My small business/nonprofit is struggling with the loss of revenue during the state’s business shutdown. What assistance is available?
The Connecticut Department of Revenue Services has extended the filing deadlines for certain annual tax returns due on or after March 15, 2020, and before June 1, 2020, by at least 30 days. In addition, the payments associated with these returns are also extended to the corresponding due date in June.
The impacted returns and the associated filing dates and payment deadlines are set forth below:
• 2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return: Filing date extended to April 15, 2020; payment deadline extended to June 15, 2020
• 2019 Form CT-990T Connecticut Unrelated Business Income Tax Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
• 2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return: Filing date extended to June 15, 2020; payment deadline extended to June 15, 2020
CT Loan Extensions:
Additionally, the CT Department of Economic and Community Development (DECD) is extending by 90 days payments due on loans extended through Small Business Express and is offering accommodations on other programs. Please contact DECD for further information at https://portal.ct.gov/DECD.
Medical Leave and Health Insurance Covered:
The IRS announced that small and medium-sized businesses can begin using two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees.
For COVID-19 related reasons, including taking care of family members, employees receive up to 80 hours of paid sick leave. Health insurance costs are also included in the credit. For more information, see the IRS guidance: https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus.
State No-Interest Loan Program:
Connecticut small businesses and nonprofits that have been negatively impacted by the COVID-19 pandemic were invited to apply for one-year, no-interest loans of up to $75,000 under the Connecticut Recovery Bridge Loan Program.
UPDATE: As of 6:00 p.m. on March 27, 2020, this program has stopped accepting applications after receiving over 4,000 applications since the program launched on March 26, 2020. Applications are no longer being received to ensure that the current applications can be processed and get much needed money out the door as quickly as possible.
This program is administered by the state Department of Economic and Community Development and will make $50 million available to Connecticut businesses and nonprofits with 100 or fewer employees. Loan amounts are up to three months operating expenses, capped at $75,000.
• Provisions and Eligibility Requirements:
The loan will be a 12-month term with a 6-month extension per request.
Approval is contingent upon business being profitable prior to March 10, 2020, and no adverse personal credit reports 60 days past due for the last 6 months.
Real estate, multi-level marketing, adult entertainment, and firearms companies are not eligible.
Federal Emergency Loan Program:
The federal Small Business Administration has made available an emergency loan program for small businesses and nonprofits. These loans are available at interest rates of 3.75% for businesses and 2.75% for nonprofits and for principal amounts of up to $2 million with a loan term of up to 30 years. Please visit https://disasterloan.sba.gov/ela/ for further information.
The state of Connecticut requests that you reach out to other lenders before applying through the SBA for this assistance.
For additional resources available to help businesses, please see: https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery