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trao Apr 08, 2020
ADDITIONAL FINANCIAL ASSISTANCE
FROM: THE OHIO TOWING AND RECOVERY LEGISLATIVE COMMITTEE (OTRLC)
TO: THE OHIO TOWING AND RECOVERY INDUSTRY
RE: ADDITIONAL FINANCIAL ASSISTANCE
In our last update from the OTRLC we discussed the Paycheck Protection Plan as an option for Ohio towing and recovery companies who need immediate financial assistance during the COVI-19 crises. Today, we would like to provide additional options regarding two other programs that may provide your company with immediate financial assistance in the form of a loan, grant, or tax credit that can be used to keep your company operating.
- Economic Injury Disaster Loan – Loan Advance (EIDL). In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application and depending on the expenses it is used for, this loan advance will not have to be repaid.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c) (19) veterans’ organizations affected by COVID-19. If you are eligible, the EIDL advance funds will be made available within days of a successful application.
***Please keep in mind, the OTRLC is sending the towing industry information about specific programs that may help your business financially as solid program information becomes available. PLEASE work directly with your lending institution, accountant and/or business attorney to ensure eligibility and to understand the details of each program and how it will impact your business. Also, please be sure to review which expenses will be forgiven and which expenses are eligible if you are applying for multiple relief programs.
We encourage you to visit the Small Business Administration website to see which loan or advance program might be best for your business and for more information on each program that is now available including the Paycheck Protection Program, EIDL Loan Advance, SMA Express Bridge Loan, and SBA Debt Relief:
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
You can find an example of the EIDL loan advance application here so you can be prepared with the information that will be required to apply for the program:
COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION
- IRS Employee Retention Credit. The Treasury Department and the Internal Revenue Service also launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans. Please review the program details at the following link to review qualifying employers, how the credit is calculated, which wages qualify, and how to receive the credit:
You can view the application form for this program here to be prepared apply here:
https://www.irs.gov/forms-pubs/about-form-7200
Finally, we would like to again advise that you work with your lender, accountant, and/or business attorney to find the best fitting programs for your business and to ensure you know the eligible expenses, what expenses will be relieved, and what remaining funding may convert to a loan. If you have questions about this report or anything related to the Coronavirus crisis, Shumaker has established a hotline to assist both TRAO and APTO members. CALL OUR 24/7 SHUMAKER COVID-19 LEGAL AND LEGISLATIVE HELPLINE AT 1.800.427.1493.
The OTRLC will continue to update the industry as relevant programs become available.
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