The City of Norfolk Department of Economic Development is offering a grant product to assist City of Norfolk businesses with resuming and/or restructuring their business operations to respond to the COVID-19 pandemic. Funds can be used for specific overhead expenses needed to support pivoting business model or needed supplies to operate in a post pandemic environment. Grant funds are available to small, for profit businesses, physically located in the City of Norfolk. This product is ideal for restaurants, local retail and small business owners primarily serving the City of Norfolk and the general Hampton Roads region.
Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed
The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
Loan Terms & Conditions
Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
Maximum loan amount up to $10 million
Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
All loans under this program will have the following identical features:
Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal). To see what the form looks like, an example can be found here.
Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)
Verizon and LISC have teamed up to offer this grant program. Applications are currently closed, but Registration is available for the next round, which will beging in mid-April. The funding will go to make grants of up to $10,000, especially to entrepreneurs of color, women-owned businesses and other enterprises in historically under-served places who don’t have access to flexible, affordable capital.
The IRS has created a special page on their website focused on Coronavirus Tax Relief, where individuals and businesses can see the latest news and guidance provided.
Deferring Tax Payments. The Treasury Department and IRS have issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments on April 15, 2020 until July 15, 2020 without penalties or interest. The guidance also allows corporate tax payers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020 until July 15, 2020 without penalties or interest. The guidance does not change the April 15 filing deadline.
Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If an individual or business files their tax return or request an extension of time to file by April 15, 2020, they will automatically avoid interest and penalties on the taxes paid by July 15. The easiest and fastest way to request a filing extension is to electronically file Form 4868 through a tax professional, tax software or using the Free File link on IRS.gov. Businesses must file a Form 7004.