Business Loans and Grants

• What is it? The Paycheck Protection Program is a cornerstone of aid offered to provide small business loans on favorable terms to borrowers impacted by the current state of economic uncertainty. Specifically, the program is designed to help small businesses keep their workforce employed. The new loan program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
• Who is eligible? All small businesses, including nonprofits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
• More details:  SBA.gov/Coronavirus
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 1%
    • Maturity of 2 years
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrower or lender fees payable to SBA
  • Here’s a Paycheck Protection Program Loan FAQ from the Small Business Administration (updated 4/6/20).
• Utah lenders: Complete listings of Utah banks and credit unions authorized to participate in the U.S. Small Business Administration’s Paycheck Protection Program (PPP) are available at utah.bank and utahscreditunions.org. Divvy, a Utah fintech company, has partnered with New Jersey-based Cross River Bank to help companies access U.S. Small Business Administration Paycheck Protection Program funding. Learn more here.
• Current SBA lenders can be identified here.  
• Here’s a Paycheck Protection Program FAQ from the Utah COVID-19 Economic Response Task Force.
• There are three ways to submit questions to the SBA Rapid Response Team
  • SBA Utah Email: utahgeneral@sba.gov
  • SBA Utah Phone: (801) 524-3209
  • Rapid Response Team inquiry submission form.

On May 15, 2020, the U.S. Small Business Administration released the PPP Loan Forgiveness Application that borrowers must complete in order to have their PPP loan forgiven. The PPP Loan Forgiveness Application includes detailed information regarding the eligible cost for forgiveness, instructions for calculating those costs, a list of documents to submit, and documentation that must be maintained but is not required for submission. Borrowers may also complete the application electronically through their lender.

Click here for a step-by-step guide to calculate your loan forgiveness amount, navigate record-keeping requirements, and determine repayment terms on amounts not forgiven. 

PPP Loan Forgiveness Application

• What is it? SBA will pay the principal and interest to banks on behalf of businesses for current SBA loans and new loans issued up until 9/27/20.  Businesses should ask their lender for this relief. SBA will be issuing guidance in less than 30 days. Note – This includes SBA export financing programs (i.e. EWCP, Export Express, and the International Trade Loan).
• Who is eligible? Existing SBA Disaster Loans (home and business), payments of these loans have been automatically deferred by the SBA.

On May 4, 2020, the U.S. Small Business Administration (SBA) announced that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. Eligible agricultural businesses must have 500 or fewer employees.

For the full press release issued by the SBA, click here.

• What is it? The SBA’s Economic Injury Disaster Loan program provides small businesses and agricultural businesses with working capital loans of up to $2 million that can provide vital economic support to businesses to overcome the temporary loss of revenue they are experiencing. You apply through the SBA.
• Who is eligible? Small business owners (≤500 FTEs) and agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19.
• More details:  SBA.gov/Disaster
  • Reminders:
    • There’s no immediate deadline to apply.
    • There’s no fee to apply.
    • No credit card information is required.
• Contact: Utahgeneral@sba.gov or 801-524-3209 for specific questions.
• Streamlined Process: Access the new EIDL website here: https://covid19relief.sba.gov/#/

For further assistance, visit the Internal Revenue Service website or contact your accountant directly. 

• What is it? This provision provides a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. Wages do not include those taken into account for purposes of the payroll credits for required paid sick leave or required paid family leave, nor for wages taken into account for the employer credit for paid family and medical leave (IRC sec. 45S).  
• Who is eligible? The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis. Wages of employees who are furloughed or face reduced hours as a result of their employer’s closure or economic hardship are eligible for the credit. For employers with 100 or fewer full-time employees, all employee wages are eligible, regardless of whether an employee is furloughed. 
• More details: The credit is not available to employers receiving assistance through the Paycheck Protection Program. The credit is provided through December 31, 2020. 

• What is it? This provision allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. 
• Who is eligible? Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability. 
• More details: Deferral is not provided to employers receiving assistance through the Paycheck Protection Program. 

• What is it? Temporarily modify Net Operating Loss limitations to (1) permit carry-back for NOLS generated in 2018, 2019 and 2020 based on a five-year carry-back window and (2) suspend the taxable income limitation. Losses carried back to pre-2018 tax years are refunded at up to 35% corporate tax rates.
• How long will it take? Prior-Tax Year amended returns can be filed immediately.
• More details: File an amended tax return for the relevant year(s).

