leave jeopardizes the viability of the business
- Benefits are paid to an employee by the employer
- The employer is required to pay the employee an additional 80 hours of sick leave or PTO
- The benefit is eligible for all full and part-time employees
- Temporary employees are up to the discretion of the employer
- Six qualifying reasons for the use of the extended benefits.
- An employee is quarantined
- Their doctor advises them to self-quarantine
- They are experiencing symptoms of COVID-19 and waiting for medical diagnosis
- Caring for someone with COVID-19
- Childs school or daycare has closed*
- Secretary of Health and Human Services (HHS) identifies a substantially similar condition not yet identified
- Payments are paid to the employee in the following method:
- If the qualifying reason is due to quarantine, self-quarantine, or symptoms of COVID-19, payments capped at $511/day or $5,110 for the full two weeks.
- If an employee makes more than the cap, the employer can make the employee whole but, is not required to do so
- If the qualifying reason is caring for a family member with COVID-19, child’s school or daycare closes, or the HHS Secretary identifies additional qualifying circumstances, the pay is capped at $200/day or $2,000/full two weeks, or 2/3 the regular rate of pay
- The two thirds regular rate of pay applies to minimum wage because the employee is not to make more than they would regularly
- Again, the employer may make the employee whole but, is not required to do so
- If the qualifying reason is due to quarantine, self-quarantine, or symptoms of COVID-19, payments capped at $511/day or $5,110 for the full two weeks.
- The government will reimburse organizations for employees who use extended benefits.
- Reduction in payroll tax based on the number of people using extended leave or
- Credit (reimbursement) to the organization. For more guidance, visit here, particularly the “Basic FAQs,” which will be updated to address changes in the law or additional questions raised. ESEs will still get the full amount as it’s a refundable credit.
- Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage.
- ESEs should reach out to their payroll vendor to see if they can help ESEs track who has used the benefit to receive reimbursement from the organization. IRS will need this for reimbursement/payroll tax credit procedure.
- Post this information for all employees.
- ESEs should reach out to their payroll vendor to see if they can post to each employee’s account to show transparency and compliance with Federal laws.
Expanded Family and Medical Leave
An interesting part of the newly extended benefit is an expanded Family and Medical Leave option. Many states do not offer wage replacement or job protection for employees who work for an organization with 50 or fewer employees. The expanded leave option also allows for the use of Family Medical Leave Act (FMLA) or other state protection in the event the employee must take care of themselves or a family due to another illness (e.g., surgery, childbirth, adoption) later in the year.
- The expanded Family and Medical Leave option may be used only if the employee cannot work at all because their school or daycare is closed due to COVID-19.
- The benefit offers wage replacement and job protection to the employee for 10 weeks.
- Pays two-thirds the employee’s regular rate of pay
- The employer can make the employee whole but, is not required to do so
- Does not run concurrently with other state or local protected leaves (e.g., California’s Paid Family Leave, San Francisco’s Paid Parental leave)
- * Can use two additional weeks outlined in the Additional Paid Sick Leave or PTO section above for a total of 12 weeks
- The benefit offers wage replacement and job protection to the employee for 10 weeks.
Again, organizations under 50 employees may be exempt if either of the above steps jeopardizes their ability to remain solvent.
- Employee Retention Tax Credit
The Coronavirus Aid, Relief, and Economic Security (CARES) Act created a new Employee Retention Tax credit to encourage companies to continue paying their employees if the business has been closed, or there has been a significant decline in sales due to COVID-19.
Employers cannot receive both the Paycheck Protection Program (PPP) loan and the Employee Retention Tax . If a business is not approved for the PPP loan, the Employee Retention Credit could be an alternative source of government assistance.
ELIGIBILITY: The tax credit is available to any ESE that conducted business in 2020 and has either:
NUMBER OF EMPLOYEES: ESEs with more than 100 full-time employees may only claim the credit for wages paid to employees who are not working due to COVID-19 (i.e. furloughed employees). ESEs with fewer than 100 full-time employees are eligible to receive the tax credit even if all or some of their employees are working in any capacity.
TAX CREDIT: ESEs may receive a refundable payroll tax credit of up to $5,000 per employee for wages and health benefits paid after March 12, 2020 and before the end of the year.
CLAIMING THE TAX CREDIT: There is not an application to receive this tax credit. ESEs will report their total qualified wages and the related credits for each quarter on their federal employment tax returns.
To learn more about the credit, visit this IRS webpage.
