How to Survive Without EIDL or PPP

how to survive without eidl or pppAs time passes during this pandemic, there have been many programs like EIDL (Economic Injury Program Loan) and PPP (Paycheck Protection Program) that have been incorporated by the CARES Act to help small business owners obtain enough cash to survive. 

Unfortunately, small business owners are still waiting to receive the funds from these programs. Many are frustrated that they have received no funds or support from the SBA. There is a lot of uncertainty and we understand the frustration with the small business owners who were neglected by the very programs that were supposed to help them during this crisis.

Thankfully there are ways to still survive this, you have the option to defer payroll taxes or get Employee Retention Credit. CARES Act allows you to defer the employer's portion of social security. Employee Retention Credit is a refundable tax credit that is equal to 50% up to $10 K in wages paid of an eligible business owner. If you qualify, you can fill out form 7200 to request for the credit to be reimbursed in cash. 

If you're still confused or have questions about how to defer payroll taxes or to get the employee retention credit. We invite you to join our FREE webinar on April 22nd on how to do that and more so you can get the money you need to survive this crisis.

What is Employee Retention Credit?

If you missed out on the EIDL (Economic Injury Disaster Loan) and the PPP (Paycheck Protection Program), don't worry, there is another way to access funds to keep your business and your employees.

The Employee Retention Credit is a refundable tax credit that is equal to 50% of the “qualified wages” of each employee of an “eligible employer”. The credit is calculated on a calendar quarter basis and is applied against “applicable employment taxes” i.e. employer portion of Social Security tax (6.2% of wages). The credit is 50% up to $10,000 in wages paid for each employee, so the maximum credit is $5,000. 


Who is qualified to apply? Employee retention credit is offered to businesses who were either suspended fully or partially due to COVID-19 or have experienced a significant decline in gross receipts. Hence, this refundable tax credit is important for those who haven't been able to receive EIDL or PPP loan. Please note that this credit does not apply to employee income tax withholding, the employee or employer portion of Medicare tax, or the employee portion of Social Security tax.


If you are confused or have questions about Employee Retention Credit, please contact us today. We also have a webinar on April 22nd that will go over payroll deferral, paid leave credit, retention credit, and many more! Sign up today!

Texas receives $50 M in small business loans through Goldman Sachs & LiftFund

texas receives 50m in small business loans

Texas Governor Greg Abbott is planning to reveal strategies to slowly reopen businesses in Texas to revitalize the economy. The governor recently announced that Goldman Sachs and LiftFund will provide $50 million of loans through SBA's PPP program to qualifying Texas small businesses. These loans will be primarily used for payroll purposes to ensure employers retain employees during the current crisis. If the employer complies with all of the required regulations, the loan will be fully or partially forgiven by the SBA.
 
LiftFund is a non-profit organization that helps small businesses facing financial hardships with limited access to capital. It has partnered with the SBA to offer these disaster relief loans up to $50,000. LiftFund along with other financial institutions will be administering the funds to qualifying small businesses in Texas. You can apply for this SBA-backed PPP loan on the LiftFund website. 
 
Business owners who haven't heard of LiftFund may have questions or concerns about their loan like:
  1. I've applied PPP through my bank, does this mean I can apply for this loan as an additional backup?
    No, you will be duplicating loan applications to the same SBA-banked programs.

  2. I couldn't get PPP loan through my bank, will I get rejected by LiftFund too?
    Not necessarily, the criteria may vary slightly since LiftFund is catered for business owners who are not able to apply through financial institutions.

  3. What would be the difference between applying PPP through my bank vs LiftFund?
    To apply through a bank, the applicant needs to have a banking relationship with the bank. Anyone can apply through LiftFund.

If you need help or have questions about this SBA-backed PPP loan, make sure to contact us today!

 

Business in the Time of Corona

Consider yourself lucky if you can run your business through WFH, however not many small business owners have that privilege. Restaurant owners, hairstylists, dentists, education centers, and retailers just to name a few, are all in the same boat. They all serve people directly and are now on forced furlough through shutdowns, lockdown, and whatnot. How long is this going to go on? Nobody knows. The more serious question that keep business owners awake at night in their hunkered down-home is - how long can my cash flow sustain my business. I still have to pay vendors, rents, and most importantly, myself and employees that I have not put on furlough or laid off.

This is not the end. One day the dark clouds will scatter, like all crisis we've gone through. One day, business will be back to usual. The question is, did your business manage to weather the storm? Did you give up and write off all your blood, toil, tears, and sweat; and let fate decide your future?

We have many answers and more with the article our founder has written, learn more:
https://www.linkedin.com/pulse/business-time-corona-andre-siaw/

 

 

 

Tips for Surviving Through the Tax Deadline

How to stay on top of things during Tax Season!

tips for surviving through tax deadline

It is the final full month before tax day, no pressure right? Well you're not alone in feeling the pressure of the upcoming tax deadline. It is the final push to file your taxes, so here are some tips to help you dominate the tax season! 

Eat Healthy Food & Be Hygienic

eat healthy food be hygienic

Now it is difficult to balance time between eating and working. Many folks work so much to the point that they forget to even eat at all. Instead, take some healthy food with you so you can continue to have energy while you power through. Also, don't forget to be hygienic out there, practice daily hygiene to avoid illnesses that'll hinder your progress.

Don't File Last Minute

No one wants to scramble all over the place in an attempt to file their taxes last minute. It doesn't end well, you'll stress out whether or not you filed your forms correctly and the IRS will come over you. It is better to have a schedule prepared for yourself so you don't forget things in the back of your mind.

Don't Forget to Ask For Help
dont forget to ask for help

If you feel overwhelmed from all of this, remember it's okay to ask for help. You can be up to speed with OneSelfClub in as little as a few days after sign up, then be able to relax knowing that your books will be prepped and don't have to scramble for them. Talk with us today on what else you can do to help you during the tax season. Onward to the final countdown!