COVID-19
Due to the COVID-19 concerns, we want to assure you that as a cloud accounting firm, our team is safe and able to stay devoted to you. As you grasp what changes you need to make for your business, please reach out if there are additional resources you need. During the months ahead, please reach out with any needs you may have.
Supporting local business,
Liz Scott
How to Apply for Government Aid
Payroll Protection Program (PPP) & COVID19 Loans Process
Bookkeeping Catch So You Can Apply for SBA COVID & PPP Loans
What Loans/Grants are Available and How they Work
EIDL loans and grants will be disbursed directly by SBA. PPP loans will be disbursed by existing and newly approved SBA lenders.
Many Banks and Credit Unions are already SBA-approved lenders and can choose to participate in the PPP loan program. Speak to your lender or visit the SBA’s Lender Match website to find a qualified lender.
It is important to be sure your QuickBooks file is caught up to the year 2020 when applying for these loans. Check back for more information on apps that can speed up this process, or if you would like assistance in this process, schedule an appointment.
The Economic Injury Disaster Loan (EIDL) Program
The SBA approved the entire U.S. as a “disaster area”, allowing eligible small businesses and private nonprofits across the U.S. affected by COVID-19 to apply for disaster relief loans. An SBA EIDL loan provides a working capital loan of up to $2 million.
The Emergency EIDL Grant Program was created by Congress in the CARES Act and advances up to $10,000 of an EIDL loan to be available within 3-days from when the SBA receives an application. Grant recipients are not required to repay advance payments, even if subsequently denied for an EIDL loan. If a small business receives an EIDL loan, the grant will reduce the amount of such loan.
Resources:
- SBA Economic Injury Disaster (EIDL) there is an express application
- SBA Disaster Business Loan Application
- SBA Sole Proprietor Loan Application Form 5C
- SBA Forms 413
- SBA Forms 1368
- SBA Form 2202
- SBA Form 159
- IRS Form F4506-T
- OK 16373 Fact Sheet EIDL COVID19
- SBA EIDL Guide
COVID-19 Economic Injury Disaster Loan
This allows small business owners in all U.S. to apply for Economic Injury Disaster Loan advance of up to $10,000. The program provides working capital loans of up to $2 million that can provide vital economic support. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) was established by Congress in the CARES Act and provides 100% federally-guaranteed loans to eligible small businesses and nonprofits. Loan payments are deferrable for at least six months and up to a year. The maximum loan amount is determined by a business’s average payroll costs, up to $10 million. Portions of the loan may be forgiven if an employer maintains its payroll and employees during COVID-19. The Paycheck Protection Program has a forgiveness clause for funds that are spent within 8 weeks for payroll, payroll taxes, employee health insurance, business rent, utilities, and interest (on loans that already existed). There are no payments for 12 months on these loan.
SBA Express Bridge Loans
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
Possible Required Docs
- Signed Loan application by all owners of 25% or more
- Last 2 years of filed tax returns, if you don’t have last year’s, you must include the P&L and Balance Sheet for ending for that year and copy of the extension
- Last year’s (2019) Payroll forms: W-2, 940, and 4x 941s
- Last 2 years Individual Tax returns of all owner’s signing the loan application. If you don’t have last year’s return, include all W-2’s, 1099’s and other proof of income for 2019
- Signed SBA Form P-190
- Singed forms 4506-T for every applicant (business and owners)
- Business Debt Schedule (SBA Form 2202)
- Personal Financial Statements for all owners signing the loan (SBA form 413)
- Additional filing requirements providing monthly sales figures (SBA Form 1368)
Optional:
- YTD Financial statement for 2020 up to the last closing month prior to loan application date
- Statement of explanation of credit report concerns and issues (especially If any of the owners have had a bankruptcy or foreclosures, in the past 7 years)
Stimulus Check Calculator LINK:
Resources to Help with Transitioning to a Remote Workforce
One way we can help is by training your staff to be a remote workforce.
By utilizing technologies, you can enable your teams to work safely from their own home offices, which can make all the differences in your ability to sustain your business during this unexpected crisis. We also offer cloud training on technologies for streamlining the systems in your day to day operations.
Another way we can help is stepping in as your bookkeeping/accounting department during transition. We regularly offer remote bookkeeping and accounting services on weekly and monthly basis to assure accuracy of your small business QuickBooks. Reach out to learn more.
Each month we offer a Free RoundTable Meeting in which we discuss relevant business topics. This upcoming meeting will cover this very topic of how to utilize apps to create efficiency. Next week on Wednesday, we will host a special edition of our Roundtable, which will cover how to create a remote workforce.
Register here for the upcoming webinar.