The CARES (Coronavirus Aid, Relief, and Economic Security) Act provides a lifeline to small businesses.
2019 Income Tax Deadlines
The 2019 federal income tax filing due date has been automatically extended from April 15, 2020, to July 15, 2020. New Mexico Tax & Revenue has followed suit and extended its filing deadline as well. Businesses and individuals can also defer federal income tax payments normally due on April 15 to July 15, 2020, without penalties and interest, regardless of the amount owed.
Credits for Small Business Owners
If your business has employees who are unable to work because of COVID-19 quarantine or have COVID-19 symptoms and are seeking a medical diagnosis, you may receive a refundable sick leave credit for sick leave at the employee’s regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. Read our rule analysis, which includes details.
Small Business Loans
Several loan options have emerged as part of the CARES Act and the State of New Mexico’s efforts to assist businesses.
The US Small Business Administration (SBA) is offering low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans, part of the SBA’s Economic Injury Disaster Loan Program, carry an interest rate of 3.75 percent for small businesses and 2.75 percent for nonprofits. More information is included in our PDF.
The Paycheck Protection Program, part of the CARES Act, provides loans to employers who maintain their payroll during the emergency. Loans may be forgiven under certain circumstances. The U.S. Senate Committee on Small Business and Entrepreneurship provided this guide. Loans must be initiated through SBA lenders.