The unprecedented events and challenges that are rapidly unfolding with COVID-19 are not only taking their toll on the health and well-being of individuals, they are creating never seen challenges to our business community. In order to combat the challenges that businesses are facing, Laddey, Clark & Ryan’s Business Law Group would like to call your attention to some of the programs and services available to business owners to help you through these difficult times.
During prior emergencies, Laddey, Clark & Ryan’s attorneys have assisted our business clients in applying for and securing financial assistance through the United States Small Business Administration (“SBA”). The recent Federal disaster declaration allows New Jersey businesses, along with those in a number of other states, to apply to the SBA for Economic Injury Disaster Loans. Loans can be requested in amounts of up to $2,000,000 in order to help businesses meet their obligations and pay ordinary and necessary operating expenses, including payroll, rent and, payables. The interest rate for businesses is 3.75%. The interest rate for non-profits is 2.75%. Additional information is available at SBA.gov/disaster, where you can also apply online for a loan.
President Trump issued an emergency declaration directing the Treasury Department to provide relief from tax deadlines for Americans adversely affected by COVID-19. The Internal Revenue Service (“IRS”) issued Notice 202-17, which gives taxpayers the ability to extend the deadline for making Federal income tax payments for tax year 2019, from April 15, 2020 to July 15, 2020. The postponed payment amount for business is up to $10,000,000 for consolidated groups and up to $1,000,000 for other affected taxpayers, such as single individuals and married taxpayers. The relief provided by the IRS only applies to payment obligations. The due date for filing 1040 tax returns remains April 15, 2020, unless an extension to file the return is filed. Note that IRS relief does not extend the dates for paying state income taxes.
The New Jersey Economic Development Authority has also established a web page that provides some great resources for addressing issues involving COVID-19: https://faq.business.nj.gov/en/collections/2198378-covid-19-novel-coronavirus-information-for-new-jersey-businesses
The attorneys at Laddey Clark & Ryan remain committed to assisting the business community during these uncertain times, and we are available to assist you as the need arises.