Archive of April, 2020

April 21, 2020
  • A $350 billion forgivable loan program designed to ensure that small businesses do not lay off employees
  • A 50% refundable payroll tax credit on worker wages will further incentivize businesses, including ones with fewer than 500 employees, to retain workers
  • Looser net operating loss-reduction rules that will allow businesses to offset more
  • A delay in employer-side payroll taxes for Social Security until 2021 and 2022
  • Sole proprietors and other self-employed workers could be eligible for the expanded unemployment-insurance benefits the bill provides
  • A portion of the $425 billion in funds appropriated for the Federal Reserve’s credit facilities will target small businesses

 

SOURCE: marketwatch.com, 3/26/2020

April 21, 2020

The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees.

 

“The SBA loans strike a balance between loans on favorable terms and grants by providing forgiveness to firms that use loaned funds for payroll, rent, mortgage interest, and utility payments,” said Garrett Watson, senior policy analyst at the Tax Foundation, a Washington...

April 21, 2020

If you need cash to offset lost revenue and help keep your business afloat, the programs below can help. The U.S. Small Business Administration (SBA) coronavirus resource page provides a list of relief programs, and it offers guidance to small business owners during this crisis.

 

SBA Economic Injury Disaster Loan Program


As part of its disaster assistance program, the SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus.

April 21, 2020

Here’s one CFO’s account of applying for the SBA Disaster Relief Loan Program:

 

April 21, 2020
  • Analysts predict that disruption to business could lead to 15,000 permanent retail store closures in 2020, with the Economic Policy Institute predicting that the disease outbreak could potentially wipe out three million jobs from the U.S. economy before this summer.
     
  • A recent Goldman Sachs survey of more than 1,500 small business owners found that more than 50% of them said they didn’t think they could continue operating their businesses for more than three months amid current conditions.