Senate Bill "Cares Act" Summary (Phase 3 Coronavirus Bill) small business |
- Senate Bill "Cares Act" Summary (Phase 3 Coronavirus Bill)
- List of loans and grants for small businesses
- Senate passes phase 3 of coronavirus bill
- Main Street left behind
- I just filled out the SBA Loan for the Covid-19 Disaster Relief. Here is what you can expect.
- SBA Disaster Loan
- Layman’s explanation of the Phase III COVID relief for small biz
- Warning about sba disaster loan website
- Business owners with a team - what's the most difficult thing about leading your people?
- Let's help each other out!
- Collecting overdue invoices
- Help each other and do business
- Movers New York | High Touch Moving a Local Movers in New York
- California small business, questions about Covid-19 layoffs.
- Help drafting an email to our lease landlord?
- Start Up Question?
- Cottage Food License Needed for Donation-Based Food?
- What can I do to help grow my family construction business?
- Google My Businees deleting response to review
- Is it possible to passively invest in a small business?
- How a restaurant stay alive during COVID-19?
- Predict future sales based on past sales using machine learning
- Xfinity Small Business Help COVID-19
- How do you simplify things so you can do them well?
| Senate Bill "Cares Act" Summary (Phase 3 Coronavirus Bill) Posted: 26 Mar 2020 01:07 AM PDT The 3rd phase of the Coronavirus relief bill has passed the senate with a vote of 96-0. As I promised previously, I'm posting a summary of the parts of the bill that directly impact most small businesses and self employed people. Note that none of this is taken from news sources and it's just from my interpretation of reading the bill as it's written. I haven't finished reading the whole thing (yet), but I've read the first 600 pages and skimmed the rest. Before anyone asks: Yes I am bored. Yes I actually do enjoy reading this stuff. Keep in mind that this still has to pass the house on Friday but given the unanimous bipartisan support in the senate and the fact that a vote is already scheduled for Friday in the House it's probably safe to assume that this bill will pass considering the concessions I saw while skimming that are put in towards the end of the bill. I included some of the bigger non small-business stuff throughout this because some of you may have employees wanting a summary of how this impacts them (or you may be wondering too!). I'm planning on cross posting this to some other subs as well that may be looking for a non news source summary of the bill. (Any numbers in parenthesis at the start of a section are referencing the page numbers shown in the top center of the bill) Full bill text is available here Small Business Loan Program Account, CARES ACT (You'll see this referred to as the paycheck protection loans, small business bailout, small business coronavirus loan, etc) The covered period for this is Feb 15-Jun 30. You are impacted by coronavirus if your business meets the requirements on page 32-33. TLDR: You're probably impacted unless you have a virtual board game business or make face masks. (14) In addition to small businesses non profits and some other businesses with less than 500 employees are eligible for paycheck protection loans. (15) Independent Contractors and Sole Proprietorships are eligible for paycheck protection loans (note that you have to provide proof of payroll though tax filings like other businesses) (16) Franchisers and sic codes that begin with 72 are eligible Max Loan Amounts, Underwriting Requirements, & Terms (18) For non seasonal business the max loan amount is the average monthly payroll for 1 year prior to the loan being made times 2.5. Payroll costs include things like group health benefits and sick leave. Seasonal businesses use average monthly payroll costs from Feb 15, 2019 (or March 1) -June 30, 2019 times 2.5 If you've been in business less than a year the average monthly payroll for Jan 1,2020 – Feb 29, 2020 times 2.5 (21) If you started your business after Feb 15, 2020 then you are ineligible (20) Loan proceeds may be used for payroll costs (including health benefits), interest on mortgages, rent/lease payments, utilities, and interest on debt incurred during the period covered by the bill. (23) Cannot use this loan if you have an application pending for a loan covering these expenses already (like a disaster loan). In other words you can't take out two loans to cover payroll (you can still take out both loans though). (24) No SBA fee for the loan. Usual requirement that the business is not able to obtain credit elsewhere is waived. No personal guarantee or collateral is required. (25) Loan proceeds that are not forgiven will have a term