We know there are a lot of challenges facing small businesses today – but there are also a lot of opportunities arising to help your business afloat and cut costs. The government has released a number of initiatives and you should absolutely be taking advantage of them.
We’ve put together some of them below, but know there are a number of nuances associated with these. If you’ll be applying, get in touch so we can help you figure out how much to request, what tax implications it will have (if any) and how to make the most out of this for you and your business.
1. Bring more funds in. No matter what type of business you have, it’s likely you could benefit from recent government programs designed to help small businesses and their employees.
- Take advantage of the Paycheck Protection Program
- Can request as much two and a half months payroll
- Eligible for loan forgiveness equal to the total of payroll, rent and utilities spent during 8-week period after the loan is issued
- Apply for an SBA Disaster Loan
- Payment relief for SBA 7(a) and 504 borrowers for up to 6 months
- Introduce new payment options (0% financing, credit cards, cash discounts)
- Ask clients what they can afford if they’re at risk of non-payment
2. Reduce cash outflow. Look for opportunities to cut back on expenses where possible.
- Cancel/reduce low benefit software, apps and add-ons
- Negotiate with your landlord
- Negotiate with vendors for new terms or extensions
3. Stay on top of debt management and strategic planning.
- Avoid taking on new debt to keep on with “business as usual”
- Check in regularly with your financial advisor, planner and accountant (at least bi-weekly) to forecast and make informed decisions
- Communicate more frequently with clients and amplify marketing to stay top of mind
- Consolidate and refinance debts
This is a challenging time, but we’re here for you.
Whether you need to talk about options, need more information or aren’t sure what to do next – we’re just a phone call or email away.
Stay safe and stay healthy!