Surviving the Coronavirus Outbreak: Resource Information for Small Businesses and Individuals
Branch Accounting LLC – Your Branch Office For Accounting
Since many businesses across the nation carry on their operations with restrictions to protect everyone’s health and safety, the economy continues to endure shocks.
To help you focus on meeting your needs, I’ve collected some critical information, so you and your small business can adjust.
Coronavirus Resources for Employees, Small Business Owners, and People Owing Mortgages
Both houses of Congress voted to pass the latest COVID relief legislation, and all indications are that the President will sign it into law. We know that more guidance will be provided as this rolls out, but here a summary of original CARES Act and latest COVID relief legislation :
Unemployment assistance. For those who are unemployed, the pandemic unemployment insurance program will be extended by 16 weeks. Supplemental federal unemployment benefits of $300 per week will continue into April 2021 instead of ending in December.
Employees, who need temporary financial assistance due to unemployment through no fault of their own while seeking a new job, can apply for unemployment insurance in Georgia through the State Department of Labor.
Small Business Owners
The Potential for Business Interruption Insurance Claims
If you have a business insurance policy, please check to see if the terms include coverage for losses resulting from business interruption. This kind of coverage can vary widely, for example, depending on the insurer and the kind of insurance policy a business may have. Because there are requirements for making notices of claims, it is important for a business to notify an insurance carrier of a potential claim. To make a claim, it is essential for you to demonstrate losses to a business resulting from current and future business interruption and the reduction of business operations. Please contact an accounting firm to help you accounting records, so you can calculate your profit and losses before and during the Coronavirus outbreak.
Small Business Loans
The original CARES Act provided a mechanism for loan forgiveness in some circumstances with its Paycheck Protection Program (“PPP”) loan program. JPMorgan Chase Bank asks small business owners to consider contacting your financial or legal advisors, if you need hep with SBA Form 3508 or 3508EZ, which is needed to submit a PPP Loan Forgiveness request.
PPP and small business support. The new COVID-19 relief package provides much needed support for small businesses. Business expenses paid for with the proceeds of PPP loans are tax deductible, consistent with Congressional intent in the CARES Act. In addition, the loan forgiveness process is simplified for borrowers with PPP loans of $150,000 or less. Unspent funds totaling $138 billion will be reinvested in the PPP loan program.
If you applied for CARES Act economic relief through the SBA’s PPP loan program, you may be eligible for Loan Forgiveness. These are some of the anticipated changes to the Loan Forgiveness Application.
Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.
However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.
The CARES Act directed financial institutions holding Federally-backed mortgages to suspend mortgage payments for up to 12 months if a borrower has lost income because of the Coronavirus outbreak. Foreclosures and foreclosure-related eviction actions were also suspended. Rules were changed pertaining to credit reporting during at least some of the coronavirus emergency period.
- How to Get Mortgage Relief [Investopedia]
Coronavirus Impact Payments
Economic impact payments (EIP). The bill includes a second round of EIPs for qualifying Americans.
- Check your EIP status : Get My Payment [IRS]
Rental assistance. The current CDC eviction moratorium will be extended until Jan. 31, 2021.
Student loans. Extension of student loan forbearance provisions created in CARES and extended by executive order, from the current expiration date of Jan. 31, 2021 through April 1, 2021.
Please do not call the IRS about updates. To save yourself time, please check the IRS Web site.
- Coronavirus Tax Relief [IRS]
Use technology to your advantage
Because so many businesses have had to scale back “normal” operations, it is important to find ways to make remote working a way we all do business.
Branch Accounting’s information technology consultant has recommended that businesses needing secure, co-working software should try CryptPad, a platform that allows individuals to work on collaborative documents using encryption carried out by your Web browser. There are some free options.
If you would like more information about how Branch Accounting manages remote working in accounting functions, please let me know. I would be happy to tell you how Branch Accounting uses technology to operate with success.