of 10 years maximum with an interest rate not to exceed 4%. (26) Payment on these loans are deferred and interest does not accrue for 6 months to 1 year. Here's what expenses will be forgiven (41-43) Payroll costs (including some fringe benefits), mortgage interest, rent and lease payments, and utility payments (gas, water, internet, phone, etc) For things like utilities, rent, & mortgages the initial agreement has to have been signed before Feb 15, 2020. (45-47) Other limitations that can reduce what will be forgiven (primarily less full time staff now than in the prior period the loan is basing funding off of and reductions in wages). Any employee who usually receives $100,000 or more annually is also disallowed. What the lender will require in order to grant you a loan (49-50) Proof of payroll through tax filings, documentation of lease/utility/mortgage obligations. Lender will also need to see proof of the expenses actually being made for forgiveness or else that portion will convert to a normal loan as indicated previously. EIDL (Economic Injury Disaster Loans (With $10k grant hidden inside!)) (66-67) Grant is available to small businesses, non profits, sole proprietors, independent contractors, and a few others. (68) Business must have been in operation before January 31, 2020 (68) Can be approved for this program solely using your credit score and may not have to submit tax returns (68-69)Up to $10,00 given as an advanced grant for payroll and operating expenses to small business within 3 days of applying. Does not need to be repaid even if the EDIL ends up being denied. (Not in the bill but currently for the non grant portion of this above $10k EDIL proceeds that are approved have principal and interest deferment for up to 4 years and max interest rates of 3.75%. Must be able to prove that expenses would have been able to be paid had the disaster not occurred.) (70) Grant proceeds can be used for payroll, rent/mortgage, increased costs due to supply chain disruptions, repaying obligations that cannot be met due to revenue losses. (70) Cannot be used for same purpose as the Paycheck Protection loans. Any grant amount awarded would be subtracted from the amount forgiven in the Paycheck Protection loan program if you choose to open one of those loans up or if you take the option to refinance an EDIL into a Paycheck protection loan. Existing SBA Loans (73-77) SBA will be providing subsidies to cover existing loan obligations. Check details for your specific program though. Unemployment Benefits (I saw a lot of sole prop and 1099 people asking about this so it may not be applicable if you're a small business with employees who is planning on taking the loan forgiveness route above to keep folks on payroll) (91) Self employed people and other people who are not normally eligible for unemployment benefits are included. (I'm seeing how they'll determine base benefits but I'm assuming it will be off prior years' tax forms – it's possible that these people will only be eligible for the $600 a week but I'm sure states will have clearer guidance out once the bill passes the house) (92 and 107) Waiting period that some states have in place to receive benefits is now removed (99) Compensation amounts will be what state unemployment plan would have usually paid out plus an additional $600 per week. (I haven't done the math yet but intuitively it seems like if you're a small business that pays employees less than $14 an hour or so they'd receive more money from unemployment due to that additional payment allowance if you don't need them). Rebate Credits (145) Amount of rebate is $1,200 for individuals, $2,400 for joint returns. An additional $500 per qualifying child. (145) Credit is reduced by 5% of any income over $75,00 for an individual, $150,000 for a joint return, & $112,500 for a head of household return until the credit hits zero. (147) Eligible for credit if your first taxable year was 2019 or if you filed in 2018 or 2019. Page 149 has details on what happens if you haven't filed either of those. (147) Refund will be disbursed directly into any bank account you've authorized for IRS payments previously. (I assume if you haven't done that you get a physical check) Charitable Contributions (171) Everyone can now take up to a $300 above line deduction for charitiable contributions made at any point in 2020. (In other words if you donate $300 this knocks your tax bill down by $66 if you're in the 22% bracket). Note that this is above line so it is in addition to the standard deduction if you don't itemize. Not much, but every little bit helps! (173-176) If you're well off and are looking for a tax benefit at the end of the year then there's a lot of limitations