Care Act for small business with no Payroll

[washregal]

Understanding the self serve business - here we are with all of the overhead of small business without payroll - Does anyone know if there is any benefits available for us.. as self service car wash owners - effected by COVID -19? Utilities / Mortgage Payments / Equipment loans are the same as any other business with Payroll.. Has anyone been able to define help that might be available.. and of course how to apply?

 

[soapy]

You can go to the SBA.gov website and look under the 7a disaster loan program. You work direct with the SBA and not the bank. You can borrow certain amounts of money at very low rates for up to 10 years without having to sign a personal guarantee and use the proceeds as you need.

 

[Car Wash Newbie]

Like soapy said go directly to the SBA. They’ll even give you a $10k. It takes 10 -15 mins for the application. Pretty straightforward

COVID-19 Economic Injury Disaster Loan | U.S. Small Business Administration

covid19relief.sba.gov

 

[Waxman]

FYI: In my opinion, setting up a corporation is a good idea on many levels. One thing is that you can pay yourself as an employee of the business. I plan to apply for the PPP loan and my pay is included in the payroll figure.

 

[wyatt]

FYI: In my opinion, setting up a corporation is a good idea on many levels. One thing is that you can pay yourself as an employee of the business. I plan to apply for the PPP loan and my pay is included in the payroll figure.

You had to have paid yourself a salary in 2019 for it to work. The issue for most of us that do the S Corp route is that we pay ourselves a fair, but small wage compared to our net income. With that said if you are not a corporation and did not pay yourself you can get the PPL off of your 2019 schedule C net income, which should equate to way more PPL funding (max net income set at 100k however).
I agree though, for any other reason besides getting the maximum for the PPL setting up a Corp and paying yourself is the way to go. Best tax planning and liability structure.

 

[mjwalsh]

Not sure if the following link will work for everyone or relevant but:

CLA Legislative Newsletter - April 2020 | Laundry Service Tax

COVID-19 essential business updates and business loans for the self-service laundry industry can be found in the April 2020 edition of the newsletter.

www.coinlaundry.org

 

[Car Wash Newbie]

If you currently have an SBA loan, like I do, your payments will be automatically deferred for 6 months. That would be a pretty good relief for those of us with debt service.

 

[Rfreeman]

If you currently have an SBA loan, like I do, your payments will be automatically deferred for 6 months. That would be a pretty good relief for those of us with debt service.

I have some commercial real estate that are not SBA loans and my bank's (Chase, WF, and small community) all deferred my loans for 6 months. No payments or accrued interest so even if not SBA I would ask.....banks know shutting it down like they have is horrible and they dont want to be left holding the bag like they did in 2008

 

[Car Wash Newbie]

That’s great to hear. If they foreclose on everyone the values would just plummet and they’ll lose money. Glad there’s some common sense out there.

 

[wyatt]

If you currently have an SBA loan, like I do, your payments will be automatically deferred for 6 months. That would be a pretty good relief for those of us with debt service.

They are not only deferring payments for 6 months on SBA loans (7(a), 504, and Microloans), but making the payments for you. They will pay your SBA bill for 6 months, interest and principle. Never has to be paid back and is not added on to the end of your loan.

 

[Car Wash Newbie]

They are not only deferring payments for 6 months on SBA loans (7(a), 504, and Microloans), but making the payments for you. They will pay your SBA bill for 6 months, interest and principle. Never has to be paid back and is not added on to the end of your loan.

Wow that even better. I was wondering about that. Pretty chunk of change for us and so far we’re doing ok unless we get shut down, of course. Thanks for the info.