Financial and Economic Information and Resources for Small Businesses
Topics
Taxation Changes and the CARES Act
6 Strategies to Strengthen
Your Business During
Covid-19 - Video
The content on this page is based on the most current information available and may be subject to change as this situation evolves.
Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Payment Protection Program accepting new applications starting April 27.
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
According to the U.S. Small Business Administration, Mississippi small-business owners qualify for financial awards and grants for economic losses due to the coronavirus. Three COVID-19 packages have been released to aid small businesses.
This page summarizes information and provides links to additional information regarding these assistance programs. We will continually update this page as new information becomes available. If you have questions about whether or not your business qualifies, need more information, or would like to schedule an online meeting, please contact one of the MSU Extension specialists listed here.
Contact the Small Business Administration or your local bank to apply for these loans or grants.
Special thanks to Becky Feldman with Cornerstone Government Affairs in Jackson, Mississippi.
Loans and Grant Assistance
Economic Injury Disaster Loan Advance (Grant)
- Apply directly through the Small Business Administration.
- Apply for up to $10,000.
- This advance is to meet immediate needs and is typically funded within 3 days of application approval.
Economic Injury Disaster Loan (EIDL)
- The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- Available to small businesses and nonprofits.
- Apply directly with the Small Business Administration.
- These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact.
- The interest rate is 3.75% for small businesses.
- The interest rate for nonprofits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
Paycheck Protection Program (Loan)
- Apply with any bank that has previously been able to provide SBA loans. (Most banks are qualified to do this, so contact your local lender about this program. Be sure to call ahead due to restrictions on number of people in a lobby for some banks.)
- Allows for 100% government-backed SBA 7(a) loan up to $10 million.
- Loan amount is equal to 250% of your average monthly payroll costs.
- Designed to help small businesses keep employees employed.
- Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. (At least 75% of the forgiven amount must have been used for payroll. Be sure to discuss the requirements with your lender.)
- No collateral or personal guarantees are required.
- Small businesses and sole proprietorships can apply April 3.
- Independent contractors and self-employed individuals can apply April 10.
- You cannot have an EIDL loan and a Paycheck Protection Loan for the same purpose.
- Find an overview of the program, more information for borrowers and lenders, and an application online .
Taxation Changes and the CARES Act
Contact Shaun Tanger for questions regarding taxation and John Auel for information regarding logging and trucking businesses.
CARES Act: H.R. 748 & S.3548
- This $2 trillion federal stimulus package was signed into law by President Donald Trump on Friday, March 27, 2020.
- This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak.
- Beyond the widely publicized economic stimulus relief in the form of payments and emergency SBA loans, there are several tax alterations that could impact you and your business.
Federal Changes
Employer Tax Credit Availability
- A tax credit against employment taxes is available if the operation of the trade or business is fully or partially suspended during the calendar quarter due to orders of government authority.
- Employers are eligible if they have a reduction in the first quarter of more than 50% of gross receipts as compared to the same quarter in the prior year. To continue, they must have a reduction of 80% in subsequent quarters as compared to the previous year.
Delay of Payment of Employer Payroll Taxes
- 6.2% of social security payments may be deferred from the time the CARES Act is signed into law. Half of the deferred amount is due on December 31, 2021, and the other half in December 2022.
- Similar provisions are available for self-employed individuals, but self-employment taxes still must be paid at the usual deadlines.
Modification of Net Operating Losses
- The Tax Cuts and Jobs Act eliminated net operating loss carrybacks for certain years (after 2017), while these could still be carried forward indefinitely (limited to 80% of the taxable income in the relevant period).
- Now, net operating losses arising in 2018, 2019, and 2020 can be carried back 5 years (REITS excluded). Also, the 80% limitation is removed for tax years beginning before January 1, 2021.
- You must file within 120 days of the enactment of the CARES Act.
Suspension of Noncorporate “Excess Business Loss” Limitations
- The use of business losses to offset nonbusiness income is limited to $250,000 ($500,000 for joint filers) prior to 2026, and losses that are disallowed as “excess business losses” are carried forward and treated as net operating losses in future tax years.
- The CARES Act suspends these excess loss limitations for tax years 2018, 2019, and 2020.
Business Interest Expense Deduction
- The adjusted taxable income limitation on interest expense deductions was increased from 30% to 50% for 2019 and 2020 (only 2020 for partnerships, which includes many LLCs).
- Treat 2020 income as if it were the same as 2019 adjusted taxable income for purposes of applying the interest expense limitation. This may create additional net operating losses in 2020, which can be carried back to prior years using an amended return.
State Changes
- The first quarter 2020 estimated tax payment is extended until May 15, 2020. Penalty and interest accrual has been suspended effective March 15, 2020, on all new assessments and all prior liabilities and will continue until the end of the national emergency.
