Posted By Lorana Price On March 31, 2020
Get the Facts on Stimulus Funding for your Agency
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.
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.
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