FOR BUSINESS OWNERS: Updated Info on COVID-19 Financial Assistance!
03/21/20: Plan to Apply for DC Microgrants on Tuesday, 03/24/20!
Shaw Main Streets businesses affected by the COVID-19 emergency should plan to apply for the DC microgrant program that was established by legislation approved by the DC Council and signed by Mayor Bowser this week.
$25 Million in grants will be available. Applications will be available on Tuesday, March 24, 2020.
Gather the necessary documents now so that you will be ready to apply on Tuesday:
* 2017 and 2018 Business Tax Returns (personal returns if business returns are not available due to your business having opened in 2019 or 2020).
*2019 Profit and Loss Statement (from QuickBooks or other accounting software. Ask your accountant to generate this report if you don't have a copy.)
*Schedule of Liabilities (A list of your expenses, debts, etc.).
No further information on the grants (such as the maximum grant amount available per business) is available at this time.
03/19/20: IMPORTANT UPDATE on DC Grant Program and U.S. Small Business Administration Disaster Assistance Loans Available to DC Small Businesses Suffering Losses Due to COVID-19 Emergency!
In a conference call this afternoon, the following new information was provided that will be of interest to small business owners seeking financial assistance in coping with the impact of the Coronavirus emergency.
The Office of the Deputy Mayor for Planning and Economic Development advised that information on the DC grant program will be released late on Friday, 03/20/20. Applications will be available either late on Monday, 03/23/20 or early on Tuesday, 03/24/20. Please watch for further emails with details.
The U.S. Small Business Administration (SBA) reported that the loans they are offering are 30 year loans and that initial payments on the loans will be deferred for one year. Normally, the initial payments are due 30 days after the loan has been approved.
In addition, DC applicants are urged to get their applications submitted as soon as possible, because currently, DC is one of only a handful of jurisdictions that have had an Economic Injury approved for COVID-19, but that once others are approved, it is likely that significant processing delays will be encountered.
Lastly, SBA suggested that businesses that may have only been open for a limited amount of time go ahead and apply. The agency is in the process of determining how to handle businesses that are unable to provide business tax returns due to being open less than one year.
To start the SBA application process, click here.
03/18/20: U.S. Small Business Administration Disaster Assistance Loans Available to DC Small Businesses Suffering Losses Due to COVID-19 Emergency!
DC Businesses Impacted by Coronavirus Crisis Can Now Apply for Federal Relief Funds
The U.S. Small Business Administration (SBA) has accepted the District of Columbia's declaration for assistance in the form of economic injury disaster loans following the advent of the novel Coronavirus (COVID-19), and DC businesses can start applying now. While the SBA directly administers this loan program, the Department of Small and Local Business Development (DSLBD) will liaise with the SBA on behalf of the District of Columbia.
The SBA's Office of Disaster Assistance will provide targeted, low-interest loans to Washington, DC small businesses that have been severely impacted by COVID-19. The SBA's Economic Injury Disaster Loan program provides working capital loans of up to $2 million that can provide vital economic support to help qualified small businesses and private nonprofit organizations overcome the temporary loss of revenue as a result of the COVID-19 virus outbreak. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster's impact. Terms are determined on a case-by-case basis, based upon each borrower's ability to repay.
DC businesses can start the process by clicking here and then "Apply for Assistance." You can prepare to apply by reviewing the"Three Step Process" of SBA Disaster Loans to understand what to expect in the application process. Disaster loan applicants can call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 (7 a.m.-9 p.m. every day) or email [email protected] for help in completing their online application. SBA staff and its Resource Partner network, consisting of Small Business Development Centers, SCORE Chapters, Women's Business Centers, and Veterans Business Outreach Centers will continue to support small businesses with accessing federal resources and navigating their preparedness plans. Local assistance can be found at www.sba.gov/local-assistance. DC businesses can also download the 2020 Small Business Resource Guide for the Washington Metropolitan Area as a resource.
03/18/20: DC Government to Offer Grants to Businesses Suffering Losses from COVID-19 Emergency!
COVID-19 Emergency Relief for Businesses Provides Cash Allowing You to Pay for Payroll, Rent, Taxes, Loans and other Eligible Expenses
Mayor Bowser has signed legislation approved by the DC Council that will allow businesses affected by the COVID-19 emergency to apply for grants that can be used to pay a variety of business expenses, including payroll during the Coronavirus crisis.
The text of the provision in the legislation is as follows:
"Sec. 2316. Public health emergency grant program.
"(a)(1) Upon the Mayor's declaration of a public health emergency pursuant to section 5a of the District of Columbia Public Emergency Act of 1980, effective October 17, 2002 (D.C. Law 14-194; D.C. Official Code § 7-2304.01), the Mayor may, notwithstanding the Grant Administration Act of 2013, effective December 24, 2013 (D.C. Law 20-61; D.C. Official Code § 1-328.11 et seq.), and in the Mayor's sole discretion, issue a grant or loan to an eligible small business; provided, that the eligible small business:
"(A) Submits a grant application in the form and with the information required by the Mayor; and
"(B) Demonstrates, to the satisfaction of the Mayor, financial distress caused by a reduction in business revenue due to the circumstances giving rise to or resulting from the public health emergency.
