The coronavirus pandemic has had and continues to have an extremely destructive financial affect and public well being affect on the United States, and, sadly, these difficult instances look as if they are going to persist nicely into subsequent yr. Despite being months into the pandemic, social distancing necessities and lockdowns designed to restrict the unfold of COVID-19 proceed to pressure companies to shut their doorways or reduce their operations. Meanwhile, the reopening plans of state and native governments proceed to adjusted as the scenario develops and new tips on illness management are issued by the Centers for Disease Control and Prevention (CDC) and different authorities businesses. As such, it is vital that companies proceed to plan for decreased revenues and money stream and make the crucial operational changes.
At Biz2Credit, we proceed to offer assist to the United States small enterprise group via articles and webinars designed to maintain small enterprise homeowners updated on the newest improvement surrounding the pandemic and how companies can greatest reply. On Thursday, October 15, Biz2Credit hosted a web based webinar to debate the present standing of COVID-19 aid, significantly PPP loans, present congressional feedback on the standing of aid, and the subsequent steps companies can take to shore up their funds throughout these unsure instances. We additionally spoke about our present partnership with AICPA, which we shaped to assist help small companies throughout this time.
In this put up, we will likely be recapping every little thing that was mentioned in the discussion board. If you missed the discussion board and want to watch it now, please you’ll want to go to the online posting.
What Is the Current Status of COVID-19 Relief?
The preliminary timeline for the Paycheck Protection Program (PPP) loans initially provided by the federal authorities via the U.S. Small Business Administration (SBA) has ended. Following the CARES Act and the PPP mortgage program extension and booster, it expired on August 8, 2020. However, there are nonetheless roughly $135 billion {dollars} remaining in the fund, which at the moment can’t be accessed by the United States small enterprise group and that are sitting on Congress’ stability sheet. The program itself was designed to offer small companies with money stream and working capital so as to improve their liquidity and allow them to pay their staff. While the SBA managed the program, the loans themselves have been supplied by numerous monetary establishments and lenders throughout the United Sates who have been in a position to help in getting the cash to small companies in a well timed and environment friendly method.
At this time, Congress remains to be gridlocked alongside partisan strains as they search to succeed in a deal, presumably earlier than the election on November 3, although right now it seems to be like a deal is not going to be by then. Unsurprisingly, provided that the United States is in an election yr, the COVID-19 disaster aid payments have change into an object of political posturing on each side of the aisle. Naturally, since Congress controls the United States’ cash and spending, also referred to as the energy of the purse, they’ve been the heart of consideration close to passing stimulus payments and serving to the hundreds of thousands of Americans and their small companies which might be in want.
While the financial restoration has been higher than many of the extra grim outlooks initially posed, there are nonetheless an important deal of wants of American small companies which have gone unaddressed, and there may be at all times potential for one more drastic downturn. This is essential to bear in mind, as small enterprise homeowners ought to proceed to organize for the worst. It is at all times higher to be over-prepared than under-prepared, significantly as the affect of COVID-19 continues to play out.
Meanwhile, companies haven’t been impacted equally throughout the board. Some states haven’t confronted as extreme of outbreaks, enabling native enterprise to reopen and resume operations extra rapidly.
Congressional Comments on COVID-19 Relief
As Congress has change into gridlocked over the subsequent set of COVID-19 aid initiatives, info on the previous packages and what nonetheless stays of them has dropped out of the information cycles, significantly as the media shifts to specializing in the upcoming election and matters like the Supreme Court, healthcare, taxes, and extra. As such, small companies have been having a more durable time getting updated info. At Biz2Credit, we proceed to put up the latest info on our weblog and on our web site to assist companies keep knowledgeable.
During our October 15 webinar, we spoke with U.S. Representative Kevin Hern, a Republican representing Oklahoma, and U.S. Representative Adriano Espaillat, a Democrat representing New York. They gave us an thought of the place Congress is at the moment at of their progress towards one other COVID-19 stimulus.
U.S. Representative Kevin Hern
Congressman Hern, who has been a small enterprise proprietor himself over the final 30 years, defined that he has been working towards opening the $135 billion {dollars} remaining in the PPP fund to small companies homeowners till December 31, 2020 or each time the funds run out. While a quantity of U.S. representatives have launched such a invoice, it’s at the moment being held up as negotiations proceed. This cash would nonetheless be accessible solely to companies that meet the authentic PPP mortgage eligibility requirements as overseen by the Small Business Administration (SBA).
