April 2020 - Economic Newsletter

Economic Newsletter | April 2020

TCAD is working to assess the needs of local businesses and organizations, providing up-to-date resources on assistance available to businesses, and working with our community partners to plan for the longer term economic recovery. Tompkins County is resilient and we will come back stronger together.

Last week, Tompkins County Area Development introduced a short-term emergency relief fund for businesses in Tompkins County that have been impacted by the Coronavirus pandemic.

The Emergency Relief Loan Program will provide 3-year term loans to traded sector businesses whose customers are regional or national in scope ( businesses who primarily sell products or services outside Tompkins County ).

The loan will be for working capital to:

Prevent staff reductions
Allow business operations to continue
Offset losses related to the Coronavirus COVID-19

Learn More

Businesses are invited to participate in a call with Congressman Tom Reed to learn more about federal resources and ask questions.

The meeting will take place on

Wednesday (4/15/20) at 1PM.

Meeting Link: https://us04web.zoom.us/j/253825273?pwd=bk1wMUlpTGwvb0Vya3FiMCtETklMdz09

Meeting ID: 253 825 273

Password: 010401

New York State is seeking private sector partners to bring rapid COVID-19 testing to scale and accelerate testing capacity. Businesses interested in working with the state to manufacture these rapid tests on a large scale should contact Empire State Development (ESD) through their online portal .

Employers can delay the payment of their 2020 payroll taxes (6.2% of FICA taxes) until 2021 and 2022, leading to approximately $300 billion of extra cash flow for businesses. The IRS recently released an FAQ on the deferral, clarifying that there is no penalty or interest on the deferral, and that self-employed individuals may defer the payment of 50% of the social security tax on self-employment income.

Eligible employers can claim the employee retention credit , a refundable tax credit equal to 50 percent of up to $10,000 in qualified wages (including health plan expenses), paid after March 12, 2020 and before January 1, 2021.

Eligible employers are those businesses with operations that have been partially or fully suspended due to governmental orders due to COVID-19, or businesses that have a significant decline in gross receipts compared to 2019.

The refundable credit is capped at $5,000 per employee and applies against certain employment taxes on wages paid to all employees. Eligible employers can reduce federal employment tax deposits in anticipation of the credit. They can also request an advance of the employee retention credit for any amounts not covered by the reduction in deposits.

Empire State Development (ESD) update on Essential Services Designations.

Tompkins County “Workforce ReDirect,” the local Job Board to help newly available workers connect to opportunities in essential industries serving the County at this time.

SBA Economic Injury Disaster Recovery Loans (EID)

SBA Paycheck Protection Program (PPP)

USDA Resources for Farmers

The Families First Coronavirus Response Act (FFCRA or Act)

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

Business Loan Assistance in the Southern Tier

The coronavirus has dramatically changed how we live, work and play in our community and across the world. What hasn't changed is how our community comes together to face a challenge from sewing masks and donating PPE to local health care providers, to Cayuga Medical Center staff volunteering to work in an overburdened New York City hospital.

Local companies are also involved in supporting the response to COVID-19. Rheonix is working to develop a faster test for COVID-19 using their Encompass workstation. Q2 Solutions is not only working to expedite a study launch for potential COVID-19 vaccine treatments, but is also partnering with the University of Texas Medical Branch to develop an assay to help determine the effectiveness of vaccine candidates in protecting a person from COVID-19.