Your Source for COVID-19 Relief Information

Paycheck Protection Program (through the Small Business Administration):

Summary:

• The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
• SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
• The Paycheck Protection Program will be available through June 30, 2020.

Economic Injury Disaster Loans and Load Advances

Summary:

• Provides emergency advances up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).
• The advance does not need to be repaid
• EIDLs are low interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion.

Express Bridge Load Pilot Program

Summary:

• Provides support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap
• Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
• Will need to be repaid in full or in part by proceeds from the EIDL Loan

Small Business Debt Relief Program

Summary:

• The SBA will pay the principal, interest, and fees of current 7(a) loans for a period of six months.
• The SBA will also pay the principal, interest, and fees of new 7(a) loans issued prior to September 27, 2020

Tax Filing Extension

Summary:

• The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
• Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed.
• This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
• Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov.

Recovery Rebates

Summary:

• Cash payments called “recovery rebates” are available to U.S. residents with income below certain levels who cannot be claimed as a dependent of another taxpayer and who have a Social Security Number.
• Technically, the rebates are advance refunds of credits against 2020 taxes.
• The rebate amounts are $1,200 for individuals and $2,400 for married joint filers, with an additional $500 for each qualifying child under age 17.
• The amount of each rebate phases out by $5 for each $100 of adjusted gross income (AGI) greater than $75,000 (single filers) or $150,000 (married joint filers), based upon AGI as reported on the 2018 federal tax return (or 2019 tax return, if filed).
• Thus, rebates are fully phased out at $99,000 (single filers) and $198,000 (married joint filers). Individuals do not need to do anything to receive the rebate; the IRS will make payments electronically, if possible, and will send a notice (to the taxpayer’s last known address) within 15 days of payment stating the payment amount and method.

Student Loan Deferment

Summary:

• Payments (principal and interest) on federal student loans are suspended through September 30, 2020 without penalty.
• Interest will not accrue on these loans during this suspension period.
• In addition, from March 27 through December 31, 2020, an employer may contribute up to $5,250 annually toward an employee’s student loans, and such payment will be excluded from the employee’s income.

Temporary Moratorium on Eviction Filings

Summary:

• The CARES Act provides that for a 120-day period beginning on March 27, 2020 (the “Moratorium Period”), the landlord of a “covered dwelling” cannot (A) make, or cause to be made, any filing to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent; and (B) impose any fees, penalties or other charges on a tenant for late payment of rent.
• The CARES Act further provides that during the Moratorium Period the landlord of a covered dwelling cannot: (A) require a tenant to vacate a dwelling unit located in the applicable property before the date that is 30 days after the date the tenant is provided a notice to vacate; and (B) may not issue a notice to vacate until after the expiration of the Moratorium Period.

Unemployment Benefits: Who Qualifies & How To Apply

Summary:

• The Coronavirus Aid, Relief, and Economic Security Act expands unemployment benefits to include part-time and self-employed workers, including contractors and gig workers. It also supplements state benefits with an additional $600 a week, which more than doubles the weekly maximum unemployment benefits in most states.
• Unemployment benefits have been expanded to assist those who have lost their job during the current economic crisis. Because unemployment benefits are administered by the states (although each state follows the same guidelines established by federal law), check with your state program to determine eligibility requirements and how to file a claim.

Tax-Favored Early Distributions From Retirement Plans

Summary:

• The CARES Act waives the 10% penalty applicable to early distributions for coronavirus related distributions up to $100,000 from IRAs and qualified defined contribution retirement plans such as 401(k), 403(b), and governmental 457(b) plans.
• A coronavirus related distribution is a distribution made during calendar year 2020 to an individual (or spouse) diagnosed with COVID-19 by a CDC-approved test, or to one who experiences adverse financial consequences as a result of quarantine, business closure, layoff, or reduced hours due to the coronavirus.
• In addition, any income attributable to an early withdrawal is subject to income tax over a 3-year period unless the individual elects to have it all included in their 2020 income.
• Finally, individuals may recontribute the withdrawn amounts back into an IRA or plan within 3 years without violating the 60-day rollover rule or annual contribution limits.

Contact your retirement benefit provider for more information.

Retirement Plan Loans

Summary:

• Before the CARES Act, a participant could borrow from a retirement plan the lesser of 50% of the vested account balance or $50,000 (reduced by other outstanding loans).
• Beginning March 27, 2020 through 180 days thereafter, the maximum loan amount increases to the lesser of 100% of the vested account balance or $100,000 (reduced by other outstanding loans).
• In addition, participants who had outstanding loans as of March 27, 2020 may defer for one year any payments normally due from March 27 through December 31, 2020.

Contact your retirement benefit provider for more information.

Required Minimum Distributions (RMDs)

Summary:

• All 2020 RMDs from IRAs and retirement plans are waived, including RMDs from inherited IRAs (both traditional and Roth).
• The RMD waiver includes 2019 RMDs that were previously due by April 1, 2020.

Contact your retirement benefit provider for more information.

