We are keeping abreast of financing options in order to provide our clients with next steps in these trying times. We recommend talking to your banker before making any hasty decisions to see what options are available with your current loans. This could include interest only payments and potential deferrals. In addition, the Small Business Administration (SBA) has included COVID-19 affected businesses in their disaster loan assistance program, allowing for loans up to 2 million dollars to small businesses with an interest rate of 3.75% paid out over 30 years. Additionally, the bill before Congress allows for eligible small businesses to receive up to 10 million dollars in loan support, most of which is expected to be converted to grants for which repayment would not be necessary. A key item to note is access to the funds derived from the bill would not be allowed for small businesses who have already received the SBA loan as it is currently drafted. Thus, understanding your options and the ramifications of your choices is critical in these uncertain times. Things are changing daily in Washington, that’s why we are here to help. Please contact us if you have questions.
About Michael (Mike) Edwards, CPA, CFE
Mike is a director at Meadows Urquhart. He specializes in providing audit and other assurance type engagements ranging from traditional financial statement audits to financial contract audits with public and private for-profit companies, as well as nonprofits and governmental entities. More about Mike.