If the COVID-19 pandemic has taught us anything, it’s that we don’t know what’s coming around the corner. And like the pandemic, the next thing that comes around the corner will likely be out of your control. But there is something you can control with some careful planning: the transfer of your family-owned business. Let’s talk about business exit plans.
Whether you want your company to continue growing after you retire or simply want to turn a profit on the sale of your business, every company owner needs an exit plan. As a CPA who has worked with business owners for decades, I’ve seen several companies unravel simply because they failed to plan ahead. Here’s just one example of a company that lost it all.
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At the end of 2020, Congress passed and President Trump signed a new law that provides for additional relief related to the COVID-19 pandemic. The Consolidated Appropriations Act, 2021 (CAA, 2021) includes a second draw of Paycheck Protection Program loans (PPP2 loans) and it also finally overruled the IRS and allows businesses to deduct ordinary and necessary expenses paid from the proceeds of PPP loans. Let’s take a look at who’s eligible for a PPP2 loan, the terms of the loans and when to apply.
President Trump signed the bill into law on December 27, 2020. Well, it’s hot off the press and it’s 5,593 pages long. It’s impossible to cover everything in the latest COVID-19 relief bill - called the Consolidated Appropriations Act, 2021 - so we are concentrating on Divisions M & N of the bill involving updates to the CARES Act. Let’s look at the highlights.
The Small Business Administration (SBA) released new required forms for Paycheck Protection Program (PPP) loan recipients with loans exceeding $2 million. These forms will help the SBA confirm “necessity” of loaned funds, of which the agency has already announced that PPP loans exceeding $2 million will be audited.
The best fundraising tip for nonprofits during a global pandemic? Don’t stop asking for support. “There may be some hesitancy to ask and that's understandable,” said nonprofit fundraising expert, Vince Connelly, “But bottom line, the only way you're really going to raise money is if you ask for it.”