The U.S. Treasury has established new tax relief programs for qualified businesses and entities impacted by the COVID-19 pandemic. These include:

A refundable Employee Retention tax credit that is 50% of up to $10,000 in qualified wages paid to an employee by an eligible employer. This credit is for wages paid from March 13, 2020, through December 31, 2020.

Coronavirus-Related Paid Leave for Workers and Tax Credits for Small- and Mid-Size Businesses. If you employ fewer than 500 employees, you may be eligible for funds to provide them with paid leave, either for their own health needs or to care for family members. For more information on these tax credits, visit the IRS' webpage on COVID-19 Employer Tax Credits.

Employment tax deferral through December 31, 2020, for eligible employers' portion of Social Security taxes and self-employed individuals' payment of certain self-employment taxes. For more information, visit the IRS' webpage on Deferral of Employment Tax Deposits and Payments through December 31, 2020.

Business Tax Relief: Information and guidance on other coronavirus tax relief measures is available on the IRS' webpage, Coronavirus Tax Relief for Businesses and Tax-Exempt Entities.

Coronavirus Tax Relief for Businesses and Tax-Exempt Entities

SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA will begin accepting applications for Second Draw PPP Loans on January 13, 2021.

To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. Paycheck Protection Program lending will reopen to all participating lenders shortly thereafter. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate income neighborhoods.

Small businesses that already have a business relationship with an SBA Express Lender may be able to access up to $25,000 quickly. These loans can be term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan (EIDL).  For more information, download an SBA Express Bridge Loan Pilot Program Guide.

Nonprofits providing public assistance feedings during this pandemic may qualify for cost reimbursements under this Federal Emergency Management Agency (FEMA) grant program. Once your application is completed, you will be contacted by the Hawaii Emergency Management Agency (HIEMA). You should also attend a HIEMA webinar to get more information. FEMA assistance is provided at 75% federal cost share. For more information about the grant program, application form and instructional webinars, visit HIEMA’s FEMA Public Assistance Grant Program webpage.

FEMA Public Assistance Grant Program for Private Nonprofit Organizations

This COVID-19 relief bill makes grants available to live venue operators and promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives that meet certain criteria. Grants may be used for specific costs such as payroll, leases, utilities, and other ordinary business expenses. The following bulletin outlines eligibility guidelines and grant availability.

The U.S. Small Business Administration (SBA) established several temporary funding programs for eligible small businesses, nonprofits, and U.S. agricultural businesses 

The U.S. Treasury extended coronavirus tax relief programs to eligible employers severely impacted by the COVID-19 pandemic.

IRS Cornavirus Tax Relief for Businesses webpage 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for eligible organizations impacted by the COVID-19 pandemic.

The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans.  SBA Borrowers: Contact your lender if you have any questions. Visit the SBA Debt Relief webpage for more information.

Check with your bank, financial institution and/or insurance provider on what programs are available for customers who are impacted by COVID-19.

Banks/Financial Institutions/Insurance Providers - COVID-19 Support

The EIDL program provides economic relief to businesses experiencing a temporary loss of revenue due to COVID-19. Its purpose is to help eligible organizations meet financial obligations and operating expenses that could have been met had the COVID-19 disaster not occurred. Visit the SBA Economic Injury Disaster Loan webpage for more information on eligibility criteria, terms, FAQs, loan application and more. 

Maui Economic Development Board (MEDB), the County of Maui Office of Economic Development, and various community partners have put together an online resource directory to support our islands’ small businesses. Whether you are looking to retool and/or respond to COVID-19, this directory offers a list of local service providers who can help you conduct your business safely, adapt and/or pivot your operations, and help you invest in technology infrastructure to expand virtual platforms, web-based marketing and e-commerce.

Most people will receive a one-time cash payment from the federal government. The federal government will send you a payment if you meet the eligibility criteria, you fall within the income cap, and you have filed a tax return or you already receive Social Security benefits.  If you filed a tax return in 2018 or 2019 or you receive Social Security benefits, you do not need to apply for this benefit. 

The Internal Revenue Service (IRS) has new coronavirus-related distribution options and rollover rules for retirement plans and IRAs and expands permissible loans from certain retirement plans. For example, qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, until December 30, 2020.

The American Rescue Plan expands the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit to provide more financial support for individuals and families throughout 2021. Learn more.

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Tag: 'financial'

Coronavirus Tax Relief for Businesses and Tax-Exempt Entities

SBA Paycheck Protection Program

SBA Express Bridge Loans

FEMA Public Assistance Grant Program for Private Nonprofit Organizations

SBA Shuttered Venue Operators Grant

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for eligible organizations impacted by the COVID-19 pandemic.

Debt Relief for SBA Borrowers

Banks/Financial Institutions/Insurance Providers - COVID-19 Support

SBA Economic Injury Disaster Loans

Hoʻoulu Maui Nui Business Directory

Direct Cash Payments to Individuals

Retirement Plans

Tax Relief for Individuals and Families