Practice Owners-Small Business Recovery Loan

by The MDTAXES Network | Mar 18, 2020 | COVID-19, General

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.

https://www.empoweringsmallbusiness.org/what-we-offer/emergency-loan-funds/covid-19-loan-fund

HIGHLIGHTS:

• 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.

Payroll – What To Do For Employers

by The MDTAXES Network | Mar 18, 2020 | COVID-19, General

The COVID-19 pandemic is a fluid situation and we are trying our best to keep our clients informed as new information is released.

GUIDES:

• Mass Dental Society – Temp Office Closing Guide
• How to file for Unemployment MA1
• How to file for Unemployment MA2

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.

https://www.mass.gov/info-details/massachusetts-covid-19-unemployment-information#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:

1. 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).
2. Have the employees send you the payment on a regular basis.
3. 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.

https://www.empoweringsmallbusiness.org/