Paycheck Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. This program has been issued more funding through the latest federally passed COVID-19 relief bill and has specific changes that benefit the hospitality industry that have been advocated for by the industry. Please view the breakdowns below to learn more about these changes.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. This program has been issued more funding through the latest federally passed COVID-19 relief bill and has specific changes that benefit the hospitality industry that have been advocated for by the industry. Please view the breakdowns below to learn more about these changes.
U.S. SBA Disaster Economic Injury Loan
New Hampshire is one of the earliest states approved by the Small Business Administration (SBA) for Economic Impact Disaster Declaration. Businesses affected by the COVID-19 outbreak can now apply for economic impact relief. We are encouraging all affected businesses to submit an application. Start the process here: https://covid19relief.sba.gov/#/.
For more information and to apply, please visit the SBA website , email disastercustomerservice@sba.gov or call the SBA toll-free line at 1-800-659-2955 if you have any questions.
For more information and to apply, please visit the SBA website , email disastercustomerservice@sba.gov or call the SBA toll-free line at 1-800-659-2955 if you have any questions.
Federal Reserve Main Street Lending Program
The Federal Reserve Bank has opened the lender registration application period for its Main Street Lending Program (different from the “NH Main Street Relief Program”). The Main Street Lending Program is designed to help credit flow to small and medium-sized businesses that were in sound financial condition prior to the COVID-19 pandemic but now face cash flow interruptions. The program offers five-year loans with floating rates, with principal payments deferred for two years and interest payments deferred for one year. The loans can range in size from $250,000 up to $300 million. Lenders will work directly with businesses to determine eligibility and loan approval. For more information about the Main Street Lending Program, click here.
Department of Revenue
In regards to the Meals and Rentals Tax, if an M&R Operator elects not to file and pay on at any time, there are three assessments that will be made immediately:
1. The assessment of the penalty for the failure to file their return (RSA 21-J:31 – 5% of the tax due or $10, whichever is greater and capped at 25% of the tax due).
2. The assessment of the penalty for the failure to pay the tax (RSA 21-J:33 – 10% of the amount of the underpayment).
3. The assessment of interest, calculated daily (RSA 21-J:28, current rate is 7%).
Operators should absolutely still file, even if they can’t pay, in order to avoid the 5% failure to file penalty. Operators must still file even if they have no activity to report due to being shut down. Relative to the failure to pay penalty and interest, both are measured by the underlying amount owed, so if an Operator can pay some amount, they should do so to minimize the amount assessed and should also pay in full as soon as possible to minimize continued accrual.
Operators who cannot pay the Meals & Rentals Tax, can apply for a payment plan directly through Granite Tax Connect.
1. The assessment of the penalty for the failure to file their return (RSA 21-J:31 – 5% of the tax due or $10, whichever is greater and capped at 25% of the tax due).
2. The assessment of the penalty for the failure to pay the tax (RSA 21-J:33 – 10% of the amount of the underpayment).
3. The assessment of interest, calculated daily (RSA 21-J:28, current rate is 7%).
Operators should absolutely still file, even if they can’t pay, in order to avoid the 5% failure to file penalty. Operators must still file even if they have no activity to report due to being shut down. Relative to the failure to pay penalty and interest, both are measured by the underlying amount owed, so if an Operator can pay some amount, they should do so to minimize the amount assessed and should also pay in full as soon as possible to minimize continued accrual.
Operators who cannot pay the Meals & Rentals Tax, can apply for a payment plan directly through Granite Tax Connect.
Additional Financial Assistance
NH Business Finance Authority (BFA)-CAP Program
The Capital Access Program (CAP) is a simple and flexible credit enhancement for small businesses utilized by New Hampshire banks. The CAP program provides support on term loans and lines of credit up to $200,000.00. The program can be used for temporary loans, working capital, equipment purchases, and many long term uses. More information can be found here: https://nhbfa.com/loans/cap/
BFA Temporary Loans
Direct loans from the NH Business Finance Authority for any business purpose with a maximum of $200,000.00 and a maximum loan term of three years. Loans have flexible amortization schedules and are contingent on satisfactory underwriting. Loans require approval by the NH Executive Council. More information can be found here: https://nhbfa.com/contact-us/
The Capital Access Program (CAP) is a simple and flexible credit enhancement for small businesses utilized by New Hampshire banks. The CAP program provides support on term loans and lines of credit up to $200,000.00. The program can be used for temporary loans, working capital, equipment purchases, and many long term uses. More information can be found here: https://nhbfa.com/loans/cap/
BFA Temporary Loans
Direct loans from the NH Business Finance Authority for any business purpose with a maximum of $200,000.00 and a maximum loan term of three years. Loans have flexible amortization schedules and are contingent on satisfactory underwriting. Loans require approval by the NH Executive Council. More information can be found here: https://nhbfa.com/contact-us/
Employee Relief Funding
he New Hampshire Hospitality Employee Relief Fund (NHHERF) was built by the New Hampshire Lodging & Restaurant Association (NHLRA) and the New Hampshire Lodging & Restaurant Association Education Foundation to support employees of the hospitality industry who have been impacted by COVID-19.
