SMALL BUSINESS ADMINISTRATION UPDATES
June 30 is just around the corner – and marks the deadline for when lenders can submit PPP applications to SBA. Thank you for your work to get the word out on this rapidly-approaching deadline over the past few weeks.
Last week, SBA and Treasury posted a new, streamlined loan forgiveness application for all PPP borrowers. There is also a new “EZ” version of the forgiveness application for certain borrowers who meet any of the following requirements:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number of hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
COMMONWEALTH PLACES GRANTS
On Friday, MassDevelopment announced $225,000 in funding for a new round of Commonwealth Places grants. This Commonwealth Places COVID-19 Response Round: Resurgent Places funding is being made available specifically to help community partners prepare public space and commercial districts to best serve their population during communities’ economic recovery efforts. Eligible projects may include outdoor seating spaces, sidewalk retail venues, partitions to support social distancing, and more.
Non-profits and community groups are eligible to apply for grant awards of up to $25,000. Up to $10,000 per project may be awarded as an unmatched grant; awards greater than $10,000 must be matched with crowdfunding donations. Applications will be accepted on a rolling basis until July 31, 2020. Read more in the Request for Proposals here.
TAX RELIEF MEASURES FOR SMALL BUSINESSES
Last week, Governor Charlie Baker, Lt. Governor Karyn Polito, Senate President Karen Spilka, and House Speaker Robert DeLeo announced additional administrative tax relief measures for local businesses that have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors.
This tax relief builds upon previous similar tax extensions and includes postponing the collection of regular sales tax, meals tax, and room occupancy taxes for small businesses that would be due from March through August so that they will instead be due in September. Additionally, all penalties and interest that would otherwise apply will be waived.
- Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending February 29, 2020, will be eligible for relief for sales and meals taxes, and businesses that paid less than $150,000 in room occupancy taxes in the year ending February 29, 2020, will be eligible for relief with respect to room occupancy taxes.
- For businesses with meals tax and room occupancy tax obligations that do not otherwise qualify for this relief, late-filed and late-pay penalties will be waived during this period.
The Department of Revenue will issue emergency regulations and a Technical Information Release to implement these administrative relief measures.