and caps that are being removed by this bill. Payroll Taxes (189) Information about deferrals of payroll tax payments start here Alcohol Manufacturing Businesses (212) Alcohol that you use to make hand sanitizer is not subject to excise taxes Student Loans (333-335) Payments will be suspended and interest will stop accruing on federal student loans. (334) If you are on a loan forgiveness program then any months where payments are suspended will still count towards your program. Same thing applies to teacher loan forgiveness programs with details on page 349. (334) Payments that are suspended will continue to be reported as being paid to credit bureaus so this will not negatively impact your credit. Existing Loans and Credit Card Forbearance (566) If you take a forbearance on payments then the lender has to report your payment as current. (Note that this does not prevent them from categorizing you as a high risk borrower internally which could affect future credit related decisions they make on your account so only request forbearance if you really need it) Property Managers/Rental Property Businesses Read 567-578, as you can imagine there's a lot of details in there. (570) Multifamily property mortgages – If you have a federally backed mortgage loan on your property you can now request forbearance on you loans for 30 days. You can renew this request twice for a total of 90 days. If you get forbearance you are not allowed to evict for non payment or charge fees/penalties to tenants for late payments. (578) Other properties with federally backed mortgages – Basically you can't kick people out for non payment or start court filings against them for 120 days. It looks like if they're running a meth lab in their bathroom then you can still kick them out. Edit: Messed up a line of formatting Edit 2: Added section on EDIL and the EDIL grant program, accidentally forgot to write the summary for that (It's probably one of the best parts for small business in my opinion) [link] [comments]  |
| List of loans and grants for small businesses Posted: 25 Mar 2020 01:47 PM PDT The past few weeks have been tough for small businesses, and it's been hard for me to find good resources that explain what loans/grants are available, and how to get them. Today I found this spreadsheet, which has a list of grants and loans broken out by state. I also found this article which breaks down how SBA disaster and 7a loans will work if the stimulus bill passes. Please share any helpful resources you've found! [link] [comments]  |
| Senate passes phase 3 of coronavirus bill Posted: 25 Mar 2020 08:43 PM PDT I'll be reading through this tonight (and tomorrow) and will provide a summary for the parts directly affecting small businesses once I get a chance. Link to full text of the final bill: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rSVHQuPeCB_g/v0 Edit: House is scheduled to vote on this bill Friday morning (obviously that could change) [link] [comments]  |
| Posted: 25 Mar 2020 05:26 AM PDT These bills apparently do little to save small businesses, while providing massive bailouts to large industry and individuals. How does a small business take on additional debt to rehire employees when revenue is severely reduced? In the short-term we'll have the exact same revenue as last year due to the loans. Once the loan funds are spent we'll have reduced business (better than no business), a full staff and a loan payment. Let's be generous and say revenue drops only 10% from prior year once things return to "normal." How the hell are we supposed to pay back a loan for multiple months of operating cash while maintaining a full staff on reduced income? I'm in full support of the bailouts for individuals. The corporate giveaways put us at a significant disadvantage as small business owners. [link] [comments]  |
| I just filled out the SBA Loan for the Covid-19 Disaster Relief. Here is what you can expect. Posted: 25 Mar 2020 09:58 AM PDT I made a video that summarizes what the SBA Loan process is like and what information they ask and how long it took me. AMA [link] [comments]  |
| Posted: 25 Mar 2020 07:04 PM PDT Hello... As of 25 March 2020, the SBA website is down and it looks like I have to download the files and mail it out. I was 75% done with my application until today. I have a small business and we're being hit hard by this event. The runway is getting very short and I can probably go for another 1.5 months. Is the SBA Disaster Loan a secured loan or unsecured loan from the Gov? I've seen some place where they would ask you about using your home as collateral for the loan. Can someone confirm that? I also hear that it might be forgiven? [link] [comments]  |
