Corona Resources

Business Owner Resources & Information

From the desk of Neal Isaacs, MBA, CBI

As of 3/20/2020

In normal times I sell businesses but these are not normal times.  For now I’ve shifted into business owner resource/information collection and distribution mode.  Here are a few important things I’ve learned this week that all business owners should know:

  1. The SBA has a Disaster response loan program, and North Carolina was listed on the SBA’s Disaster Loan Assistance site for the Coronavirus on Wednesday.  Business owners can find the application at https://disasterloan.sba.gov/ela/.  This resource is for emergency loans.  Should a business need emergency funds to bridge the gap for operating capital, consider utilizing this research and start now.  The system is overloaded and takes time to navigate. When I tested it yesterday it crashed more than once. 
  2. In addition to this resource, a new program may be coming soon, and it’s going by the name Business Interruption Loan Program.  This one may have a benefit of some parts of the loan being forgivable based on payroll expenses for personnel who are lost.  I’ll share a link when I have one.
  3. As you have probably seen on the news, individuals making less than $1M/year in earnings will likely be getting checks mailed to them for up to $1,200 per individual within the next couple of weeks.  You may also get $500/child you had as of your 2018 tax return. This isn’t a business owner program; it should help everyone.
  4. A bill was passed this week called the Families First Coronavirus Response – HR 6201.  Unfortunately, while this will benefit employees, it is quite onerous on business owners.  Small businesses will be required to provide two weeks of paid sick leave to an employee who has an array of reasons why they are unable to work due to Corona, in addition to their regular benefits.  While these payments are to be credited back to the business owner by reductions in payroll taxes due later, it will add financial stress to business owners in the short term. There’s a second part that even extends to parents who need to take care of their children who are let out of school due to Corona, so it could almost be applied to all employees.  Here’s a summary of the bill: https://bit.ly/399vbR9
  5. For owners worried about SBA loan payments, there is a rule on page 69 of the following 162 page SBA SOP which outlines the rules for deferment of SBA loan paymentshttps://www.sba.gov/…/def…/files/files/SOP_50_57_2_1.pdf   Essentially, if the loan has already been sold, it can still be deferred once for up to 90 days. If it hasn’t been sold, the deferment could be offered for up to 6 months.  This would be a decision by the bank who wrote the loan. It doesn’t mean it’s definitely going to happen for an owner, but at least owners can know that it’s possible for the bank to do this.  I had a client get a 90 day deferment of his SBA loan payments this week so it’s already happening for some owners.

If you find similar resources for business owners, please share them with me at Neal@VRbizTriangle.com so I can continue to assemble and distribute this information. 

Neal Isaacs, MBA, CBI

Business Broker/Carolinas Virginia Business Broker Association President

VR Business Brokers of the Triangle Broker/Partner

RaleighBusinessBroker.com

130B Wind Chime Court

Raleigh, NC 27615

(919) 628-0571

Book a phone call or appointment with me Here.