Assistance from banks and credit card companies
Capital One, Citi and Wells Fargo have all issued statements indicating that they are willing to work with customers that experience financial difficulties. Citi issued a statement that for 30 days, small business customers are eligible to have their monthly service fees waived.
Citi is also waiving the fees on early CD withdrawals. Wells Fargo donated $6.25 million in aid to help the public relief effort. The bank also encouraged customers that are experiencing financial hardship to contact customer service for assistance.
Federal small business assistance
Plans for federal assistance for small businesses is still underway. The U.S. Chamber of Commerce has called on the Administration and Congress to take critical steps to support America’s employers during this period.
The three steps recommended by the Chamber include:
- Enacting legislation canceling the payment of all payroll taxes typically paid by employers for the months of March, April and May.
- Enacting legislation expanding and streamlining loan programs for small businesses with fewer than 500 employees experiencing revenue loss as a result of the Coronavirus.
- Enacting legislation enabling the creation of credit facilities to provide loans and loan guarantees to employers with more than 500 employees experiencing significant revenue loss as a result of the Coronavirus.
For full details on the Chamber’s proposal to assist businesses, go here.
To offer tax relief during the coronavirus outbreak, the individual and corporate taxpayer will have an additional 90 days to pay their taxes. As a result, taxpayers will have until July 15, 2020 to pay the taxes owed. Note you will still need to file a tax return or an extension by April 15.
This applies only to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for the 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year.
Grants and other assistance from companies and organizations
- Facebook has launched a grant program for small businesses. You can read about it here.
By: Jamie Johnson