You need clear advice and actionable solutions now more than ever.
Especially as a small business owner, you are likely feeling the immediate pressure of maintaining the capital needed to sustain your business and meet payroll.
Wiss has set up a dedicated task force to mobilize around this unanticipated challenge. We are at the ready to help simplify the complexity of managing cash flow through crisis with clear advice and actionable solutions
Please reach out if you have specific questions or to schedule an advisory call.
Through the Small Business Administration (SBA), the Federal Government is offering financial assistance programs to qualified businesses. Below is a snapshot of each and here is a full comparison of the two programs.
An additional $310 billion of funding was approved on 4/24/20 to replenish available PPP loans.
The CARES Act has put in place the Paycheck Protection Program which prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
An additional $60 billion in funding was approved on 4/24/20 to support the EIDL program.
A new bill authorizes an additional $60 billion in funding ($50 billion for loans and $10 billion just for forgivable advances) for the EIDL program that had run out of money.
In general, all of the following entities that have suffered substantial economic injury caused by a disaster provided they were in existence on January 31, 2020:
Created to help companies retain employees as businesses face decreased revenue as a result of COVID-19
Created to help businesses with fewer than 100 employees that can demonstrate at least a 25% decrease in revenue as a result of COVID-19.
To apply, visit the NYC Small Business Services website and complete the NYC Small Business Continuity Loan Program application. Once complete, a link will be send to access an application on a partner lender’s site.
Created to provide total of $10 million to NJ small businesses an non-profits to cover operating expenses and ensure continuity of business during COVID-19 outbreak
Completed applications will be considered on a first come, first serve rolling basis. Review the eligibility guide wizard here: https://assistance.business.nj.gov/
This $5 million program was created to encourage private sector investors to provide additional working capital loans to NJ-based entrepreneurial businesses in which the inventors is already an equity holder.
The application process for this program is currently being designed and implemented. More information should become available soon: https://faq.business.nj.gov/en/articles/3835239-what-assistance-is-available-for-startup-investors-or-entrepreneurs-via-the-njeda-entrepreneur-guarantee-program
As a small- to medium-sized business owner, you may already review your income statement to see that the bottom line is trending positively. You should also be keeping an eye on your cash flow. We recommend a weekly or monthly cash flow forecast to monitor your company’s overall liquidity position. Understanding the nature, timing, and amount of cash inflows and outflows is critical to projecting your liquidity position and maintaining healthy cash reserves.
Some forecasting numbers you may consider:
Consider establishing a team with key people from across the organization to meet at least weekly, if not daily, to assess the company’s progress in managing cash. Key stakeholders may include line-level business supervisors from the accounting, finance, HR, operations, and supply chain departments who have visibility and insight into what is happening on the ground.
Some guidelines you may consider:
Review your monthly, quarterly, semi-annual and annual recurring payments and see where you are able to cut costs. Pay close attention to those vendors who are paid by credit or debit card. You may be paying for services and products that you no longer use, or no longer meet the needs of your organization. This is as good a time as ever to eliminate the unnecessary overhead.
Some best practices to ensure availability of cash: