Your Janover team is ready and standing by to support you and your business during these trying times. We have put together this list of resources and recommendations to help you survive the challenges that we are all facing now.
- TAX DEADLINE EXTENDED TO JULY 15, 2020 OVER CORONAVIRUS PANDEMIC – U.S. taxpayers will have a three-month extension to file their taxes because of the coronavirus pandemic, Treasury Secretary Steven Mnuchin said Friday, March 20, 2020. (3/23/20) For state tax filing deadlines, click on the link below:
- 2020 State Tax Filing Guidance – The American Institute of CPAs (AICPA) Matrix provides the latest news on state tax filing relief. The matrix will be updated regularly. (3/23/20)
- Sick Leave – New York State has issued Emergency COVID-19 Paid Sick Leave. Information benefits for employees and information on benefits for employers. (3/23/20)
- The Families First Coronavirus Response Act (3/20/20)
Janover recommendations for your business:
- Unemployment – review your current staff and possibly have employees file for unemployment. NYS also offers a Shared Work program, where employees can receive partial unemployment benefits while working reduced hours.
- Plan for the long term – Speak to your suppliers, landlord, investors, partners and local officials on a daily basis to learn how you can start to implement safeguards that will help you stay above the red while officials work to contain COVID-19.
- SBA disaster assistance loans are available for up to $2 million for small businesses affected by the coronavirus. As of now, only 3 counties in NYS are approved for these loans – with likely more to be added to the list. These loans are at 3.75% and can be used to pay fixed debts, payroll and other bills.
- Call your banker – If you have a line of credit, now is the time to reach out to the bank or other lender about the possibility you might need to draw on the line of credit.
- Understand where your business is financially – Analyze your budget to make sure you have enough cash on hand to operate successfully.
- Business interruption insurance will likely not be available to cover your losses. However, it depends on the terms and conditions of your BI policy. You may be eligible for losses arising from supply chain interruptions. Contact your commercial insurance broker.
- Collect outstanding receivables – if your business’s cash flow is, or potentially will be, affected by the current market, make sure you are following up collections for all outstanding receivables.
We will keep you updated as new developments, financing and other assistance programs arise.
We understand these are difficult times, and we are here to help. We are all in this together, the best thing we can do is help and lean on one another to make sure we stay on top of this situation.
Whether it’s providing additional information, assisting in working through situations that have negatively impacted you or your business, or planning to get ahead on any potential issues that may arise, please contact us and let us know.
Other important updates to be aware of:
- The U.S. Chamber of Commerce put together this toolkit to help businesses and citizens alike understand how to navigate the coronavirus. There are guidelines on how small business owners can ensure they are keeping their customers and employees safe.
- State-wide Initiatives to help small businesses – Each state’s plan to help small business is different, the best thing you can do is check with your local governor’s office for the latest assistance and recourses offered.
- Certain banks have issued statements that they are willing to work with customers experiencing financial trouble in this time. Citi has issued a statement that for 30 days, small business customers are eligible to have their monthly service fees waived. Check in with your bank about disaster assistance offers and lines of credit.
- Have honest and frank conversations with your employees, vendors, landlord and clients about how this is affecting your business.
Here is a quick recap of the some related issues from the government:
- Health Relief: Congress passed a bill to make COVID-19 testing free. Large public events are being cancelled if not already postponed. Major cities like New York City have closed all bars and restaurants, and are operating on a delivery-only rules. The President issued guidelines today that called for Americans to avoid social gatherings of more than 10 people and to limit discretionary travel.
- Financial Relief: The U.S Federal Reserve cut its key interest rate to near zero. Emergency loans are being offered to different financial organizations. The U.S. Small Business Administration (SBA) is offering certain states and territories (CA, CT, ME, WA) low interest federal disaster loans for working capital. The Federal Reserve has also established a $10 billion Commercial Paper Funding Facility that will provide short term credit via commercial paper.
- Employee Relief: The House of Representatives passed H.R. 6201, the Families First Coronavirus Response Act (FFCRA). The FFCRA amends the Family & Medical Leave Act (FMLA) to include Public Health Emergency leave for certain COVID-19 related absences as among the qualifying reasons for using FMLA time off.
- Economic Relief: Interest on student loans will be waived until further notice. The White House is looking into sending direct cash payments to Americans in the next two weeks as a part of a larger stimulus package that is taking place in Washington.
- Updated Guidance on Deferring Tax Payments and Mortgage Payments