Financial and Economic Information and Resources for Small Businesses

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.

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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.

Hamp Beatty

Rachael Carter

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

Application for Borrowers

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

USDA

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.