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COVID-19 Update: Here’s What Connecticut’s Businesses Need to Know

As the news surrounding the global COVID-19 pandemic continues to evolve, our team at blumshapiro is staying focused on answering the local business community’s most pressing questions. As of Friday,
April 3, 2020
, here are the latest updates leaders in Connecticut’s business community need to know.

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Insights  <  COVID-19 Update: Here’s What Connecticut’s Businesses Need to Know

As the news surrounding the global COVID-19 pandemic continues to evolve, our team at blumshapiro is staying focused on answering the local business community’s most pressing questions. As of Friday,
April 3, 2020
, here are the latest updates leaders in Connecticut’s business community need to know.

As the news surrounding the global COVID-19 pandemic continues to evolve, our team at blumshapiro is staying focused on answering the local business community’s most pressing questions. As of Friday, April 3, 2020, here are the latest updates leaders in Connecticut’s business community need to know.

The Latest News

U.S. Senate passes sweeping $2 trillion stimulus package; signed March 27, 2020

As the business community continues to make real-time adjustments to adapt to the crisis caused by the global Coronavirus Disease 19 (COVID-19) crisis, the U.S. Senate passed the largest single stimulus bill in the nation’s history, a sweeping $2 trillion package that will provide significant support to businesses of all sizes known as the Coronavirus Aid, Relief and Economic Security Act or the “CARES” Act.

This package includes billions of dollars in small business loans; grant programs for healthcare providers; emergency funding for the U.S. Centers for Disease Control; and significant funding to help specific industries like air travel and national security recover from this period of economic instability.

It also includes relief checks for up to $1,200 per individual and $2,400 for married couples.

Reminder: Federal and state tax filing deadlines have been postponed to July 15, 2020

As we mentioned last week, both the federal and state of Connecticut’s tax deadlines have been extended to July 15, 2020.

READ: Lynn O’Marra, tax principal, has more on the tax implications of COVID-19 in her guest column in this week’s edition of Providence Business News

We encourage any of our clients who have questions about these deadline postponements to contact us as soon as possible.

Available Resources for Connecticut’s Businesses

Updates from the Small Business Administration

Last week, the Small Business Administration (SBA) officially approved the state of Connecticut’s disaster declaration and immediately activated emergency funding in the form of Economic Injury Disaster Loans. Eligible small businesses can qualify for working capital loans of up to $2 million with interest rates as low as 3.75 percent.

This week, the SBA announced it will allow eligible small businesses to defer payments (both interest and principal) on their loans for up to six months. This decision has been positively embraced by many of Connecticut’s largest lenders.

To learn more about available SBA resources, please refer to the following links:

Connecticut Department of Labor

The Connecticut DOL stands ready to assist with questions about unemployment insurance, paid sick and safe leave, and other resources available through State programs. Learn more about what benefits your business may be eligible for:

Developing a remote work plan while social distancing mandates remain in effect:

Additional support offered by companies across the country

Countless companies around the world have announced additional policies and programs to support businesses impacted by COVID-19.

Next steps

We will be providing regular updates over the next several weeks as new developments are made available. If you have any questions whatsoever, please do not hesitate to reach out. We are here to help you with your tax and business advisory needs.

In the meantime, you can refer to the following agencies and associations for the latest information:

U.S. Centers for Disease Control

STATE OF CONNECTICUT FREQUENTLY ASKED QUESTIONS

DECD NEW BRIDGE LOAN-APPLICATION

IS AVAILABLE ONLINE >>

To provide emergency cash flow relief to small businesses and nonprofits negatively impacted by COVID-19, Connecticut is now offering qualifying organizations with 100 or fewer employees access to no-interest loans.

Under the Connecticut Recovery Bridge Loan program, a qualifying business or nonprofit organization can apply for a loan of up to $75,000 or three months of operating expenses (whichever is lesser).

This $25 million short-term emergency loan program will be allocated on a first-come, first-served basis. The program will be administered by the Department of Economic and Community Development (DECD) and expedited with the administrative and underwriting support of Connecticut Innovations.

CONNECTICUT DRS

The Connecticut Department of Revenue Services (DRS) has responded quickly to the COVID-19 outbreak in order to protect our employees and the taxpayers we serve. We have followed directives from Governor Lamont as well as guidance from the CDC. Although there is no good time for a crisis, these events are unfolding during income tax filing season, making it much more challenging. Public service is at the heart of the DRS mission, and our team of tax professionals remains ready to serve during these difficult times.

STATE OF CONNECTICUT INSURANCE DEPARTMENT

For the most up to date information from the State of Connecticut Insurance Department please click here.

SBA DISASTER ASSISTANCE

The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital.

Small businesses and non-profit organizations in Connecticut that have been negatively impacted by the global COVID-19 outbreak are now eligible for disaster relief loans of up to $2 million from the U.S. Small Business Administration.

For more information on how your company can apply, please click here to go directly to the launch page.

Below are some additional resources provided by SBA to explain this process:

CT DOL RESOURCE PAGE

Access helpful and very important information developed by the CT Department of Labor which contains frequently asked questions about COVID-19 for employers and workers.

CT Department of Labor

Disclaimer: The contents of this resource are for general informational purposes only. While every effort has been made to ensure its accuracy, the information is provided “as is” and no representations are made that the content is error-free. We have no obligation to update any content, comments or other information for retroactive or prospective interpretations or guidance provided by regulators, financial institutions or others. The information is not intended to constitute legal advice or replace the advice of a qualified professional. There are areas of the CARES Act where additional clarification from the Treasury Department and the SBA is needed. Your judgment and interpretation of the act may be needed. Users should consult with their legal counsel and representatives of the lending institution regarding the proper completion of their application and supporting documentation

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