As the coronavirus spreads, many small business owners are rethinking their financial strategies and adjusting the way they work. They’re responding to a drop in revenue as customers stay home, cut back on purchases or demand that companies help protect them from the fast-spreading virus.
Businesses are also feeling the impact of the economic uncertainty created by the virus and the ensuing turbulence in the stock market, which forced the Dow Jones Industrial Average down more than 28% since it reached a new closing high Feb. 12.
However, most businesses will survive as the situation is only temporary and will not last forever. In the meantime, your business must take all necessary steps to ensure its survival so your rebound can be stronger than ever. So what can your business do to help survive the coronavirus?
Receive a Small Business Administration Loan
The U.S. Small Business Administration (SBA) has increased its funding pool from $20 billion to $50 billion in response to the virus.
It is currently offering low-interest disaster loans of up to $2 million for small businesses suffering losses due to the coronavirus. These loans, per the SBA, can be used to pay debts and cover payroll and other bills. You can apply online or by mail once the governor of your state submits a declaration of emergency.
You can also reach out directly to your local Small Business Development Center (SBDC) and your SBA district office. Click here to learn about loan assistance through the SBA
The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.
Now may also be the time to talk to your CPA, or other tax professionals, to see if there are other tax credits you can take advantage of or additional things to claim. Your state tax agency can tell you if your business has more time to file or more time to pay state and local taxes this year as a result of the coronavirus. Several states have already aligned their tax filing and payment deadlines with the new federal deadline. States also may waive or reduce penalties on late tax payments.
Additionally, the government may also suspend payroll taxes, which would be helpful to every small business owner right now.
Apply for waivers to keep operating.
Many states such as New Jersey and Pennslyvania have issued orders for any non-essential or non-life sustaining businesses to shut down. Please keep your employees safe at home if your business is not essential. However, if you believe that your business needs to continue to operate as an essential firm, you can apply for a waiver online. Even if you are not allowed to keep doing business in the office, most states are allowing you to continue operations from the safety of your own home. Setting up workers remotely can sound stressful, but luckily there are many tools online that provide big online conferencing such as Zoom, Microsoft, Google Hangouts,and Webex that are often free or providing big discounts.
Think About the Future
While it’s normal to focus on what is happening right now, especially in light of the constantly changing situation, small business owners also need to spend time thinking about how to rebuild once this is all over. Take a few minutes every day to think about the coming opportunities. Is your lease coming up? Could you negotiate your rent for the future?
Seek out the expertise of a financial professional to help you plan how much reopening will cost, and start devising a plan for making that a possibility. If you are cash-strapped, most communities have free legal resources for small business owners. You can search for those online or call your local SBA office.
Consider Outsourcing Operations Going Forward
Find an outsourcing company that can handle multiple of your business needs at once. Outsourcing can eliminate overhead costs and help your business save on the costs of hiring and recruiting while ensuring expertise.
Limitless Investment & Capital Legal & Financial Coronavirus Relief Packages
Understanding the financial health of your business is especially critical during turbulent times. How can your business cut wasteful discretionary spending? Can your inventory management practices be tweaked to save some extra money? Are you properly tracking and managing your cash flow? Are you using financial data to help guide your business decisions?
One huge benefit of working with the Limitless team is the ability of our team to serve as your one-stop resource for financial and legal services. Those services include bookkeeping, accounting, payroll, taxes, and specialized CFO/Controller services, as well as legal and banking services related to raising capital for your company. Forget the added stress and extra fees of working with multiple companies to take care of your business needs, we can handle it ALL.