Breakdown of NYC Small Business Coronavirus (COVID-19) Relief
Vicus Founders Breakdown NYC Small Business Coronavirus (COVID-19) Relief Programs Including New City, State, and Federal Programs.
Below, please find a letter we sent to our commercial real estate customers and clients in New York City regarding NYC Small Business coronavirus relief programs. If you’re an NYC small or medium-sized business tenant and wondering how to navigate paying commercial rent in NYC during Coronavirus (COVID-19), please check out our post: Your Rights & A Path Forward. If you have any questions (even if you’re not a client), please do not hesitate to contact any of our team.
As the proud tenant rep for so many small and medium-sized businesses here in New York City, we understand the importance of your space as the home for the lifeblood of your company – your people. We also understand that your office—and your commercial lease—is just one part of running your business. Our goal is to go beyond being your broker and be a value-add resource of information and solutions for you.
Below is a breakdown of coronavirus relief programs offered to small businesses by New York City (NYC) and the federal government in the recently passed $2 trillion coronavirus relief bill:
- NYC offering $75k interest-free loans for business with under 100 employees, and a 25% decrease in sales due to COVID-19: New York City businesses with fewer than 100 employees in all locations [you must be located within the 5 boroughs of NYC] can apply for an interest-free loan for up to $75,000. You will need to demonstrate a 25% revenue reduction for two consecutive months in 2020 relative to either (a) the same two months in 2019 or (b) the average revenue for all months of 2019. To be eligible you must have been in operation for at least 2 years. More here
- NYC Employee Retention Grant Program: New York City businesses with 1-4 employees [you must be located within the 5 boroughs of NYC] can apply for a grant for 40% of employee payroll for 2.5 months. You will need to demonstrate a 25% revenue reduction for two consecutive months in 2020 relative to either (a) the same two months in 2019 or (b) the average revenue for all months of 2019. To be eligible, you must have been in operation for at least 6 months. More here
- In the just-passed $2 trillion coronavirus relief package, the federal government is offering a Paycheck Protection Program loan through the SBA that is 100% forgiven if used to pay payroll, business rent, mortgage interest, and utilities for eight weeks. Find updates at sba.gov
- The federal government is also offering Employee Retention Credit: Employers may receive a credit against their payroll taxes for 50% of any wages paid to employees during a period where their business activity is wholly or partially suspended, or where gross receipts declined by 50% or more compared to the same quarter in 2019. Work with your payroll provider to receive this credit. More here
- Payroll Tax Deferral: The provision allows employers to defer payment of their share of the Social Security tax (6.2% of employee’s wages). You are required to pay the tax over the following two years, with half of the amount required to be paid by Dec. 31, 2021 and the other half by Dec. 31, 2022. Work with your payroll provider to defer payments. More here
- Federal government offering up to $2m, low-interest loans for small businesses affected by COVID-19: Apply to receive a loan for up to $2m at a 3.75% interest rate, payable over 30 years. More here
- Quarterly Estimated Taxes: The first 2020 quarterly estimated tax payment deadline has been extended from April 15th to July 15th.
While rent is just one part of your monthly expenses, for small and medium-sized businesses it can be a material cash outflow and one to take into consideration when experiencing dramatic business losses like many of us are right now. Here are answers to some of the most common questions we’ve received around rent payment. We as experienced tenant reps—and as humans who understand the importance of working together right now—remain ready to answer questions on your lease, your rights and potential solutions; help you plan for (and be part of) conversations with your Landlord, and connect you to any resources you need.
We remain committed to being your unwavering advocate and your partner in long term success and are grateful to be in a line of work that lets us bring tangible benefit to you as a tenant during these times. Please contact us at firstname.lastname@example.org or email@example.com if we can help.
In good health,