Hern additionally spoke about extra efforts to make clear the mortgage forgiveness eligibility requirements, which can change if the cash is launched for use by small companies in the future.
At the identical time, Hern spoke a couple of provision of $25 billion {that a} quantity of representatives in Congress have been working at getting handed which is designed for small companies, together with nonprofits, with 10 staff or much less. This cash would be capable of be used or an expanded checklist of objects, together with software program, cloud accounting, cloud computing, property injury, PPE, and extra.
Additionally, Hern reported that loans beneath $50,000 accounted for 75% of the loans given out beneath the PPP program, whereas 85% the place $150,000 or much less, indicating that the PPP program has been efficient in serving to America’s true small companies throughout the COVID-19 outbreak.
Hern additionally famous that he want to get the cash out earlier than the vacation retail season that’s rapidly approaching, so that companies can have the cash in hand and keep their operations all through what, regardless of the COVID-19 pandemic, needs to be a greater interval of gross sales for retailers and different small companies all through the United States.
Hern additionally acknowledged the partisan nature of election years, and talked about how troublesome it has been for Congress to get previous politics. However, he additionally famous his need to separate sure bipartisan initiatives, significantly the PPP cash, from the relaxation of the pandemic stimulus that’s at the moment being debated in order that packages which have bipartisan initiatives could be handed by the House and Senate and signed by the President at an earlier time, since proper now a couple of factors of disagreement in the giant stimulus invoice have been holding up the many bipartisan factors of settlement.
Lastly, Hern talked about how grateful he and different Americans are for the continued efforts of small companies cross the United States to proceed to serve their communities and make it via what has been an extremely difficult time.
U.S. Representative Adriano Espaillat
Congressman Espaillat, a U.S. Representative from New York, spoke about the push for Main Street, smaller lenders to have the capability to offer loans to small companies throughout the authentic invoice. This can probably be anticipated to be continued in any future invoice extending and/or increasing the PPP.
Espaillat, like Hern, emphasised the present push to get the $135 billion again open and accessible to small companies who weren’t in a position to get a PPP mortgage throughout the preliminary PPP interval.
Espaillat additionally spoke about the need of a quantity of Congressman to begin a grant program, which might take away the burdens of a mortgage, which needs to be repaid. This could be a distinct program than the authentic Emergency Injury Disaster Loan (EIDL) grants that went out in the sum of $10,000 to any and all small companies that utilized for a EIDL at the starting of the pandemic. He defined that he believes such a program would allow financial improvement and restoration.
In phrases of the restoration course of itself, Espaillat spoke just a little about how the United States must proceed to organize to help in the restoration course of as soon as the United States is ready to start shifting away from the penalties and lockdowns of the pandemic. At the identical time, he mentioned the want for small companies to attempt to innovate and discover methods to make gross sales, resembling eating places providing take-out service and curbside pick-up and supply, for the the rest of the pandemic.
AICPA Partnership
During our webinar, we additionally took a while to speak about our present partnership with the American Institute of Certified Public Accountants (AICPA). At Biz2Credit, our primary aim is to help small companies all through America in any means doable, and given the complicated and difficult nature of making use of for and receiving forgiveness for PPP loans, we thought that there could be no higher means to assist small companies throughout this time than to develop a cloud based mostly resolution for processing mortgage forgiveness utility.
The quantity of necessities that go into the PPP program are actually astounding and now we have tried to simplify the course of. In explicit, these necessities embrace eligibility standards, mortgage quantity guidelines, pretty strict utility processes, restrictions on the use and allocation of PPP funds, forgiveness writers, forgiveness standards, documentation necessities, and extra. In reality, the act contains over 500 pages of steerage. Naturally, this info is dense and could be complicated, and, as such, small companies want instruments and advisors to assist them as they navigate the PPP course of.
Thus, as half of our partnership with AICPA, we launched a brand new platform that gives small companies with cloud options for managing their PPP mortgage forgiveness. The PPP mortgage forgiveness software, which could be discovered at PPPForgivenessTool.com, permits small companies to calculate their forgiveness eligibility, produces all the authorities kinds required by the PPP program, makes calculations based mostly in your payroll and numerous different enterprise bills, and aggregates a grasp report that may be delivered to your lender whenever you formally apply for forgiveness. The software additionally allows companies to add required supply paperwork. Overall, it makes the mortgage forgiveness course of considerably simpler.
At this time, the on-line software has been utilized by over 30,000 debtors and greater than 5,000 CPAs and different monetary professionals have made use of it of their work for his or her purchasers or as small enterprise homeowners themselves. The success of the software that now we have seen since its launch has actually be astounding.
