Governor Reynolds announced today, March 23, 2020, a total of $4 million available through two new programs to help Iowa Small Businesses during the COVID-19 pandemic. During this afternoon’s press conference, Governor Reynolds and Iowa Economic Development Authority Director, Debi Durham, outlined two entirely new programs:
Small Business Relief Program Grants:
- Benefits:
- $5,000 - $25,000;
- IDOR will extend sales and use tax as well as withholding tax deadlines for the first quarter until July 1, 2020
- Eligibility:
- 2 - 25 employees prior to March 17;
- Business disruption due to COVID-19 pandemic;
- Funds may not be used for debts incurred prior to March 17;
- IEDA will determine grant amount according to level of impact including loss in sales revenue and employee.
Tax Deferment Assistance:
- Benefits:
- IDOR may extend sales and use tax deadlines for the first quarter until July 31, 2020 (no employment limit);
- IWD will allow businesses with fewer than 50 employees to delay unemployment tax payments for first quarter until July 31, 2020.
- Eligibility:
- See employment criteria immediately above;
- Business disruption due to COVID-19 pandemic;
- Employer must be in good standing and current on all quarterly tax payments before the 1st quarter of 2020;
- IDOR will determine whether to grant deferral of eligible taxes and waiver of penalty and interest.
Applications for the Small Business Relief Program Grants will be accepted starting tomorrow morning, Tuesday, March 24 at 8:00 and will be accepted through March 31 at noon at this website: iowabusinessrecovery.com. For employers electing to take advantage of the Tax Deferment Assistance, the employer must contact Iowa Workforce Development by Friday, April 24th at 4:30 p.m. Director Durham made clear these funds are available as a “stop gap” and to keep doors open until resources from the federal government are made available and start arriving in our state. Note, the program may be restricted due to funding availability.
If you have any questions, please reach out to your BrownWinick attorney or submit a message through our Contact Us form. For updates on COVID-19 and new guidance provided by BrownWinick attorneys, please visit our COVID-19 Resource Page.
