Whittaker & Company is here to help businesses affected by the COVID-19 crisis. The Association of International Certified Professional Accountants (AICPA) has released several useful resources related to programs the Small Business Administration (SBA) is administering to assist businesses during this challenging time. In the links below you will find the AICPA’s tools as well as a number of other important resources.
Navigating the Paycheck Protection Program (“PPP”) within the CARES Act
The Association of International Certified Professional Accountants (AICPA) has released several useful resources related to programs the Small Business Administration (SBA) is administering to assist businesses during this challenging time. In the links below you will find the AICPA’s tools as well as a number of other important resources:
- AICPA’s snapshot of federal programs available to small businesses.
- The SBA’s Paycheck Protection Program Borrower Application Form, issued by the SBA on April 2.
- Paycheck Protection Program (PPP) loan calculators useful for determining the maximum amounts that are available to a business. The calculation depends on how long the business has been in operation and whether it is seasonal. The AICPA has provided three spreadsheets:
- For most businesses: A calculator for companies that are nonseasonal and in business from 2/15/19 to 6/30/19
- For new businesses: A calculator for companies that are nonseasonal and not in business from 2/15/19 to 6/30/19
- For seasonal businesses: A calculator for companies that do not operate year-round.
- We have added a Paycheck Protection Program loan forgiveness calculator. Feel free to download the spreadsheet and use it for your projections. (Updated May 19, 2020)
- PPP Loan Forgiveness Application – This is the PPP Loan Forgiveness Application that has been published by the SBA and the borrowers will need to supply this to their lenders for loan forgiveness.
Navigating the Employee/Employer Relationship
Effective April 1, 2020, there have been updates and changes to Emergency Paid Leave (“EPL”) and the Emergency Medical Family Leave Act (“EMFLA”). We have provided resources below to help you navigate EPL and the EMFLA:
- Infographic on how the EPL and EFMLA work together
- Infographic on when the programs apply and how to claim tax credits
- Summary of Employer Tax Credits – Downloadable document
- Emergency Paid Leave Policy and Employee Affidavit – Downloadable document
- Downloadable Department of Labor poster which explains employee rights under the EFML
- The IRS
- The Department of Labor
Navigating cash flow during times of uncertainty
During our weekly leadership calls on April 1st and April 8th we covered the need to project weekly cash flow for your business. We understand that many businesses have not recently had the need to project weekly cash flow however our current state creates the need. We have prepared a simple cash flow template that you can download and begin working with to project your weekly cash flow. Use the following as a background when you work through the template:
- Attempt to populate 2-4 weeks prior cash inflow/outflow to gain an understanding of your cash flows going forward.
- Take broad strokes. This is as much of an art as it is a science. You will be able to project items like payroll and fixed overhead much easier than variable expenses.
- Projecting your cash inflows, primarily from customer payments, may be difficult. Start with your accounts receivable aging reports and determine which customers pay on what cycles. Populate the collections with your best estimates and work from there.
We have worked with several clients to prepare working cash flow models. If you would like help creating and managing your cash flow projection, please give us a call.
We will continue to post resources such as these as new information becomes available. Please reach out to us if you have any questions about these resources or other business challenges.