COVID-19

Small Business Assistance

Financial Assistance for Downtown Allen Park Businesses

Please Note:

  • The DDA is merely passing along relevant small business information. It should not substitute for professional legal and financial advice.
  • You should check with your CPA/lawyer/bank to determine which aid programs are beneficial for your individual business. You may apply for multiple programs as long as they cover different expenses. Therefore, it’s best to work out a plan with your financial advisor.
  • Aid and regulations are very much in flux. Information presented here may change at any time. The DDA will try to keep this information up to date, but always check the primary source.

QUICK LINKS

 

Paycheck Protection Program

Forgivable and low-interest loans to keep employees on the payroll

  • Eligibility: 500 or fewer employees
  • Amount: Up to 2.5 times average monthly payroll costs, up to $10 million
  • Forgivable: The loan can be forgiven if it is spent on operating expenses the 8 weeks after award
  • Uses: Payroll, rent/mortgage interest, utilities, health insurance
  • Conditions:
    • Interest Rate: 1%
    • Terms: 2 years
    • Guarantee: No personal or collateral required
    • Deferral: 6 months
  • Apply: Applications must be submitted through a bank. Most banks will only work with existing clients. If your bank is not processing PPP applications, you may try applying through Pay Pal at PayPal PPP
  • More Information: SBA
  • What Payroll Documents Will I Need?
  • Federal Fact Sheet
  • US Chamber Fact Sheet
  • MI Paycheck Protection Coalition
  • Michigan PPP
  • Understanding the Paycheck Protection Program 

TCF and Wayne County Small Business Relief Fund

Fast microloans to keep Wayne County businesses thriving

  • Eligibility: Business established for at least one year; fewer than 100 employees; in good standing with county, state, and creditors; meets credit guidelines; suffered at least 25% loss of revenue due to COVID-19 emergency
  • Amount: $5,000-50,000 depending on number of employees
  • Uses: Assist with COVID-19 hardships
  • Conditions:
    • Interest Rate: 2% or less
    • Term: 12 months
    • Guarantee: Business collateral with guaranties by individuals with at least 20% ownership
    • Payment: First 6 months interest only, amortizing payments months 6-12 with balloon payment at the end of 12 months
  • How to Apply: Contact Jori Thornton, jthornto@tcfbank.com, 313.271.2320, 3350 Fairlane Dr. If eligible, you will need to provide:
    • Previous year’s business tax returns
    • Previous year’s personal tax returns on all owners with greater than 20% ownership
    • Description of the impact to business due to COVID-19
  • More Information

Michigan Entrepreneur Resilience Fund

Grants and loans for small businesses owned by underrepresented groups including veterans, minorities, and low-income individuals.

  • Eligibility:
    • Low- to moderate-income business owner (see application for limits)
    • Maximum $500K in annual revenue in the last 12 months
    • Fewer than 50 employees
    • Preference given to businesses located in disadvantaged area (HubZone or Opportunity Zone). Allen Park is in neither zone.
    • Loan applicants must be unable to access debt financing from a traditional source (bank, credit union)
  • Grants: $1-5,000 to assist with reopening or pivoting business
  • Microloans: $5-10,000, 1-3 year repayment, 8% interest
  • Uses: Rent, payroll, lease, utilities, gap funding for working capital, equipment needed to advance technology used in response to COVID-10, company revamp or conversion into a virtual business, assist company with altered demand for PPE products and services, purchase of inventory.
  • Apply: Applications accepted on a rolling basis until funds are exhausted at MIWF
  • More Information: MIWF Info

BizTHRIVE Loans

Market-rate loans for businesses which do not qualify for traditional lending.

IRS Employee Retention Credit

Immediate reimbursement of payroll tax deposit

  • Purpose: Encourage employers to keep employees on their payroll. Provide operating capital right now.
  • Eligibility: Business is fully or partially suspended by government order OR gross receipts are below 50% of the comparable quarter in 2019. Note: You may not double dip. Check with your financial advisor when considering other stimulus grants, loans, and incentives.
  • Amount: 50% of qualifying wages, up to $10,000. Wages paid after March 12, 2020 and before January 1, 2021 are eligible. Employee provided health care costs qualify in addition to cash wage payments.
  • How to Apply:
    • Most Common Method: Simply keep the allowable credit from your required payroll tax deposit. Report the qualified wages and related health insurance costs on your quarterly employment tax returns or Form 941 beginning the second quarter.
    • Advance Payment: If you don’t have enough set aside for federal employment taxes to cover the credit, first pull out everything you have. Then apply for advance payment for the rest on Form 720. Report the qualified wages and related health insurance costs on your quarterly employment tax returns or Form 941 beginning the second quarter.
  • More Information

