Opportunities for Businesses in these Challenging Times
Did you get yours yet?
These are the times that really challenge us as business leaders. We are constantly striving to stay abreast of what is happening, moment by moment.
There are currently two opportunities for small businesses to receive monies to keep their business and the economy moving.
Never before have funds been made available for the general public in this way, and the guidelines are changing rapidly, sometimes on a daily basis.
The first opportunity is with the SBA’s Economic Injury Loan Assistance. Every business can apply, and loans are available up to $2 million per business. Here is the long and the short of it: The SBA has currently received more than 3 million applications. They do not have the resources to process the volume fast enough so a decision is being made to release funds to all applicants in the amount of $10,000 or $15,000. Kudos to whoever proposed this policy! It’s the fastest way to get these emergency funds into the hands of the most people.
The second opportunity is with the Paycheck Protection Program. This program is being administered through the banking system. I encourage you to reach out to your local bank and find out what their process is. Some have an online process, some have a paper process, and banks are each interpreting the rules differently in terms of how the calculations are done and what paperwork is required.
There are two rounds of applications available with the Paycheck Protection Program. Round one opened on April 3rd for employers who follow formal payroll guidelines (meaning monthly and quarterly reports, including federal and state withholding, are begin filed). You can apply for up to 2.5 times your average monthly payroll. Round two will open April 10th for sole proprietors and 1099 contractors.
Both of these opportunities may be turned into grants if the funds are used for payroll, rents and utilities.
If you are not able to qualify for the grants, the funds are available at a very low interest rate and repayment will not begin for 6 months. Any way you slice or dice it, these funds can help you in multiple ways. First to keep your business functioning until things return to their new normal; and second to keep your team in place. Remember, you have invested in their training and losing them can be costly. Only time will tell.
Only time will tell how this pandemic will play out. It has never been more important to keep your business accounting current, as having accurate numbers and projections plays a big part in both of these applications.
We are here to help! Reach out to us at email@example.com and Grace will get you scheduled to see how we can be of service.