Posted By Lorana Price On March 31, 2020

Get the Facts on Stimulus Funding for your Agency

COVID-19 Federal Stimulus Funding

In this unprecedented time, many behavioral health agencies are concerned about how they will manage to make ends meet. Did you know there is Federal coronavirus stimulus funding available to help healthcare providers address COVID-19? The bill, Coronavirus Aid, Relief and Economic Security (CARES Act) was signed into law by the President on March 28th. This stimulus could be a lifesaver for many of you!

COVID-19 Funding

Paycheck Protection Program

Small businesses can get federal money to meet payroll costs for up to 8 weeks via the Paycheck Protection Program, which is part of the CARES Act. Any organization with 500 employees or less, including non-profits, is eligible. Organizations will receive a loan of 2.5 times their average monthly payroll costs. The loan will be forgiven if it’s used to pay employees.

Get more information from the US Chamber of Commerce.

Payroll Tax Credit

Small businesses can get a payroll tax credit for 50% of wages paid to employees if revenue dropped by 50% or more, The credit is provided for wages paid from March 13 – December 31, 2020. 

See Section 2301 Employee Retention Credit for Employers Subject to Closure due to COVID-19 for more details.

Delayed Employer Payroll Taxes

Employer payroll taxes can be delayed. This provision requires that half of the deferred taxes be paid by December 31, 2021 and the remaining by December 31, 2022. 

See Section 2302 Delay of Payment of Employer Payroll Taxes for more details

Economic Injury Disaster Loan

If your state is designated as a disaster state, then your organization can apply for an Economic Injury Disaster Loan via the Small Business Administration. However, only the Payroll Protection Program or this loan may be used, not both. 

Click here for SBA Disaster Assistance Information.

State-specific Funding

New Jersey Small Business Emergency Assistance Program

In ADDITION to federal funds, the state of New Jersey is offering Loans for Small Businesses. Applications are being accepted this week for The New Jersey Economic Development Authority’s (NJEDA) Small Business Emergency Assistance Loan Program. The program makes low-cost financing available to cover operating expenses and ensure continuity of operations during the COVID-19 outbreak. 

Check your eligibility here.

Additional Resources:

The Coronavirus Aid, Recovery and Economic Security (CARES) Act

The CARES Act Section by Section Summary

Small Business Administration Disaster Assistance

Corona Virus Emergency Loans Small Business Guide and Checklist

Guide for Small Businesses to Obtain a Paycheck Protection Loan

Paycheck Protection Program FAQs

About Lorana Price

Lorana Price is a Marketing Executive at Patagonia Health. Her background includes work with regulated document management software, home healthcare software and global medical device commercialization. She applies her skills at Patagonia Health by developing content related to important Public and Behavioral Health news and updates.