The majority of businesses in America have been drastically affected by the COVID-19 outbreak. Airlines, salons, restaurants and bars, giant corporations and small businesses alike have all seen an immediate impact. While your business may not be feeling the strain of the pandemic yet, it may be in your best interest to go ahead and apply for relief.
The government recently passed the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act to help the nation deal with the impact of the coronavirus outbreak. The bill included $350 billion in loans to small businesses to help businesses that are affected by the outbreak. The loans can help businesses meet payroll, pay their rent and utilities or other important bills to keep their business running. Businesses can borrow up to $10 million to meet their bills.
The main reason is that funds are limited. Once they’re gone, there may not be an easy way for you to receive funds to pay necessary bills like rent or payroll. You could be fine now and wait to apply, only to realize several months down the road that you desperately need assistance and funds are gone. If you get them ahead of time, you can plan and budget the money so you can survive the foreseeable future as America deals with the fall-out. While the pandemic might not affect your bottom line today, there is no guarantee you won’t feel the effects months later.
You also want to make sure that you have the funds when you need them. As the virus continues to spread, you don’t know if shutdowns will continue or if more strict orders will be put into place to contain the virus. This could lead to changes in your business, whether that means having to temporarily close your doors, slim down your hours or furlough your employees. That’s why it is important to get ahead and get the funds early, so you have it when you need it. You don’t have to take out the maximum amount.
If you need help, Polston Tax can help! We have studied the CARE Act extensively and know how it will affect all taxpayers. Give us a call today at 844-841-9857 or click below to schedule a free consultation!