News. Trends. Perspectives. July 2020

2020’s postponed Tax Day is officially behind us, but that doesn’t mean you should take a break from financial planning. 

As COVID-19 cases spike across much of the country, business owners must consider whether now is the right time to take advantage of government assistance, and how reopening (or not) is going to impact their long-term finances. At the same time, the Black Lives Matter movement has recently shined a spotlight on the experiences of people of color, including financial challenges for minority business owners. 

In this month’s newsletter, I’ll be looking at some important finance and tax tips for businesses that are navigating the current climate.

In this edition:

• News for Now: The PPP loan application deadline has been extended. What does it mean for you? 
• Tax Trends: Minority-owned businesses may qualify for certain tax incentives designed to give them a financial leg up.
• Paul’s Perspective: How can small businesses set themselves up for financial success as they reopen during the pandemic?

1. News for Now - Financial news that matters to you

PPP loan application deadline has been extended to August 8

The Paycheck Protection Program (PPP), the widely-discussed federal loan program to help businesses impacted by COVID-19, was set to expire on June 30. Mere hours before the deadline, the U.S. Senate extended the program to August 8 and is continuing to accept small business loan applications until that date.

With more than $130 billion in unused federal PPP funds, now is the time for small businesses to take advantage of this recently-revamped program. The PPP Flexibility Act of 2020 changed and added some more favorable terms to the program, including greater flexibility in how the loans can be used, an extended forgiveness period, and payment deferral.

Learn more about the PPP and how it can potentially help your small business stay afloat on the Miller & Company blog.

2. Tax Trends - Helping you stay on track with your taxes year-round

Tax tips for minority-owned businesses

In the wake of Black Lives Matter protests across the country, the business world has voiced a greater collective commitment to supporting professionals of color. If your company is at least 51% owned by a woman and/or person of color, you can become a certified minority-owned business. 

There are several certification opportunities for minority business owners, including the National Minority Supplier Development Council (NMSDC), the U.S. Small Business Administration, The Women’s Business Enterprise National Council, and other local and regional certification bodies. This status can open up some tax incentives and business opportunities that may not be available to you otherwise, which I explore in this blog post.

Not sure where to begin? My top-rated accounting staff and I can help your minority-owned business through the certification process, so you find and claim all applicable tax breaks for 2020 and beyond.

3. Paul’s Perspective - My take on hot financial topics

Overcoming the financial challenges of reopening during COVID-19

As the pandemic worsens across the U.S., local officials are questioning whether to proceed with further reopening plans. This puts small business owners in a difficult financial position: They must figure out how to safely continue operating, while trying to recoup the devastating financial losses incurred during the lockdown.

As a first step, I recommend all business owners look carefully at their current finances, business model, and vendor contracts and optimize them as much as possible, especially if your supply chain has been impacted by the pandemic. You should also explore your eligibility for certain CARES Act relief provisions, as well as state-level financial assistance.

Finally, now is the time to consult with your CPA about your finances. Talk to a trusted financial professional about your current budget, your plan for your business’s future, and the best ways to take advantage of tax credits and government relief programs.

Your business doesn’t and shouldn’t have to navigate this difficult time alone. Working with a CPA firm like ours is the best way to get yourself back on solid financial footing.

- Paul Miller, founder and managing partner of Miller & Company LLP