How to Pay Back an EIDL or PPP Loan

September 22, 2020

By Gerri Detweiler –

If your business received an Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) loan, you may have determined it isn’t a good fit for your small business for any number of reasons:

You just wanted the EIDL grant and not an EIDL loan

You didn’t understand the loan terms when you applied

You can’t use the EIDL funds or PPP funds the way you hoped

You don’t think most of your PPP loan will be eligible for forgiveness

You aren’t sure your business will survive to be able to repay a loan

Whatever the reason, you may want to pay your EIDL or PPP loan back. How do you do that? It can definitely be confusing! Click To Tweet
(more…)

5 Simple Ways to Organize Your Small Business Finances

September 15, 2020

By Gerri Detweiler –

Credit scores are often seen as the number one obstacle that prevent small businesses from getting financing. But disorganized financials may be equally to blame.

In today’s challenging economic environment in particular, lenders want to make sure your business is viable and will be able to repay the debt. Organized and up to date finances are essential if you want to increase your chances of getting approved. Here are 5 simple ways to organize your business finances. Click To Tweet

1. Create an Easy Filing System

“We think ignorance is bliss, but really is it filled with headaches and fear,” says Belinda Rosenblum, CPA, money strategist for business owners, and founder of OwnYourMoney.com. “Avoiding your paperwork and bills — or even a huge ‘to file pile’ — is a costly recipe for disaster,” she says. “Not opening bills often causes missed deadlines or even late fees. Opening them but then letting them pile up without filing anything can cause you to feel disorganized and out of control.” (more…)

Small Business Budgeting and Borrowing

September 9, 2020

By Ty Kiisel –

Over the nearly 40 years I’ve either owned or otherwise worked in a small business, I’ve observed that even businesses that might not be considered “seasonal” in the traditional sense ebb and flow over the course of the year, creating times when capital becomes tight and the cash flow pinch can cause an otherwise healthy business to struggle. In today’s world, small business budgeting and borrowing are more important than ever. I use these two words together intentionally, because I believe there is a synergy there for business owners who take a strategic approach to capitalizing their businesses.

A reactionary approach to a small business’ need for capital can satisfy a short-term need or meet an unanticipated shortfall, but it might not help the business grow. We see evidence of this in the failure rate of small businesses in our country. Of the 30 or so million small businesses in the United States, those that survive the first few years are far too few, and only 40% of small businesses are even profitable. What’s more, the most common reason for business failure is a lack of adequate cash. In fact, poor cash flow causes 84% of the business failures in the US. (more…)

Don’t Miss Out On New Covid-19 Tax Credits

September 1, 2020

By Intuit –

Intuit Aid Assist EstimatorTo help small businesses and self-employed workers stay afloat due to the COVID-19 outbreak, the IRS created new tax credits, including:

• Employee Retention Credit
• Paid Sick Leave Credit
• Paid Family and Medical Leave Credit

But carving out extra time to figure out which tax credit options you may qualify for — while adapting your business to COVID-19 — can be an overwhelming and time-consuming experience. Federal financial relief programs often have rules, provisions, and exceptions that are hard to understand at a glance. With a mission to power prosperity around the world, Intuit recently added a Tax Credit Estimator to Intuit Aid Assist — a free interactive tool that helps you determine your eligibility for various federal relief programs. Click To Tweet (more…)

Paving a “pathway to prosperity” one small business at a time

May 27, 2020

By Moody’s –

Small businesses are the backbone of the US economy. However, with recent uncertainty caused by COVID-19, many are struggling to stay afloat. Even in less turbulent times, entrepreneurs often lack insight into what their finances look like from day to day, how much cash they have on hand or whether they will be able to pay their bills on time. In fact, according to a March 2018 Preferred CFO study, 82% of business failures are a result of poor cash flow management.

One of Moody’s key CSR focus areas is empowering people with financial knowledge, which is why we made cash flow management the focus of a 2019 initiative for US entrepreneurs. This financial empowerment initiative was created in partnership with the Foundation for Small Business Development (FFSBD), the philanthropic arm of America’s Small Business Development Centers (SBDCs). It is the first initiative under Moody’s new Pathway to Prosperity program, which is part of our larger Reshape Tomorrow™ initiative. “Our ultimate goal is to help thousands of small business owners and employees to better manage their finances and secure their operations,” says Charles “Tee” Rowe, President and CEO of America’s SBDC. Click To Tweet (more…)