The software itself is free for small companies. At the identical time, now we have additionally developed two subscription tiers with enhanced performance for CPA corporations particularly. This performance permits them to assist purchasers in a way more environment friendly method, enabling them to trace progress on mortgage and forgiveness functions and extra.
The essential roles that CPAs have performed throughout this time can’t be understated, and given the advanced nature of the PPP mortgage program, assuming that it’s finally prolonged and companies are in a position to entry extra funds, we count on this software to proceed to be a beneficial useful resource for each small companies and CPA corporations alike.
Remember, this can be very essential that your corporation continues to leverage the instruments accessible to small companies and create outlined plan of motion for the future. This will allow you to weigh your aid choices and make well-thought-out selections. In explicit, it is vital that you’re prepared when the time comes to hunt forgiveness on your PPP mortgage.
What Else Has Biz2Credit Been Doing for Small Businesses?
During our webinar, we additionally spoke about the many different issues now we have been doing to assist small companies. In explicit, we joined the AICPA-led coalition for small enterprise funding again in March of 2020. As half of this, we advocated for the passing of the authentic CARES Act and Paycheck Protection Program (PPP) when the COVID-19 outbreak first started. We additionally advocated for larger simplification and flexibility surrounding what was initially, and to a sure extent nonetheless is, a really sophisticated course of for acquiring PPP loans and receiving forgiveness.
At this time, we, together with the coalition, proceed to advocate for the launch of the the rest of the $135 billion price of PPP funds at the moment on the federal authorities’s stability sheet however which is inaccessible to small companies.
What Else Can Your Small Business Be Doing Right Now?
There are a quantity of issues your small enterprise can proceed to do proper now. In explicit, be sure to are protecting very shut monitor of your corporation’ bills, significantly in case you are utilizing PPP mortgage cash. For those that don’t have a PPP mortgage however are eager about getting one program is prolonged and you obtain a mortgage, additionally, you will need to maintain cautious monitor of your bills. This will make it a lot simpler whenever you apply for forgiveness, and it should additionally make utilizing our on-line software a lot simpler. The higher information you retain, the extra ready you can be.
In explicit, ensure that to familiarize your self with the documentation necessities for making use of for mortgage forgiveness, as you will have to have the ability to backup and assist your claims if crucial and present proof of the way you spent your PPP funds.
Your small enterprise also can proceed to take a look at different funding choices, resembling short-term loans. If you do resolve to take out a protracted, ensure that to at all times store round to make sure you are getting the absolute best rate of interest.
Innovation is a core trait of entrepreneurship, and there have by no means been a extra essential time than now for small companies to innovate. Regardless of whether or not you’re a comparatively new start-up or a well-established enterprise, now’s the time to makes adjustments. Whether which means internet hosting on-line occasions in real-time to interact your prospects, beginning a curbside pickup choice, or delivering to individuals’s houses, be sure to are doing every little thing you’ll be able to to drive enterprise and revenues throughout this time. Plus, if in case you have so much of spare time in your palms on account of the pandemic, contemplate updating your corporation mannequin to replicate the present state of your corporation. And don’t overlook about the significance of protecting prospects engaged on social media. You need to ensure that they bear in mind you when the pandemic ends and life returns to regular.
Conclusion
There is little question that this has been one of the most difficult instances for small companies in the United States in many years. Hopefully, as the American individuals, small companies, and teams like our coalition for small companies, proceed to place strain on Congress, they are going to reply by passing extra stimulus measures to assist small companies, Americans, and the U.S. economic system. As the representatives we spoke to famous, there may be some progress being made and they’re actively contemplating how they’ll greatest get stimulus cash to small companies in want.
At the identical time, you’ll want to look into our small enterprise PPP mortgage software. We can’t stress sufficient how essential it’s for small companies to make the most of instruments and assets that can allow them to effectively and successfully navigate the PPP course of. It will not be a easy course of, and something you are able to do to mitigate the burden imposed by it should assist each you and your small enterprise in the long-run. If your bills are significantly advanced, contemplate reaching out to a CPA. Remember, if this can be very essential that your corporation will get as a lot mortgage forgiveness as doable, paying a CPA for just a little help could also be extremely worthwhile when all is alleged and achieved.
As at all times, Biz2Credit continues to observe the scenario, actively reporting on improvement and supporting our small enterprise group. So, you’ll want to verify again for extra info as we proceed to put up important info on the pandemic and how your small enterprise can greatest reply to the challenges introduced by it.