“If you sincerely want to change your life: raise your standards.”
The Paycheck Protection Program (PPP) has recently been closed and many American workers are left without funding during an uncertain time. Congress had signed off on $349 billion in loans for businesses to receive financial support during the COVID-19 crisis. It was recommended to apply as soon as possible. Americans have been approved to receive $300 billion and this week $419 billion has officially agreed upon for US citizens.
Due to the amount of responses and applications, the SBA had stated they were currently unable to accept any new applications at this time. This could change at any time. If you have already applied for a loan and submitted your application, this should be processed over the course of the upcoming weeks. Applications are being approved on a first come first served basis and will continue to depend on the funds available.
While many businesses are still awaiting a response and it looks like restrictions are getting lifted, people are questioning whether or not COVID-19 will pass soon. Although we can’t foresee how much funding will come for these programs, the top policy makers are pushing for it every day. We hope these programs will only be shut down temporarily and more funding will come.
So, what can you do now? Here’s ERPS Group’s tactical response steps for success:
1. Begin preparing for Wave 2.
While we can’t promise there will be a waive 2 of SBA loans, it appears likely. Many people who were EARLY in Wave 1 got funded partially or in full. It is recommended for people to build relationships with local and community banks for the 7(a) and getting all their documentation ready for the 7(b).
2. Prepare financially and assess your cash position.
Now is the time to ask yourself important questions to assess your current cash position and prepare for unknown circumstances. For example, how do you forecast for survival vs. growth? How long can your cash last before you go through a downward spiral? How long do you need to prepare for? How long until your access to all credit cards/loans run out? How can you extend your survival timeline as long as possible?
3. Look for other lending & grant options.
There are a variety of other banks, state governments, local governments, and government agencies that are offering various types of:
- Disaster Loans
4. Take Advantage of all of the other Tax Credits and Deferrals in the CARES Act.
There’s a lot…here are a few:
- Withdraw Retirement Penalty Free Up to $100,000
- Defer Payroll Taxes Sec 2201 To 2021/2022
- Recovery Rebates $2,400 MFJ/$1,200
- Single Get Cash for NOLs in ’18, ’19, ’20
- Employee Retention Credit 50% Of $10k Qualified Wages/Employee
- Sick Employee Payroll Tax Credit Up To $2k/employee/quarter
For more information and support, Ella Rivkin is right here to keep you updated as we continue through this time together. She will walk you through every stage of the process and will share the most up to date, valuable knowledge and solutions at hand. If you have any questions or want to learn more about the current situation, Contact Ella today at (347) 462-2778 and you can set up a time to speak with one of our financial experts.
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