- Effective immediately, withholding tax payments for the month of April are extended until May 15, 2020.
- The extension does not apply to sales tax, use tax, or any other tax types (such as dividends or interest) not related directly to employment income. These returns should be filed and paid on the normal due date. The extension also does not apply to payments on prior liabilities.
- However, the Mississippi Department of Revenue will consider an extension of time to file and pay on a case-by-case basis. These requests should be directed to the department’s customer service line at 601-923-7700.
- Mississippi will not change or impose any new withholding requirements for businesses based on the employee’s temporary telework location.
- Mississippi residents are taxable on their total income, regardless of where they work.
- The Mississippi Department of Revenue will abate penalty and interest on any audits closed during this period of national emergency and where the taxpayer agrees to settle the audit without appeal and pay the tax due.
Note: Nothing in this document should be construed as legal or financial advice. Consult an attorney and a certified public accountant.
Nonprofits
Eligibility Information for Nonprofits
Financial Resources for Nonprofits
Information for Faith-Based Organizations
Additional Resources
Mississippi Economic Council Disaster Loan Guide
U.S. Chamber of Commerce Information for Nonprofits
Your Banker – Mississippi Bankers Association
U.S. Department of the Treasury – How the Treasury Is Taking Action
Paycheck Protection Program Information Sheet
Overview of the Paycheck Protection Program
Paycheck Protection Program Application Form
Resources from the Mississippi Emergency Management Association
Six Strategies to Strengthen Your Business During COVID-19
Need to adapt your small business to COVID-19 but not sure how?
In an effort to help small businesses in Mississippi survive and thrive during COVID-19, Mississippi State University Extension faculty members provided an overview of six strategies that can be used to strengthen your business. Using a Zoom conference, faculty provided an overview of each strategy and links to critical resources for small businesses. Please contact any or all of the Extension faculty members in this video to help your business continue to move forward during this crisis.
Publications
News
STARKVILLE, Miss. -- The saying goes that tough times bring out the best and worst in people. The COVID-19 pandemic is no exception, and consumers need to be wary of potential fraud related to the vaccine as it is rolled out.
Those who have not yet scheduled an appointment to receive their first dose will be waiting another month. On Jan. 15, the Mississippi State Department of Health reported that appointments may be limited until late January, as most of the state’s available vaccine inventory had already been scheduled or distributed.
The Mississippi State University Extension Service Head Start Program in Harrison County is proving resilient in safely living up to its mission of easing the transition to school for families with young children.
Mississippi farmers generated an estimated agricultural value of $7.35 billion in 2020, a 5% increase from 2019 that saw soybeans top forestry for the No. 2 spot behind poultry.
While Thanksgiving is an obvious food holiday, Christmas also brings numerous opportunities to celebrate with food, and every one of these should be done with care to keep guests healthy.
Byron Williams, state food processing specialists with the Mississippi State University Extension Service, said safety is always a concern any time food is prepared, but it can become a bigger issue when there are lots of leftovers.
Because many families are celebrating this holiday season a little differently, we might feel a little stressed. One of the things that helps me stay grounded during this time is physical activity. It’s one of the most important things you can do for your health.
Success Stories
Variety trials exemplify Extension’s service to growers through pandemic
For 10 years, a small portion of Moody Farms in Tishomingo County has been sectioned off for cotton variety trial plots. That streak continued in 2020, despite the COVID-19 pandemic.
Lexington coalition organizes food giveaway amid pandemic
When the Guardian (U.S. edition) released its article “In the poorest county, in America’s poorest state, a virus hits home: ‘Hunger is rampant’” in early April 2020, a local coalition in Holmes County had already organized to create a food pantry in Lexington.
4-H’er creates instructional video
4-H’ers learn by doing, pandemic or no pandemic. So, even though Aaron Lampley could not meet with the Winston County Photography Club, he could leverage technology to increase his own skills and share his expertise with other photo enthusiasts.
Extension supports city clerks during pandemic
Many things about the way Jo Ann Robbins did her job changed when coronavirus hit.
“The COVID-19 pandemic impacted my work and my personal life in ways I never dreamed possible”
4-H’er uses tech to unite club, serve community
Not many teens—or adults, for that matter—know the ins and outs of Robert’s Rules of Order, but 17-year-old Chasity Moses is making a habit of knowing and doing things that set her apart.
Watch

Conversations about Coronavirus: Interview with Wayne Madkin
Monday, April 27, 2020 - 11:30am
Conversations about Coronavirus: Mayor George Flaggs of Vicksburg, MS
Thursday, April 23, 2020 - 11:30am