Lincoln – Officials are working to offer relief to businesses hard-hit by the COVID-19 pandemic.

Tony Goins, director of the Nebraska Department of Economic Development, reviewed the available programs last Friday at the state Capitol. They include:

• Payroll Tax Deferment: Delays payment of employer payroll taxes between now and Jan. 1, 2021.

• Employee Retention Credit: The credit is available to employers fully or partially shut down by government order due to the pandemic, as well as businesses with a 50% drop, year-over-year, in quarterly gross receipts. It’s a refundable tax credit of 50% of the qualifying wages, including health plan expense, paid by the employer up to $10,000 per employee.

• Paycheck Protection Loans: A loan can be taken out in the amount equivalent to two months of a business’ average payroll up to $10 million. It may be fully forgiven if it’s used to pay for payroll costs, rent or mortgage interest and utilities. All loan payments are deferred six months. Loans are at a fixed rate of 1.0% for a two-year term. No collateral or personal guarantees are required. Businesses should contact their current financial service institution to apply. Independent contractors and self-employed people can apply beginning April 10.

• Economic Injury Disaster Loans: Available to small businesses and nonprofits with fewer than 500 employees. Provides up to $2 million in a working capital loan with long-term repayment up to 30 years. Rates are 3.75%, or 2.75% for nonprofits. Payments are deferred up to one year. Businesses can request an emergency grant of $10,000 when applying for the loan, and the grant may be available even if the loan is declined.

Leon Milobar, district director for the Nebraska District Office of the U. S. Small Business Administration, said the state has 46,000 small businesses, of which 36,000 have 20 or fewer workers.

If a business has taken out a disaster loan associated with a previous incident, such as the floods of 2019, it is still eligible to apply for a loan for this disaster. However, businesses cannot take out both an Economic Injury Disaster Loan and a Paycheck Protection Program Loan. Find details at sba.gov.

– Nebraska Governor’s Office