A Step in Right Direction Finally!
Well the Senate Agreed in principal the $2 Trillion. Now they have to vote and get it signed and processed! Thank you to our govt representatives for not making people and businesses not sweat it out. LOL All Kidding aside, Thank you Govt for tireless work on this- Both sides! This is monumental and needed. We at AFS hope you are all safe and taking precautions to remain so for you and your loved ones. We will beat this thing.
Update the Small Business piece- $350 Billion
Still waiting on process and requirement details for Small business owners to proceed and hopefully we will have something later today or tomorrow. I am glad to see some of the changes from what the Bill looked like over the weekend, mainly it will cover 6 months of expenses not 4 and is meant for businesses to keep staff on and cover expenses for same period. If you do so, forgivable. More details will be shared as it is communicated.
Some key things:
- You cannot take the disaster funds and this new relief fund- only one. We recommend applying for the SBA disaster fund if you haven’t already and if your state is in fact offering it (Check here: SBA-declared disaster areas) , but do not accept as the relief bill will benefit you more.
- Start gathering data you will need- Mainly last 2 years Financials as well as Year to Date P&L and Bal Sheet, Corp documents such as articles of incorp/cert of formation, and most importantly start documenting how your revenue has been affected and what your Monthly expenditures are (more to be defined as to what will be covered) generally this will include monthly payroll, rent, operating expenses and debt servicing.
- Hopefully you were able to Furlough employees if you made cuts so they can keep benefits, but if you did lay people off, much will depend on details in the bill on the dates. Its generally agreed as long as you follow guidelines and keep people on payroll and other items I am sure, the loan will be forgivable.
- Prepare for the biggest process bottleneck ever. The SBA process has always been a painful one and while I am confident they will streamline this, they are going to be inundated. Access to sites etc I am sure will create lock outs and delays. KEEP TRYING!
- You will see the word Solvent businesses- this means assets cover liabilities and you can show you can meet debt. I hope this is flexible as many small business owners only asset is cash flow.
- Be careful of scammers- As unfathomable as it sounds, there are people trying to benefit from this disaster. People stating they are lenders when they are not or registered SBA agents and are not. Anyone asking for an upfront fee should be hung up on.
- SBA fees are waived to best of my knowledge but there still maybe some processing fees. No such thing as a dumb question I always say, so ask for credentials
- Watch out for predatory lenders trying to sell you immediate cash. I get it and sometimes useful, but these are very high interest loans and can destroy a business.
- Call your Bank. Many are offering quick disaster relief programs but not marketing such. These are low interest loans with deferred payments.
- If your struggling to meet payroll, call your bank and see of you can get Overdraft until relief comes. Many will help and I am hearing even some of the payroll providers are assisting.
I know this is a tough time for all but please try to remain calm. We will get through this folks! Happy to provide guidance as I can. Call for Advice: 866-751-4999
Stay Safe and 6 Feet apart if you can’t stay home.
Alexander Financial Solutions