| Layman’s explanation of the Phase III COVID relief for small biz Posted: 25 Mar 2020 05:28 PM PDT This fella breaks down how bill currently sitting with Congress. Explains how it differs from the sba disaster loan program. This provided the clarity I was looking for; hope y'all find it helpful too! [link] [comments]  |
| Warning about sba disaster loan website Posted: 25 Mar 2020 05:44 AM PDT I am registering for the loan program and someone else's full contact info appeared including social security number. Now I'm deciding whether I want to register.. I'm sending their support a screenshot with the info. [link] [comments]  |
| Business owners with a team - what's the most difficult thing about leading your people? Posted: 26 Mar 2020 01:10 AM PDT People rather take a pay cut to work for startups than work for traditional corporates, thinking the founders will give people more freedom and respect that everyone deserves. But a lot of us never managed others, don't have the process in place, and find it difficult to lead effectively... How did people grow and manage their team? What was the hardest part about managing employees and what solutions did you use? Did the solutions work? [link] [comments]  |
| Posted: 26 Mar 2020 04:48 AM PDT Hey guys, hope you are all safe & well! Running a business in these extraordinary times is a resilience test for all of us. So I got this idea in order for all of us to support each other out.🙏🏼 If you can and want to help in any way through your work, post it in the comments below👇🏼 Let's do this!🚀 [link] [comments]  |
| Posted: 25 Mar 2020 09:06 PM PDT I have a few over due bills for 3-600 each. They were all done within a few days before the panic started. These clients normally pay within one or two weeks but we are at 3 weeks now and can see they have looked at the bills. Wondering how everyone will approach overdue invoices and how long to wait before getting more aggressive. I have decided to wait until the 30 day point and then reach out again, I sent reminders at 15 days. Not sure what to do from there; but I figure I should be lenient as long as I have cash to survive. These older invoices will be treated differently than new clients calling in the last few days who are aware of what's going on and are willing to spend the money. [link] [comments]  |
| Help each other and do business Posted: 26 Mar 2020 04:37 AM PDT Hello, I was thinking about how we could help each other in these hard times. I've created a document where we can collect small businesses and refer to each other. What do you think about the idea? How could we do it better? Feel free to add new columns to the document: [link] [comments]  |
| Movers New York | High Touch Moving a Local Movers in New York Posted: 26 Mar 2020 03:53 AM PDT High Touch Moving System Movers New York Company that provides commercial and residential local moving services to New York businesses and residents. [link] [comments]  |
| California small business, questions about Covid-19 layoffs. Posted: 25 Mar 2020 08:01 PM PDT I own a small business which employees about 20 people making 15-18 per hour in California. Due to massive consumer demand for our products we are very backordered and are remaining open so that we can ship out orders and lessen the order cancellation liability we currently have. Simply put, the value of the orders is greater than the amount of cash we have on hand so the best way to safeguard our business right now is to ship like crazy before mass refunds start to happen as people run out of cash to spare (average order value is extremely large, thousands of dollars). Since this crisis started we have added about 10 people to our workforce to increase shipping rate. Now that it's looking like the unemployment bill is going to pass, we are concerned that our employees are simply not going to come to work (we made work optional since the outbreak started so people with health concerns could stay home without penalty) and instead file for unemployment. Under the proposed bill they stand to make way more money on unemployment versus coming to work. My question is, will employees be able to collect unemployment if we remain open for business but keep attendance optional? What if we refuse to lay them off? [link] [comments]  |
| Help drafting an email to our lease landlord? Posted: 25 Mar 2020 09:02 PM PDT I am in no way an expert in negotiations or anything of the type. I was wondering if anyone can help on what to include or say, or some kind of template for an email to our leasing office. We are renting from ROIC, and can not pay our rent, our business is nonexistent, less than a handful of customers a day. I don't know what I should say, or what I can even do. My rent is due at the end of the month, and I can't even afford to pay even a tenth of it. [link] [comments]  |
