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On Monday, April 13, we focused on finances with John Miller, director, Strategic Advisory and Valuation practice, Chesapeake Corporate Advisors (CCA) and Todd Marks CEO & Founder of Mindgrub. John and Todd talked about the CARES Act as well as offered advice on how our firms can not only survive but thrive during this pandemic.

Listen to the conversation below. And see the recap for some of the highlights.

RECAP

Resources:

Payroll Protection Program: covers companies with 500 employers or less that have been impacted by COVID-19

  • Offers eight weeks of payroll – 2x times monthly payroll
  • Can be used for mortgage/other bills; however, 75% must go to payroll
  • The percentage of loan forgiveness depends on # of employees retained
  • Loan portions that are unforgivable can be paid over 2 years at 1% interested; deferred until 2021

Families First Coronavirus Response Act:

  • Requires employers to give up to 12 weeks paid sick leave (provides two-thirds to full pay depending on the circumstances). Sick/vac can be used for more. Advice – Please try to work with employer to adjust schedule to keep working.
  • Relaxes unemployment insurance, increased payout amount.
  • Payroll Tax Relief: For employers that are not eligible for PPR. Offers deferred payment on employers’ tax for payroll. Also available is the tax credit for retaining your employees. Check with your accountant!

Handling cash flow, vendors payments, etc.:

“Double down on marketing. Double down on business development. You need to bring in same amount of work you had before to feed everything else downstream.”

  • Be conservative with cash but also fight. Be creative. Be adaptable. Think forward.
  • Ask yourself how can you serve your current clients, past clients, and possible gain new clients? Reach out and ask … how can you help with their employee’s uncertainty? How can you help with Covid-19 media or stakeholder messaging?
  • Reach out to your customers re: payments. Do they need to pause the contracts? What can you do to help them? Not a time for collections but rather a time for open conversations.
  • Reach out to your landlord, creditors, vendors regarding your circumstances.
  • Make a plan for what will happen on the other side, i.e., financial forecast, daily cash flow.
  • Add a line item to your expense statements for any expenses related to Covid-19.

Final thoughts: Take this time to find the opportunities you may have not thought of before. Rethink your business. Ask how can you maintain your culture virtually? How will we gather differently after this over? How will our model change?

Time will tell.

The chat was only the beginning of a long conversation that we’ll be having for weeks and months to come. To do our part, we’ll be holding weekly virtual meetings to gather and address a variety of topics. Be sure to stay up to date at www.prsamd.org.

Thank You to Our Chapter Sponsors

Thank You to Our Chapter Sponsors