H&A update regarding COVID-19
March 14, 2020
Dear Valued Clients,
We hope that you and your family are staying healthy and safe. Here is an update on our operations and some important Government updates to your Finances.
We want to thank you for your flexibility and patience as we work together during the COVID-19 pandemic. As the situation surrounding COVID-19 rapidly evolves, we want to assure you that Holmes & Associates, CPAs are committed to providing you with excellent and continuous service, as we continue to maintain our operations and protect our employees and communities.
Federal, State and some local governments have been responding to the evolving need for relief in this time, here are some important things that you should know:
IRS filing deadline: The Treasury Department has extended the April 15th deadline to file returns and to pay taxes to July 15th.
California deadline: The Franchise Tax Board has extended both the filing and payment deadline to July 15th.
What Holmes & Associates, CPAs are doing NOW.
We have a task force and leadership team who are working tirelessly to insure that we are prepared for any contingency in serving you during these challenging times.
We are requesting all clients send us documents via US Mail or email. If you are more comfortable dropping off your documents, please call the office, and we will make arrangements for the drop-off. We will setup virtual conference calls with you to go over your data and get you your accounting and tax services delivered expediently. We are practicing social distancing with our staff as well as with our clients. The safety of our clients and employees are of primary importance.
Holmes & Associates, CPAs remains committed to providing you with excellent and continuous service, feel free to reach out to us and we will help you.
We are providing data regarding the following programs and websites that may assist you during this COVID-19 period. Please let us know if you need assistance. The data is fluid and should be verified with the programs as to any changes.
SBA Economic Injury Disaster Loan Program
If you need cash to offset lost revenue and\or help keep your business afloat, the programs below can help. The U.S. Small Business Administration (SBA) coronavirus resource page provides a list of relief programs, as well as offering guidance to small business owners during this crisis.
The SBA is administering a lending program for small businesses. The SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus in Presidential and SBA-declared disaster areas. The disaster assistance is made in the form of low-interest loans to businesses.
These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years.
How to Apply
Apply online and select “Economic Injury” as the reason you’re seeking assistance.
You’ll need to supply required supporting documentation that could include the business’s most recent tax returns, a personal financial statement and a schedule of liabilities that lists all your current debts.
Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 for help with your application.
Apply here: https://www.sba.gov/funding-programs/disaster-assistance
City of Los Angeles Small Business Emergency Microloan Program
Businesses and micro-enterprises located in Los Angeles that are responsible for providing low-income jobs can get an emergency microloan of $5,000 to $20,000. Loans with repayment terms of six months to one year carry an interest rate of 0% and five-year loans have interest rates of 3% to 5%.
Who’s eligible: To get a loan, you must meet requirements including having “reasonable and responsible” individual credit history, committing to use the loan for working capital only and ensuring your business is located within the City of Los Angeles. If you own 20% or more of the business, you must guarantee the loan.
How to apply:
Apply online and provide supporting documentation including business and personal tax returns, three months of bank statements and business and personal financial statements.
Apply here: https://ewddlacity.com/index.php/microloan-program
Los Angeles has also instituted a moratorium on evictions of businesses impacted by the coronavirus through March 31.
We want to encourage you to stay informed of things that you can do to keep yourself and your family safe using reliable sources. For your convenience, we have provided the links below.
CDC COVID-19 Information page
WHO COVID-19 Information page