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Three Steps for Business Stimulus

The US government is announcing numerous endeavors to provide relief from the effects of the Coronavirus pandemic. As tax and business announcements become codified we will post them.<
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As part of our COVID-19 response, we are asking clients to submit tax information digitally, when possible, via our Document Access Portal, and are making extensive use video or telephone conferences in lue of appointments.<
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If you do not have a personal portal setup please use: Document Upload<

We have been contacting our business clients to assist them in receiving stimulus funds. Every industry, whether directly or indirectly, is being severely impacted by the effects of COVID-19. Frankly the law changes and various programs can seem overwhelming, but do not get lost in the deluge of misinformation that is being released.

Here are three steps you have to do *now* in order to receive the first wave of business stimulus:

Step I ) Make sure that our office has completed your accounting work through January 31, 2020.

Step II ) Apply for an Economic Injury Disaster Loan< (EIDL), immediately requesting a low interest loan for business essentials. As you request the EIDL, check the box that an EIDL Loan Advance of up to $10,000 be forwarded to you "within three days." If successful this loan advance will not have to be repaid. Thus even if your business does not "need" a loan at this time you must do this to receive up to $10k of stimulus.

Step III ) Starting April 3, 2020—or April 10, 2020 for independent contractors and self-employed individuals—many businesses with can apply to a local bank for the Paycheck Protection Program< (PPP). This is a low interest and unsecured loan that has the potential for forgiveness as well. The EIDL and PPP are mutually exclusive, however if you receive the EIDL your business can then roll it into a PPP loan.

SBA.gov states that in general: "The loan amounts will be forgiven as long as  a) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and b)  Employee and compensation levels are maintained."

Do we expect the deadline to be followed? No, however by following these three steps, we hope to strengthen you, your businesses, and your staff—please contact our office so that we can assist.