COVID-19 Financial Programs & Loan Help for North Royalton Ward 3 Businesses

(Last Updated on April 28, 2021 at 7:00pm)

• Look into the Small Business Guide to the CARES Act, part ofthe largest federal stimulus money disbursement in history.
• You can learn more about the Paycheck Protection Program, a part of the CARES Act, that helps small businessespay up to 8 weeks of payroll costs, including benefits. Apply here. The Greater Cleveland Partnership did a good job on an FAQ document on the program. Here is also another PPP FAQ that some Ward 3 Business have told me they found helpful too Click Here. (This may not be everything you ever wanted to know about PPP, but it sure is a useful primer on some of the basic questions we’re all getting about the program.)
  • Loans of 250% of employer’s monthly payroll (up to $10 million) until 6/30/2020 that can be used to cover payroll (salary, leave, insurance), mortgage, rent and utility payments.
  • Loans are forgivable for funds spend during 8 week period after origination in the amount equal to payroll, mortgage interest, lease and utilities.
  • Businesses, even without a personal guarantee or collateral, can apply as long as they were operational on February 15, 2020 and had paid employees (even if the owner is the only employee).
  • It is important to note that loan forgiveness only occurs (generally –seek legal counsel) if employees continue to receive pay at normal levels during 8 weeks after loan origination. The amount spent on payroll, mortgage interest, rent and utility payments can be combined and that portion of the loan will be forgiven.
    • Small businesses and sole proprietorships can apply on 4/3/2020
    • Independent contractors and self-employed can apply on 4/10/2020.
• The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. This IRS page will be updated as new information is available.
• Businesses impacted by Covid-19 can apply for up to $2 million to pay for payroll, accounts receivable and fixed debts that can’t be paid due to the impact of the Corona Virus through the Small Business Administration’s Economic Injury Disaster Loan.
  • Frequently asked questions on the program can be found here.
  • You can watch a short 15 minute video on how to apply from the SBA Economic Injury Loans.
  • To expedite the process the borrower should have complete copies of their most recent federal income tax return and a completed and signed IRS form 4506-T which authorizes the release of tax information. Additional information to have available would be a schedule of liabilities, personal financial statement, monthly sales figures, a current year-to-date profit-and-loss statement, and a year-end profit-and-loss statement and balance sheet for that tax year if the most recent federal income tax return has not been filed.
  • If you are a small business with who currently has a relationship with an SBA Express Lender you can access up to $25,000 with substantially less paperwork with an SBA Express Bridge Loan. This can also be used as a way to get urgently needed cash while waiting for a decision on an Economic Injury Disaster Loan.
• You may also wish to review if your business interruption coverage or if the Corona Virus damage to property can be covered by your insurance policy.
• The U.S. Chamber of Commerce developed a Small Business Guide for Covid-19 Loans.
• The Economic and Community Development Institute also has a variety of loans for start ups or small businesses.
• Tax filings and payments may be deferred until July 15th. The Treasury Department will not be applying any interest or penalty on amounts normally due with the 2019 return up to $1 million for individuals (including the self-employed) and up to $10 million for corporations. Read the publication here.
• Northeast Ohio has a long standing tradition of generosity. HFLA of Northeast Ohio makes education, personal and small business loans without interest.
• ECDI Recovery Loan: ECDI is facilitating a COVID-19 Recovery Loan program as a complement to existing SBA programs. The loan amount is up to $20,000 for new ECDI clients or up to $50,000 for previous ECDI loan recipients. The loans are at 6% for 69 months with the first 3 months being interest only. Anyone interested in applying can email mrecovery@ecdi.org or cfaircloth@ecdi.org.
• Cuyahoga County announced on May 8, 2020 a second round of the Small Business Stabilization Funding which assists small neighborhood-based businesses during the COVID-19 pandemic. The applications close May 15, 2020 at 5:00pm. Click Here to apply online. The Small Business Stabilization Fund is funded in part by the Cleveland Foundation and is administered by Cleveland Neighborhood Progress.
• The Bureau of Workers’ Compensation (BWC) has released an updated FAQ for both employers and employees regarding COVID-19 impacts to workers’ compensation. The FAQ covers questions on claims, benefits, premiums and many other issues. You can read the FAQ in full HERE.
• One-Time Liquor Rebate Program. The one-time Liquor Rebate Program is designed to help Ohio bars and restaurants as they navigate reopening in the coming weeks. Eligible permit holders can receive a $500 rebate to purchase high proof spirituous liquor at their assigned wholesale Contract Liquor Agency. JobsOhio and the Ohio Department of Commerce are working together to assist businesses’ efforts to maintain operations as a result of the health crisis.
• Emergency Funding Options for North Royalton Businesses
  • The business must have been certified as a Minority Business Enterprise or woman-owned EDGE-certified business as of Feb. 29, 2020;
  • The business must have 10 or fewer employees;
  • The business may have up to $500,000 in annual revenue; and
  • The business must not have received funding under the federal CARES Act.Ohio Minority Micro Enterprise Grant Program. Many Ohio small, minority- and women-owned businesses have been hard hit by the COVID-19 pandemic.  In response, the State of Ohio has created the Ohio Minority Micro-Enterprise Grant Program which provides eligible businesses with $10,000 in grant money to both assist with the current pandemic and to position the business to thrive in the future.  It is anticipated that 500 Ohio businesses will be awarded this grant.
    In order to qualify for this grant program:
    • Also, the business must be current on all taxes and private or public loans. To find more details and how to apply, click here. Or at Coronavirus.ohio.gov/businesshelp
• SBA Restaurant Revitalization Fund: Registrations begins on April 29, 2021 and applications will open on May 3, 2021. The applications will remain open until $28.6 billion is gone. Read More.