| Posted: 26 Mar 2020 02:30 AM PDT Before all of the fuss and chaos of Covid-19, the volatile stock market , and the recession roller coaster I was in the process of getting a small business going, (Sole Proprietorship) with web hosting through wix (until I get funds for premium hosting and learn the web coding) I was going to apply for a loan but with. All this going on I don't know now. I am new and just seeking wisdom [link] [comments]  |
| Cottage Food License Needed for Donation-Based Food? Posted: 26 Mar 2020 12:25 AM PDT Hello, In California (Alameda County specifically), am I able to give away jars of dried pasta that are donation-based? We do this to help build returning customers and I want to be sure we're not breaking any laws. Having trouble finding information on the DEH page. Thank you! [link] [comments]  |
| What can I do to help grow my family construction business? Posted: 26 Mar 2020 12:04 AM PDT I am 22 years old, my father is an 'earthmover' and owns an earth moving company. We mainly work on large scale construction projects, by providing machines + machinery operators on an hourly rate basis. This kind of work has allowed us to grow in the sense of purchasing more machinery, and we have been able to hire operators when necessary. However we are fundamentally acting as 'employees' to much, much larger companies. We are interested in moving into pricing up and completing our own jobs/work. I understand we could advertise on social media, post advertisements in facebook groups etc, however I feel we are beyond this scope of small scale 'backyard' work. Does anyone here work in a similar industry? I am very passionate about growing this business, as I want to be able to earn my parents the retirement they deserve. At the moment myself and my brother are developing a new modern website for the business, but I am also considering going to university to study either business management, or civil engineering to help in either developing/ growing the business. [link] [comments]  |
| Google My Businees deleting response to review Posted: 25 Mar 2020 04:31 PM PDT I had a one star review for a horrible client. I replied to it ever so elegantly and explained the situation from my perspective. Google has removed my response to this twice now, making me look like I take a while responding to reviews. The review itself still stands, but my reply is gone again. Has anyone else had this happen? [link] [comments]  |
| Is it possible to passively invest in a small business? Posted: 25 Mar 2020 05:58 PM PDT Is there a standard kind of contract where an investor can give money/advice to a small business in return for a percentage of their future profits without becoming a partner in the business? The idea is to own a portion of an LLC's profits without being liable for their actions or losses. [link] [comments]  |
| How a restaurant stay alive during COVID-19? Posted: 25 Mar 2020 03:59 PM PDT |
| Predict future sales based on past sales using machine learning Posted: 25 Mar 2020 02:46 PM PDT Hi all, I provide a service - predict future sales based on past sales using machine learning and AI. The product is still in testing stages, so currently it is free. If you have sales data which you would be interested in predicting, feel free to ping me :) I have a lot of background in statistics/machine learning/deep leaning, especially in prediction models (you can checkout my profile on reddit, or my blog: https://2d3d.ai). Peter [link] [comments]  |
| Xfinity Small Business Help COVID-19 Posted: 25 Mar 2020 03:42 PM PDT I own a small business that's had to close for the past two weeks, and will remain closed until the worst of the virus passes. I have both my shop phone and internet through Xfinity, and called today to see what they could do to help. They gave me a one-month credit - no strings attached - and advised me to call again in 30 days if I need more help. I hope this helps someone else! [link] [comments]  |
| How do you simplify things so you can do them well? Posted: 25 Mar 2020 09:30 PM PDT For things like deciding which of the dozens of marketing channels to use, how to optimize something, what kpi or goal to reach for the year. All these complex things, how do you simplify them so you can get the right thing done? do you simply spend some time figuring out a reasonable best case scenario, then writing a general plan and really leave no stone left unturned? Write it out so that there is very little misunderstanding what should be done, and it details 90% of what needs to be done? [link] [comments]  |
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