By Terry Barrett, Tax Senior Manager | State & Local Tax Team
Updates on Richmond Area Business Loans, Tax, and Other Assistance in Response to COVID-19
City of Richmond No Interest Loans for Small Businesses
The City of Richmond is offering no-interest loans of up to $20,000 for small businesses located within the city limits to assist those struggling financially because of the COVID-19 pandemic. The loans are designed to help cover labor costs in order to keep the businesses open and paying employee wages. Last week the loan program, called the Richmond Small Business Disaster Loan Program (COVID-19), was approved by the Richmond Economic Development Authority with up to $1 million in funds available.
The program allows loans of up to $20,000 or six-months of employees’ wages, whichever is less, to cover payroll and is available to for-profit business. Loan payments will be paid out over six months. Repayment of the no-interest loans may be deferred for six months, and may be made over a 48-month period.
See the City’s RVAStrong webpage for more information about the loans, including program guidelines, the application, and various other documentation that must submitted to the City’s Department of Economic Development to apply. Applications are accepted beginning April 6, 2020, and will be considered in the order in which they are submitted.
Henrico County Tax, BPOL, and Meal-Buying Program
In addition to waiving penalties and interest on payments delayed for a period of 60 days after the June 5, 2020, due date for business and individual personal property tax, machinery and tools tax, and commercial real estate taxes, the County will waive penalties and interest on meals and hotel tax payments through August.
In the Henrico County Board of Supervisors meeting on April 14, 2020, the County indicated that despite cuts in other areas of its budget, the initiative to raise the threshold for the business license tax (BPOL) from $400,000 to $500,000, remained in its budget. By raising the threshold to $500,000 approximately 80% of the County’s businesses will be exempt from paying the BPOL tax. A vote on the County’s budget will be on May 12, 2020.
The County also has implemented meal-buying programs designed to help local restaurants. The County will cover the costs of meals purchased by its public safety and other essential employees from approximately 50 local restaurants.
Hanover County Tax and Restaurant Support
The Hanover County Board of Supervisors voted to waive penalties and interest on transient occupancy taxes and utilities for a 60-day period. In addition, to support local restaurants the County has included on its Economic Development website a map of local restaurants offering take-out and delivery.
Chesterfield County Restaurant Support
Similar to Hanover County, in order to support local restaurants, Chesterfield has posted an online map showing restaurants in the county offering take-out and delivery.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.