Tips

SBA “Top 3 Small Business Holiday Marketing Tips for 2020”

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Play Toys & Books, Logan Square, Chicago — https://www.playtoysandbooks.com/

From the Small Business Administration —

With Black Friday, Small Business Saturday, and Cyber Monday in November kicking off the holiday shopping season, now is a good time for small businesses to boost sales. This year, 60% of consumers plan to do half or more of their winter holiday shopping at local retailers. Capitalize on this growth opportunity by using the following marketing strategies this holiday season.

  1. Leverage email to grow sales. In a 2020 survey, 79% of small business owners said email is “important” or “very important” to their businesses. Take time over the coming weeks to establish an effective email marketing strategy for the holiday season. Start by adopting email marketing best practices, such as using email marketing software, dividing your email list into specific demographic groups, locations or other characteristics, and writing engaging subject lines. Next, consider what types of emails will be valuable to your customers during the holiday season, such as highlight sales, new products and services, pre-ordering and curbside pickup options, and shipping timelines that may interest your customers. After a customer first signs up for your email list or makes a purchase, follow-up with a “thank you” note and a discount code to stay connected to your customers. Avoid sending too many emails each week, or you risk losing subscribers (no matter how compelling your emails are)!
  2. Engage with customers on social media. Social media is another great way to directly communicate with customers and market your business. Through social media, you can show why current and prospective customers should buy your products or services. If you’re a retail business owner, broadcast a Facebook Live event to showcase some of your latest merchandise and why they make the perfect gift. If you provide a service, consider marketing gift cards as holiday presents. Alternatively, you can explain how your services can ease the stress of the holiday season. Use hashtags and partner with other businesses to help your social media posts reach as many potential customers as possible.
  3. Add a personal touch. In some cases, you might not be seeing your customers in-person this year due to local regulations related to the pandemic. If you have a direct mailing list, send handwritten notes to customers to maintain personal connections. Post a compilation video of your staff on social media thanking customers for patronizing your business in 2020. As always, provide top-quality customer service by responding promptly to messages by phone, email, and social media. Small things can make a big difference when distinguishing yourself from the competition.

For an expert second opinion on your holiday marketing plans, reach out to local SBA resource partners, who can provide one-on-one advice and are available remotely. Take advantage of SBA marketing resources, including SBA Learning Center courses such as Marketing 101 and Social Media Marketing. Focusing on marketing this holiday season will not only boost your sales at the end of the year, but will also help you generate leads and build brand loyalty for 2021 and beyond.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, IRS, Tips

PPP Forgiveness Applications: When To Apply?

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Slide from AICPA Town Hall October 22, 2020

In today’s AICPA Town Hall, they reviewed the reasons a business might decide to apply for PPP forgiveness now — even though we have been consistently recommending to loan recipients that they wait until there’s movement from Congress on an automatic or streamlined forgiveness program (and continue to do so).

Basically, unless you are:
1) selling your company; or,
2) potentially violating loan covenants because of the PPP being represented as a liability; or,
3) needing to lay off staff after meeting FTE reduction requirements;
…you should still hold off on applying for forgiveness.

However, if you are in one of the groups above, then consider the AICPA‘s list of “Factors impacting timing of forgiveness application”:
• Has the borrower spent the full amount of PPP funds?
• Is borrower trying to sell the business? See Oct. 2 SBA Procedural Notice
• Is the loan under/over the $150k dollar amount of potential threshold for simplified forgiveness in Congress? (New form for <$50K)
• Has tax planning around timing of deductibility of expenses paid with PPP funds been considered? See Aug. 20 discussion with Ed Karl (AICPA VP of Tax)
• Does the borrower need to make business operating decisions that may include FTE reductions? (See AICPA FAQ #10, below)
• Does borrower want to get PPP debt off the books? Are there loan covenants to consider?
• Is the lender even accepting applications?

It’s important to weigh all of these criteria before making the decision to apply for forgiveness.

And for reference, here’s AICPA FAQ #10:
If a borrower applies for forgiveness before the end of the covered period, how does the FTE reduction safe harbor work in operation?

