We have all been inundated with many new challenges that COVID-19 has caused in the past few weeks. New regulations have been rolled out through the CARES Act that offer significant support for your business, but it isn’t easy to work out exactly what your options are and how you should take advantage of them.
I have spent a significant amount of time combing through these regulations to draw out the essential information you need to take advantage of the resources you need to keep your business afloat, your employees paid, and your family provided for.
I have prepared a report that outlines the most important information you need to know and what you need to do to take advantage of these options. I would like to highlight two very important steps that will be pertinent to most of you to pay attention to as you read through these materials:
- Paycheck Protection Program Loan is a Forgivable Loan if used for Payroll and Approved Expenses in the 8 weeks following receipt of the loan. The amount of this loan is dependent on the previous few months or 12 months’ payroll and/or owner draws, so it may be beneficial to finalize these amounts in your 1st Qtr 2020 pay before applying for this loan.
- Economic Injury Disaster Loan includes a $10,000 Grant (you don’t have to pay it back), whether you get approved for the loan or not.
These two loans can both be used IF they are used for different expenses (a more complicated part of these guidelines that you need to pay attention to).
For most businesses, these two options will likely provide $15,000-$30,000 or more that does not have to be paid back if correctly applied for and used according to the guidelines.
Keep in mind that these loans are limited and will be extended on a first-come-first serve basis. If you are interested in applying, you should do so as soon as possible.
Source: https://sharmancpa.com/articles/
