COVID-19 Resources for Small Businesses

Small Business Resource Guide

The office has put together a comprehensive resource guide for small businesses seeking assistance during this challenging time. Find it here.

Small Business Webinar Featuring the New Jersey Small Business Association

Repersentative Malinowski recently hosted a webinar for small businesses and non-profits in New Jersey’s 7th District who have been impacted by the COVID-19 crisis. The webinar features Alfred Titone, the District Director for the New Jersey Small Business Administration who provided an overview of the new loan and grant programs established by recent congressional stimulus legislation and offered guidance on how to apply. View a recording of the webinar here

What has Congress Done?

Congress has passed – and the President has signed – comprehensive legislation to ease the economic burden the American people and small businesses are experiencing as we follow public health advice to combat the coronavirus. Below you will find key aspects of how the Families First Coronavirus Response Act and the CARES Act can help your small business.

Paid Sick Leave and Family Leave Tax Credit

  • The paid sick leave and paid family leave provisions of the Families First Coronavirus Response Act include a refundable payroll tax credit for employers to cover 100 percent of the cost of wages and health insurance premiums paid during the leave. ​
    • Employers initially front the cost of emergency paid sick leave and paid family leave but will be fully reimbursed by the federal government.
    • The reimbursement will cover both the wages paid and the employer’s contribution to employee health insurance premiums during the period of leave.
    • Employers will be reimbursed through a refundable tax credit that counts against employers’ payroll tax, which all employers pay regardless of non-profit/for-profit status.
    • Employers will submit emergency paid sick leave expenses as part of their estimated quarterly tax payments. If employer’s costs more than offset their tax liability, they will get a refund from the IRS.
    • Because employers will not have to put aside money to make payroll tax deposits, their cash flow outlook should improve even sooner than their first filing date.
  • Please refer to guidance and an FAQ from the U.S. Department of Labor for more information.

Economic Injury Disaster Loans program

  • Congress also infused new funding into the Small Business Administration's (SBA) Economic Injury Disaster Loans program. The application for SBA Economic Injury Disaster Loans can be found here
  • These loans may be used to pay fixed debts, payroll, accounts payable, and other debts that cannot be paid because of the virus' impact. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
  • Answers to frequently asked questions about Economic Injury Disaster Loans can be found here
  • For additional information, small business owners can contact the SBA Disaster Assistance customer service center by calling 1-800-659-2955 or by emailing disastercustomerservice@sba.gov  

Paycheck Protection Program (PPP)

The Paycheck Protection Program will provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy to snap-back quicker after the crisis. The Small Business Administration has posted guidance for those interested here.

  • PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year.
  • Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020.
  • This program is retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls.
  • Loans are available through June 30, 2020.