Governor Pritzker has extended the Stay At Home Order to May 30, 2020. But there are several changes in the order that should be examined.
– Illinois Retailers may again open for online and phone orders, offering delivery and curbside pickup of products
– Many Businesses have been added to the term “Essential”, including green houses, garden centers, nurseries, and pet groomers. Really? Pet Groomers?
– Essential Businesses are required to follow new guidelines such as limiting the number of people allowed inside their businesses at one time and staggering worker’s shifts.
– Many, but not all, State Parks will be re-opened on May 1st. Fishing and Boating is allowed in groups of no larger than two persons.
– Golf Courses may reopen with social distancing in place
– Face coverings are required in public when social distancing cannot be maintained.
– Non-Essential Businesses must provide face masks to their employees.
– Essential Businesses must provide face masks to employees when social distancing cannot be maintained.
In other words, The Governor is slowly opening things up again. We will still need to see what our individual mayors have to say in response to this order. But it is obvious that the businesses who have borne the majority of the difficulties in this nightmare, can reopen and breathe a partial sigh of relief.
Now that The President has signed the new bill into law providing for additional Payroll Protection Program funding, many of our clients have received notifications from their banks that their applications were approved. Part of that same bill was to refund the Economic Injury Disaster Loan Program with an additional $60B.
Many have begun receiving the initial forgivable $10,000 grant on that loan in their checking accounts already.
I need to make a clarification.
In prior communications, I had floated the idea that the PPP Loan was a good idea, even if you weren’t planning on using it for payroll. On its face it is a loan where they are only charging 1% interest. How can that be bad?
The problem on the loan is the term. If you do not use it for payroll because you have your people out on unemployment, and don’t have anything else for them to do anyway, then this can hurt you because the term on the loan is only two years.
Let’s use the example of a $70,000 PPP Loan at 1% interest. Payments for the first six months are deferred under the program. If you don’t use it primarily for payroll, with the additional funds going to forgivable operating expenses, you will be left with a payment in excess of $3,900 per month. You only have two years to repay $70,000 or principal.
If you don’t plan on using the PPP Loan for its intended use, then you should be looking at one of the other SBA Lending programs that have twenty or thirty year terms and a more reasonable monthly payment.
Let me leave you with this one thought…
We still have over thirty days to go on this thing, and tempers are running high. The range of emotions that I am hearing from you go from fear and anxiety, to outright insanity and boredom.
You need to maintain your ability to make reasonable decisions for the future of your business, your employees, your clients, and your families. I know that what I am asking is incredibly difficult especially since there isn’t much of an end in sight.
They keep talking about flattening the curve…flattening the curve. I hear that phrase in my sleep. I could get excited about eliminating the curve, but that isn’t what they are saying, is it?
Until there is a vaccine or a cure, what are we really talking about other than prolonging the pain? Maybe we get into summer, and this thing actually acts like the flu and goes away. Does that mean that in the fall it comes back and they lock everything down again just in time for the holidays? What happens then when our economy is trying to get back on its feet and they just shut everything down again? Hopefully they will find a vaccine or a cure and we can be done with this insanity.
We are all dealing with the same uncertainties. What can any of us do?
God forbid that any of us do any independent thinking. God forbid that any of us actually don’t follow the herd mentality to hunker down in a bunker and spend the rest of our lives in fear, cowering in a corner. God forbid that we don’t just throw up our hands and say, “You win…I quit.” If you listen to the media, it certainly feels like that is exactly what they want us to do.
The point is that you can’t let this thing beat you. You can’t let this thing ruin your relationships with your spouse and your family. You can’t let this thing kill your business.The only thing that we can do in response to any of this is to Lead.
You need to take control of your fear and your lives. Love your families. Respect your employees. Take care of your customers. Operate your businesses.
Be that bright shining light for all to see in your community. Be the strength that your family and employees need to get through this thing.
In other words…Stand on your own two feet, be a proud American, and Lead.
Accounting Solutions Ltd. stands ready to fulfill its mission and purpose of protecting you, your family, and your business. If there is ever anything that we can do to help, or even if you just need someone to talk to, we stand ready to serve. I’m here, and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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773-267-7500
chris@accountingsolutionsltd.com
