Covid-19 Help for Small Businesses
Between the State and Federal government stimulus programs we now have a few options to keep your business going. Below I've attached some links - some of these expire soon, so take a look at them at your first opportunity.
My general advice on Monday, March 30th is the following:
1. Lay off your workers if you don't have work for them. Even 1099 contractors and self employed qualify for UIA at this point, with an extra $600 per week for up to four months.
2. Consider applying for the SBA 7b loan (COVID Disaster only) and request the $10K grant. This amount will be deducted from any other SBA loans you take out later; if you decide not to take out any other SBA loans you should not have to repay the $10K.
3. Then we look at the PPP loan (SBA 7a) which is processed by a bank. These are the loans where 8 weeks of payroll and other costs may be forgivable. As of this morning I have a contact at Chemical Bank to quickly process loans for all of my clients. However these loans are not open for application yet, I will let you know as soon as the applications are available.
4. We will need to evaluate on a case-by-case basis if the tax credit is a be a better option for you than an SBA loan. The tax credit covers up to 50% of your payroll from March 12 through the end of the year. As a business you can take the loan or the tax credit, but not both.
I am trying to work on each of my clients as I find out they need guidance. So if you need help, let me know and I'll add your business to the list.