• What is it? Requires employers to provide emergency paid sick leave and emergency paid family leave, but provides a tax credit against payroll taxes to defer that cost.
• How long will it take? Quarterly when filing your payroll tax return.
• More details: Claim on your quarterly IRS Form 941.

• What are they? Expensing for qualified improvements. Increase in interest deductibility. Expanded AMT credit refundability. 
• How long will it take? Immediate for past tax years and/or reduced tax liability at time of 2019/2020 filing.
• More details: Claim on your quarterly IRS Form 941.

• What it is? FEMA has issued guidance for businesses that are able to provide medical supplies or equipment to the coronavirus response efforts. Information is also also available for businesses that are able to start producing a product related to the COVID-19 response.
• Who is eligible?
  • To sell medical supplies or equipment to the federal government, please submit a price quote under the COVID-19 PPE and Medical Supplies Request for Quotation. Full details can be found in the solicitation (Notice ID 70FA2020R00000011). 
  • This solicitation requires registration with the System for Award Management (SAM) in order to be considered for award, pursuant to applicable regulations and guidelines. Registration information can be found at www.sam.gov. Registration must be “ACTIVE” at the time of award.
    • If you have medical supplies or equipment to donate, please provide us detailson what you are offering.
    • If you have a private company that wants to produce a product related to the COVID response please email nbeoc@max.gov. 
    • If you are a hospital or healthcare provider in need of medical supplies, please contact your state, local, tribal or territory department of public health and/or emergency management agency.
    • If you are interested in doing business with FEMA and supporting the response to COVID- 19 with your company’s non-medical goods and/or services, please submit your inquiry to the Department of Homeland Security (DHS) Procurement Action Innovative Response Team (PAIR) team at DHSIndustryLiaison@hq.dhs.gov
      
• More details:  https://www.fema.gov/coronavirus/how-to-help.

• Information from FDA about how to designate a medical product as an Emergency Use. This information is relevant for importing products.
• US Customs and Border Protection – importing: The U.S. Food and Drug Administration is providing an update to CSMS message 42124872 for instructions to the import community regarding the submission of entry information for personal protective equipment and certain other devices. Following the instructions below will help facilitate the import process for all; especially for products related to the Coronavirus Disease-2019 (COVID-19) public health emergency. It is in the best interest of the U.S. to facilitate and expedite the importation of products into the U.S. market that address immediate, urgent public health needs. 
• Non-FDA-regulated general purpose personal protective equipment (masks, respirators, gloves, etc.)
  • Personal protective equipment for general purpose or industrial use (that is, products that are not intended for use to prevent disease or illness) is not regulated by FDA.
  • For these types of products, entry information should not be transmitted to FDA. At the time of entry for these products, Importers should transmit entry information to US Customs and Border Protection (CBP) using an appropriate HTS code with no FD Flag; or using an appropriate HTS code with an FD1 flag and do a ‘disclaim’ for FDA.
  • Products authorized for emergency use pursuant to an Emergency Use Authorization (EUA)
  • When importing such products, entry information should be submitted to FDA; however reduced FDA information is required for review.
  • At the time of entry, Importers should transmit an Intended Use Code of 940.000: Compassionate Use/Emergency Use Device, and an appropriate FDA product code. Under this Intended Use Code, the Affirmations of Compliance for medical devices (such as the Registration, Listing, and Premarket numbers) are optional in ACE.
  • Below is a list of products and the appropriate product codes that are currently authorized by an EUA:
    • Diagnostic tests:  83QKP, 83QKO, 83QJR    
    • Masks/Respirators: 80NZJ

• What is it? The FFCRA requires small employers to provide Emergency Paid Sick Leave and Emergency Paid Family Leave, requires employer-sponsored group health plans to cover COVID-19 testing, and boosts state unemployment funds.
• Who is eligible? Applicable to employers and employees.
• More details:  https://www.dol.gov/agencies/whd/pandemic/ffcra-questions.

