COVID-19 Update for Small Business Assistance Information
If you or someone you know has a small business, there are a variety of financial aid and assistance programs available right now aimed to help take some of the burden off you, the small business owner. Here at Cornerstone Financial Group, we strive to stay updated with information which can help you maximize your financial future. In times such as this, it is important to reach out and connect, to help ensure the pursuit of your long-term business goals.
Just recently, the president has signed into law a relief package, (click here to read the official relief package) for businesses facing challenges during this COVID-19 crisis. For a video explanation of how this relief package can work for you (click here)
What does this mean?
*$2 Trillion Dollars are available for small businesses who are facing challenges right now.
*Challenges include-decrease in revenue, staffing challenges and supply-chain issues
*Each potentially eligible business must employ less than 500 employees
How will this help?
*Up to $10 billion in grants will be provided to businesses (up to $10k per business) to help with immediate operational costs
*Up to $350 billion in loans will be provided to businesses (up to $10 million per business) to help with immediate payroll and other operational costs
*Up to $17 billion to help cover existing Small Business Loans that are already exist
If you or someone you know can benefit from this relief, there are a few guidelines they will have to meet.
*The business must maintain a similar number of employees they did prior to the crisis
*If a business has laid off an employee(s), they must re-hire the employee(s) to qualify
*Loan principal may be forgiven, but if funds are used for non-approved purposes, the business may have to pay the otherwise forgiven principal back
There are many banks available for you to speak with, for you to take advantage of this relief package. Many banks are providing you with a direct link on their website for you to submit an application, or asking you to call them (click here for a list of phone numbers of some lenders) to register as a business of interest to submit an application. As we ask with our clients prior to a meeting, it is helpful for you to gather certain material to engage in a more productive discussion. Here is a list of recommended items for you to have on hand when you contact a bank:
*Bank Statements, Articles of Incorporation, lease or deed to the business, business license, tax returns for 2016, 2017, 2018, monthly average payroll, start date of your business, annual revenue and current P&L Statement
If you don’t think you will meet the requirements contained herein, there are still options for you to consider. The Small Business Association has a Bridge Loan Program (see here) as well as, other relief opportunity (see here). If you would like more information pertinent to Small Businesses, please see their special page devoted to COVID-19 (see here)
We hope you find this information insightful. It is important to evaluate if these options can help you pursue your long-term business objectives. If you have questions about how we can help ensure you have a custom designed income distribution plan in place, or how we can modify your current plan to help you during these challenging times, we invite you to contact us today!