UPDATED: 3/24/2020
In Nashville, we’ve experienced an unprecedented few weeks for business owners and employees. The city has been dealt with a 1-2 economic punch in the form of a devastating tornado and Coronavirus social distancing efforts beginning to take an economic toll.
As we clean up from the tornado and deal with the economic fallout of people staying home, Compass East is working with our clients to adjust forecasts, manage cash and provide information on short-term relief programs as they come out in real-time. We are updating as new information comes in, but the following is a list of resources and programs in the wake of the Nashville Tornado and Coronavirus fallout to support companies and get through this turbulent time:
Nashville Tornado Related Resources:
Small Business Administration – Nashville Tornado Relief:
The Small Business Administration is currently providing up to $2 million, low-interest disaster relief loans in Tennessee to replace destroyed real estate, equipment, and machinery, inventory or other business assets.
The disaster declaration covers Davidson, Putnam, and Wilson counties in Tennessee which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Cannon, Cheatham, Cumberland, DeKalb, Fentress, Jackson, Overton, Robertson, Rutherford, Smith, Sumner, Trousdale, White and Williamson in Tennessee.
Interest rates are as low as 3.75% for businesses, 2.75% for nonprofit organizations and 1.563% for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
SBA Recovery Center Location:
The SBA opened a Business Recovery Center (BRC) in Davidson County to help businesses apply. SBA representatives at the Center can provide information about disaster loans, answer questions and assist businesses in completing the SBA application. The Center is located at Jefferson Street Missionary Baptist Church, 2708 Jefferson St., Nashville, TN 37208. Hours are weekdays 9 a.m.-5:30 p.m.
Application: Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website.
FEMA Disaster Grants: Individuals, Households, and Small Businesses
Homeowners, renters and business owners in Davidson, Putnam and Wilson are urged to register with the Federal Emergency Management Agency, as they may be eligible for disaster assistance grants. The registration deadline is May 4, 2020.
As of March 20th, $1,173,414 grant dollars had been approved.
3 Ways to Register:
- Online: www.DisasterAssistance.gov
- By Phone: 1-800-621-3362 or TTY 800-462-7585 (Multilingual operators are available. The toll-free numbers are open from 6 a.m. to 9 p.m. local time, seven days a week.)
- In Person: Visit a Disaster Recovery Center (DRC). Download the FEMA App to find the nearest location.
Information You Will Need:
- Social Security number
- Address of the damaged home or apartment
- Description of the damage
- Information about insurance coverage
- A current contact telephone number
- An address where you can receive mail
- Bank account and routing numbers for direct deposit of funds
Tennessee Specific Information: https://www.fema.gov/disaster/4476
FEMA Press Release. https://www.fema.gov/news-release/2020/03/18/renters-can-apply-fema-assistance
Pathway Lending and Pinnacle Bank – Low-Interest Loans up to $50k for Tornado Victims
Through a partnership between Pathway Lending and Pinnacle Financial Partners, small businesses in Davidson, Putnam, and Wilson Counties that were impacted by the March 3 storms and tornadoes can request loans up to $50,000 from Pathway Lending, a regional, certified Community Development Financial Institution (CDFI).
Pathway Lending has committed up to $4 million from its revolving loan funds to support the Small Business Rapid Recovery Loan program with the help of a $2 million community development investment from Pinnacle Financial Partners*.
Small businesses may request funds to replace or repair lost or damaged business assets or to cover working capital needs or to meet normal operating expenses. Businesses receiving funding will also have access to technical assistance, coaching, and education from Pathway’s Business Advisory Services team.
The recovery loan program offers no payments for the first six months, followed by a 60-month repayment period. These loans will be offered at 4 percent. There is no pre-payment penalty*.
Through April 30, 2020, eligible small businesses can request a recovery loan online at PathwayLending.org.
https://www.pathwaylending.org/news-and-blog/news/recovery-loans/
Tennessee Coronavirus Related Resources:
Small Business Administration – COVID-19 Economic Disaster Recovery Loans:
In addition to providing Tornado relief for physical and economic damage brought on by the tornado, the SBA began to provide Economic Disaster Relief for companies affected by COVID-19 through the same SBA Disaster Loan Relief Program. The SBA’s Office of Disaster Assistance is coordinating the affected state’s Governor to submit the request for Economic Injury Disaster Loan assistance. According to an announcement from Tennessee ECD, Gov. Lee has taken the necessary steps to include Tennessee in the Economic Disaster Relief program. As of 3/20/2020, Tennessee has yet to be included in the eligible states for the loan, but this will likely change in the coming days. Information on eligible states can be found here.
SBA Application
Program Details:
- The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
- Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
- SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
- Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
April 15th Federal Tax Deadline Extended to July 15th
The Federal Tax deadline has been officially extended 90 days due to COVID-19. Anyone who owes money to the IRS can defer that payment, interest-free, for 90 days, up to $1 million for individuals and up to $10 million for corporations.
The official language from the IRS Press Release is below:
For an Affected Taxpayer, the due date for making Federal income tax payments due April 15, 2020, in an aggregate amount up to the Applicable Postponed Payment Amount, is postponed to July 15, 2020. The Applicable Postponed Payment Amount is up to $10,000,000 for each consolidated group (as defined in §1.1502-1) or for each C corporation that does not join in filing a consolidated return. For all other Affected Taxpayers, the Applicable Postponed Payment Amount is up to $1,000,000 regardless of filing status. For example, the Applicable Postponed Payment Amount is the same for a single individual and for married individuals filing a joint return. In both instances, the Applicable Postponed Payment Amount is up to $1,000,000.
Families First Coronavirus Act Signed into Law
Congress passed the Families First Coronavirus Response Act in response to the growing health and economic crises with provisions for paid sick leave, free testing and expanded unemployment benefits. President Trump officially signed the Act into law on March 18, 2020. The bill includes emergency paid sick leave requirements related to coronavirus, which would take effect within 15 days after the bill is enacted, and expire on December 31, 2020.
Under current law, employers are required to give up to 12 weeks of job-protected medical leave but are not required to pay during that time. The Act amends the Family and Medical Leave Act (FMLA), to include business owners with less than 500 employees to provide 80 hours of paid sick leave for their employees related to the Coronavirus. Employees are eligible if they have been diagnosed with the coronavirus, if they are caring for a family member who has it or if they are caring for a child or another dependent because of a school or care facility closing. For small businesses with less than 50 employees, the additional cost burden is offset by tax credits equal to the amount paid to sick employees. For a complete overview of the changes in the bill, refer to The Families First Coronavirus Response Act (H.R. 6201) Fact Sheet which outlines the changes in detail.
These relief programs are currently live as of March 20th, 2020. There are a number of additional bailout and relief packages being discussed across all levels of Government. When those come into focus, we’ll continue to update this blog post.
Stay safe everyone! Please reach out if Compass East can support in any way.