During trying times like these, it’s always a blessing to have long-time friends, supporters and members like Barbara Weltman, founder of Big Ideas for Small Business®. Barbara is America’s leading tax expert and small business adviser. In this timely piece for SBE Council, Barbara reviews bill payment strategies for small businesses. The piece is full of good advice and references new programs in the CARES Act that will help ease the stress of paying bills during this difficult period. These programs and initiatives are intended to assist business owners with the various needs they have right now. The federal government knows how hard times are for small businesses right now, and it wants to help.

Depending on your business’s situation, the loan size will be calculated in different ways . Businesses that were due to receive corporate alternative minimum tax credits at the end of 2021 can instead claim a refund now, in order to improve cash flow during the COVID-19 emergency. The coronavirus pandemic has created uncertainty and stress for many American small businesses. Part of the government’s response to assist businesses during this time is the recent passage of the Coronavirus Aid, Relief, and Economic Security Act . This blog article aims to briefly describe some of the programs and initiatives created through the Act with respect to economic relief for small business. This legislation was developed quickly and certain elements of its implementation and execution remain unclear, but even if the process by which these loans are forgiven becomes difficult to navigate, the loans are effectively interest free.

Small Business Debt Relief Program — CARES Act

The new SBA 7 loan Paycheck Protection Program will be up and running shortly and your experience will also be helpful as we work to convey ideas and feedback to the SBA. You can’t use EIDL proceeds for the same purposes as PPP loan proceeds. However, you can use them for the same category of expenses over different time periods, or for different cost categories. All lenders certified under the Small Business Administration’s guidelines are eligible to make PPP loans. The coronavirus pandemic has put a huge burden on small businesses. Many companies have had to close their doors to prevent spreading the COVID-19 disease, while others are struggling to operate under health-related restrictions. On June 8, 2020, the Paycheck Protection Program Flexibility Act of was enacted to give more time and flexibility to small businesses to retain their employees and ensure their continued operations as the country slowly reopens amidst the COVID-19 crisis.

Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use. Workers that were laid off after March 1, 2020, but then rehired, are eligible for paid FMLA leave provisions described in the FFCRA immediately instead of needing to be an employee for 30 days. Paid sick leave under the FFCRA is capped at $511 per day and $5,110 total per employee. This amount drops to $200 per day and $2000 total for sick leave taken by an employee in order to care for a family member in quarantine or care for a child whose school has closed. Businesses that have net operating losses have some limitations relaxed.

Additional resources

The Chamber and the Town Board met earlier today and discussed, among other things, creating a directory of business professionals and service providers similar to the merchant-restaurant directory. This will give residents the opportunity to contact local businesses that can provide notary, legal, and other services right here in our community. Our small businesses make our Main Streets vibrant and give our community an identity. Westchester businesses can apply for and potentially secure up to a $10,000 loan within three days by way of a Community Capital Express Loan.

• WBC – This program provides a network of more than 100 centers across the country that offer mentoring, training on business development topics like startup and financial management, and offer technical assistance to women entrepreneurs.
• A trusted resource leveraged by legal professionals and corporate counsel, Practical Law offers free access to content specific to navigating COVID-19 and business interruptions.
• This program is would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls.
• The CARES Act makes funding available to support “short-term compensation” programs, where employers can apply for state approval to reduce wages and hours for affected workers.
• Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
• The legislation involves multiple programs and additional funding for counseling services that help small business owners navigate these programs.

Also, the PPP temporarily raises the maximum loan amount and waives other traditional loan requirements. Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June https://wave-accounting.net/ 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP.

What Does the PPP Cover?

He has been writing since 2006 and covers topics ranging from investing and tax planning to personal finance. Many or all of the products here What Is The Cares Act? Small Business Owners Guide To Cares Act are from our partners that pay us a commission. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

For 2019 and 2020, the amount of interest expense businesses are allowed to deduct on their tax returns is increased to 50% from 30% of taxable income. Practical and real-world advice on how to run your business — from managing employees to keeping the books. RunPractical and real-world advice on how to run your business — from managing employees to keeping the books. If you took out an EIDL between February 15, 2020 – June 30, 2020,and you want to refinance the loan into a PPP loan, you would add the outstanding loan amount to the payroll sum. Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.