"(2) A grant issued pursuant to this section may be expended by the eligible small business for any of the following:
"(A) Employee wages and benefits. For the purposes of this subparagraph, "benefits" means fringe benefits associated with employment, including health insurance;
"(B) Operating costs of the eligible small business including taxes and debt service; and
"(C) Repayment of loans obtained through the United States Small Business Administration.
"(b) For the purposes of this section, the term "eligible small business" means a business enterprise eligible for certification under section 2332, a nonprofit entity, or an independent contractor or self-employed individual determined ineligible for Unemployment Insurance by the Director of the Department of Employment Services.
"(c) The Mayor may issue one or more grants to a third-party grant-managing entity for the purpose of administering the grant program and making subgrants on behalf of the Mayor in accordance with the requirements of this section.
"(d) The Mayor, pursuant to section 105 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-505), may issue emergency rules to implement the provisions of this section.
"(e) The Mayor, and any third-party entity chosen pursuant to subsection (c), shall maintain a list of all grants awarded pursuant to this section, identifying for each award the grant
recipient, the date of award, intended use of the award, and the award amount. The Mayor shall publish the list online no later than June 1, 2020, or 5 days following the end of the COVID-19 emergency, whichever is earlier.
"(f) For the purposes of this section, the term "COVID-19 emergency" means the emergencies declared in the Declaration of Public Emergency (Mayor's Order 2020-045) together with the Declaration of Public Health Emergency (Mayor's Order 2020-46), declared on March 11, 2020, including any extension of those declared emergencies.".
The full act can be viewed here.
Application procedures and program details are being developed by the Department of Small and Local Business Development and Office of the Deputy Mayor for Planning and Economic Development. Shaw Main Streets will share this information as soon as it is available.
03/18/20: Utilities Prohibited from Suspending Service during COVID-19 Emergency!
DC Water, PEPCO, and Washington Gas cannot Suspend Your Service for Nonpayment; Verizon will not Charge Late Fees or Suspend services
Mayor Bowser has signed legislation approved by the DC Council that prevents utilities from shutting off service to businesses for nonpayment during the Coronavirus crisis. In addition, Verizon has agreed not to charge late fees or suspend service.
The text of the provision in the legislation is as follows:
"Sec. 305. Disconnection of electric service.
The Retail Electric Competition and Consumer Protection Act of 1999, effective May 9, 2000 (D.C. Law 13-107; D.C. Official Code § 34-1501 et seq.), is amended by adding a new section 106b to read as follows:
"Sec. 106b. Disconnection of service during a public health emergency prohibited.
"(a) For the purposes of this section, the term "public health emergency" means a period of time for which the Mayor has declared a public health emergency pursuant to section 5a of the
District of Columbia Public Emergency Act of 1980, effective October 17, 2002 (D.C. Law 14-194; D.C. Official Code § 7-2304.01).
"(b) An electric company shall not disconnect electric service for non-payment of a bill or fees during a public health emergency or for 15 calendar days thereafter.".
Sec. 306. Disconnection of gas service.
The Retail Natural Gas Supplier Licensing and Consumer Protection Act of 2004, effective March 16, 2005 (D.C. Law 15-227; D.C. Official Code § 34-1671.01 et seq.), is amended by adding a new section 7b to read as follows:
"Sec. 7b. Disconnection of service during a public health emergency prohibited.
"(a) For the purposes of this section, the term "public health emergency" means a period of time for which the Mayor has declared a public health emergency pursuant to section 5a of the District of Columbia Public Emergency Act of 1980, effective October 17, 2002 (D.C. Law 14-194; D.C. Official Code § 7-2304.01).
"(b) A gas company shall not disconnect gas service for non-payment of a bill or fees during a public health emergency or for 15 calendar days thereafter.".
Sec. 307. Disconnection of water service.
Section 103 of the District of Columbia Public Works Act of 1954, approved May 18, 1954 (68 Stat. 102; D.C. Code § 34-2407.01), is amended by adding a new subsection (c) to read as follows:
"(c)(1) For the purposes of this subsection, the term "public health emergency" means a period of time for which the Mayor has declared a public health emergency pursuant to section 5a of the District of Columbia Public Emergency Act of 1980, effective October 17, 2002 (D.C. Law 14-194; D.C. Official Code § 7-2304.01).
"(2) During a public health emergency, or for 15 calendar days thereafter, notwithstanding any other provision of this act, the water supply to any property shall not be shut off for non-payment of a bill or fees.".
The full act can be viewed here.
03/18/20: If You Haven't Remitted Your Business' Sales Taxes for February Yet, DON'T DO IT!!!
COVID-19 Emergency Relief for Businesses Allows You to Defer Sales Tax Payments until July 2020!
Mayor Bowser has signed legislation approved by the DC Council that allows businesses to defer remitting sales taxes collected in February and, March 2020 until July 2020, in essence providing an interest free loan to assist with your cash flow during the COVID-19 virus crisis.
The text of the provision in the legislation is as follows:
"(d)(1) Except as provided in paragraph (2) and notwithstanding any other provision of this title, the Chief Financial Officer may waive any penalties and abate interest that may be imposed for failure to timely pay any taxes due pursuant to Chapters 20 and 22 of this title for periods ending on February 29, 2020 or March 31, 2020; provided, that all taxes for such periods are paid in full on or before July 20, 2020.
"(2) This subsection shall not apply to hotels or motels permitted to defer real property tax under D.C. Official Code § 47-811(b).".
The full act can be viewed here.
