Business Support

Business Support

(Updated April 16, 2021)


The City of Eugene has created a specialized Business Help Team to assist employers as they seek to keep their businesses afloat by answering questions about financing options, reopening guidelines and other topics. The team is working to be flexible to meet the needs of different businesses as rules change and needs evolve.


American Rescue Plan Act of 2021

President Biden has sign the coronavirus relief package, known as the American Rescue Plan, to support the United States’ economic and health recovery. The Plan includes funding to support businesses that have been negatively impacted by the COVID-19 pandemic. The legislation authorizes the implementation of support programs:


  • $15 billion in Economic Injury Disaster Loans (EIDL) grants, with grants of up to $10,000 per small business.
  • Additional $7.25 billion in expanded Paycheck Protection Program (PPP) funding and increased eligibility to nonprofits and digital media companies. 
  • Over $28 billion to support restaurants and bars, with grants applied toward payroll, mortgage, utilities, food and beverage expenses, and paid sick leave. These grants will be capped at $10 million per entity or $5 million per location. 
  • An additional $1.25 billion for the Shuttered Venue Operators Grant program, and clarifies applicants can access both the Shuttered Venue Operators Grant and the PPP loan.
  • $39 billion in supplemental funding for child care, which will help child care providers keep their doors open and reduce costs for struggling families.
  1. financial Assistance
  2. City's Business Recovery Strategies
  3. Oregon Rules and Guidance
  4. Layoffs
  5. Additional Resources

Commercial Rent Relief to Help Small Businesses Behind on Lease Payments—Second Round of Funds 

On April 22, Oregon commercial building owners can apply to Business Oregon for a new round of grant funds to help them cover outstanding lease payments from small business tenants that are behind on rent because of COVID-19. The grants can go up to $100,000 per each business tenant lease, but not more than $3 million for each landlord. The program is for business tenants that have 100 or fewer employees.

 

Both the business tenant and property owner will need to participate in the application process and sign the grant agreement, but the initial application needs to be completed by the landlord.  

 

The funding is allocated by region, to ensure it reaches businesses throughout the state. In Round 1 of funding for commercial rent relief, only the Portland Metro region saw more demand than available funds. There are some minor changes to Round 2: the minimum grant amount is now $500 (from $1,000); landlords can be publicly-traded businesses; and sole proprietors do not need to register their business with the Secretary of State if they are not otherwise required to do so.

 

The program will open for online applications Wednesday April 22 at 9 a.m. and will be open for two weeks, closing May 6. It is NOT first-come, first-served. Applications will be chosen by a random lottery system in any geographic regions that have more applicants than available funds.

 

More program information and eligibility details are available on Business Oregon’s website, along with the application link on April 22.


Tax Relief for Small Businesses Affected by Pandemic

The Oregon Department of Revenue will eliminate penalties and interest on 2019 income tax due from Oregon businesses that are struggling to pay tax bills during COVID-19 restrictions.

 

The following tax relief will apply to personal income, corporate excise, and corporate income taxes:

  • 100% penalty waivers on 2019 income tax due from businesses impacted by COVID-19.
  • 100% interest waivers on 2019 income tax due from small businesses impacted by COVID-19 that  have less than $5 million in gross receipts.
  • Continuing to provide extended payment plans of up 36 months for any taxpayer impacted.

In addition, Brown has directed the Department of Revenue to extend the due date of the amusement device tax (lottery machines) for the second quarter of tax year 2020 from Jan. 14, 2021 to April 14, 2021. This will provide additional relief for Oregon restaurants and bars experiencing economic hardship.

 

See additional information about tax relief from the Department of Revenue.

 

Federal PPP and EIDL Resources

The U.S. Congress and the President created the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and other legislation which released funds to provide financial relief to businesses negatively affected by COVID-19.  The legislation created the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Businesses negatively affected by the COVID-19 outbreak are encouraged to contact financial institutions and the U.S. Small Business Administration (SBA) to learn about the programs and how to apply for the loans and grants. The SBA is still accepting new EIDL applications for loans (not forgivable). Learn more and apply online.

 

Additional Information


PPP Loans, EIDL Advances, SBA Loan Subsidies Not Subject to Oregon’s Corporate Activity Tax (CAT)

The Oregon Department of Revenue has determined that certain federal assistance to businesses under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act is not ‘commercial activity’ under Oregon statute and will not be subject to the Corporate Activity Tax. The exempt assistance includes forgiven Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) emergency advances, and Small Business Administration (SBA) loan subsidies. Read the news release for more details.

 

Employee Retention Tax Credits

Businesses are eligible for an employee retention tax credit if operations were fully or partially suspended because of a COVID-19 shutdown order, or gross receipts declined by more than 50% compared to the same quarter in the prior year. Eligible businesses can get a refundable 50% tax credit on wages up to $10,000 per employee, or $5,000. The credit can be obtained on wages paid or incurred from March 13, 2020 to Dec. 31, 2020. Businesses that receive a Paycheck Protection loan are ineligible for the tax credit.

 

The Internal Revenue Service (IRS) has posted updated FAQs providing answers regarding the Employee Retention Credit under the CARES Act. The Employee Retention Credit encourages businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.


Energy Assistance

Eugene Water & Electric Board’s Small Business Recovery Program provides utility bill payment assistance for business and non-profit customers who have been financially impacted by COVID-19. EWEB’s program offers those who have accrued a past-due balance two different repayment options for bringing their accounts up to date over time. 


Non-Profit Support

The Oregon Community Foundation has established the Oregon Community Recovery Grant program to support nonprofits affected by COVID-19. They plan to launch a new statewide application in winter 2021, check their website for details. Nonprofit Association of Oregon has collected information to help non-profits affected by COVID-19, including resources for business continuity and funding opportunities.


Lane County’s Business Information web page has information about federal and state resources. The County is the primary connection for our region to verify state and federal resources.