During the Spring of 2020, a Coronavirus pandemic swept over the world. No one can predict how long the pandemic will last and the duration of the economic downturn is unknown; but we do know it will have a major effect on people and businesses, especially small businesses. Small business owners must adapt to survive in a market where the paradigm has changed.
On March 27, 2020 the United States Congress passed, and President Trump signed, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Among other things, the CARES Act is an unprecedented financial assistance package for small and mid-size businesses. A recent Forbes magazine article article outlined some steps business owners should take immediately:
- First, contact your banker; the newly expanded SBA Section 7(a) loans will be administered by banks ans are designed to aid in supporting payrolls, employee salaries, mortgage payments, rents, utilities, insurance premiums, and other debt obligations. While in the form of loans, they can be eligible for forgiveness.
- Second, evaluate with your banker, attorney, or other professional advisor whether your business qualifies for the expanded SBA Section 7(a) loan program.
- Third, assemble needed documentation to demonstrate the legal standing of your business.
- Lastly, assemble required financial information required by your lender, typically: financial statements, tax returns, and payroll information.
This loan program, particularly the forgiveness features, may well be the lifeline that determines whether your business weathers this pandemic storm.
The Pulliam Company will continue to provide much needed information and updates to our valued clients to get through this unprecedented difficult time. Please feel free to contact us with questions or concerns. Stay safe.