Financial Resources

This page will be continuously updated. Because of the nature of the COVID-19 situation some information may become outdated before it’s removed or updated on this page. 

Call the Missouri Department of Health and Human Services 24-hour hotline at 877-435-8411, if you are need of immediate help.

If you have specific COVID-19 questions for Columbia/Boone County Public Health and Human Services email [email protected]

When navigating funding and loan options, please consult your financial and legal advisers before taking advantage of any relief programs. 

CARES Act 

What is included: 

Unemployment Benefits:  While the previous phase of relief extended unemployment benefits and fast tracked the process, this Act makes it so that those receiving unemployment benefits as a result of COVID-19 will get an extra $600 per week for up to four months. The additional benefit will be on top of whatever state benefits they may already receive. Congress’ goal here is to have unemployment benefits make up for 100 percent of lost wages.

Direct Cash Infusion:  All U.S. residents with adjusted gross income up to $75,000 ($150,000 for married couples) will get a $1,200 ($2,400 for couples) one time “rebate” payment.

Business Tax Credit:  Businesses will get a tax credit for keeping workers on their payrolls during the coronavirus pandemic. To qualify, businesses have to prove they took a 50 percent loss compared to the same quarter in years past. They would get a refund for half of what they spend on wages, up to $5,000 per worker. Employers won’t be able to get special SBA loans if they opt for the tax credit.

Social Security Payroll Tax:  Employers and self-employed individuals will get to defer the 6.2 percent tax they pay on wages that is used to fund Social Security. The deferred tax would have to be paid over the following two years: half by Dec. 31, 2021, and the other half by Dec. 31, 2022.

Retail Tax Fix:  Retailers, restaurateurs and hotels will be able to immediately deduct from their taxes what they spend on property improvements. This write-off ability was supposed to occur in the 2017 tax overhaul. The fix will help by letting businesses file amended refunds from prior years.

Paycheck Protection Program:  This new loan program, known as the Paycheck Protection Program (PPP), is based on the SBA’s existing 7(a) loan program and will make forgivable loans of up to $10 million available to qualifying small businesses. Unlike other 7(a) loans, applicants are not required to show that credit is unavailable elsewhere or demonstrate repayment ability. PPP loans are backed by a 100% guaranty from SBA. The PPP is an attempt to avoid mass unemployment, the effort includes funding to cover payroll, rent and utilities. The program aims to cover eight weeks of these costs. A business can receive up to 250 percent of its average monthly payroll. This program is open to businesses with fewer than 500 workers, including nonprofits and those who are self-employed. The money will initially be a loan, but portions may be forgiven and become a grant if the company uses the loan solely for payroll, rent or utility costs. This program is retroactive to February 15, 2020 and is available until June 30, 2020.  If a business has received an Economic Injury Disaster Loan thru the SBA, they may still receive a PPP loan to the extent that the disaster loan was used for a purpose other than those permitted for PPP loans.

Paycheck Protection Program FAQ

Provided by Mark Christian, MU SBDC Director

SBA PPP resource page can be found here.

Paycheck Protection Program

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.

  • All loan terms will be the same for everyone
  • No eligible borrower may receive more than one PPP loan.
  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
  • Employee and compensation levels are maintained. 
  • Payroll costs are capped at $100,000 on an annualized basis for each employee.
  • Loan payments will be deferred for 6 months.  
  • Starting  Friday, April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 
  • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 
  • 1% fixed rate.
  • Term is 2 years.
  • If interested in applying for a PPP loan check with your local lender. 

To find a nearby lender eligible to issue a loan under the Paycheck Protection Program please click here – https://www.sba.gov/paycheckprotection/find

Paycheck Protection Program

Interest rate 1%

Note maturity 2 years

No eligible borrower may receive more than one PPP loan.

Who is eligible to make PPP loans?

All SBA 7(a) lenders are automatically approved to make PPP loans on a delegated basis.

When will I have to begin paying principal and interest on my PPP loan?

You will not have to make any payments for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment.

Can my PPP loan be forgiven in whole or in part?

Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. That is, the borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes described in the rule and employee and compensation levels levels are maintained.

Do independent contractors count as employees for purposes of PPP loan calculations?

No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation.

