Economic downturns give all business owners, quite literally, pause:pause in growth, pause in hiring, pause to reconsider exactly where our companies are heading — or need to head — if we are to meet our owner-based goals. There are many benefits of using the time afforded by an economic downturn to create and enhance the value drivers in your company. The fundamental questions owners must ask are: Am I using this precious commodity — time — to prepare my company and myself for sale on the day that the economy revives?Or, on that day, will I be where I am today: wishing to sell, but buried in the everyday details of my business and doing little to chart a course toward my ultimate goal? In addition to using your time to install and energize your company’s value drivers to prepare for sale, an economic recession may also has give owners time to evaluate if their current business advisors are equipped to help them prepare their companies to sell. When times are good, … [Read more...] about Economic Downturn Gives Owners Time to Prepare for the Recovery of the M&A Market
Archives for April 2020
Paycheck Protection Program
Your business has successfully applied for and have been approved for a loan under the Paycheck Protection Program. You have received your loan proceeds and now are trying to navigate the uncertain waters of what comes next. Here is what we know: What must the loan proceeds be spent on to ensure loan forgiveness? Payroll costs (compensation, group health benefits, retirement benefits, and state unemployment taxes) RentMortgage InterestInterest on other loansUtilities Are there any other conditions to ensure full forgiveness? At least 75% of the proceeds must be spent on payroll costs, with 25% or less allocated to the other allowable costs noted above.An employee’s salary or wages must remain at 75% or more of their base salary or wage during the last full quarter before you received your loan.Full time equivalent employees must not be reduced in comparison to the base period (which is February 15, 2019 through June 30, 2019 or January 1, 2020 through … [Read more...] about Paycheck Protection Program
Stimulus Package for Corona Virus Information
The federal government has made available several financial resources to help businesses survive and employees to continue to receive paychecks. This is our nation’s effort to mitigate the impact of Corona Virus 19 ‘s impacts. These include the Paycheck Protection Program (PPP), Economic Injury Disaster Loan Assistance (EIDL), and Emergency Economic Injury Grant, Employee Retention Credit, and increases in the amount available under SBA Express Loans, among others. The funds available under these various resources are not unlimited, so it is critical to quick analyze your business needs to determine which, if any, of these resources is right for you. Paycheck Protection Program The Paycheck Protection Program was included as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under this program, nearly $350-billion was made available to provide American small businesses with eight weeks of cash-flow … [Read more...] about Stimulus Package for Corona Virus Information
