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Resources Available for Coping with Business Interruption

Here are the some of the options available to you in dealing with the financial situation during this troubled time.  I have put them in two basic categories and much of the information is based upon guidance through the Chamber of Commerce;



Business resources available;



1. The most immediate action to take caused by a lack of funds is to claim unemployment insurance for yourself and advise all non-essential employees to apply for unemployment insurance as well. The link to begin this process is as follows;      



     https://secure-2.dllr.state.md.us/NetClaims/Welcome.aspx



Keep in mind you or your employees must receive a W-2 earnings statement or you are self employed provide a Schedule C from your latest income tax return filing.  This is the most immediate and effective way to stem the outflow of cash quickly.



2. There are two basic types of federal loans (both of these loans are going to be coordinated with your bank representative)  you can apply for under the most recently passed CARE Act;



     a. The first is the Economic Injury Disaster Loan from the Small Business Administration.  This loan which has a maximum amount up to $10,000 and has the possibility of not being repaid under certain very specific circumstances and provides for a very low interest rates.  The link to begin the process of applying for this loan is as follows;  https://covid19relief.sba.gov/#/.   This is a self guided menu.  The information within this online application must be completed by you the business owner.  My office can provide any essential information as it relates to your business, but you must be the one completing the application and you must take the time.



     b. SBA Paycheck Protection Program loan.  Essentially this is a repayable loan with some exceptions down the road that will provide to you an amount equal to 2.5 times your average monthly payroll cost.  So if you have an average monthly payroll of say $10,000, the the loan would be available for $25,000 to see the needs of payroll, rent, mortgage interest, utilities, or other specified purposes.   The link to this application is as follows; Paycheck-Protection-Program-Application-3-30-2020-v3.pdf.  Again this is done in conjunction with your bank representative and my office can provide to you the necessary payroll documentation support to submit for the application upon request.  You will need to speak to you bank representative. The following link goes over this loan in greater detail. https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf



3. There will be tax credit for those business who are able to retain employees under this current financial situation.  These are going to involve the filings on the employment tax filings Form 941.  The link to this resource is as follows; https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act. Again, my office can assist with providing these reports.



4. The state of Maryland offers some grants and loans which would be another avenue to take, however these most likely will be more difficult to obtain and probably require a lot more time and information gathering.  Both of these resources are not direct online type links, but rather the application is done by emailing the State of Maryland Commerce VOVID-19 Team Assistance.



     a. Maryland Small Business BOVID*19 Emergency Relief Loan Fund; https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-loan-fund 



     b. Maryland Small Business COVID-1 Emergency Relief Grant Fund;  https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-grant-fund



This link will take you to a quick summary of the currently available options. https://reliefwizard.net/



Again, the process is going to have to be initiated by you, and we can assist with any paperwork to assist in the application process.



Individual/other business resources available;



1. You will have to contact your landlord and see if there is any possible negotiation in terms of deferring or reducing your business rents while you are unable to operate the business at least then full or zero capacity during this time.  This is a process you and your landlord are going to have to work out on an individual basis.



2. You should contact your utility providers such as the gas and electric company, the internet company and any other monthly  utility services to see what is available to you and your business. 



3. Most mortgage and loan operations have an automated or on-line service setup to access and automatically apply for a period in which you do not have to make your normal payment obligation.  The unpaid portion of the monthly note will get added onto the end of the note balance.  Many if not all home loans this is an automatic process without having to speak to anyone, but go through the process on the phone or online.



4. Credit card companies should also be contact via telephone or website to arrange a deferred payment option on balances owed so there is no issue with regard to delinquent payments.  Typically all credit card companies have this option



5. The CARE Stimulus checks which will be mailed out this year will be based upon the latest income tax return filing by individuals (i.e. year 2018 or 2019) whichever one is on file at the time.  The checks will be based upon your filing status and the overall income reported on the return.  The checks will be direct deposited if that method was chosen on the income tax filing.  If you received a paper check and wish to not have to wait for the check by mail the IRS.gov site will allow taxpayers to go online a provide your bank routing number and account number for direct deposit.  This has as yet to be announced on the website.  Here is a general IRS link to get more information regarding this matter; https://www.irs.gov/coronavirus



Michael Thackston CPA



Timothy Thackston CPA



Newsletter Archive

Please note: Some material may be time-sensitive and may no longer apply.
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  1. Posted on: 2020-10-06
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  3. Posted on: 2020-09-01
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  6. Posted on: 2020-06-02
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  8. Posted on: 2020-03-31
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  10. Posted on: 2020-02-04
  11. Posted on: 2019-12-31
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  13. Posted on: 2019-11-05