STATE HAS GRANTS AND TAX WAIVERS AVAILABLE, BUT HURRY AND APPLY BY MARCH 31
Governor Reynolds has announced a new Iowa Small Business Relief Program that will provide financial assistance to eligible small businesses that have been economically impacted by COVID-19.
The program offers grants ranging from $5,000-$25,000, in addition to allowing eligible Iowa businesses a deferral of remitting sales tax and withholding taxes, as well as a waiver of penalty and interest.
To be eligible, a small business must be experiencing disruption due to COVID-19, and must have employed between 2-25 people prior to March 17.
The Small Business Relief Grants will assist in maintaining operations or reopening businesses following the pandemic. The funds may not be used to pay debts incurred prior to March 17, 2020. The Iowa Economic Development Authority will review grant applications for eligibility and will determine the grant amount based on the level of impact, including loss in sales revenue and employees.
The Iowa Department of Revenue will review each tax deferral application to determine if it is appropriate to grant a deferral of the eligible taxes and waiver of penalty and interest.
The dual application for grant assistance and tax deferral is available at iowabusinessrecovery.com. The deadline for applications is March 31 at noon. The program may be restricted due to funding availability.
SBA ANNOUNCES LOW INTEREST LOANS
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Iowa small businesses suffering substantial economic injury as a result of the Coronavirus.
According to SBA Administrator Jovita Carranza, customer service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“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. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza added.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The interest rate is 3.75 percent for small businesses. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information, and download applications at https:// disasterloan.sba.gov/ela. You may also call SBA’s Customer Service Center at 800-659-2955.
WRIGHT COUNTY PLANS ASSISTANCE
The Wright County Board of Supervisors passed a resolution Monday designed to assist the county’s small businesses during the cornona virus pandemic.
According to Wright County Economic Development Director Cindy Litwiller, the assistance measure has two parts. The first will permit WCED to offer defered payments in April, May and June on six existing loans made through the county’s revolving loan fund, with an anticipated start-up date for repayment of July 2020.
The second part of the measure will be a $25,000 loan at 0% interest to BIDCO, Clarion Economic Development, and Eagle Grove Community Development to allow those three entities to make micro loan programs for existing businesses. They will be encouraged to help businesses in the smaller communities of Rowan, Dows, Galt, Goldfield and Woolstock.