• What is it? On March 13, 2020, the U.S. Department of the Treasury Internal Revenue Service announced the new deadline for personal and business Federal Tax filings would be July 15, 2020. 
• Who is eligible? Those filing personal and business Federal tax filings.
• More details: https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers

• What is it? On March 23, 2020, the Federal Reserve announced extensive new measures to support the economy including the Main Street Business Lending Program.  
• Who is eligible? This program will support lending to eligible small-and-medium sized businesses, complementing efforts by the SBA. 
• More details:  https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm

• What is it? The Federal Reserve announced two programs to promote lending to small and mid-sized businesses. The first, the Main Street New Loan Facility (MSNLF), applies to new loans. The second, the Main Street Expanded Loan Facility (MSELF), applies to upsized tranches on top of existing loans.
• Who is eligible? 1) Businesses with up to 10,000 employees or with revenues less than $2.5 billion; and 2) Be created or organized in the United States or under the laws of the United States with significant operations in and a majority of its employees in the United States.
• More details: Please note the comment period for this program closes April 16, so aspects are subject to change. Please see more details here.

• What is it? The Community Development Financial Institutions Fund plays an important role in generating economic growth and opportunity in some of the nation’s most distressed communities. The CDFI Fund is extending the upcoming application deadlines for the (FY) 2020 funding round of the Community Development Financial Institutions Program (CDFI Program) and Native American CDFI Assistance Program (NACA Program).
• Who is eligible? Distressed communities.
• More details: If you have a question about the application process, you can contact the CDFI Fund’s Help Desk by submitting a Service Request through your AMIS account; by email to cdfihelp@cdfi.treas.gov; or by phone to (202) 653-0421 (please note this is not a toll free number). To learn more about the CDFI Fund and its programs, please visit www.cdfifund.gov.

• What is it? The EDA encourages counties, districts, state agencies and others unable to maintain a pre-COVID-19 economy to apply for a RFL Grant.
• Who is eligible? Utah currently has six EDA Revolving Loan Fund Grantees. If your business is located in any of the counties or cities listed below, please reach out to the corresponding contact to see if you qualify. 
• More details: For general questions please reach out to tthompson@eda.gov. 

• What is it? International customers need several billion dollars in temporary, short-term bridge financing to enable them to acquire U.S. goods and services. The Bridge Financing Program will enable exporters to go forward through short-term (e.g., one year) financing of these U.S. exports until private sector liquidity returns.
• Who is eligible? Foreign buyers of capital equipment that need longer term repayment terms.
• More details: https://www.exim.gov/coronavirus-response/fact-sheet-exim-establishes-bridge-financing-program

• What is it? American manufacturers of large-scale items (aircraft, satellites, etc.) often rely on partial, advance payments, or “progress delivery payments,” during production. However, their international customers may be unable to finance pre-export payments due to temporary liquidity problems caused by the COVID-19 crisis, problems that ultimately threaten U.S. workers and suppliers. To help meet this challenge EXIM will temporarily expand its Pre-Export Payment Policy for a one-year term for transactions in which EXIM is not providing the long-term financing (such as turbines, locomotives and aircraft) to the buyer and to manufacturing sectors whose international buyers have traditionally not participated but may be interested now due to a lack of commercial financing.
• Who is eligible? US entities with Medium- or Long-Term payment terms with international buyers under contract.
• More details:  https://www.exim.gov/coronavirus-response/fact-sheet-exim-temporarily-expands-pre-export-payment-program

• What is it? EXIM’s existing Supply Chain Financing Guarantee Program enables suppliers to sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate, while EXIM guarantees the lender’s purchase of the accounts receivable. This helps suppliers obtain cash quickly (often at lower rates that reflect the credit of the buyer) and increase liquidity to fulfill new orders. However, the availability of existing commercial options combined with certain program features suppresses demand for the offering. In light of expected liquidity constraints in exporter supply chains, EXIM will expand the program by relaxing its criteria and increasing its guarantee level.
• Who is eligible? Exporters of USA Goods (and their foreign affiliates).
• More details: https://www.exim.gov/coronavirus-response/fact-sheet-background-on-supply-chain-financing-guarantee-program 

• What is it? EXIM’s Working Capital Guarantee Program facilitates loans from commercial lenders, typically through Designated Authority (DA) lenders, to creditworthy U.S. businesses that export over the term of the loan. Recently many DA lenders expressed to EXIM the need for greater working capital financing support given the significant and growing liquidity pressure on suppliers and exporters. In response, EXIM will temporarily modify the program to make it more flexible. Specifically, the agency will expand program eligibility to cover all inventory that could potentially be exported, reduce the program’s fee structure, and temporarily increase the guarantee level.
• Who is eligible? Exporters (both direct AND indirect) of USA Goods and services.
• More details: https://www.exim.gov/coronavirus-response/fact-sheet-background-on-working-capital-guarantee-program

