[Toolkit] Financial relief

[Toolkit] Financial relief https://wahospitality.org/wp-content/uploads/2020/08/time_money_balance.jpg

Relief programs in 2022 – info and updates 

This is a brief list of programs created to help businesses and employees impacted by the coronavirus pandemic. This list is updated regularly to reflect the current status and ensure accuracy. The list includes a status update on federal and state relief programs and tax credits provided by the U.S. Small Business Administration (SBA), U.S. Internal Revenue Service (IRS) and the Washington State Department of Commerce.  

Contact your tax advisor for more information possible financial relief options for your business. Members of the Washington Hospitality Association also receive a 30-minute consultation each year with experts from our Advisory Network. Simply call 800.225.7166 and we’ll connect you to one of our Advisory Network tax consultants. 

Latest News

Economic Injury and Disaster Loan (EIDL)

Aug. 1, 2022 update: End of 30 month deferral period approaching for many borrowers

COVID EIDL loan payments were automatically deferred for 30 months from the date of the note. The SBA began approving applications in Spring 2020, which means the end of the deferment period for early loans is approaching. The SBA has resources and guidance for borrowers who may be coming up on their first payment. Read more below.


[NEW] Working Washington Grants: Round 5. Apply Aug. 17. 

August 12, 2022

Watch the replay of this webinar about the Working Washington 5 grants with representatives from the Washington State department of commerce. You can also view the slide deck from the webinar. You can also read questions our members asked during the webinar.

Slide deck

 

July 13, 2022
The Washington State Department of Commerce has announced that they will open applications for Working Washington Grants: Round 5 and Convention Center Grant Programs. Award amounts will vary and are subject to review and adjustment pending application volume, reported losses, and take into account previous Working Washington grant awards

  • Application portals will open on Aug. 17 and will remain open until Sept. 9.
  • You can find eligibility requirements and FAQs here. The application portal will be accessible at commercegrants.com

[IMPORTANT] UEI Number required  

Applicants must have a Unique Entity Identifier (UEI) number to receive funds. This number replaces the Data Universal Number System (DUNS) number that was previously required to receive grant funds from federal programs.

Potential Working Washington 5 applicants without a UEI number should apply for one right away.

You can apply at sam.gov and read through their informational sheet here. The video below also provides application instructions.

When applying for your UEI number, you may receive one right away or it may take several weeks if the information you provide doesn’t completely match up with the information in the federal government database. There’s no way to know ahead of time how long it will take to get your UEI number, so you should apply sooner rather than later in case additional support is needed.

The Washington State Department of Commerce also has a UEI FAQ page.


PPP loan forgiveness – Apply before payment notices begin
May 11, 2022

Hospitality businesses that received a second draw Paycheck Protection Program (PPP) loan in 2021 still have time to apply for loan forgiveness. PPP repayment for unforgiven loan portions begins 10 months after the end of the PPP covered period. The U.S. Small Business Administration (SBA) reports that $45.5 billion in 2021 PPP funds have gone unforgiven even though most of these loans are eligible for forgiveness.

Simplified forgiveness options through the SBA Direct Forgiveness Portal (Form 3508S) are a great option for PPP borrowers of $150,000 and less.


 

Since 2020, the COVID EIDL program has provided more than $351 billion to 3.9 million borrowers. In September 2021, restaurants worked with the SBA to increase eligible EIDL amounts and allowable expenses, including debt financing.

The EIDL closed on Dec. 31, 2021. If you have already applied for the loan and are awaiting funds, there are useful resources available:

For more information on how you can benefit from the EIDL program, check out this webinar led by the National Restaurant Association earlier this summer and a group letter urging SBA Administrator Guzman to adopt changes to the EIDL program.  

Resources: 

Read more about the payment schedule and loan deferment here. 

Learn the details of the loan on the SBA website here. 

 

Employee Retention Tax Credit (ERTC) 

Update: Introducing the ERC Support Center

The Employee Retention Tax Credit is one of the best relief programs still available to businesses, but it can be complicated and time consuming. With this in mind, the Washington Hospitality Association partnered with Adesso Capital to provide members with the help they need to qualify for up to $26,000 per W-2 employee – without the headache. You can talk to one of Adesso’s tax experts by calling 888-856-0630 or you can get the conversation started online here.

Current status 

Employers can still apply for relief and eligibility is determined by quarters in 2020 and 2021. 

The Employee Retention Tax Credit (ERTC) was originally included in the CARES Act to provide a tax credit for employers who pay qualified wages to employees during the pandemic. It was extended so eligible employers can apply for the credit for qualified wages paid through September 30, 2021.

(Note: The original extension allowed employers to apply for credit on qualified wages through Dec. 31, 2021. However, the Infrastructure Investment and Jobs Act changed the qualifying wages date to Sept. 30, 2021. Businesses that claimed an anticipated credit for Q4 of 2021 will need to pay back those Q4 payroll taxes.)

Who is eligible?  

An employer may be eligible for an ERTC if the business was fully or partially suspended by a COVID-19 related government order, or: 

  • If in 2020 gross receipts fell by 50% or more versus the comparable quarter in 2019. If an employer’s gross receipts rose above 80% versus a comparable quarter in 2019, it did not qualify for an ERTC for that quarter. 
  • If in 2021 gross receipts for the current or preceding quarter are below 80% of the comparable quarter in 2019. When an employer’s gross receipts go above 80% of the comparable quarter, it will not qualify for an ERTC in the next quarter. 

Eligible employers may include those that also took out forgivable PPP loans, but borrowers cannot claim an ERTC for the same payroll costs used to qualify for PPP loan forgiveness. 

