By Mellor Financial
The future of this crisis is unknown. Some people think it will be over in a month, others think we will never recover. The truth is probably somewhere in the middle.
If the growth rate of new cases begins to decline, we may see this become much less significant in 90 days or less. If we don’t control the spread and the daily growth of cases continues, we could have major impacts for the next nine to 18 months. *
The experts tell us that we need to practice social distancing, stay isolated as much as possible and don’t travel. This is not too hard to do as individuals, but many of our businesses are literally shut down by these restrictions.
If our businesses go bankrupt, the long-term impact of COVID-19 will be extended misery and disruption from economic conditions that will injure our citizens and families for potentially years to come.
So, How Do We Save Our Businesses?
Is government the problem or the solution? Ask any business owner and they will probably say government is the problem. Well, even though we love to hate government intervention in our businesses, the government can be our friend. There are currently several initiatives working that may make a huge difference, especially for small business people.
1. Available Now in Some States – SBA Loans
2. Pending – Payroll Tax Credits, Cuts or a Holiday
3. Considered – Cash Support – Checks Issued Directly to Individuals
4. Pending – March 16 Deadline Penalties Relaxed
5. Pending – April 15 Deadline postponed 90 days
* Detailed information can be found at: CDC, Joe Rogan Interview, Dr. John Campbell – YouTube, John Hopkins university, Worldometer, and OurWorldInData.com
There will be opportunities
We’ve seen many companies capitalizing on opportunities from Coronavirus related contracts and other services that help people with working remote.
There will be some losses
However, an appropriate response can massively lessen the damage and we’re there to support you every step of the way! If you have an opportunity or risk on the horizon and want to discuss, set up a time here.
The Government Is Creating Opportunity
The government has signaled billions of dollars in loans (potentially interest free) for businesses that have been negatively affected by coronavirus. We will be providing consulting services helping businesses apply for these loans, decide what to spend the money on and a plan for repayment. There may also be direct cash support; we’ll know soon.
Reduction in payroll tax for someone that is sick up to $2,000 per sick employee is about to pass the Senate. There may be further payroll tax reductions, holidays and there have even been signals per permanently removing the payroll tax. In any case, this will require planning.
As of now, there have been no official change to the tax deadlines; however, there may be a delay in the filing and/or payment of taxes for the 2019 year.