Did you know that the New York State Department of Labor has a layoff prevention program? Or that through the 2009 American Recovery and Reinvestment Act the SBA is offering short-term loans to businesses that need help making interest payments on qualifying debt? Or that the IRS has extended the carry back period for Net Operating Losses from two to five years?
The Kings Highway BID wants to make sure the businesses in its district know the answers to these questions and more. To reach that goal, it has created a Recession Survival Guide, a folder full of information about the federal, state, and local programs available to help businesses manage during the economic downturn. The first copies were distributed at the BID’s Annual Meeting, and the remainder will be distributed to businesses on Kings Highway in the coming weeks.
“We researched the recovery programs available and included in this folder information about those we thought would be most beneficial to the businesses in the BID,” said Phil Nuzzo, executive director of the Kings Highway BID. “We hope that the programs highlighted will enable businesses not only to survive the recession, but thrive on Kings Highway for many years to come.”
The following are examples of what the Recession Survival Guide includes:
- The New York State Department of Labor has a program called Shared Work, which offers employers facing a temporary decline in business with an alternative to layoffs. The program allows an employer to reduce the hours and wages of all or a particular group of employees, and those employees whose hours and wages are reduced can receive partial unemployment insurance benefits to supplement their lost wages. See details here: http://www.labor.state.ny.us/ui/dande/sharedwork1.shtm
- The SBA guaranteed 7(a) and 504 loan fees have been eliminated, and the SBA is offering interest-free, deferred-payment loans of up to $35,000 to established small businesses needing short-term help making principal and interest payments on existing qualifying debt. See details here: http://www.sba.gov/recovery/information/index.html and http://www.sba.gov/financialassistance/borrowers/guaranteed/7alp/index.html and http://www.sba.gov/financialassistance/borrowers/guaranteed/CDC504lp/index.html and
- http://www.sba.gov/recovery/REC_LEARN_PROGRAMS.html and http://www.sba.gov/recovery/arcloanprogram/index.html
- A list of SBA lenders and microlenders also is included in the folder and include– Business Outreach Center Capital Corp., 85 S. Oxford Street, Brooklyn, NY 11217, 718-625-1296, email firstname.lastname@example.org, Web http://www.bocnet.org/boc/micro_loan_program.html; New York Association for New Americans, 267 Broadway, 3rd Floor, New York, NY 10007, 212-898-4112; Renaissance Economic Development Corp., 1 Pike Street, New York, NY 10002, 212-964-6022, Web http://www.renaissance-ny.org/program_smallbiz.html; Sephardic Angel Fund, 379 Kings Highway, Brooklyn, NY 11223, 718-787-1400, email email@example.com, Web http://www.angelfundnetwork.org/about.asp?section=faqs#2 ; SEEDCO, 915 Broadway, 18th Floor, New York, NY 10010, 212-204-1300, email, firstname.lastname@example.org, Web http://www.seedcofinancial.org/newyork/. See details of SBA microlending program here: http://www.sba.gov/recovery/microloans/index.html. Another microlender that makes loans $500 to $50,000 is Accion USA, 646-833-4523, www.accionusa.org.
- The IRS has announced tax relief for small businesses including incentives to hire unemployed veterans and disconnected youth; a reduction of the 2009 required estimated tax payments for certain small businesses; and an extension of the carry back period for Net Operating Losses from two to five years, which permits entrepreneurs to go back to years in which they made a profit and receive a tax refund. See details here: http://www.irs.gov/newsroom/article/0,,id=208316,00.html and http://www.irs.gov/newsroom/article/0,,id=208572,00.html
- The New York City Department of Small Business Services has created NYC Business Express, which provides a customized list of city, state, and federal permits, licenses, taxes, incentives, and other useful information for businesses. The department also provides technical assistance at its NYC Solutions Centers. See details at www.nyc.gov/smallbiz and www.nyc.gov/businessexpress
- Local banks are offering products that could result in savings for small businesses. For those concerned about deposit insurance, the FDIC has temporarily increased deposit insurance to $250,000 per account-ownership type. Also, some banks including Country Bank and Apple Bank are participating in an FDIC program that provides unlimited FDIC insurance for covered accounts.
More information about the Kings Highway BID is available at 718-645-1100.