COVID-19

Labor Capacity Model- Is your business under/over hired?

Labor Capacity Model- The ability to see into the future if your business is under or over hired

Are you trying to make decisions around hiring or firing people as you move forward through these Covid-19 times? Are you concerned about the cash flow implications? This Labor Capacity Model will give you insights into how your capacity to produce revenue (Your people) in any month stacks up against the anticipated sales in the month. Giving you the ability to see into the future if you are under or over hired.  The short video below is an interview with Martin Riley with Junction Peak regarding a Labor Capacity Model they developed for business owners.  If you would like a copy of this model in an excel workbook click the link below to receive the free download.

Click this link for a free downloadable Labor Capacity Model excel workbook

PPP Loan Forgiveness Update as of 5.18.20

The SBA just released the PPP Loan forgiveness application.  This video covers a few highlights and updates on what is now included in the forgiveness along with information including the EIDL loan and the business for sale market place.

SBA PPP Loan Forgiveness Application 

CARES ACT- EIDL & PPP Update as of 4.24.20

This PowerPoint video shares an update on the Economic Injury Disaster Loan and the Paycheck Protection Program via the CARES ACT as of 4.24.20.   Topics include a review of the first round of PPP loans issued, common questions regarding what the PPP and EIDL programs are designed for, PPP Round 2 information, and introduction to the upcoming “Mainstreet Lending Program” offered through the Federal Reserve.

Cash Flow / Runway Calculation Tool

“Cash is King,” and with these current conditions, we as business owners may have anxiety over:

• The ability to keep employees
• What decisions to make to keep a viable runway, or 
• A simple need to have a clear vision of the situation 

The financial specialists at Junction Peak developed a simple cash flow tool years ago to help guide businesses through cashflow rough patches.   Working in the off-hours they have enhanced this tool to help lessen the economic impact with as many businesses as possible.

We have partnered with Junction Peak to offer this Complimentary Cash Flow Tool to anyone who could use it. No strings attached, just a free, simple tool that business owners can start using today to bring their situation into focus and dispel fear with clarity.

Please click this link to receive the “Cash flow and Runway Calculation” worksheet.  Below is a short summary video, an interview with the CEO of Junction Peak Martin Riley, to give an overview of how the cash flow tool can be helpful in providing needed information for business owners.  

8 Ways Business Owners Can Take Advantage of the Federal Stimulus Package

This recent article from Entrepreneur magazine is probably the most thorough article we have found covering “all” the options available with the Stimulus Package.   The author, Mark Kohler, is an attorney and CPA, covering the following 8 topics to help put together the best strategic plan for your business.   Engaging your own attorney and CPA would be advised to make sure and capture local state rules/laws that may apply.

1. Stimulus Checks
2. Economic Injury Disaster Loans (EIDL)
3. Paycheck Protection Program (PPP)
4. SBA Loan Forbearance
5. Increased Access to Retirement Accounts
6. Unemployment
7. Paid Sick Leave
8. Family Medical Leave (FMLA)

The key message from the author is to look at all the options with the idea there may be multiple strategies and/or options that may fit your needs the best.  Most of the press coverage we hear is on the EIDL or PPP program.  Also, changes are happening daily so keep a lookout for new updated information as it comes available.

Click here for the full article

CARES ACT- EIDL & PPP Loan Summary as of 4.3.20

This PowerPoint video shares a few highlights on the Economic Injury Disaster Loan and the Paycheck Protection Program via the CARES ACT.   Topics include loan particulars, the loan process, and documents required.  Also a roadmap on a suggested order in which to look at the various options available and how best to decide what may be optimal for your business.  A few additional resources below.

• SBA.gov/coronavirus
• Whitehouse.gov
• Coronavirus.gov
• www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave
• https://oui.doleta.gov/unemploy/docs/stc_fact_sheet.pdf

2020 Pandemic- As a Business Owner, What Should I Be Doing Now?

A few thought starters on key items a small business owner should focus on navigating the 2020 Pandemic.   Topics include cash flow/cost control, revenue, taking out a loan, how business valuations will be affected while selling a business, and buying a business.  

The Global Pandemic & LinkdedIn Marketing

Probably two words you wouldn’t expect to be in the same blog title– Pandemic and Linkedin.  A good friend of mine, Medo Eldin, put together this video and I really like the underlying message for all of us business owners.

Even in the best of times, I see the most successful business owners have struck a balance between working “on” their business and working “in” their business.  As entrepreneurs, we all have had to deal with issues and roadblocks… yet nothing like what we are dealing with today and the feelings that come with.

We have used LinkedIn as a brand-building marketing tool and have enjoyed some success.   It may be worth checking out for your business.

I hope you and your families remain safe as we navigate our way through the given times.

SBA Paycheck Protection Program & Debt Relief

As of 3.31.20, the Paycheck Protection Program (PPP) has been rolled out.

One additional benefit, SBA Debt Relief, might be currently being overlooked by some but is a very large benefit for borrowers with existing SBA loans, AND for borrowers with a new loan issued before 9.27.20.   This new loan provision could be very motivational for future buyers and businesses on the market currently.

Buyers- with SBA Debt Relief, if you close on a business before Sept 27th, the SBA will PAY your first 6 months payments!  

Here are a few highlights along with the application and a document tracking checklist.

Paycheck Protection Program (highlights)

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

• Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
• Loan payments will be deferred for six months.
• If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
• The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).
• No collateral or personal guarantees are required.
• Neither the government nor lenders will charge small businesses any fees.
• Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
• This loan has a maturity of 2 years and an interest rate of .5%.
• The Paycheck Protection Program will be available through June 30, 2020.
• It is recommended to check with your current bank first to apply due to the high volume expected.

Business Insurance Coverage Questions RE: Covid-19

The link below update focuses on insurance coverage relevant to an employer. Insurance may play a key role in insulating businesses from labor-related losses, as well as other COVID-19 induced harm. Topics include Workers Compensation, Employment Practices Liability Insurance, Business Interruption Insurance, Directors and Officers Insurance, Key Person, and other types of insurance.

Source: Murphy Austin Labor and Employment Law Team 

Insurance Coverage Questions RE-Covid 19