The instructions for the Form 3508 forgiveness application indicate that the borrower includes the number of FTEs at the end of the covered period OR the date the application is submitted. The SBA has provided information to lenders as follows: “When a borrower submits the completed application and a lender has processed the borrower’s forgiveness application, the borrower is no longer bound to the FTE restrictions. The covered period ends when the borrower successfully applies for forgiveness.”

To summarize: we still recommend, as does the AICPA, that unless you fall into one of the groups above, you hold off on forgiveness applications for now. Work with your CPA to run the numbers to make sure you meet the requirements as they currently stand — knowing they might get easier, but protecting yourself if they don’t — but hold off on the actual application until Congress takes some action, which will be coming eventually… it’s a question of “if”, not “when”.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Cooperatives, COVID-19 Financial Relief, Education

PPP Loan Forgiveness for Co-ops – Webinar 10/22

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PPP Loans and Forgiveness: A Cooperative Perspective: October 22 2020
https://nsacoop.org/webcast_details.php?id=288

My colleague Eric Krienert will be teaching a one-hour webinar on October 22 on the topic of the Paycheck Protection Program. This session will provide an overview from a cooperative perspective of loans and forgiveness under the PPP. Beginning with the economic necessity certification, to qualifying expenses, to the spending timeframe and FTE limitation — an explanation will be provided on restoring FTEs and wage limitation before looking at the loan forgiveness application process. The session will conclude with a review of tax and other considerations.

More information on the webinar, as well as registration details, can be found here. The session is free to NSAC members and $56 for non-members.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, Tips

SBA Announces Streamlined PPP Forgiveness for Loans Under $50K

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Another late-night guidance drop from the SBA — this time, good news for PPP borrowers of $50,000 or less… and somehow managed without the Congressional action we’ve been waiting for that seems to have all but stalled out.

The SBA has released a new, streamlined forgiveness application for these borrowers (and has eased the burden on lenders as well) — but notably, the requirements are exactly the same as prior to this newest Interim Final Rule. It’s just the simplified application and reduced documentation that make it easier. This means that small business owners still have to meet all the forgiveness rules that were in place before this most recent development — and they must certify as such on the application.

So on the one had, it’s great news — on the other, I’m not sure how much this will help anyone… it’s essential to run the numbers and collect the documentation regardless, to confirm compliance, as well as for support should the forgiveness be audited or challenged.

This also is a far cry short of the “under $150,000” floor that has been introduced by numerous members of Congress. Maybe this is just a start, and it will be increased with a legislative act?

Regardless… because the calculations and documentation must be dealt with despite the shorter application (and kept for your permanent records), I still recommend using the free AICPA tool — PPPForgivenessTool.com — as it does an amazing job of taking care of much of the number-crunching behind the scenes, and turns out an application and supporting documentation pdf packet that should be just the thing for your files. It’s the best PPP calculation resource I’ve tested yet (and believe me, I’ve tested quite a few).

Given the slow pace of SBA forgiveness and the likelihood that there will be more relief coming from Congress after the election, the AICPA continues to recommend that borrowers hold off on applying for forgiveness for now — unless they need to because they’re selling a business or have restrictive debt covenants.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, Illinois, Tips

Chicago Performing Arts Venue Relief Grant – FREE Webinar Oct 8

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https://www.youtube.com/watch?v=dv3UTm7ATwk&feature=emb_logo

As Republicans in Congress refuse to pass further relief packages for those hit hardest by COVID-19, Chicago announced a new fund to help struggling local performing arts spaces — as it’s currently estimated that 90 percent of live music venues won’t survive without additional support, reported Block Club.

Venues can apply for up to $10,000 from the Performing Arts Venue Relief Program, funded in part by the Walder Foundation and the Arts for Illinois Relief Fund, and in partnership with Accion. The city said 120 eligible applicants will be randomly selected by lottery for the relief grants.

Interested applicants are encouraged to attend an application assistance webinar on Thursday, October 8 from 12:00pm–1:00pm. Register at: https://www.eventbrite.com/e/venue-program-info-session-tickets-123724718965

Eligibility criteria and applications are available at chicago.gov/artsvenuerelief — the application deadline is October 23 at 5pm Central. Grant recipients will chosen via lottery and notified of their acceptance on November 16th.