Emergency Paid Sick Leave and FMLA Reimbursement

Generally, all downtown employers must provide two weeks of paid sick leave if an employee is unable to work or telework as long as the state isolation order is in effect. After it lifts, the employee may qualify for paid leave for other reasons as listed by the Department of Labor

  • How to Collect Reimbursement: Paid leave is 100% reimbursed by the money you have/will set aside for federal employment taxes. In addition to qualified wages, you may also deduct health plan expenses and your share of the Medicare tax on wages. There are several ways to collect reimbursement, depending upon your circumstances.
    • Most Common Method: Simply keep the amount paid in qualified sick leave and family leave wages from the amount you’re otherwise required to deposit for federal employment taxes. Account for the reduction in deposits on Form 941 for the quarter.

Example: An Eligible Employer paid $5,000 in qualified sick leave wages and qualified family leave wages (and allocable health plan expenses and the Eligible Employer’s share of Medicare tax on the qualified leave wages) and is otherwise required to deposit $8,000 in federal employment taxes, including taxes withheld from all of its employees, for wage payments made during the same quarter as the $5,000 in qualified leave wages. The Eligible Employer may keep up to $5,000 of the $8,000 of taxes the Eligible Employer was going to deposit, and it will not owe a penalty for keeping the $5,000. The Eligible Employer is then only required to deposit the remaining $3,000 on its required deposit date. The Eligible Employer will later account for the $5,000 it retained when it files Form 941, Employer’s Quarterly Federal Tax Return, for the quarter.

  • Advance Payment: If you don’t have enough set aside for federal employment taxes to cover the qualified leave wages, first pull out everything you have. Then apply for advance payment for the rest on Form 720. Account for the reduction in deposits on Form 941 for the quarter.

Example: An Eligible Employer paid $10,000 in qualified leave wages (and allocable qualified health plan expenses and the Eligible Employer’s share of Medicare tax on the qualified leave wages) and is otherwise required to deposit $8,000 in federal employment taxes, including taxes withheld from all of its employees, on wage payments made during the same quarter.  The Eligible Employer can keep the entire $8,000 of taxes that the Eligible Employer was otherwise required to deposit without penalties as a portion of the credits it is otherwise entitled to claim on the Form 941. The Eligible Employer may file a request for an advance credit for the remaining $2,000 by completing Form 7200.

  • More Information on Reimbursement
  • Leave Requirements Starting April 1, 2020
    • While federal, state, or local isolation orders are in effect, all employers must provide two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay
    • After the isolation orders are lifted, all employers must provide:
      • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay if the employee is unable to work at the advice of a health care provider and/or experiencing COVID-19 symptoms and seeking a medical diagnosis or
      • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual quarantined at the advice of a health care provider or care for a child whose school or care provider is closed for reasons related to COVID-19. Employers with fewer than 50 employees may qualify for exemption from the requirement to provide leave due to school closings or child care unavailability if the leave requirements would jeopardize the viability of the business as a going concern,
    • More Information on Leave Requirements:
    • Employee Notification. All employees must be notified of their expanded rights. If your business is open and fully staffed, you may just post the poster. If you are not, you must email or mail the poster to each employee and/or upload it to your website. Poster

Avoid These Potential Landmines

  • Employee Layoffs I. It is recommended that employers place employees on temporary leave rather than laying them off. Employees who are laid off are not eligible for extended sick leave and FMLA.
  • Employee Layoffs II. If you have already laid off employees and want to apply for the Paycheck Protection forgivable loan, you will have limited time to rehire and get back up to full payroll.
  • Health Insurance. If you are closed and still supplying health insurance to your employees, you should check your policy. Many have active service clauses meaning employees must be working. Furloughed employees could be denied coverage. Consider asking your lawyer to call your insurance carrier, not you, to avoid saying anything that could compromise future claims.
  • Exempt Employees. Work with your financial advisor before making changes to exempt employees’ pay. Changes cannot be based on hours worked or you could jeopardize exempt status later, meaning you could have to pay overtime. Salaries must also stay above the $684/week threshold. Requiring furloughed exempt employees to do as little as check email could force you to pay their entire salary. Any changes should definitely be done with professional guidance.
  • Discrimination. Be careful to avoid the appearance of discrimination among employees. Helping one employee with food or hours and not others could cause problems.
  • Medical Privacy. Even as employers are faced with informing employees about COVID-19 exposure, the sick employee’s privacy must be maintained.

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