COVID-19 Small Business Resources

June 29 - July 5, 2020

IRS issues notice for taxpayers affected by COVID-19 who take distributions, loans from retirement plans


The Internal Revenue Service on Friday (June 19) released Notice 2020-50 to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans.


The CARES Act provides that qualified individuals may treat as coronavirus-related distributions up to $100,000 in distributions made from their eligible retirement plans (including IRAs) between Jan. 1 and Dec. 30, 2020. A coronavirus-related distribution is not subject to the 10% additional tax that otherwise generally applies to distributions made before an individual reaches age 59 ½. In addition, a coronavirus-related distribution can be included in income in equal installments over a three-year period, and an individual has three years to repay a coronavirus-related distribution to a plan or IRA and undo the tax consequences of the distribution. 


In addition, the CARES Act provides that plans may implement certain relaxed rules for qualified individuals relating to plan loan amounts and repayment terms. Plans may suspend loan repayments that are due from March 27 through Dec. 31, 2020, and the dollar limit on loans made between March 27 and Sept. 22, 2020, is raised from $50,000 to $100,000.


Under those rules, Notice 2020-50 expands the definition of who is a qualified individual to take into account additional factors such as reductions in pay, rescissions of job offers, and delayed start dates with respect to an individual, as well as adverse financial consequences to an individual arising from the impact of the COVID-19 coronavirus on the individual’s spouse or household member. As expanded under Notice 2020-50, a qualified individual is anyone who –

• is diagnosed, or whose spouse or dependent is diagnosed, with the virus SARS-CoV-2 or the coronavirus disease 2019 (collectively, “COVID-19”) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); or

• experiences adverse financial consequences because of the individual, the individual’s spouse, or a member of the individual’s household (that is, someone who shares the individual’s principal residence):

• being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19;

• being unable to work due to lack of childcare due to COVID-19;

• closing or reducing hours of a business that they own or operate due to COVID-19;

• having pay or self-employment income reduced due to COVID-19; or

• having a job offer rescinded or start date for a job delayed due to COVID-19.


Notice 2020-50 also clarifies that employers can choose whether to implement these coronavirus-related distribution and loan rules, and notes that qualified individuals can claim the tax benefits of coronavirus-related distribution rules even if plan provisions are not changed. The guidance explains that administrators can rely on an individual’s certification that the individual is a qualified individual, but also notes that an individual must be a qualified individual to obtain favorable tax treatment. Further, the CARES Act notice provides employers a safe harbor procedure for implementing the suspension of loan repayments otherwise due through the end of 2020 but notes that there may be other reasonable ways to administer these rules.


Employers, financial institutions, and individuals should refer to Notice 2020- fo50r more details about how the CARES Act rules for coronavirus-related distributions and loans from plans apply.   


SBA unveils dedicated tool for small businesses, nonprofits to connect with Paycheck Protection Program lenders


The U.S. Small Business Administration Administrator on Friday (June 19) launched a dedicated online tool for small businesses and non-profits to be matched with Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), Farm Credit System lenders, Microlenders, as well as traditional smaller asset size lenders in the Paycheck Protection Program (PPP), which ends June 30.


Congress recently carved out $10 billion of PPP lending funds specifically for CDFIs to deploy to underserved businesses.  Locally, Arkansas Capital Corporation (ACC) is a one of the CDFIs working to provide capital to underserved businesses such as minorities, veterans, women and other underserved groups in our service area.


SBA’s Lender Match is an additional resource for pandemic-affected small businesses who have not applied for or received an approved PPP loan to connect with lenders.  The forgivable PPP loan is emergency relief assistance aimed at sustaining businesses and keeping employees on payroll.  Lender Match does not accept Economic Injury Disaster Loan applications.


“The SBA is focused on assisting eligible borrowers in underserved and disadvantaged communities and connecting them with forgivable PPP loans, especially before the June 30, 2020, application deadline,” said SBA Administrator Jovita Carranza.  “As communities begin to carefully reopen across the country, there are still many more opportunities to provide this assistance to businesses who have yet to access these forgivable loans.  SBA is utilizing these partnerships with CDFIs, MDIs, CDCs, Farm Credit System lenders, Microlenders and many other participating small asset lenders to ensure that access to this emergency funding reaches the smallest businesses and their employees in need – a key priority for President Trump.”


Within two business days after entering their information into the Lender Match platform, a borrower receives an email from lenders who have been matched with them.  The borrower can see lenders’ requests for them to begin an application.  Borrowers are then able to begin the application process directly from the email they receive.


Lender Match was on pause due to CARES Act implementation priorities and loan volume. It is now being reinstated for CDFIs and other Small Asset Lenders. Leads will only be forwarded to CDFIs and Lenders with greater than $10 billion in assets until the PPP program ends on June 30, 2020, at which time Lender Match will be open to all participating SBA Lenders. Lender Match not only connects borrowers with accessing PPP loans, but also other SBA lending products, such as 7(a), 504, Microloans, and Community Advantage loans which are currently offering debt relief.


ACC is currently taking applications for PPP loans, but applications must be approved by Tuesday, June 30. Additional information can be found on their website at 


City of Little Rock begins second round of COVID-19 funding for local business owners


The City of Little Rock has initiated a second round of funding on Friday, June 5, for Little Rock businesses needing financial assistance due to lessen the impact of COVID-19. The city is now accepting applications for new funding for zero-interest, forgivable small business loans through the Small Business Emergency Assistance Program (SBEAP). Residents may find the application and apply at by clicking the Small Businesses button. 


The SBEAP is funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act from the Department of Housing and Urban Development’s Community Development Block Grant Program. Small businesses, including sole proprietorships, corporations, or limited liability corporations, that have been negatively impacted by COVID-19 may apply for a forgivable loan up to $5,000 at zero interest. There are no payments during the first year. If jobs are retained, created, or restored and still exist after one year, the loan is forgiven upon verification. 


Other requirements include: 

• Must be listed in the dataset of active businesses registered in Little Rock 

• Must either have been in business more than two years and have 20 or fewer employees

• Or be a for-profit micro-enterprise business with five or fewer employees including the owner and owner must earn a household annual income up to or less than 80% of the area median income 

• Applicant must be a directly affected small business or micro-enterprise business identified in Governors Proclamation E.O. 20-13, dated April 4, 2020 

• Must have documented business income loss, including business income comparisons and narrative description of impacts. 


Questions may be directed to Doris Turner at 501-371-6825 or Residents may visit for all information about the City’s efforts related to COVID19, including the newly created SBEAP program.