The Business Council’s COVID-19 Business Relief Program
Whether you are looking to expand your business or restructure, the COVID-19 Business Relief Program can help. It offers tax credits, loans, and layoff aversion funds to help New York’s business community weather the financial crisis.
Tax credits
Besides the big daddy tax credit, there are other ways to recoup your hard earned tax dollars. For example, there’s a program that allows you to take a tax break on your first two years of business. In addition, there’s a program that will allow you to deduct a small percentage of your construction costs. There’s also a tax incentive for employers that make the big move to bring an employee on board.
The best part is that you don’t have to be a member of the business fraternity to take advantage of these programs. There are even special programs available for women and minorities. Lastly, there’s a tax credit for distressed businesses that are in the process of being sold off or reorganized. While the program isn’t a panacea, it does have some perks.
Loans
Earlier this year, the Business Council’s COVID-19 Business Relief Program offered loans to 18 local businesses. The loans are available for businesses that have fewer than 25 employees. The interest rate is 4% and repayment terms range from 24 to 48 months.
This new economic recovery loan fund supports small businesses, nonprofits, and residential landlords. The fund is targeted at businesses with fewer than 50 employees. There are also grants for organizations that provide services to youth and immigrants.
The Small Business Development Center (SBDC) will offer training and counseling to help businesses navigate the program and find resources. The funds are allocated through the city’s economic development budget.
The Small Business Administration offers low-interest EIDL loans, as well as other forms of financial relief. Loans are secured by personal guarantees from at least 20 percent of the owners of the business. The interest rate on these loans is fixed at 1% or 3% depending on the collateral. The interest is refunded if the loan is paid off within 12 months.
Layoff aversion fund
During the Great Recession, states began to take notice of the small business and ancillary industries in their state and have devised state-specific relief programs. The most notable is the state-sponsored COVID-19 Layoff Aversion Fund, which has saved nearly 9,000 jobs in the state of Maryland. Aside from the money saved, the program has also been a boon to the local economy. Its awards are eligible for state income tax subtraction in the next tax season. The funds have been allocated to eligible businesses, including start-ups, small and medium sized businesses, as well as socially and economically disadvantaged entrepreneurs.
The State of Maryland’s Department of Labor has also rolled out the COVID-19 Small Business Emergency Relief Grant Fund. This has been a worthy endeavor in the grand scheme of things, as it has been a great way to provide much-needed support to small and medium sized businesses that were having a hard time keeping their doors open.
Homeowner assistance fund
During the COVID-19 pandemic, many homeowners have fallen behind on their mortgage payments. This means they are looking for financial assistance with housing-related expenses.
The New York State Homeowner Assistance Fund (HAF) is one such program. It is a free federally funded program that assists homeowners with housing-related costs.
The Homeowner Assistance Fund has a number of programs that can help homeowners avoid foreclosure. These include the Homeowner Relief Fund, the Housing Assistance Grant, and the American Rescue Plan Act. These are all federally funded programs that will help eligible homeowners stay in their homes and catch up on past-due bills.
The Homeowner Assistance Fund is one of the pillars of President Biden’s American Rescue Plan. It is a $10 billion federal program that provides relief to families who are in financial distress.
New York City Council’s COVID-19 Business Relief Program
During the COVID-19 pandemic, New York City’s Department of Small Business Services launched a series of programs designed to help small businesses recover from the pandemic. These programs provide financial assistance and flexible grant assistance to microbusinesses. The Small Business Job Recovery Program provides tax credits of up to $5,000 per new employee hired.
The NYC Business Quick Start program offers free concierge service for small businesses in New York City. This is an interagency effort that guarantees a 48-hour response to any small business inquiry. The program also provides a public dashboard to track economic data.
The Small Business Resource Network provides support to minority-owned businesses in New York City. It’s led by 22 Small Business Specialists, who are embedded within five local chambers of commerce. These experts will work with local entrepreneurs in the most affected communities to develop a customized plan of action.
