COVID-19 Information Center

COVID-19 Practice Financial Action Plan
April 8, 2020 (published) | April 30, 2020 (revised)
Anthony Bartels; Raphael Moore; Paul Pion

CARES ACT UPDATE 5/22/20

PPP funding is still available.  The most recent updates to the CARES Act provisions as of May 18 include:


Rafi Moore's summary can be found here.

Click here to download a PDF of the COVID-19 Practice Financial Action Plan.

How to Use the COVID-19 Practice Financial Action Plan

Starting at the top: If you foresee economic uncertainty potentially threatening ongoing support of your business? (in the face of the uncertainty accompanying COVID-19, this will be true for all).

  • Your first priority is to stabilize cash flow:
    • Reduce expenses where you can.
    • BUT – above all, ensure you can meet payroll and keep your staff employed
      • This is critical if you want to remain eligible for forgiveness on your PPP (Paycheck Protection Program) loan.

 

  • Apply for a PPP Loan: Independent of how worried you are, all practice owners, whether self-employed, sole proprietorship, or corporation should apply for a PPP loan
    • When can you do this with your local SBA approved lender?
      • On or after April 3 for small businesses and sole proprietorships.
      • On or after April 10 for independent contractors and self-employed individuals.
    • How much should you request?
      • Up to 2.5 times 2019 average monthly payroll (exclude portion of any individual salary above $100,000);
      • Plus any EIDL loan you have received in the past or will receive by the time your PPP loan is funded.
    • AGAIN, for your PPP loan to be forgiven it is critical you maintain employee headcount and not reduce total payroll more than 25%

 

  • How worried you are?
    • If you are very tight on cash and cash flow to the point you are worried about making your next payroll:
      • Apply for an EIDL loan from your local SBA approved lender.
        • Accept the $10,000 Emergency Grant (you can only do this once).  It is a grant you do not need to repay, though It will impact the amount forgiven on your PPP.
        • Below $200,000 no personal guarantee is required
      • Consider requesting an SBA Express Loan from your local approved SBA lender.
      • Consider accessing other sources of cash if needed. AVOID CREDIT CARDS
    • If you are in less immediate need/worry: (next two columns)
      • Apply for an EIDL loan from your local SBA approved lender.
        • Accept the $10,000 Emergency Grant (you can only do this once).  It is a grant you do not need to repay, though It will impact the amount forgiven on your PPP.
        • Below $200,000 no personal guarantee is required    
      • Independent of how worried you are:   
        • Reassess expenses, cash and cashflow monthly:
          • You can apply for more EIDL loan money

Updated: 4/3/2020: 
 - Links to supporting documents made more obvious



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