The COVID-19 virus has thrown the entire global economy for a loop. In the U.S., small businesses have been hit especially hard. At the top of every owner's agenda should be finding out what you need to know about a recession, tax planning strategies geared for special economic circumstances, financial opportunities for small businesses, disaster loans, small business accounting techniques, how to apply for disaster loan programs, disaster relief lending, SBA Disaster Relief Funds accounting, and realistic tips for small business lending.

In order to avoid being overwhelmed by a massive to-do list, it only makes sense to work with a small business CPA who can walk you through the application process for low-interest disaster recovery loans and explain the SBAs Economic Injury Disaster Loans, which, though helpful, can be quite complex. Small business tax planning can be complicated enough even without adding in the additional filing requirements that stem from obtaining an SBA loan.

In addition to small business taxes, owners need to worry about simply keeping their organizations solvent. A competent financial adviser for small businesses can explain to you what you need to know about a recession and assist with small business bookkeeping and accounting chores that are part and parcel of any SBA loan application.

Recession: SBA Disaster Relief Funds Accounting

Small business financial advisors are essential when it comes to wading through the various SBA Disaster Relief Funds accounting tasks like application paperwork, qualifying for loans, and more. Small business tax planning is about more than filing forms with state and federal agencies. It means keeping the records necessary to apply and qualify for loans when times are tough.

How does the U.S. Small Business Administration help small businesses? As any financial adviser or small business CPA can tell you, financial opportunities for small business don't pop up every day. And when they do, it often means additional reporting requirements in the form of more detailed small business bookkeeping and small business accounting duties.

What you need to know about the SBA Disaster Relief Fund loans:

  • On March 12, the U.S. Small Business Administration announced its "Disaster Assistance Loans for Small Businesses Impacted by Coronavirus" program via an official press release.
  • The SBA will be working with governors in every U.S. state in order to offer a comprehensive menu of low-interest disaster recovery loans that are targeted specifically to small businesses that have felt the economic impact of the virus.
  • The SBA will continue to offer financial counseling and preparedness planning through its national network of district offices and resource partners.
  • Qualifying small businesses can borrow up to $2 million through the Economic Injury Disaster Loans, which are intended and designed to provide the financial support needed to survive any temporary losses stemming from the current medical situation.
  • Loans are available to businesses as well as private, not-for-profit organizations.
  • If the disaster prevents a business owner from making payroll, paying debts, or paying a number of other routine operating expenses, the owners can use loan proceeds to cover the shortfall. If your business can get credit elsewhere, you won't be eligible.
  • If you can't get any credit from a non-SBA source, you will be eligible for assistance in the form of a 3.75 percent interest rate. If you are a non-profit, the interest rate is set at 2.75 percent.
  • Terms of repayment are decided on a case-by-case set of criteria, but the maximum repayment term is 30 years.

What To Do Next

The tax planning environment for small business owners is changing rapidly as the federal government and other entities gear up to help small business owners in their time of need. Startups and small entities often turn to small business CFO advisory services as a full-scale solution for cash-flow management, development, planning, and more.

Our team at Atlanta-based Fusion CPA can assist small business owners like you who want to take advantage of low-interest disaster recovery loans, temporary filing delays for small business taxes, disaster loans, disaster relieve lending programs, and the SBAs Economic Injury Disaster Loans to help mitigate recession impact and loss of revenue associated with COVID-19. Our experts can act as resource partners for all your disaster relief lending applications and show you how to apply for disaster loan programs.

It's essential to take advantage of financial opportunities for small businesses as soon as possible. The most important point to understand is that a CPA for small businesses can help you maximize your chances for SBA approval and act as small business financial advisers along the way. Our small business CFO advisory service can help tackle the work needed to obtain loan approval and get the working capital you need to weather the remaining months of the business cycle. We are here to help and ready to respond to your businesses's unique needs quickly. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!


This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive