All you hear about today is risk assessment. Should you stay at home? Should you risk going to the grocery store? In today’s COVID-19 world, there are many risks that need to be taken into consideration. As an accounting and tax professional, all of the sudden, our risk has increased as well. We are remaining diligent about caring for our clients. With the new loans available, we have to speed up our processes in some cases. People realize they need accounting help, and they need it asap! While we are happy to help you out in any way we can, everyone needs to be aware there is risk involved. Of course, we want you to be able to apply for the new loans. Of course, we want you to get your share of the stimulus package. All of this is to say; please help alleviate some risk by submitting your documentation as early as possible. I’d like to say now is a great time to assess your risks as well. I’m talking about your insurance. Now is a great time to assess your property and casualty insurance, your business insurance, and your life insurance. So check with your agent – they are here to help you too. If you don’t have a Life Insurance Advisor, I recommend Tim Giarra with Compass Advisory Group https://www.mycompassadvisor.com. I also recommend David Comer for personal lines of insurance https://www.shelterinsurance.com/CA/agent/DCOMER and Matthew Clements for any business insurance needs https://robinsins.com/
Back to accounting and taxes now. Since the EIDL and PPP loan submissions have opened up already, if your information isn’t already in our hands, we encourage you to get it to us today. Our existing clients who have already provided their information are being pushed to the top of the list because of the loan requests. Please know that we are working diligently to get all returns finished by the end of April, even though the deadline has been extended until July 15th.
For those of you who are unaware, the SBA (Small Business Administration) has two different types of loans available. Details for the loans can be found here: http://SBA.gov. One of the loans is an Economic Injury Disaster Loan (EIDL). To apply for this loan, please go to https://disasterloan.sba.gov/ela/Information/EIDLLoans. There are certain criteria that must be met, but the loan basically is for meeting your current obligations. Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The second loan is the Paycheck Protection Program (PPP loan). Details for this can be found at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-9 This loan must be applied for through a lender (bank, credit union, farmer’s bank, etc.) This loan is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. With so many small businesses closing down, this loan is perfect to help cover payroll costs.
As you know, we are always happy to help any way we can. If you need guidance, please call us at 931-548-6868 or 931-286-2654 or use our contact us form: https://www.accountantcolumbiatnsuccentrix.com/contact/ . We have a new service available: Personal Finance Coaching and Accountability. Want to know more? Send an email to [email protected] Please stay safe and healthy!