​COVID-19 FINANCIAL INFORMATION SHEET UPDATED MARCH 24, 2020

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Mar 25, 2020

BUSINESS INFORMATION

  • Review costs for potential cuts and decide which cuts can be made immediately
  • Get a meeting with your banker to discuss
    • Increase in lines of credit
    • Possible deferral of loan payments for 2-3 months
    • (At least) Interest-only payments for 2-3 months (if they won’t allow a total deferral)
  • Review Small Business Administration (SBA) loans – see link below
    • https://disasterloan.sba.gov/apply-for-disaster-loan/index.html
    • Quick SBA loan facts:
      • Up to $2m available at 3.75% for 30-year amortization
      • Disaster date is January 31, 2020
      • Need to be able to show you HAD the ability to repay this debt prior to the disaster date
      • If under $25k loan requested – no collateral or personal guarantee necessary
      • If greater than $25k requested the bank will use all AVAILABLE collateral and have you sign a personal guarantee - Loan funds CANNOT be used to pay off old debt, but CAN be used to pay off debt incurred as a result of COVID-19
      • Loan funds CAN be used to pay wages, taxes, ongoing current operating expenses and to make payments on old debt
  • Consider applying for the Iowa Small Business Relief Grant and Tax Deferral Application
    • Grants of $5,000 - $25,000 for COVID-19 affected businesses to provide businesses with immediate cash to assist with ongoing operating expenses
      • Eligibility
        • Sole Proprietors, single member LLC or a corporation with only 1 owner
        • A Targeted Small Business or have an application in process by April 10, 2020 to become cerified in accordance with Chapter 53 of the Iowa Code
        • Zero employees
        • Physical location within Iowa
        • Impacted by COVID-19
    • Iowa Small Business Tax Deferral
      • When you apply for the grant (above) Iowa will review each application to determine if you qualify for the deferral of sales/use taxes and withholding taxes.
  • Consider applying for the Iowa Targeted Small Business Sole Operator Fund
  • If you need to temporarily lay off employees, the Department of Labor and State of Iowa have changed rules to make it easier:
    • Removal of 1 week waiting period for those affected by Coronavirus (employees should get Unemployment payments within one week)
    • Reduced standards relative to the “looking for work” definition. Meaning, if there is a temporary shutdown or slowdown which causes them to become unemployed and they expect to return to work, they are considered meeting the definition
    • Employers rates may not increase as a result of employees accessing unemployment funds as a result of coronavirus
    • Effected employees can apply online
    • The Cedar Rapids regional unemployment office is at: 4444 1st Ave NE, #436 Cedar Rapids, IA 52402 319-365-9474
  • There is a link below that provides FAQs

In addition, Governor Reynolds announced Monday, March 23, 2020 that 1st Quarter Iowa Unemployment payments can be delayed and paid by the 2nd quarter due date (July 2020). Note, you must still complete and file your first quarter report in April 2020.

BUSINESS AND NON-BUSINESS INFORMATION

  • Iowa Property Tax Extension
    • Penalties and interest have been suspended temporarily for non-payment of property taxes. Governor Reynolds will update everyone when this suspension ends.
  • Federal Taxes
    • Personal, Trust and C Corporation filing, and payment dates have been extended to July 15th, 2020
    • This delay also includes 1st quarter estimated tax payments
    • 2nd quarter estimates are still due June 15, 2020
    • 2019 IRA contribution, traditional and ROTH, due dates have been extended to July 15, 2020
    • 2019 HSA and Archer MSA contribution due dates have been extended to July 15th, 2020
  • Iowa Taxes
    • Personal, Trust and C Corporation filing, and payment dates have been extended to July 31, 2020
    • 1st and 2nd quarter estimates are still due April 30th and June 30th


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