Nina Renee

Your Paycheck Protection Program Loan may be eligible for forgiveness by the Small Business Administration (SBA) under certain circumstances.  This is one of the key attractions of this program but we want you to be aware of the eligibility guidelines and records retention procedures that you must follow so that your loan can be converted into a grant. Use the PPP funds only for eligible uses At least 75% of the loan amount must go towards payroll costs (capped at $100,000 per employee) and all employees must be kept on the payroll or rehired by June 30, 2020.  Eligible payroll costs consist of all compensation, tips, payment for leaves, healthcare and retirement benefits, and relative payroll taxes. The remaining 25% can be used on other operating costs that were in effect before February 15, 2020, such as rent, utilities, and […]

Unfortunately, hackers and scammers are targeting small business owners accessing the Paycheck Protection Program, part of the $2 trillion stimulus package signed by the President last week.  Experts are estimating billions of dollars of fraudulent claims will be filed as banks themselves may be understaffed and ill-equipped to verify all the companies that will be applying for these 100 percent guaranteed, no fee SBA loans.  Here are things to know so you do not fall victim to one of these scams: The SBA does not initiate contact on either 7a or Disaster loans or grants.  If you are proactively contacted by someone claiming to be from the SBA, suspect fraud. Do not respond to any type of communication, including phone calls, emails, or text messages, from anyone claiming to be from the Treasury Department or the SBA offering you grants or […]

Effective April 1st, the U.S. Department of Labor (DOL) issued temporary regulations for the Families First Coronavirus Response Act (the “FFCRA”) that outlined the requirements for employees giving notice and the supporting documentation required. The FFCRA provides employers with fewer than 500 employees funds, in the form of refundable tax credits, to reimburse them for the cost of providing employees with paid sick and family and medical leave for reasons related to COVID-19, either for the employee’s own health needs or to care for family members. Up to two weeks of paid sick leave is available to qualifying employees.  An additional 10 weeks of partially paid expanded family and medical leave is available to some employees when their children’s school or place of child care is closed.  To request leave, an employee is not required to provide a note from a […]

There are many programs that the government has provided to assist you if you’ve experienced business disruption as a result of COVID-19.  We can help you decide if and what programs you might benefit from the most. Understand your cash flow needs so you have a broad picture of your business’s ability to fund its obligations during the next quarter and during the next year: Determine the amount of cash, including accounts receivable you know you will collect, that is available to you. Determine your overhead obligations over the next quarter and the next year, including all operating costs. Determine what you expect your revenue to be over the next quarter and the next year, considering different scenarios that may affect your business. Know where you can access the capital you will need: Government Assistance Programs SBA 7(a) loan program […]

It is important that you develop a business recapitalization plan to help your business prepare for reduced cash flow by doing the following: Build a 13-week cash flow statement Negotiate with your lenders or new lenders Evaluate whether or not you should recapitalize your business Seek alternative and junior capital sources Business Liquidity Assessment Begin by assessing the following variables related to your cash flow so you can understand your business’s working capital situation: Determine the amount of cash, including accounts receivable you know you will collect, that is immediately available to you. Forecast your cash burn rate, which is the amount of money your business spends, for a month. Determine how much debt you have and your ability to meet all your financial obligations. Debt Covenants The US Department of the Treasury and the Federal Reserve are currently assessing […]