Apr 3, 2020
I’m joined today by my personal accountant, Courtney, from
Numbers and Such Prof. LLC. She is here today to talk all about the
Small Business Stimulus Package and the different loans and grants
available and what they mean for small business owners.
Things are constantly changing and everyone is searching for
information (this was recorded the morning of April 3rd). Courtney
helps clear things up today, but ultimately, we suggest that you
get in touch with your CPA and business banker to understand what
action you need to take next.
Here’s a look into some of the information Courtney shares:
Economic Injury Disaster Loan
- The EIDL is
a loan that you apply for through the SBA. If you can’t get funding
elsewhere, consider this one. It is an up to 30-year loan (but not
- When applying, there is $10,000 grant money you can request
(again, not guaranteed that full amount).
- The SBA is bogged down, so just a reminder that the money may
not be granted to you immediately and may take time.
- Apply through the SBA
The Paycheck Protection Program
- The PPP is another one you can apply for to get 2.5x your
average monthly payroll in a loan, which can convert to a grant if
you use it for certain purposes.
- The loan is 2 years and has an interest rate of 1%, though it
has potential to be fully forgiven.
- Independent contractors can’t apply until Friday, April
- One requirement is having under 500 employees.
- Apply through your bank (more
- You have 8 weeks to spend this amount (on payroll, rent, and
- 75% of the forgivable amount needs to be used on
- Unemployment can be collected for 10 weeks before you need to
start searching for other work (check according to your
- South Dakota maxes out at $414 a week (specific requirements to
determine amount) and supposedly the federal government is adding
to that with an extra $600 a week, if the state chooses to adopt
and implement it.
- If you receive a furlough notice from your employer, that may
make your application easier.
- Check with your lender to see if they are SBA-friendly and
participating in these options.
- There are billions of dollars on the line, and it is
anticipated to dry up. The money is first come, first serve. Apply
as soon as you can.
- If you have a Schedule C, things can get murky. Because we
don’t have typical payroll, having the loan be forgiven would look
differently, and we just don’t have enough clarification at this
- You don’t need to have 2019 taxes filed to do all of this, but
you will need 2019 financials either way.
Other Tax Items
- SD sales tax deadlines are not pushed back.
- SD unemployment tax deadlines are not pushed back.
- Payroll taxes – depends if your CPA has guided you to
- Income tax got pushed to July 15 (instead of April 15).
One final reminder: the best thing you can do is get in
touch with your CPA and banker to figure out the steps you need to
take next to apply.
GET IN TOUCH WITH COURTNEY
Thank you, Courtney for joining and sharing your knowledge. We
hope this was helpful to all of you small business owners out
there. If you are looking for help on this, you can connect with
Courtney on her website or Facebook Page.
Some of the best conversations happen after the show in my
private Facebook group, Take It Personally Podcast. Click here to join and
ask any questions you might have regarding the Small Business
Stimulus Package or information in today’s episode.