With all of the troubles that come along with Coronavirus, managing your businesses’ finances shouldn’t be one of them. The first step in taking control of the financial situation during this pandemic is to understand your options. Here are a few options specifically open to small business owners to provide relief from the Coronavirus pandemic.
Delayed repayment for SBA loans
For businesses that currently have a loan through the SBA, you won’t be held liable for the payments right away. You will be eligible to defer payments on your loan for half a year. This can help add some relief to your budget to cover other necessary expenses.
Keeping your business running through the pandemic and making sure your employees get paid can be helped through special emergency funding. Government programs such as the Paycheck Protection Program, and disaster loans, will give you access to the cash flow you need.
If you are having struggles meeting the demands of your payroll, it can have disastrous consequences for your business. Thankfully, the Paycheck Protection Program offers a low-interest rate loan to help business owners and their employees out. The great part about these loans is you will not have to repay them immediately, and no collateral is required.
Economic disaster loans come from the SBA, are specifically targeted at delivering the funds business owners need in the fastest possible manner. Once approved, you can expect funding in as little as 3 days in some cases. There are also options for debt forgiveness as well.
Another source of relief that is not to be overlooked are tax credits and payment extensions. If you meet the minimum criteria, you could get a 50% payroll tax credit on the first $10,000 per employee. This amounts to quite a substantial figure and should definitely not be overlooked.
There are also numerous other deductions that small business owners should speak with their accountant about. There are many different areas where the government has made it possible to save a little bit of money. You don’t want to risk missing out on this powerful method of relief.
Even if you don’t qualify for tax credits, businesses may file for an extension of their payroll tax due date. This means payroll taxes that would normally be due at the beginning of next year have been pushed back into two phases. Businesses would owe 50% at the end of next year, and then the remaining 50% at the end of the following year.
Small business loans
Small business loans are another more immediate way of getting relief. A lot of the emergency economic funding ran out fairly quickly, so if you didn’t get your application in fast enough, you might have been left out high and dry. Luckily applying for a small business loan is a good way to bridge that gap and get immediate funding for your business.
Get the relief your business needs
No matter what method of relief you seek for your business, make sure you take advantage of all available options. This will ensure that your business stays afloat, and you don’t come up short when it comes time to pay your bills. Hopefully, the economy will rebound soon, and things can get back to business as usual.