I’m joined today by my personal accountant, Courtney, from Numbers and Such Prof. LLC. She is here today to talk all about the Small Business Stimulus Package and the different loans and grants available and what they mean for small business owners.
Things are constantly changing and everyone is searching for information (this was recorded the morning of April 3rd). Courtney helps clear things up today, but ultimately, we suggest that you get in touch with your CPA and business banker to understand what action you need to take next.
Here’s a look into some of the information Courtney shares:
Economic Injury Disaster Loan
- The EIDL is a loan that you apply for through the SBA. If you can’t get funding elsewhere, consider this one. It is an up to 30-year loan (but not guaranteed that).
- When applying, there is $10,000 grant money you can request (again, not guaranteed that full amount).
- The SBA is bogged down, so just a reminder that the money may not be granted to you immediately and may take time.
- Apply through the SBA website.
The Paycheck Protection Program
- The PPP is another one you can apply for to get 2.5x your average monthly payroll in a loan, which can convert to a grant if you use it for certain purposes.
- The loan is 2 years and has an interest rate of 1%, though it has potential to be fully forgiven.
- Independent contractors can’t apply until Friday, April 10.
- One requirement is having under 500 employees.
- Apply through your bank (more info here).
- You have 8 weeks to spend this amount (on payroll, rent, and utilities).
- 75% of the forgivable amount needs to be used on payroll.
- Unemployment can be collected for 10 weeks before you need to start searching for other work (check according to your state).
- South Dakota maxes out at $414 a week (specific requirements to determine amount) and supposedly the federal government is adding to that with an extra $600 a week, if the state chooses to adopt and implement it.
- If you receive a furlough notice from your employer, that may make your application easier.
- Check with your lender to see if they are SBA-friendly and participating in these options.
- There are billions of dollars on the line, and it is anticipated to dry up. The money is first come, first serve. Apply as soon as you can.
- If you have a Schedule C, things can get murky. Because we don’t have typical payroll, having the loan be forgiven would look differently, and we just don’t have enough clarification at this time.
- You don’t need to have 2019 taxes filed to do all of this, but you will need 2019 financials either way.
Other Tax Items
- SD sales tax deadlines are not pushed back.
- SD unemployment tax deadlines are not pushed back.
- Payroll taxes – depends if your CPA has guided you to postpone.
- Income tax got pushed to July 15 (instead of April 15).
One final reminder: the best thing you can do is get in touch with your CPA and banker to figure out the steps you need to take next to apply.
Get in Touch with Courtney
Thank you, Courtney for joining and sharing your knowledge. We hope this was helpful to all of you small business owners out there. If you are looking for help on this, you can connect with Courtney on her website or Facebook Page.
Some of the best conversations happen after the show in my private Facebook group, Take It Personally Podcast. Click here to join and ask any questions you might have regarding the Small Business Stimulus Package or information in today’s episode.