Do independent contractors count as employees for purposes of PPP loan forgiveness?

No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan forgiveness.

Are tax exempts eligible for PPP?

A tax-exempt nonprofit organization described in section 501(c)(3) of the Internal Revenue Code (IRC) is eligible

Are sole proprietor and independent contractors eligible?

You are also eligible for a PPP loan if you are an individual who operates under a sole proprietorship or as an independent contractor or eligible self-employed individual, you were in operation on February 15, 2020. You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship. For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.

How do I calculate the maximum amount I can borrow?

The following methodology, which is one of the methodologies contained in the Act, will be most useful for many applicants.

  1. Step 1: Aggregate payroll costs (defined in detail below in f.) from the last twelve months for employees whose principal place of residence is the United States.
  2. Step 2: Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 per year.

iii. Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).

  1. Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.
  2. Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).

 What counts as payroll costs?

 Payroll costs include:  

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); 
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and 
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

 Is there anything that is expressly excluded from the definition of payroll costs?

Yes. The Act expressly excludes the following:

  • Any compensation of an employee whose principal place of residence is outside of the United States;
  • The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary;
  • Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

How can PPP loans be used?

The proceeds of a PPP loan are to be used for:

  • payroll costs (as defined in the Act and in 2.f.);
  • costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
  • iii. mortgage interest payments (but not mortgage prepayments or principal payments);
  • rent payments;
  • utility payments;
  • interest payments on any other debt obligations that were incurred before February 15, 2020; and/or refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020.
  • If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan.

This interactive map shows how much aid is available under the Small Business Paycheck Protection Program to help small businesses in each state.

SBA Disaster Loans

The Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans (EIDL) for businesses and private nonprofits in affected areas.

These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without other available means of credit. The interest rate for non-profits is 2.75%. Businesses with credit available elsewhere are not eligible. Please note, the federal government qualifies a small business as having up to 500 employees.

The SBA loans come with long-term repayments, up to a maximum of 30 years, in an effort to keep payments affordable. Loan terms are determined on a case-by-case basis, according to individual borrower’s ability to repay.

The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Hence, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

Missouri’s disaster relief declaration has been approved and processed by the SBA. Small businesses and nonprofits statewide can now apply for SBA’s Disaster Relief Loans. Please note, these loans are issued by SBA directly and not through a bank as other SBA loans are done. 

Click here to begin the SBA Disaster Loan Assistance process. 

Applicants may apply online, receive additional disaster assistance information and download applications here. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

Below is a document explaining the three-step process to apply and a fact sheet explaining application requirements. 

If you are not sure if your business meets the requirements, you are still encouraged to apply. Applications will be accepted until December 21, 2020.

Trouble Applying? 

Borrowers are encouraged to apply during non-peak hours (7PM to 7AM), and to use programs other than Chrome. 

The Missouri Women’s Business Center (MOWBC) and the MU Small Business Development Center are both offering assistance and advice to businesses interested in SBA Disaster Loans. This can be a difficult process. We suggest seeking advice from a seasoned professional. 

From Mark Christian, Director, MU Small Business Development Center:

“I would suggest that small businesses apply now to get the $10,000 cash advance if they qualify for the EIDL. If they do qualify for the EIDL, but then also qualify for the PPP they then can apply for it and roll the EIDL into the PPP loan. Businesses can have multiple SBA loans without penalty.” 

Below are forms, provided by Mark Christian, businesses may want to fill out to before going online to make the application process faster and easier to understand.

During times of crisis like this, it is important for nonprofits, businesses and government to work together quickly and efficiently to provide vital services and support needed. CoMoHelps is a joint effort of Heart of Missouri United Way, City of Columbia, Boone County and Community Foundation of Central Missouri, offering assistance to those who are struggling in the COVID-19 pandemic and to those who wish to help. For more information visit their webpage here. 

Nonprofit Funding:

Organizations adapting to public health recommendations for mitigating the spread of COVID-19 and/or serving emergent community needs stemming from the COVID-19 pandemic are encouraged to apply for COVID-19 funds. Apply now.

Local Lenders

Your bank may be able to offer you other options, such as micro-loans or lines of credit.  Please note that getting a local disaster-related loan may prohibit you from receiving an SBA Disaster Loan. Ask your bank for details.