According to lenders and analysts, a wave of loan applications could swamp the effort to speed money to cash-strapped small businesses, complicating hopes of keeping tens of millions of Americans employed during the coronavirus shutdown. Tax expert and CEO of Enginnered Tax Services offers these thoughts and advice:
• Apply online immediately for the SBA 7A loan with the immediate $10,000 cash forgiveness advance. This is available online; first come, first serve.
• Banks handle the SBA Paycheck Protection Loan. They are reported to be ready Friday for applications. Here are the musts:
- SBA has provided the sample application online. It is important to download it and get all the information requested together to move quickly
- Find a Bank. Most banks will only take applications from current customers. Make sure your bank is participating.
- Most banks are now allowing you to register online for scheduling your application filing. Get registered to secure your filing date.
• Most states have secondary loan/credit programs. Check with the State Chamber of Commerce for state programs.
• Contact your bank to request loan payment grace periods. Most banks are happy to grant an extended grace period, as are all creditors if you request them.
• Get with your CPA to see how the new tax laws may give them the ability to go back and get refunds.
• Check with your payroll company to start taking advantage of payroll tax deferrals and other tax credits established for this virus.
• If they are a Minority Business, the Federal Government has additional incentives through the Minority Business Development Agency.
• Owners can explore filing for unemployment.
Gonzalez primarily works with property investment firms and their CPAs to unlock IRS-sanctioned tax benefits. He has advised huge brands such as IKEA, McDonald’s, Costco, Johnson & Johnson, and other Fortune 500 companies.