IRA Contribution Deadline

Summary:

• The deadline for making 2019 IRA contributions has also been extended until July 15, 2020.

Contact your retirement benefit provider for more information.

HSA & MSA Contribution Deadline

Summary:

• The deadline for making 2019 contributions to health savings accounts (HSAs) and Archer medical savings accounts (MSAs) has been extended until July 15, 2020.

Contact your medical benefit provider for more information.

Restaurant Employee Relief Fund

Summary:

• Created to help restaurant industry employees experiencing extraordinary hardship in the wake of the coronavirus disease (COVID-19) outbreak.
• Through this Fund, grants will be made to restaurant industry employees who have been impacted by COVID-19, including a decrease in wages or loss of employment.
• Grants will be awarded as soon as possible to those individuals who meet the prescribed eligibility criteria, as reviewed and verified by the National Restaurant Association Educational Foundation (NRAEF).
• This Fund is operated by the NRAEF, whose mission is to attract, empower and advance today’s and tomorrow’s restaurant and foodservice workers.

Restaurant Workers Relief Program

Summary:

• Due to the closure of restaurants across America, thousands of restaurant workers have an urgent need for assistance.
• Offering help for those in need of food and supplies. Each night, they will pack hundreds of to-go meals that people can come to pick up and take home.
• Dinners are offered on a first-come, first-serve basis. Limit 1 package per person unless there is an emergency. Will also have essential supplies on hand. Will limit how much any one person can take of these supplies, but they will be handed out free to those in need. Will continue to offer this program until we can no longer financially support the program.
• This program will be offered 7 days a week until otherwise notified. Pickup time is between 10am and noon or 5pm and 7pm based on location and day of the week.

Bar Magic Relief

Summary:

• A hospitality relief dashboard made specifically to assist those in the culinary, foodservice, and hospitality industries during this time of crisis.

Southern Smoke Foundation

Summary:

• Southern Smoke Foundation provides funding to individuals in the food and beverage industry who are in crisis.
• The application process is completely anonymous. Only Southern Smoke staff will see an application in its entirety.
• Please use the description area to explain your individual crisis. Please know that we are prioritizing medical emergencies currently.
• Examples of need: Medical bills, car accident, weather catastrophes, family support assistance, mental health needs.

USBG Foundation: Bartender Emergency Assistance Program

Summary:

• In order to qualify for grant assistance from the Bartender Emergency Assistance Program, the recipient must satisfy all the following requirements:
• Be a Bartender or the spouse or child of a Bartender.
• Experience a catastrophic event or emergency hardship
• Lack the necessities of life, including financial, physical, mental, or emotional well-being as a result of the catastrophic event or emergency hardship.
• Provide tangible documentation of the catastrophic event or emergency hardship.

Who’s Hiring

Summary:

• While the restaurant industry may be your home, companies across industries have opened their doors to hire staff.
• Look at some of the opportunities below.

Summary:

• This is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees.
• Eligible employers include those who fully or partially suspends operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; OR
• experience a significant decline in gross receipts which begins with the first quarter in which an employer’s gross receipts for a calendar quarter in 2020 are less than 50 percent of its gross receipts for the same calendar quarter in 2019.

Summary:

• Employers (and self-employed individuals) can defer paying their portion of the Social Security payroll tax (6.2 percent) otherwise due with respect to wages accrued between March 27, 2020 and December 31, 2020
• The deferred amounts will need to be paid to the U.S. Treasury in 2 installments; half is due on December 31, 2021 and the remainder on December 31, 2022

Please consult your tax professional for your best option.

Summary:

• Taxpayers are granted a five-year carryback period for Net Operating Losses (NOLs) arising in tax years beginning after December 31, 2017 and before January 1, 2021 (i.e., calendar years 2018, 2019, and 2020)

A KPMG CARES Act tax sheet can be found at the link below. Please consult you tax professional for more information.

Summary:

• The 30% limit on adjusted taxable income has been increased to 50%

Consult your tax professional for more information.

Summary:

• Deductions for charitable contributions for corporations who make cash contributions in 2020 has been changed from 10% of taxable income to 25% of taxable income
• Contributions must be made to a public charity or foundation described in section 170(b) (1)(A). Contributions to a supporting organization or a donor-advised fund would not qualify for the increased limits.
• The limitation applicable to donations of food inventory (namely, those that are eligible for an enhanced charitable deduction) is also increased for donations made in 2020, from 15% to 25%.

Consult your tax professional for more information.

Summary:

• The IRS has issued guidance indicating that wages paid for sick and family leave under the Families First Coronavirus Response Act (FFCRA) from April 1, 2020, through December 31, 2020, will qualify for payroll tax credits provided under this section
• In exchange for mandating paid leave, employers will receive a payroll tax credit for payments of qualifying wages.
• The payroll tax credits are limited to $511/day, for up to 80 hours or ten days, for qualifying sick leave, and $200/day for qualifying family leave for up to ten weeks. In addition to qualifying wages, an employer may include a pro-rata piece of the cost of health care of those employees towards the credit.

Consult your tax professional for more information.