How do you calculate your credit?  

For 2021, eligible employers may claim a refundable tax credit against what they pay in Social Security tax on the qualified wages paid in an eligible quarter between Jan. 1 and Sept. 30, 2021. The credit is capped at 70% of $10,000 in qualified wages paid per employee per quarter (or $7,000) for each qualifying quarters.  

Helpful resources 

  • IRS issues guidance regarding the retroactive termination of the Employee Retention Credit
  • The National Restaurant Association published this page with examples of how the ERTC can be used.  
  • You will need to prove that your business was affected by a government order to qualify. This timeline shows Washington state shutdown orders until July 2021. 

The IRS offers the following guidance that has been updated to reflect the changes made by multiple federal relief acts.   

Employee Retention Credit – 2020 vs 2021 Comparison Chart | Internal Revenue Service (irs.gov)

Work Opportunity Tax Credits (WOTC) 

Current status 

The Work Opportunity Tax Credit (WOTC) gives employers a tax break for hiring certain hard-to-place job seekers. The WOTC is not a new incentive (the federal program was created in 1996), but the current job climate makes the program especially relevant.  

Individuals who have been unemployed for at least 27 weeks are eligible for the credit. You may also qualify for this federal tax incentive by hiring military veterans, public assistance recipients that qualify for SNAP (food stamps) or Temporary Assistance for Needy Families (TANF) requirements, and formerly incarcerated individuals.  

How to apply  

Employers or their representatives must submit applications within 28 days of the job start date. You can apply for the credits online and will need your SecureAccess Washington (SAW) account. You will also need a WOTC account, which can be created by navigating from eServices to the WOTC sign-in page and selecting “new employer” or “new representative.”   

Resources 

This article talks more about eligibility and incentive amounts and has information about the Federal Bonding Program that provides fidelity bond coverage for the employment of formerly incarcerated individuals.

Additional details can be found on the U.S. Department of Labor and the Washington State Employment Security Department websites.

Paid Family and Medical Leave 

Current status 

The federal Emergency Paid Sick Leave Act that provided relief to employers expired on Dec. 31, 2020, but Washington state has grants available for small businesses. 

Small business assistance grants provide small employers (150 or fewer employees) with grant money to help cover costs associated with an employee taking Paid Family and Medical Leave. 

There are grants of up to $3,000 for employers who added an employee to their payroll temporarily to replace an existing employee on leave, and grants (of up to $1,000) that help cover other wage related costs or equipment purchases. 

Employers are allowed to apply for one grant per employee on leave up to 10 grants each year. 

How to apply 

Log-in to your Paid Leave employer account and click “More” on the top ribbon. Then navigate to the business assistance grant information and application page. 

Resources 

The ESD website explains the grants and goes over the eligibility requirements here. This page also has a toolkit for employers that talks about 2022 requirements, the required poster for employers and the 2022 paycheck insert you may have noticed. This page will also break down premiums for most employers. 

This federal page has the most recent information about paid leave as it relates to the pandemic.  

 

Programs no longer accepting applicants 

Economic Injury and Disaster Loan (EIDL)

Aug. 1, 2022 update: End of 30 month deferral period approaching for many borrowers

COVID EIDL loan payments were automatically deferred for 30 months from the date of the note. The SBA began approving applications in Spring 2020, which means the end of the deferment period for early loans is approaching. Interest began accruing on the loans at the time of disbursement. The SBA says they will not be mailing monthly SBA Form 1201 payment notices, but may send regular payment reminders via email.

Account balances, interest amounts and payment due dates are accessible in the SBA Capital Access Financial System (CAFS). For the most up-to-date information regarding your SBA COVID EIDL loan, the SBA recommends creating and/or logging in to your CAFS account using the links below.

Capital Access Financial System (CAFS) website
Instructions on how to set up a CAFS account
• For additional technical assistance: contact the CAFS Helpdesk at 833-872-0502 or cls@sba.gov

For more information about making your first payment as a borrower, you can read the July 29 SBA update or contact your territory manager for assistance.

 

The Business Journals – Exclusive: SBA’s EIDL program exhausts its remaining funds

The Small Business Administration’s $345 billion Economic Injury Disaster Loan Covid-19 relief program has exhausted its remaining funds.

Current status: The popular loan program officially closed to new applications at the end of 2021, but small-business owners who had already received funds were able to request additional amounts. Small-business owners who were already working their way through the reconsideration process could also get approved as long as funds were available.

 

Shuttered Venue Operators Grant (SVOG) 

The Shuttered Venue Operators (SVOG) includes over $16 billion in grants to eligible businesses such as live venue operators or promoters, theater operators and some museums and zoos. The SBA stopped taking new applicants on August 20, 2021.  

What now? If you are an active applicant or awardee, you can still access the portal that you used to apply. Log in to your account here.   

Paycheck Protection Program (PPP) 

Current status: The SBA stopped taking applications for the Paycheck Protection Program (PPP) in May of 2021, but applicants have 10 months after the end of their covered loan period to apply for forgiveness.  

How to apply for forgiveness 

Restaurant Revitalization Fund (RRF) 

Current status 

The Restaurant Revitalization Fund (RRF) remains closed despite multiple efforts by state and national associations to get Congress to replenish the fund. If you have additional questions, you can call SBA call-center support: (open 8 a.m. – 8 p.m. EST Mon-Fri): 1-844-279-8898 

Members should contact their territory manager for assistance or email communications@wahospitality.org. 

 

 

Other closed Washington state relief programs