The old adage was a good Scout is always prepared, right? Well, replace “Scout” with “small business owner,” and you have a slogan for success, even when circumstances like a global pandemic arise. Like most small business owners, your head is probably spinning from stay-at-home orders, gathering restrictions, limited supplies, and long conversations with employees about their futures. It makes sense, and right now, it’s all part of day-to-day life. You’re probably asking yourself, “what do I do now?” That’s where having a checklist can save you time and stress.
- Familiarize yourself with available resources. There are many resources available to small business owners currently facing difficulty due to COVID-19. Make sure to familiarize yourself with as many as you can to find the right option for you.
- Make sure the IRS has your direct deposit information and mailing address. If you don’t qualify for a recovery check, you can skip this step.
- Gather required documents for your Paycheck Protection Program (PPP) application. The PPP is an excellent option for small business owners and independent contractors. Lending begins Friday, April 3, 2020, for small business owners and sole proprietorships, and Friday, April 10, 2020, for independent contractors.
- Determine which lender(s) you are going to approach about a Paycheck Protection Program (PPP) loan. It’s recommended that you choose three (3) SBA 7(a) lenders. There are limited funds and a large number of potential applicants; it may be hard to work with your regular banker, and you don’t want to wait for a week for a response if they are overrun. If you can, schedule an appointment with them.
- Submit your Paycheck Protection Program (PPP) loan application ASAP. Be sure to check the deadlines for applicants and that your application is postmarked on or before the designated date.
- Consider Economic Injury Disaster Loan (EIDL), SBA 7(a) loan, and other state/local loan and grant applications. There are all sorts of available loans and grants for small businesses that can help you get through this time.
- Eliminate (Reduce) personal discretionary spending. Review your bank and credit card accounts, business and personal, and eliminate every non-essential, discretionary expense you can. Trimming the fat can make a huge difference and keep you in business!
- Request assistance. If necessary, request assistance from your landlord/mortgage servicer, student loan provider, and/or state unemployment office. Never be afraid to ask for help.
- If you, your spouse, your children or an employee become sick, let us know immediately. You have legal obligations to your employees under the Families First Coronavirus Response Act (FFCRA) and opportunities to be reimbursed for wages paid during this time, if either you, your spouse, your children or an employee becomes sick.
- Monitor our social media and email correspondence. As additional information is made available to us, we will update you. This includes additional stimulus packages, lending programs, state/local programs, and other resources.
Echo Tax Management is here to help you understand the options available to you during the COVID-19 Pandemic.