I understand how concerning the past few weeks have been and I want to start by saying that I wish you and your family good health as we push through this epidemic. My goal with this guide is to provide you a resource that will help bring some peace of mind over your financial situation. With that said let’s get into the details:
Tax Updates
As you may have heard the IRS has pushed both the tax deadline date and the tax payment date back 90 days to July 15th. This means that even if you file taxes now the money owed is not due until July 15th. This allows you to use some of the money that you saved for taxes to keep you and your business afloat. My recommendation would be to use this money if you need it and once July 15th comes you can set up an IRS payment plan to repay the taxes owed (payments plan can be up to 72 months at only 3% interest)
What To Do About Your Bills?
The of the worst financial issues about this pandemic is that most people are forced to stop working BUT their bills are still coming in. So what can you do? Well you can’t defer all bills but some of them may give you a temporary pass:
Credit card or loan payments If you have seen a reduction in pay due to COVID-19 and are struggling to make your credit card or loan payments, contact your lender right away. Regulatory agencies have encouraged financial institutions to work with customers impacted by the coronavirus. For more guidance on which banks and financial institutions are offering these payment deferrals, click here.
Mortgage or rent payments If you do not have enough money in your savings to cover your mortgage payment or rent contact your lender or landlord immediately. Do not wait until you’re behind on payments. Some lenders may work out an agreement with you to waive late fees, set up a repayment plan or offer loan forbearance.
Utility bills On March 6, the chairman of the state Public Utility Commission signed an emergency order prohibiting electric, natural gas, water, wastewater, telecommunication and steam utility terminations by utilities that are under the PUC’s jurisdiction. The moratorium will remain in place for as long as the Proclamation of Disaster, issued by Governor Tom Wolf related to the Coronavirus, is in effect. If you are struggling to pay your utility bills, contact your service provider for possible emergency assistance programs.
Student Loans On Friday it was announced that there will be student loan relief in response to widespread economic hardship due to the coronavirus (COVID-19) pandemic. Federal student loans will automatically have their interest rates set to 0% for a period of at least 120 days. Additionally, borrowers will have the option to suspend their payments for at least two months, without interest, during the coronavirus crisis. There are still steps you have to take to complete this so click here to learn more.
Business Loans Grants & Relief Efforts
As part of its disaster assistance program, 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. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant but terms can b up to a maximum of 30 years some loans may actually be forgiven. To learn more about each loan option view this GUIDE! In addition, use this list to find the top 100 SBA Lenders!
In addition to the SBA Loan, the Government has also come up with the following grants & relief efforts. These are either grants on loans that are forgiven... (AKA FREE MONEY!):
However, the SBA isn’t the only place to look for loans or grant relief programs. Various organizations throughout the united states have come together to help small business owners maintain through there tough times. Here is a very robust list of small business grants (aka FREE MONEY) and some additional loans as well. Also, if you want to see a state by state guide for financial relief you can find the guide here.
Money For Creatives!
As a creative, you are probably used to having spurts of low income BUT that doesn’t mean you don’t deserve financial relief as well. So I’ve done some extensive research and found quite of few grant options to help you weather this financial storm:
I hope this guide was helpful and if you have any questions feel free to email me at cofield@cofieldadivsors.com or schedule a free consultation here. Lastly, since your stuck in the house anyway, here are my free financial e-courses.