Increase Cash Flow Now Despite COVID-19

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The CARES Act passed this Friday, March 27th and we know you have a lot of questions.  While the provisions are intricate, we at Fineman West have a different approach.  Rather than overwhelm you with the technical intricacies of the Act, Fineman West is putting on our Business Advisor hats instead and will focus on what is important to Business Owners during this unprecedented time.  We understand that “cash is king” because even if you had a record-breaking year in net profits with a healthy balance sheet at year end, it all means nothing if you do not have the cashflow today to pay your suppliers, compensate your employees, and maintain credibility with your lenders. 

Our goal is to help you maximize your cashflow generated from the loan and grants programs, maximize tax refunds, and take advantage of the credits and incentives offered by the Act.  Your immediate top priority should be to apply for the Forgivable Loan under the Paycheck Protection Program and to consider the other eight recommendations in the article link below.  Fineman West can help strategize on obtaining the maximum loan amount for you.  We have a dedicated team who is well-versed on the stimulus package and can work through the complex provisions that will translate to actual dollar amounts for you so that you can focus on your business. 

We have detailed key elements of the law in our article, 

Increase Cash Flow Now Despite COVID-19

Some of the key points include:

  • SBA Paycheck Protection Program Loan – Fully or Partially Forgivable
  • SBA Economic Injury Disaster Loans
  • Taxes Owed for 2019 and 1st Quarter of 2020
  • 6 Month Forbearance on Government Backed Mortgages
  • 2018, 2019, or 2020 Net Operating Losses can be Used to Refund Previously Paid Taxes
  • Employee Retention Credit
  • Delay of Payment of Employer Payroll Taxes
  • No 10% Retirement Plan Early Withdrawal Penalty on $100k
  • Qualified Real Estate Improvements

Depending on your individual situation, we will likely have additional suggestions as well.

However, bear in mind that many of the different benefits and breaks are mutually exclusive, and there are many rules and regulations not mentioned in this summary that you need to follow to qualify.  It is a tricky puzzle that we can guide you through and help you with creating and customizing a plan that is most lucrative for your business.  

Here are some additional ways that Fineman West can help:

  • Assist with SBA loan applications to get up to a $10 Million loan that may be forgiven.
  • Prepare financial models to get the maximum money from CARES Act loans and grants.
  • Use tax planning strategies to obtain many of the tax breaks available under the CARES Act.
  • Prepare amended returns to get tax refunds from past years as now allowed under the Act.
  • Prepare cash-flow projections or business planning to advise you on the big picture.
  • Analyze which loan packages would best meet your future business and financing needs.

Please reach out to your relationship partner with any questions or to learn more about these programs, our services, and fees related to the CARES Act.  We hope that you are safe and healthy.

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