Support for Small Businesses During COVID-19

*The information contained below is to provide available resources to small businesses negatively impacted by the ongoing COVID-19 pandemic. The Town of Norwood does not confirm the accuracy of program information contained therein, nor does it advocate for any program, loan, or agency over another. Please contact the Department of Community Planning and Economic Development at CPED@norwoodma.gov or (781) 915-4742 with any questions, comments, concerns, assistance, etc.   

COVID-19 (Coronavirus) Resources

Business Relief Options - As of 5/29/2020
SBA Debt Relief Options

Financial Relief Resources - As of 5/20/2020

Tenant Assistance & Eviction Moratorium for Commercial Properties


Webinars

April 7, 2020 Webinar on Accessing CARES Act Funding - Presentation


April 9, 2020 at 12:00 P.M. -  Understanding The Paycheck Protection Program - Presentation

  • Presented by the Commonwealth Financial Group
IEDC's Tech Toolbox - Recording

ELGL's Small Business & Economic Development Strategies During & After COVID-19 - Recording

 Ongoing Webinars from the Massachusetts Small Business Development Center Network (MSBDC)


Additional Resources


Small Business Administration - COVID-19 Relief Programs

Economic Injury Disaster Loan (EIDL) Program
The MA Emergency Management Agency (MEMA) and Baker-Polito Administration working with the U.S. SBA have activated the Economic Injury Disaster Loan (EIDL) program which can provide assistance to eligible businesses and non-profits impacted by COVID-19.

The CARES Act made some changes to the EIDL Program. Some essential details include:

  • Available to small businesses to cover economic injury resulting from the COVID-19 pandemic.
  • Loans provide small businesses with working capital loans of up to $2 million with an interest rate of 3.75% and a maximum 30-year term. The first payment is deferred for 12 months.
  • Applicants may request a loan advance of up to $10,000. Funds will be made available within 3 days of successful application. This loan advance will not have to be repaid. This advance may be available even if applicants were declined or still pending. Current applicants must fill out a new application even if a previous EIDL application was submitted.
  • Applying for the advance will not impact the status or slow the existing application.
  • Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

Paycheck Protection Program
This program which will be available by Friday April 3, 2020 provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.  Some essential information for this program that has been provided due to the CARE Act includes:

Additional local lenders include:
    • Dedham Savings
    • Norwood Bank - Open to all businesses!
    • Bank of Canton
  • Loans of up to $10 Million with an interest rate of 1%
  • Small Businesses with 500 or fewer employees (nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietors, and independent contractors) are eligible. Businesses with more than 500 employees are eligible in certain industries.
  • Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • PPP loans, unlike EIDL loans, are processed through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. You should consult with your local lender as to whether it is participating.
  • The program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
  • PPP loans will be available starting on Friday April 3, 2020. Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
  • An applicant may receive an EIDL loan AND a loan from the Paycheck Protection Program just as long as the basis for the loans are different.
PPP Loan Forgiveness
Business owners can also apply for the Payment Protection Program's - Loan Forgiveness Application
The PPP Loan Forgiveness Application and its instructions will inform borrowers how to apply for forgiveness of their PPP loans, which is consistent with the CARES Act.

  • Regulations and guidance to further assist borrowers and lenders as they complete PPP Loan Forgiveness Applications: SBA Guidance
  • U.S. Chamber of Commerce PPP Loan Forgiveness: Informational Video 
SBA Express Bridge Loan Pilot Program

This loan program allows for small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork than the EIDL. These bridge loans can provide economic support and also be used to bridge the gap while applying for a SBA Economic Injury Disaster Loan (EIDL). If a small business has an urgent need for cash while waiting for decision and disbursement on their Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms:

  • Up to $25,000
  • Quick turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan
Express Bridge Loan Pilot Program Guide

Massachusetts SBA Lender List 2020


Find an Express Bridge Loan Lender by connecting with your Boston SBA District Office.

SBA Debt Relief
  • The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
For current SBA Serviced Disaster (Home and Business) Loans:
  • If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
What does "Automatic Deferments" mean to borrowers:

  • Interest will continue to accrue on the loan.
  • 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
  • The deferment will not cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through pay.gov or an Online Bill Pay Service are responsible for canceling these recurring payments.  Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
  • Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
  • After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments.  Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
Internal Revenue Service - COVID-19 Relief

Employee Retention Credit
Refundable tax credit program equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020 and before January 1, 2021. Those who are eligible can get immediate access to credit by reducing employment tax deposits they are otherwise required to make. If a employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS. For each employee, wages (including certain health plan costs) up to $10,00 can be counted to determine the amount of the 50% credit.

Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during the calendar year 2020 and experience:

  1. The full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental order limiting commerce, travel, or group meetings during COVID-19.
  2. A significant decline in gross receipts. 
Impact of other credit and relief provisions

An eligible employer's ability to claim the Employee Retention Credit is impacted by other credit and relief provisions as follows:

  • If an employer receives a Small Business Interruption Loan under the Paycheck Protection Program, authorized under the CARES Act, then the employer is not eligible for the Employee Retention Credit.
  • Wages for this credit do not include wages for which the employer received a tax credit for paid sick and family leave under the Families First Coronavirus Response Act.
  • Wages counted for this credit can't be counted for the credit for paid family and medical leave under section 45S of the Internal Revenue Code.
  • Employees are not counted for this credit if the employer is allowed a Work Opportunity Tax Credit under section 51 of the Internal Revenue Code for the employee.