- Work Share Programs
Work sharing (also known as “short-term compensation”) is a type of an unemployment benefit that prevents layoffs by allowing employers to reduce employee work hours while unemployment compensation makes up a portion of the difference in income. In 2012, the federal government issued guidance to states on how to use unemployment insurance benefits for work sharing programs. Rules and regulations vary by state. To date, 25 states and District of Columbia currently run work share programs.
HOW IT WORKS: Through work-share programs, employers reduce the number of hours employees works, and employees can have a portion of their lost wages made up through unemployment compensation payments. Affected employees qualify for a percentage of unemployment benefits that are equal to the percentage by which their hours have been reduced. For example, an employee whose hours are cut by 10 percent would qualify for 10 percent of the state’s established weekly unemployment benefit amount.
ELIGIBILITY: ESEs should confirm if their state has a work sharing program (see table below). If so, the employer should contact the state labor agency to apply. States differ on the eligibility requirements for employees. In some states, only permanent staff can receive this benefit, which means transitional or temporary employees would not be eligible. More information about specific state requirements can be found below.
REDF recommends that states that have not yet authorized work sharing should immediately do so. To learn more about REDF is doing to advocate for ESEs during this time, click here.
OTHER FEDERAL DOLLARS
Community Development Block Grants
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $5 billion in supplemental Community Development Block Grants (CDBG) funding to prevent, prepare for, or respond to COVID-19. Additionally, the CARES Act provides CDBG grantees flexibility so that it is easier to use the grants for COVID-19 response.
- FUNDING: Of the $5 billion, $2 billion will be supplemental funding for states and local governments that received an allocation in FY2020. Another $1 billion will be allocated to states and localities based on public health needs, the risk of transmission, the number of COVID-19 cases, and economic and housing market disruptions. Finally, the remaining $2 billion will be distributed to states and local government on a rolling basis, at the discretion of the Secretary, according to factors to be defined by the Department of Housing and Urban Development (HUD).
- INCREASED FLEXIBILITY: The CARES Act provides broad authority to the HUD Secretary to waive or set alternative requirements for any statute or regulation if necessary, to expedite the use of these funds to prevent and respond to COVID-19. Additionally, the CARES Act eliminates the cap on the amount of funds a grantee can spend on public services, removes the requirement to hold in-person public hearings in order to comply with national and local social gathering requirements, and allows grantees to be reimbursed for COVID-19 response activities regardless of the date the costs were incurred.
- NEXT STEPS: If your ESE is already a CDBG grantee and would like to receive additional funding to help prevent, prepare for, or respond to COVID-19, then please contact either your city or state depending on how you receive your funding. Additionally, a guide to CDBG eligible activities to support COVID-19 can be found here.
- If your ESE does not already receive CDBG funding, then please contact your city or state about the application process. You can also reach out to one of HUD’s Community Planning, and Development’s Regional Offices.
Dislocated Worker Grants
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $345 million in Dislocated Worker Grants (DWGs) to help states and cities respond to workforce impacts and layoffs resulting from COVID-19. DWGs are discretionary grants awarded by the Secretary of Labor that provide temporary employment and training programs through state and local workforce programs. DWGs are issued in response to large, unexpected economic events which cause significant job losses, such as COVID-19. DWGs also provide resources to states and local workforce investment boards to quickly reemploy laid-off workers by offering training to increase occupational skills.
- HOW IT WORKS: In order to receive DWG funding, states must apply to the Department of Labor. A list of the states who have been approved to provide this funding can be found here. If a state has been approved, then individuals who are permanently or temporarily laid off should contact their local workforce development office to inquire about DWG opportunities.
Economic Adjustment Assistance Program Grants
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $1.5 billion for the Department of Commerce’s Economic Development Administration (EDA) to administer grants through its established Economic Adjustment Assistance (EAA) program to help revitalize local communities after the pandemic. Grant money may be used for development of public facilities, public services, business development (including funding of a revolving loan fund), planning, technical assistance, training, and any other assistance to alleviate long-term economic deterioration and sudden and severe economic dislocation and further economic adjustment objectives. Eligible applicants include: states, political subdivisions thereof (cities, counties, etc.), district organization, Indian tribes, institution of higher education, or a non-profit acting in coordination with a political subdivision of a state. These eligible applicants must demonstrate an unemployment rate over 1% greater than the national average or other certain unemployment or economic adjustment problems.
- NEXT STEPS: A notice of funding opportunities and information on how to apply will be posted on the Economic Development Administration’s website, which you can find here. We recommend reaching out to your individual state or local government and nearest EDA Regional Office to determine how you can access funds. To find a list of previous grant recipients in your area or the nearest EDA Regional Office, please see here.