• What is it? On April 19, the Secretary of the Treasury, in consultation with the designee of the Secretary of Homeland Security (U.S. Customs and Border Protection (CBP)), is amending the CBP regulations to temporarily postpone the deadline for importers to pay duties, taxes, and fees.
• Who is eligible? Importers of record with a significant financial hardship to deposit certain estimated duties, taxes, and fees that they would ordinarily be obligated to pay as of the date of entry, or withdrawal from warehouse, for consumption, for merchandise entered in March or April 2020, for a period of 90 days from the date that the deposit would otherwise have been due but for this emergency action. 
• More details: The National Commodity Specialist Division is accepting binding ruling requests.  To submit requests via eRulings and for updated guidance, visit https://erulings.cbp.gov/s/.  Additional details can be found using this link: Temporary Postponement of Duties, Taxes, and Fees due to COVID-19

• What is it? Connect to the global network of experienced trade specialists working virtually via email, conference call, Skype, or video conference to discuss your international business plans. 
• Who is eligible? Businesses, individuals, and organizations interested in expanding internationally.
• More details: Contact Shelby.Daiek@trade.gov for additional details. 

What is it?  On May 22, 2020, U.S. Secretary of Agriculture Sonny Perdue announced that the USDA is making up to $1 billion in loan guarantees available to help rural businesses meet their working capital needs during the coronavirus pandemic. Additionally, agricultural producers that are not eligible for USDA Farm Service Agency loans may receive funding under USDA Business & Industry (B&I) CARES Act Program provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

• What is it? The U.S. Department of Agriculture Rural Development has taken immediate actions to help rural residents, businesses, and communities affected by the COVID-19 outbreak — including its rural utilities, rural housing, and rural business-cooperative services.
• Who is eligible? Rural communities
• More details: https://www.usda.gov/coronavirus
• Effective March 19, borrowers with USDA single-family housing Direct and Guaranteed loans are subject to a moratorium on foreclosure and eviction for a period of 60 days. This action applies to the initiation of foreclosures and evictions and to the completion of foreclosures and evictions in process.
• Effective immediately until September 30, 2020, lenders may offer 180-day loan payment deferrals without prior agency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.

The Division of Arts & Museums and UServe Utah, in collaboration with Utah Humanities and the Utah Nonprofits Association, are developing an emergency relief grant program for non-profit organizations. Donations are currently being solicited here. Details regarding eligibility criteria and the application process will be available soon.

The Division of Arts & Museums will offer $500 emergency relief grants to individual artists. Applications will be available beginning the week of April 20.

As part of S.B. 3006, the COVID-19 Commercial Rental Assistance Program includes $40 million in commercial property rental assistance. GOED will administer the grants providing rental relief to Utah small businesses — including nonprofits, sole proprietors, independent contractors and those that are self-employed — that have lost revenue as a result of measures taken to minimize the public’s exposure to COVID-19. View grant eligibility criteria and required documentation here.

Learn more and apply here.

On March 30, 2020, GOED announced the Utah Leads Together Small Business Bridge Loan program for Utah-based small businesses impacted by the COVID-19 pandemic. On April 8, it announced round two funding and the inclusion of both small businesses and nonprofits with 50 or fewer employees.

4/17/20 – The bridge loan, rounds one and two, received more than 5,000 application starts with approximately 500 loans awarded in round one, and the agency anticipates awarding another 500 loans in round two. A summary of both rounds of funding will be published in the GOED Newsroom by April 23.

The Chamber’s Mainstreet Preservation Grant program is available in class 4, 5 and 6 counties. Grants are for the benefit of rural and minority small businesses. Grant amounts up to $5,000 are available thanks to a $500,000 donation from WCF Insurance. Interested companies may apply through their local chamber of commerce or county economic development office. Details are available on the Salt Lake Chamber’s website.

• What is it? Now more than ever we encourage businesses to take advantage of WTC Utah administered grants that provide financial support to businesses that are engaging internationally. WTC Utah also provides free consultations, international business and investment matchmaking, webinars, and other programs to find solutions to the problems businesses are facing.
• Who is eligible? All businesses engaging in international trade and investment or those that are interested in doing so.
• More details:  https://wtcutah.com/international-solutions-covid19/