Tax Filing Deadline Update: Late yesterday, the Department of Treasury extended the tax payment for both corporations and individual taxpayers from April 15th to July 15th (see notice here ). Please note, the announcement did not extend the tax return filing deadline nor does the announcement directly address any resulting penalties.
We have joined many other accounting firms and the American Institute of Certified Public Accountants (AICPA) in requesting that the Department of Treasury consider extending the filing deadlines for both individuals and nonprofit organizations. We will continue to keep you abreast of any updates regarding this matter.
Resources for Nonprofit Organizations and Businesses Impacted by Coronavirus:
Indy Chamber – Business Ownership Initiative:The Indy Chamber/BOI has initiated Rapid Response Recovery Loans of up to $25K for small businesses. Find BOI’s checklist of what must be submitted to apply for the loans here . Smaller loan amounts will require less documentation. Interest rates are 4.25-7.5% and loan terms depend on the amount requested. If you are interested in discussing this further, please contact BOI at 317-464-2258 or information@businessownership.org . The Indy Chamber Rapid Response Hub is designed to offer up-to-date information, provide the ability to ask questions, and connect small business owners with resources. Please use the form available to ask any questions.
Small Business Administration:For capital needs, Lender Match is SBA’s free online referral tool that connects small businesses with participating SBA-approved lenders authorized to loan $500 to $5.5 million. Lender Match can be accessed by small businesses any time, regardless of whether disaster loans are available. www.SBA.gov/lendermatch
The President has allocated $50 billion to the SBA for Economic Injury Disaster Loans. For Hoosiers to gain access to this funding, the Indiana Small Business Development Center collected small business economic impact data so that the Governor could declare an economic injury disaster: https://isbdc.org/indianacovid19smallbusiness
The disaster declaration has been made, and the application process is open for SBA Economic Injury Disaster Loans (EIDL).
- The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.
- EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills.
- The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.
- EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower’s ability to repay.
You may apply online at SBA.gov/disaster and f ind an overview of the SBA’s response to the pandemic and its lending process here . In addition, they provided a webinar and the presentation can be found here.
Contracting with the federal government? If a situation occurs that will prevent small businesses with federal government contracts from successfully performing, they should reach out to their contracting officer and seek extensions before they receive cure notices or threats of termination. The SBA’s Procurement Center Representative in Indianapolis can help affected small businesses engage with their contracting officer: Katherine.Ragland@sba.gov
The SBA Indiana District Office is standing by and can be reached at (317) 226-7272.
Non-TraditionalLending Options:If the resources above are not useful and you are unable to obtain traditional bank financing, Bankable offers alternative funding options. They can lend between $500 to $250,000 at interest rates between 8-12%. Terms for these loans can range from 12 months to 10 years depending on the size of the request. Bankable can work with all companies except the following: religious, non profits (unless they are a non profit daycare), and house flippers/landlords. They indicated they can turn an application around in 24 hours or it can take up to 6 weeks, depending on the size of the request and the cooperation of the applicant. Bankable Website
Other Nonprofit Information:Recognizing the impact of the COVID-19 pandemic, Lilly Endowment is giving more time for organizations to prepare proposals for Enhancing Opportunity in Indianapolis , a $50 million initiative that seeks to help people in Marion County make progress toward economic self-sufficiency. The deadline has been moved from March 27 to April 17 .
Additionally, Lilly Endowment has extended the deadline of its Charting the Future of Indiana Higher Education initiative . Eligible colleges and universities across Indiana have until April 28 to submit proposals (the earlier deadline was April 15).
Insurance Coverage?Check with your business insurance company to determine if there is a possibility for a business interruption claim. Polices may cover losses, on a limited basis, if they include a clause known as ‘interruption by communicable disease’.” (See article )
The Indiana Department of Workforce Development would also like to assist employers, workers, and agents during this emergency. If you are temporarily closing or reducing worker hours, please encourage your employees to file for unemployment insurance benefits. To do so, have them visit unemployment.in.gov for Frequently Asked Questions, video tutorials, and a link to file for unemployment insurance.
We understand the challenge and the potential of economic devastation that accompanies this pandemic. We will continue to support you as we all navigate our way through it.
We would like to extend a special thanks to our clients and our colleagues at the National Bank of Indianapolis, the Indy Chamber, Charitable Advisors, and the Business Ownership Initiative for helping us pull this together. Please continue to share information with us!