As COVID-19 persists, REDF wants to ensure you have reliable access to PPE and cleaning supplies to keep your staff, program participants, and customers protected. We’ve partnered with Goodwill Silicon Valley and 17 Commerce, which are equipped to provide consistent, quality, and affordable PPE.
To purchase PPE and cleaning products from one or both of these providers, please download their respective order form(s), follow the directions on the form, and submit via the email address listed on the respective form.
- Goodwill Silicon Valley: is a social enterprise in REDF’s Venture Philanthropy Portfolio. At the onset of the pandemic, GSV solidified critical partnerships giving them access to a wide range of PPE and cleaning products. To place an order with GSV, please use this form.
- 17 Commerce: is a firm that sources fair-priced PPE and other related products. Through a multitude of relationships with domestic and international PPE manufacturers, 17 Commerce has access to a wide range of PPE and cleaning products. To place an order with 17 Commerce, please use this form.
- Ongoing Tuesdays & Thursdays – San Francisco OEWD – If you are a business impacted by COVID19 and considering work stoppages, layoffs, or furloughs, the Office of Economic and Workforce Development (OEWD) is offering virtual info sessions on Tuesdays and Thursdays for you and your employees. Together with Employment Development Department (EDD) and other partners, we will present information on unemployment benefits, healthcare resources, and career services to assist you and your employees during this critical time.
- June 18: Exygy – Crisis Discriminates: How Can We Protect Vulnerable Communities? This pandemic has exposed and heightened structural inequities particularly in vulnerable populations – people of color, immigrants, rural communities, people living with disabilities. Our virtual discussion will explore how each of us can be advocates for vulnerable community members
- Miller Center for Social Entrepreneurship: This page contains links to resources and webinar recordings on business resilience and disaster recovery. (recording available).
- Nonprofit Finance Fund – Managing through Uncertainty: As the nation grapples with the COVID-19 crisis, nonprofit leaders face tough decisions about how to sustain their organizations in a time of uncertainty. To help ensure nonprofit leaders have every tool at their disposal, we’re presenting the following free webinars on managing through this crisis.
- Center for Nonprofit Management – Help for the Helpers – This free webinar series will help your nonprofit organization explore a host of new financing options including disaster loans, payroll protection, and bridge loans to help determine which is right for you. Geared towards nonprofit organizations, this webinar series is also open to their funders and stakeholders. (recording available).
- Salesforce – Stories of Resilience with Mark Cuban – Today’s uncertain landscape leaves businesses looking for tools, advice, and inspiration — particularly small and midsize ones. Here’s an opportunity to get advice from Mark Cuban, live in conversation with Salesforce SVP of SMB Marketing, Marie Rosecrans. Speakers will offer strategies for adapting and pivoting during periods of uncertainty, and provide inspiration to forge a path forward. (recording available).
- Aspen Institute COVID-19 and Unemployment Insurance – Rebecca Dixon, Executive Director of the National Employment Law Project and the newest member of the Economic Opportunities Program’s Advisory Council, to talk about unemployment insurance—how it works, who it helps, and how it might better meet the needs of the people who find themselves in need in our current crisis. (recording available).
- James Beard Foundation: Food Industry responses to COVID-19. (recording available).
- The Justice Collaborative: Emergency Call: COVID-19 and the Criminal Legal System. (recording available).
- Workforce 180 – Crisis Case Management : Crisis Case Management: Dr. Beverly Ford shared best practices for serving clients during the COVID-19 crisis. (recording available).
- Workforce 180 – Effective Crisis Leadership: Ed Trumbull, ICF Vice President as he shares ideas and ways to navigate through staff, client and community challenges facing all workforce leaders being looked upon for solutions. (recording available).
- Workforce 180 – Crisis Employer Outreach: Effective ways to engage employers during the daily confusion of closings, layoffs and radical changes to the way people are working. (recording available).
- Bromberger Law: Legal Issues and Strategies for Social Enterprises in the New Normal – In this webinar, Bromberger Law looks at some of the most important legal issues that social enterprises should be paying attention to now as they plan for the next several months of a COVID-19 world.
- COVID-19 Disaster Relief: Resources and funding options for impacted social enterprises: Join Small Business Majority, The US Small Business Administration, and REDF for a free webinar to learn more about the EIDL and PPP programs and how to apply for them and other resources that social enterprises can take advantage of right now.