Colorado Small Business Guide To Covid Financial Survival
At WorkAbility, we are always trying to help members of our community succeed. If you are a startup or a small business in Colorado, you may find the enclosed information useful. We will be posting a live version of this document on our website www.workability.works, which will be updated as information becomes available.
What is the City of Denver doing to help small businesses?
In response to COVID-19, Denver Economic Development & Opportunity is working on connecting our Denver business community to the most appropriate resources in our region.
Information processing and release of funds might take up to three weeks but you can fill out the application form now.
I am an employer, what can I do to help my team and my business?
The Division of Unemployment Insurance offers a Work-Share Program as an alternative to laying off your employees. Visit the website to see if your business qualifies.
Employers experiencing a reduction in the workforce are eligible for support services including consultation on layoff aversion strategies, onsite workshops for employees in transition, job placement assistance, and information on unemployment benefits. More info: https://www.colorado.gov/pacific/cdle/layoff-separations
Is there an initiative to help cover the cost of mortgages during this time?
The department of Housing and Urban Development is providing immediate relief for homeowners amid nationwide Corona response.
The guidance issued March 18, 2020 applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and directs mortgage servicers to:
- Halt all new foreclosure actions and suspend all foreclosure actions currently in process; and
- Cease all evictions of persons from FHA-insured single-family properties.
Last year on August 29, 2019 the FHA strengthened mortgage relief options to help homeowners impacted by major disasters. You can read more about this here.
What is a Disaster Loan?
A Disaster Loan is a low-interest SBA loan available to businesses of all sizes, private non-profit organizations, homeowners, and renters.
SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory and business assets.
Is my business eligible?
To be eligible for SBA disaster assistance you must be in an SBA declared disaster area. Click here to check the status of your area.
What type of loan is applicable to my business?
If you are a small business that is suffering financial losses as a direct result of the COVID 19 pandemic you will likely be eligible for an EIDL or Economic Injury Disaster Loan. Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan.
What types of businesses can apply?
An EIDL applies to the following types of businesses:
- Small Business
- Small agricultural cooperative
- Most private nonprofit organizations
How much can I borrow?
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
How to Apply
You can apply online for an SBA disaster assistance loan.
You must submit the completed loan application and a signed and dated IRS Form 4506-T giving permission for the IRS to provide SBA your tax return information.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org.
Is there any tax relief?
The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. As of March 18, 2020, the Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.
What other information might help my business at this time?
There are a number of initiatives being implemented by companies who have the wherewithal to lend a hand. Here is who is helping right now:
We know that the spread of sickness can cause unease, but we’re taking every precaution to keep ourselves and our members safe while the Covid-19 virus remains a concern. We’ll update our policies and precautions as needed through direction provided from local and national authorities.