Helping Central Florida Owners with Business Preparedness During COVID-19 Crisis
So much information is coming in and hitting us from different sources, we are trying to cut through and get you right to the correct source.
The current Covid-19 response and its effects on the economy will no doubt be challenging to everyone including ourselves. The biggest affected is the small business and their employees, but we have been here before. Just as we weathered 9/11, Florida hurricanes, and severe economic downturns we can work together to survive this.
The good news is that this will be a temporary gap in our economy. It may be very trying and stressful, the economy should rebound rather quickly once activities normalize. Realizing this could take a time frame that at this point we don't know, the best bet is to implement a Bridge Plan! The government programs that we will talk about below are great but implementing a full plan with reductions and a full financial overview is key!
Our Transworld Business Advisors team is working hard to ensure businesses have access to a range of resources to help them navigate this challenging time. Below you will find information on services to assist Colorado business owners with disaster loan applications, long-term planning, and general business preparedness through the COVID-19 business crisis. Transworld will work hard to keep this page up to date with real information as new programs and information becomes available for Colorado business owners
Here is a list of the COVID-19 business relief programs for small businesses:
A. Paycheck Protection Program
$350 billion to support job retention and operating expenses.
The Paycheck Protection Program creates an emergency loan that can help small businesses retain a full workforce during COVID-19.
Who is Eligible?
- Small businesses with 500 or fewer employees
- 501(c)(3) Nonprofits with fewer than 500 employees
- Some 501(c)(19) veteran organizations
- Businesses with more than 500 employees that meet the SBA standards for their industry
- Sole proprietorships
- Self-employed individuals
- Independent contractors
Eligible businesses must have been operational on February 15, 2020.
Small businesses may apply for a maximum loan of $10 million with no higher than a 4% interest rate.
If a business continues to pay employees at normal rates for the first eight weeks, then the portion spent on payroll, mortgage interest, rent, and other operating expenses will be forgiven.
How to Apply:
You will apply for the Paycheck Protection loan at your local bank.
View the application here.
B. Economic Injury Disaster Loans & Loan Advance
Economic Injury Disaster Loans are the SBA's low-interest disaster loans given to small businesses experiencing a substantial economic loss due to a disaster.
Who is Eligible?
The CARES Act expanded eligibility for EIDLs to all small businesses in the U.S. affected by COVID-19.
Eligible businesses may qualify for a loan of up to $2 million.
Emergency Loan Advance
You may also apply for an emergency loan advance of up to $10,000. If your application is accepted, these funds would become available within three days and would not have to be repaid.
How to Apply:
Businesses may apply for an EIDL and loan advance here.
Can you get a Paycheck Protection Loan and an EIDL?
Yes, as long as you are not using them for the same expenses. Talk to your financial advisor about the best option for your business.
C. Business Tax Changes
In an effort to alleviate the strain on small businesses affected by COVID-19, the CARES Act has made specific changes to taxes and tax policy
D. Families First Coronavirus Response Act
The Families First Coronavirus Response Act (FFCRA) provides assistance to employees affected by COVID-19.
As a small business, this means new requirements for paid sick leave and paid family and medical leave (FMLA), as well as employer tax credits.
Read more about the FFCRA and what it means for small business here.
E. SBA Debt Relief
To help small businesses overcome the challenges of COVID-19, the SBA has implemented a debt relief program.
- Principal and interest will be paid for six months on current 7(a) loans
- Principal and interest will be paid on new 7(a) loans issued before Sept. 27, 2020
F. SBA Express Bridge Loans
With an Express Bridge Loan, businesses may access up to $25,000 to 'bridge the gap' as you wait for your Economic Injury Disaster Loan application to process.
- You must have an established relationship with an SBA Express Lender to qualify
- This loan will be repaid through the EIDL
When Choosing a Business Broker, Professional Experience Matters
Do not make the mistake of representing yourself, or allowing an inexperienced or under-resourced firm to handle the sale of your business. We specialize in helping all types of small businesses sell, including business services, retail, manufacturing, distribution, and franchise businesses.
As the top business brokerage firm in the world, we have helped our clients navigate all kinds of market changes. Should we be able to help implement this plan or if necessary, sell your business, please do not hesitate to reach out.