The Economic Development and Planning Department, including the Industrial Development Agency will be suspending official business until March 30th or a time to be determined. County Planning Board and the WEDC and WCIDA Boards will be evaluating upcoming meeting schedules and determining the appropriate time and manor to conduct official business in accordance with NYS Open Meetings Law. As for now all meetings should be considered canceled, subject to changing conditions.
Matters requiring immediate attention can be directed to Brian Pincelli at bpincelli@co.wayne.ny.us.

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Small Business Assistance

Payroll Protection Program

Eligibility – The following types of businesses and entities are eligible:

• Businesses and entities operational on February 15, 2020.
• Small business concerns, as well as any business concern, certain nonprofit organizations (501(c)(3) and 501(c)(19) only)), or Tribal business concern, in each case, if such businesses employ 500 or less employees or if such business meets the applicable SBA size standard.
• Sole proprietors, independent contractors and eligible self-employed individuals.
• Waiver of affiliation rules for businesses with less than 500 employees and assigned NAICS code beginning with 72, franchise identifier, or businesses receiving funding from small business investment companies.

Amount – Up to the lesser of (a) $10 million or (b) 2.5 times average monthly payroll costs.

Permitted Uses – Payroll costs, group health care benefit costs, rent, utilities, mortgage obligations (other than principal) and any other interest on previously incurred debt.

Lenders – All current SBA 7(a) lenders. Click here for sample application.

Loan Forgiveness – Subject to certain adjustments, indebtedness will be forgiven, up to the principal amount of the loan, in an amount equal to the sum of payments made during the 8-week period after incurrence of the loan for payroll, utilities, rent and mortgage obligations (other than principal) (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Amounts forgiven will not be included in gross income for tax purposes.

Loan Forgiveness Documentation – (i) verification of the number of employees and pay rates; (ii) verification of payments on covered mortgage obligations, lease obligations and utilities; and (iii) certification that the documentation provided is true and that the amount forgiven was used in accordance with the program guidelines.

Loan Term, Interest Rate and Fees – For any amounts not forgiven, 2 year term and 0.50% interest rate. Zero loan fees and zero prepayment penalties. All payments are deferred for 6 months; however, interest will continue to accrue over this period.

Security for the Loan – Until June 30, 2020, no collateral or personal guarantee requirement.

Timing – Loans are available through June 30, 2020. Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply.

Tax Benefit Coordination – Employers receiving loans will not be eligible for the

Employee Retention Credit under the Act. Employers whose loans are forgiven will be ineligible to defer payment of payroll taxes on wages as permitted by the Act.

The Paycheck Protection Program

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.

Economic Injury Disaster Loan (Emergency Advance)

• Advance of up to $10,000
• Economic relief to businesses that are currently experiencing a temporary loss of revenue.
• Funds will be made available following a successful application.
• This loan advance will not have to be repaid.

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

Economic Injury Disaster Loans (EIDL)

Eligibility – The eligibility of a “small business” to receive a loan is based on the industry of the business, the revenue generated by the business and/or the number of employees working for the business. For guidance, please visit SBA size standards. In addition, eligibility has been expanded to include:

• Businesses with not more than 500 employees.
• Tribal businesses.
• Cooperatives with not more than 500 employees.
• ESOPS with not more than 500 employees.
• Any individual operating as a sole proprietor.
• An independent contractor during January 31, 2020 to December 31, 2020.

Amount – Up to $2 million. If a business is a major source of employment, SBA has the authority to waive the $2 million statutory limit.

Grant – Applicants can request an advance on the loan in the amount of $10,000. Applicants will not have to pay back the grant even if the applicant is subsequently denied the loan.

Permitted Uses – Fixed debts, payroll, paid sick leave, making rent or mortgage payments, meeting increased costs to obtain materials and accounts payable and other bills that that cannot be paid because of the disaster’s impact. The loans are not intended to replace lost sales or profits or for expansion.

Lenders – The SBA, click here for the application

Loan Term, Interest Rate and Fees – Up to 30 years. The maximum interest rate is 3.75% per annum for small businesses and 2.75% for non-profits.

Security for the Loan – Any personal guarantee waived on loans below $200,000. For loan amounts over $200,000, the SBA may require personal guarantees.

Timing – Loans are available through December 31, 2020.

 For more information – Please visit Emergency Loans Available to Small Businesses Under the CARES Act

SBA Express Bridge Loan

• Small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
• These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
• Up to $25,000
• Fast turnaround
• Will be repaid in full or in part by proceeds from the EIDL loan.

 SBA Debt Relief

• The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
• The SBA will automatically pay the principal, interest, and fees of current 7(a) loansfor a period of six months.
• The SBA will also automatically pay the principal, interest, and fees of new 7(a) loansissued prior to September 27, 2020.

Local SBA Lenders Working with these Programs
Lyons National Bank
Reliant Community Federal Credit Union
Savannah Bank National Association
Canandaigua National Bank and Trust

Other Helpful Links and Resources:
SBA Loan Resources
SBA Guide for Borrowers
Senate Small Business Committee
NADCO Section-by-Section Resource
US Senate Committee on Small Business & Entrepreneurship

Tax Relief

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a provision allowing employers to defer payroll tax payments over the course of two years.  The CARES Act also provides a refundable tax credit for 50% of wages paid by employers whose operations were suspended due to COVID-19 or whose gross receipts declined by more than 50%.

Provisions in the CARES Act expand relief under the Tax Cuts and Jobs Act by allowing immediate write offs for costs associated with investments in qualified improvement properties.  The CARES Act also provides additional flexibility by allowing businesses to carry back net operating losses over multiple tax years and increasing deductions for business interest.

Follow this Link for More Information: https://www.irs.gov/coronavirus

Workforce Assistance

The federal CARES Act was signed into law March 27, 2020. The Act provides enhanced Unemployment Insurance (UI) benefits and Pandemic Unemployment Assistance (PUA) for New Yorkers.

Follow this Link for More Information https://www.labor.ny.gov/home/

Several Companies in Waye County are Hiring During Right Now including IEC Electronics.

Wayne County Economic Development Department is interested in understanding the impacts the coronavirus has had on Wayne County businesses in order to evaluate potential assistance programs. Please consider completing the survey found here: https://www.surveymonkey.com/r/TCVR6Y9

Information on the website will be updatded as information comes out. Please contact Brian Pincelli, Executive Director with any business related questions or concerns at bpincelli@co.wayne.ny.us.    

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