There?s a small business recovery loan being offered to small businesses to help with cash flow during closures.? ?This is being offered by MA Growth Capital Corporation.
- Open to Massachusetts-based businesses impacted by the COVID-19 with under 50 full- and part-time employees, including nonprofits
- Negative impact must be verifiable
- Loan amounts up to $75,000
- Loan amount not to exceed 3 months of demonstrated cash operating expenses for the 1st quarter of 2020
- No payments due for first 6 months, then 30-months of principal and interest payments (direct debited)
- Annual interest rate 3%
- Personal guarantee required of all owners with 20% or more interest in the company
- Personal credit score under 575 will require an exception
- All asset lien on business
- No prepayment penalty
- Ineligible businesses include companies involved in real estate investment, multi-level marketing, adult entertainment, cannabis or firearms. Companies with past due tax liabilities or tax liens or currently in bankruptcy (Corporate or Personal) are not eligible.
The COVID-19 pandemic is a fluid situation and we are trying our best to keep our clients informed as new information is released.
ADVISE YOUR EMPLOYEES TO FILE FOR UNEMPLOYMENT DURING A SHUT DOWN
Currently all MA Unemployment Career Centers and Unemployment Walk-in Centers are closed and Claimants are urged to file unemployment claims online.? (Attached are two brochures to help with applying for MA Unemployment.)
Other resources that may help you and your employees understand MA unemployment are below:
MASSACHUSETTS COVID-19 UNEMPLOYMENT INFO
Important employer and employee information related to COVID-19.
HOW MA UNEMPLOYMENT BENEFITS ARE DETERMINED
MA Unemployment benefits are approximately 50% of your weekly wage, up to the maximum of $823 per week (as of Oct 2019.)? Here is a link to a more detailed explanation and a calculator.? https://www.mass.gov/info-details/how-your-unemployment-benefits-are-determined
S-CORP OWNERS WHO ARE PAID CAN APPLY FOR UNEMPLOYMENT
As an S-Corp owner you are an employee of the company.? As long as you have been taking a salary you can apply for unemployment.? If you have enough money to pay your bills for the next few months then it probably doesn?t make sense to collect unemployment just to have your practice pay it back later.? Although you can think of it as an interest free loan and may want to apply.? If it turns out that unemployment taken now doesn’t need to be repaid, then that’s a different situation.? Nothing has been finalized by Congress yet as of today.
EMPLOYEE PAYROLL DEDUCTIONS (i.e. Health Insurance)
To get payroll deductions from employees when they are not paid you can:
- Speak with your insurance agent to see if there?s a way for employees to send their portion directly to the insurance company (maybe online).
- Have the employees send you the payment on a regular basis.
- Double up payments when employees return to work.
?COVID-19 SMALL BUSINESS RECOVERY LOAN FUND
You may consider applying for the COVID-19 Small Business Recovery Loan Fund while they are offering access to? money.? You can always pay it back when things return to normal if you don?t need to use those funds.
You have been paying into Social Security for all of your working life, and now it’s time to get your money back. However, the Social Security system is full of arcane rules, secrets, and claiming surprises. This webinar will help you learn the basics to help evaluate the best claiming strategy for you and ensure you maximize this lifetime annuity.
Target Audience: Those that would like an introduction as to how social security claiming strategies work
In this recently recorded webinar, Alex Oliver CFP discusses various strategies to maximize your social security benefit over your lifetime base on the current rules.
Here are other upcoming LIVE Webinars that you can register to?listen to live:
Economic and Investment Overview for 2019
Thursday, Feb. 7, 12 noon – 1 pm, Online – Presented by Alex Oliver, First National Corporation
What is going on with trade? Who is Jay Powell and what do the interest rates actually mean? Are markets currently overvalued or are there still opportunities in 2019? We will provide a general overview covering the global economy and provide you talking points for your next cocktail party.
Target Audience: Those looking to gain an understanding of the market headlines
Why Do Stocks Go Up and Down: A Stock Market Introduction
Thursday, Feb. 21, 12 noon – 1 pm, Online – Presented by Alex Oliver, First National Corporation
We don’t want you watching CNBC to learn about the stock markets: their ratings depend on exaggerating the bad news! Tune in for an investing 101 course so that you may have a general understanding of what happens when stocks boom and bust..
Target Audience: Those who would like to understand how their investments work in plain English
Generational Wealth Transfer: 10 Best Practices
Thursday, March 21, 12 noon – 1 pm, Online – Presented by Alex Oliver, First National Corporation
You may read this and think that this is only for “those multi-millionaires.” However, even small retirement accounts, houses, or cars can create discord within families without a well thought out plan. Hear our thoughts on how to gradually allow your children to take over your estate and avoid senseless conflict.
Target Audience: Those with children of any age