The program will prioritize funding organizations located on the South and West sides, in LMI (Low and Moderate Income) community areas, organizations that were not eligible for the City of Chicago’s Together Now program, and organizations that have not received grants through the Arts for Illinois Relief Fund, the City of Chicago’s Together Now program, or the 2020 CityArts Large program for organizations with budgets over $2M.

In addition, if you care about live performance, please consider sending this form letter to your representatives asking them to support the bipartisan “Save Our Stages” Act.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, Illinois, Tips

Chicago Phase 4 Reopening Guidelines By Industry – FREE Webinar Recordings

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Recorded webinars for Phase 4 reopening guidance are available online now.

Chicago has moved forward, along with the rest of Illinois, into Phase 4 of reopening.

According to ABC News: Illinois has made progress through its plan for having tiered mitigation for the 11 regions in the state with the potential for increasing mitigation measures based on local resurgences. Regions are currently at the Tier 4 level, with some having additional measures.

Phase 4 of reopening allows for gatherings of 50 people or fewer, restaurants and bars can reopen with limited capacity and restrictions, travel resumes, and child care and schools can reopen under guidance from the Illinois Department of Public Health. Face coverings are required and social distancing is the norm. The Illinois Department of Commerce has issued a pdf of guidelines.

Chicago has a slightly more cautious roll-out of Phase 4 based on a higher concentration of population, risk factors, and cases. The mayor recently announced the next phase of reopening for all businesses, including Retail, Food Service & Bars, Personal Services, and Health & Fitness Centers. The city’s Department of Business Affairs & Consumer Protection has once again held free webinars on the topics and made the recordings available on their site and YouTube.

Recorded Reopening Webinars:

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Cooperatives, Education

NSAC Co-op Webinar 9/29: Distinguishing Between Patronage, Nonpatronage and Nonmember Income

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NSAC’s Cooperative Learning Network offers excellent continuing education for co-op professionals.

I’m particularly excited about this upcoming webinar offered by the National Society of Accountants for Cooperatives (NSAC) — Tuesday, September 29, 2020 at 2 pm ET / 1 pm CT / 12 pm MT / 11 am PT — entitled “Distinguishing between patronage, nonpatronage and nonmember income“.

Why? Well, not only is it an important and complex topic about which there is little written — and even less often presented at conferences and in continuing education settings — but it’s being taught by some of my very favorite colleagues in the co-op world. In particular, Teree Castanias and George Benson are regular educators in the space of cooperative tax issues, and among the very finest in their fields. (And one of the moderators is none other than a friend of mine, the extremely knowledgeable and dedicated Rebecca Smith.)

“This session will discuss the consequences of patronage distributions and/or patronage retentions in the current environment. Panelists will discuss prior case law and the proposed regulations as well as the consequences of both in the current environment.”

If you work in co-op accounting, you owe it to yourself and your clients to take an hour out of your day to get up-to-speed on this complicated and essential topic. It’s a fast, convenient, easy, and affordable way to learn from some of the leaders in the field. Nope, they don’t pay me to say this… I’m just excited about it. Register here. See you there!

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, Illinois, Tips

Illinois Business Interruption Grant, Round 2, Open Now — FREE WEBINAR Sept 22

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Register by visiting www.chicago.gov/businesseducation

The State of Illinois has created the Business Interruption Grants (BIG) program for small businesses in Illinois suffering losses as a result of the ongoing COVID-19 pandemic, as well as communities impacted by the recent civil unrest. Applications for a second round of funding are now live. A total of $220 million will be made available for small businesses of all types in Illinois.

The Chicago BACP has put together a free webinar on September 22, 2020 that brings together the following partners to provide an overview of the program and how to apply.
– Ciere Boatright, Chicago Neighborhood Initiatives
– Brad McConnell, Accion Serving Illinois and Indiana
– Marcus Yancey, Local Initiatives Support Corporation Chicago
Register by visiting www.chicago.gov/businesseducation today.

