If a business owner can foresee that their operating funds may be affected negatively by the COVID-19 pandemic, that business owner should apply for an available program and plan on paying back any unused funds. That business owner should proceed with caution, however, to make sure that there is no double dipping. For more information about the SBA loans listed on this page, visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
This is a loan program for small businesses with less than 500 employees, private non-profits, 501(c)(19) veteran organizations and certain businesses from specific industries with more than 500 employees if it meets the qualifying size standards. This is a forgivable loan as long as 75% of the loan is used for payroll AND headcount, salaries and wages do not decrease. If headcount, salaries, or wages decrease, then the amount of the loan that is forgivable decreases. The other 25% of the loan may be used for payroll costs, interest on mortgage, rent, and utilities. This program closed August 8, 2020.
The SBA is providing a deferment for current SBA Service Home and Business Disaster Loans that are in “regular servicing” status. Interest will still accrue during this time period and all automatic payments will still be processed. However, all payments will not be due until December 31, 2020.
The SBA will automatically pay for the principal, interest, and fees for any current 7(a), 504, and microloans and any new 7(a), 504, and microloan issued before September 27, 2020.
This SBA loan advance provides small businesses up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
This program allows small businesses who currently have a business relationship with a SBA Express Lender quick access of up to $25,000.
Contact The Next Steps Law Firm about which SBA loan best fits your business needs.
The Internal Revenue Service provides information for tax credits and filing deadline extensions for businesses and tax-exempt organizations. There are COVID-19 credits available for businesses: The Employee Retention Credit and small to mid-size business tax credits provided for in the Families First Corona Response Act.
This information can be located at https://www.irs.gov/coronavirus/coronavirus-tax-relief-for-businesses-and-tax-exempt-entities
Michigan provides daily updates regarding Executive Orders, Directives, FAQs, Resources, Business Guidance, and Press Releases at https://www.michigan.gov/coronavirus.
The Attorney General provides information to both employers and employees about employment rights, unemployment, and critical infrastructure workers. There is a section where the Attorney General answers questions. The website also includes links to Business Resources, Executive Orders & Directives, and COVID-19 press releases. The link to this website is https://www.michigan.gov/ag.
Michigan Department of Treasury provides information regarding the tax deadline extension and COVID-19 updates. The website also includes a link to the press releases regarding the Economic Impact Payment on the IRS website.
This website provides helpful links to resources and information for Michigan businesses during the COVID-19 pandemic. These include MEDC programs for small businesses. This is page is updated with new resources as the resources become available.
The Next Steps Law Firm can help with any federal, state, or local tax filing or tax credit concerns.
The Next Steps Law Firm can assist businesses with interpreting Executive Orders, Directives, employment rights, and communicating with the regarding important topics such as state licenses and regulations.
The Next Steps Law Firm can assist with structuring businesses according to the State's guidance for employers and also assist businesses in applying for local programs to keep the business in operation.
Business is changing rapidly – sometimes daily. Sometimes that means that the manner in which the business is operated needs to shift accordingly. Keeping up on the changing landscape, the changing directives, the new executive orders can be time consuming when also trying to keep essential employees safe or non-essential employees paid.
Many businesses are closing, reevaluating its venue and format, or entrepreneurs are starting new businesses. This is a time of great change. If you find your business does not quite fit in the current climate, consider whether you can adapt it. If you are sitting at home dreaming about the business you always wanted to start, maybe now is the time. If your business is struggling, let's talk options.
If you have exercise all of the steps listed above to preserve the business's financial viability during this hardship and the business cannot make it through, bankruptcy may be an option.
The Next Steps Law Firm can assist with reviewing, updating, and drafting policies and contracts.
The Next Steps Law Firm can create an action plan and start you on the path to the next adventure.
The Next Steps Law Firm can talk you through the bankruptcy options.
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