The COVID-19 pandemic has been hard on everyone, but it has been especially difficult for small-business owners. Small businesses across the nation are struggling to stay open or adjust to continuing services virtually via social distancing. Considering that it is already difficult for small businesses to stay open for more than a few years, this is a concerning issue.
To help, the U.S. government signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law on March 27, 2020. The objective of the CARES Act is to provide financial relief to citizens facing economic difficulties caused by COVID-19. The law includes some temporary changes to programs led by the Small Business Administration that help small business owners get by financially until their businesses can operate as normal again.
It is not too late to take advantage of CARES Act assistance
In addition to traditional SBA programs, the CARES Act included two major measures to help small-business owners stay afloat during these hard times.
The first, the Paycheck Protection Program (PPP), was designed to help small businesses continue paying employees when business operations slowed or ceased. This program includes partial and fully forgivable loans to eligible small businesses. The deadline to apply for PPP assistance ended on August 8th, 2020, but current participants will continue receiving loans until the end of the year.
The second, the Economic Industry Disaster Loan (EIDL), was implemented to provide capital loans to small businesses that have been most affected by COVID-19. This portion of the CARES Act is still receiving applications, so small businesses that are experiencing economic injury from the crisis can apply for assistance.
EIDL provides low-interest loans that help cover payroll, certain operating costs and liabilities through the end of December 2020. Loans are capped at $2 million and are calculated based on the business’s economic injury and financial need.
EIDL loans are not forgivable.
Talk to a ProVise CFP® professional about managing your finances as a business owner
As a business owner, you have a lot to think about when it comes to running a business, but you also need to take care of your own finances as well. Business owners usually do not have the time or skills to deal with managing their personal finances on top of managing their business. Our ProVise Personal Financial Officer™ (PFO™) program is designed for the business owner and other key employees. Our team can concentrate on your personal finances so that you can concentrate on your business’s success.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about managing your finances? Contact ProVise today to schedule a complimentary consultation.