As the global economic climate continues to weather the storm, financial assistance for small businesses is needed now more than ever. If you have been affected by the economic downturn as a result of COVID-19:
1. The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). (This focuses on employers that are 500 and less people. That’s a portion of the economy but that’s the economy that’s going to be hit the hardest)
States that qualify: California, Connecticut, District of Columbia, Maine, Montana, Nevada, New Mexico, Rhode Island, Utah, Washington
States that have contiguous counties: Arizona, Colorado, Idaho, Massachusetts, Maryland, New York, New Hampshire, North Dakota, Virginia, Wyoming
You’ll notice Texas is not qualified to receive loans from the SBA yet. Texas is currently working with SBA to qualify for this declaration. Small businesses, small agricultural cooperatives and some private nonprofit organizations that have suffered substantial economic injury due to COVID-19 may be eligible for an EIDL of up to $2 million.
Affected businesses will need to fill out an Estimated Disaster Economic Injury Worksheet certifying the business has suffered substantial economic injury as a result of COVID-19 and are in need of financial assistance. The most crucial part of this entire application process is having all paperwork necessary with your application, which includes:
|· Most recent Federal income tax returns
· Personal Financial Statement
· Schedule of Liabilities listing all fixed debts
· You Fill out All SBA Paperwork
· Year-end profit-and-loss statement and balance sheet for that tax year
· A current year-to-date profit-and-loss statement
· Monthly sales figures for increases in the amount of economic injury.
*The Economic Injury Worksheet should be submitted via email to TDEMPARecovery@tdem.texas.gov
2. New strategies have passed the house that will allow you to credit payroll for sick employees up to $2,000 per employee.
3. The tax-filing deadline will remain April 15, but the IRS will waive penalties and interest on tax payments for 90 days.
Unsure of what financial planning looks like now with COVID-19? Let’s set up some time to talk about it.