The second wave of funds includes the following provisions to ensure a wide distribution of funds geographically and across business type:

  • Heavily Impacted Industries – $60 million for heavily distressed industries, such as movie theatres, performing arts venues, concert venues, indoor recreation, amusement parks, and more.
  • Disproportionately Impacted Areas – $70 million set aside for DIAs, defined by zip codes identified by the General Assembly for communities that are most economically distressed and vulnerable to COVID-19.
  • Downstate Communities– DCEO has committed to ensuring that at least half of all remaining funds, totaling more than $100 million, are reserved for businesses in downstate and rural communities of Illinois.
  • Priority Businesses– Apart from the $60 million for heavily impacted industries, applications from the following types of businesses will be prioritized for review for remaining funds:  businesses directly affected by regional mitigations implemented by the state or local governments, independently owned retail, tourism- and hospitality-related industries including accommodations, and more.
  • Agriculture – $5 million of the remainder of funds will be set aside for livestock production disruptions.
  • Grants and Loan Forgiveness for Illinois Small Business Emergency Loan recipients – As authorized by the General Assembly, DCEO will offer grants for businesses that have incurred eligible costs to offset loans received under the Illinois Small Business Emergency Loan program.

Businesses outside the categories listed above are also eligible to apply and receive funding under the program but may be reviewed later than priority businesses. All businesses will receive a decision on their grant application within four to six weeks of application submission. More information here —
https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/C19DisadvantagedBusGrants.aspx

I am getting a lot of questions from recipients of Round 1 grants about what types of costs are considered eligible for this program. The Certification & Requirements pdf states the following.

ELIGIBLE COSTS
“The subrecipient will use the proceeds of the subaward supported by the Program exclusively for costs and losses incurred due to the business interruption or other adverse conditions caused by the Coronavirus Disease 2019 (COVID-19) pandemic. For purposes of this Program, costs incurred during a business interruption may be classified as a cost related to COVID-19. Grant proceeds may be used to reimburse costs and losses such as inventory, equipment (including Personal Protective Equipment and other supplies to promote health and safety), compensation (including salaries, wages, tips, paid leave, and group healthcare benefits), rent, technology to facilitate e-commerce, professional services procured (including the design and construction of environments necessary to promote physical and social distancing and cleaning and disinfecting services) and other costs of operation in accordance with the applicable administrative rules or the policy directives of the grantor that was incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. All spending related to this program must be reimbursable by the Federal Coronavirus Relief Fund, as prescribed by 601(a) of the Social Security Act and added by section 5001 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act including all subsequent federal guidance. Expenses that have been or will be reimbursed under any other federal program are not eligible for reimbursement through the proceeds of this subaward.“

Please pass the word along about this grant to the neediest of the Illinois businesses you know.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

IRS

IRS Labor Day Weekend Planned System Outage

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From the IRS “e-News for Tax Professionals” comes a reminder that even though we are scrambling after an elongated tax season to get our S-Corp and Partnership returns filed by the September 15th deadline, this won’t be the weekend to e-file them.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

COVID-19 Financial Relief, Education, Software, Tips

New AICPA FREE Searchable Index For PPP Guidance

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Screenshot from 9/3/20 AICPA Town Hall of excerpt of new PPP rule index

The AICPA has come out with yet another amazing, free tool to help business owners administer PPP loans and accountants to advise them.

If you’ve been playing along, you know that the Small Business Administration (SBA)’s troubled and challenging Paycheck Protection Program (PPP) has had a ridiculous number of clarifications, FAQs, Interim Final Rules (IFR), and other guidance. Figuring out which piece of info is hidden in which document is nearly impossible.

The American Institute of CPAs (AICPA) felt the same way. So the organization that brought you the [free] PPP Forgiveness Calculator and [also-free] PPP Online Forgiveness Tool, now brings you a (FREE) lovely spreadsheet with (so far) 170 searchable questions about the PPP, and indicates the date and type of guidance, and links to where to find it.

From the AICPA:

The Paycheck Protection Program (PPP), under Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides small businesses with forgivable loans. Administered through the Small Business Administration (SBA), the PPP loan proceeds are to be expended on payroll, rent, mortgage payments, or utilities. The SBA, in conjunction with the Treasury, have released Interim Financial Rules (IFRs) and Frequently Asked Questions (FAQs) to provide guidance.

This searchable index allows users to easily find guidance on the PPP loan application, eligibility, allowable use of funds, loan forgiveness, maturity date, and more.

If this or any other posts on the website were useful to you, and your financial situation permits it, please consider contributing to my tip jar. This allows me to continue to provide free accounting resources to small businesses who do not have the funds available to hire a CPA.

Accounting Services for Small Businesses