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COVID-19 Updates: US Federal & State Government Relief Programs

Updated: April 2, 2020

The US government and state governments have been rolling out the country’s COVID-19 plans, relief measures and programs to support those impacted by the virus.

Linnworks is committed to helping where we can to keep our customers and businesses around the country informed of the latest developments and different sources of aid they can tap into.

Below, you will find a list of government updates and programs related to the COVID-19.

We will be updating this resource as more programs become available. If you know of one we do not, please email us and we’ll get them added. 

US State and City Specific Aid

California

  • Sacramento

Sacramento city leaders have announced emergency measures to support businesses affected by COVID-19.

For businesses that can demonstrate needs, the city’s economic relief package will provide zero-interest loans of up to $25,000.

  • San Francisco

For businesses with less than five employees, the city is offering up to $10,000 for employee salaries and rent.

To be eligible for this COVID-19 Small Business Resiliency Fund, your small business must specifically have between one and five employees, be able to demonstrate a loss of revenue of 25% or more, have less than $2,500,000 in gross receipts.

Florida

The Florida Small Business Emergency Bridge Loan Program is available to all small business owners across all counties state-wide, that are experiencing economic injury in the wake of the coronavirus outbreak.

Eligible businesses will be able to access up to $50,000, however in special cases this may increase to $100,000. This loan will be interest free for one year, with the interest rate increasing to 12% per annum on the unpaid balance thereafter.

To qualify for this loan, your business must have between 2 and 100 employees.

New York

  • New York City

For businesses with less than 100 employees that have seen sales decreases of at least 25%, the city is offering the NYC Small Business Continuity Loan Fund. This will allow eligible businesses to borrow up to $75,000 in zero-interest loans.

For businesses with less than five employees, the city is offering the NYC Employee Retention Grant Program. This will provide a grant to cover 40% of payroll cost for two months.

Massachusetts

Small businesses impacted by the coronavirus outbreak will have access to capital assistance.

The $10 million Small Business Recovery Loan Fund will provide emergency capital to small businesses across the State of Massachusetts.

In fact, businesses with fewer than 50 employees, including non-profits, will be able to access up to $75,000. These loans are available immediately, with no payments due for the first six months.

Michigan

The state is offering businesses with less than 50 employees up to $10,000 in grants and low-interest loans of $50,000 - $200,000 for businesses that have fewer than 100 employees.

Illinois

  • Chicago

Businesses that have less than 50 employees and are experiencing a 25% or more decrease in revenue will be eligible to access low interest loans of up to $50,000.

For additional state-by-state relief resources, our partners at BigCommerce have created a COVID-19 resources guide.

US Federal Government Relief Programs

  • Small Business Administration

As the impact of COVID-19 is felt more deeply every day by small businesses, the SBA has launched a series of small business debt relief and loan programs. These aid efforts are a reflection of the new CARES Act.

Eligible recipients may qualify for a loan of up to $10 million. This will be determined by your average payroll for the past eight weeks, plus an additional 25% of that amount. It's also worth noting that loan payments will be deferred for six months. 

If you maintain your workforce, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll and certain other expenses following loan origination.

Our friends at Industrious have broken down the details of the program and how to apply in their CARES blog. Applications go live April 3rd for both small businesses and sole proprietorship's, and on April 10th for independent contractors and self-employed individuals.

Small business owners are eligible for a loan advance of up to $10,000. It also provides small businesses with working capital loans of up to £1 million to overcome temporary loss of revenue.

    • SBA Debt Relief:

The SBA Debt Relief will pay the principal and interest of new 7(a) loans issued before September 27, 2020, as well as the principal and interest of current 7(a) loans for a period of 6 months.

Businesses who have a pre-existing relationship with an SBA Express Lender can access up to $25,000. This can be used as short term loans or to bridge the gap while applying for an Injury Disaster Loan.

For more information, please visit the SBA’s official page.

  • Internal Revenue Service (IRS)

In response to the COVID-19 outbreak, the Treasury Department and Internal Revenue Service are extending the tax filing deadline from April 15 to July 15, 2020.

This relief is automatic and taxpayers – individuals and corporations – will not need to file any additional forms or call the IRS to qualify. This relief does, however, only apply to federal income returns and tax, and not state tax payments or deposits or payments of any other type of federal tax.

For more information on this IRS filing and payment deadline extension read this, or alternatively visit the Federation of Tax Administrators site for links to each state tax agency’s website.

  • Coronavirus Aid, Relief, and Economic Security (CARES) Act

In response to the growing financial needs of small businesses, the federal government has signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 billion stimulus package.

Below, we have highlighted the various assistance programs designed for American businesses. 

    • The National Law Review has comprehensively broken down the tax provisions of this new act. In summary:
      • Recovery Checks: The Act will provide a refundable tax credit of $1,200 for individual tax filers with adjusted gross incomes of $75,000 or less. For further breakdown, see the law review. 
      • 50% Employee Retention Credit: For employers who are closed due to the virus, a 50% refundable payroll tax credit will be available for qualified wages. See restriction and caps in section 2 of the law review. 
      • Keep in mind that there are 13 tax provisions in this review and we have chosen the two most notable ones. To to see a full breakdown, please see sections 3-13.
    • Paycheck Protection Program: 

This program has been detailed within the SBA section. 

COVID-19 business support and resources

This guide has been produced to inform you of the latest business updates following the COVID-19 outbreak and while we will keep it updated as regularly as possible, we do recommend that you consult both the government website and your accountant where possible.

To help you effectively manage your business during this challenging time, we have also launched a dedicated COVID-19 portal which covers everything from government updates, to shipping courier statuses and offers from our partners and other third party eCommerce providers.

linnworks covid-19

Topics: COVID-19