CDC Releases Draft Guidance for Reopening Businesses, Restaurants, Bars

CDC Releases Draft Guidance for Reopening Businesses, Restaurants, Bars

The CDC has released draft guidelines for the President to review and approve outlining measures to be taken by businesses as they reopen.  Specific sections address businesses with Vulnerable Employees (page 10), Restaurants and Bars (page 12) , Child Care Centers, Schools and Day Camps, and Communities of Faith.

Click here for CDC Interim Guidance for Opening Businesses.

The guidance is very detailed outlining three phases.

Phase 1 suggests strict social distancing, closing common rooms like break rooms, telework, and other restrictions.

Phase 2 suggests moderate social distancing, shifts for common rooms, maintaining telework, etc.

Phase 3 is closer to the norm although limited social distancing is still suggested.

These guidelines are subject to change as there are many concerns about their work-ability.  Namely, can social distancing be maintained and other suggested requirements?  How are health checks performed while still maintaining required confidentiality? We are sure this will all be clarified over the next few weeks.

According to the Washington Post, the bulk of these guidelines are expected to go into effect sometime over the next seven days or so.

 


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

Articles and Data Relating to Your Business and Coronavirus

Articles and Data Relating to Your Business and Coronavirus

Harvest Business Advisors have created this collection of current articles that may be of interest to sellers, buyers, business owners and advisors relating to Coronavirus, industry and the economy.

We are always available to discuss how this might impact you, those close to you, and your business.

We hope you find these helpful.


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia.
Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

After the Covid-19 Shock, What’s Next for Your Business?

After the Covid-19 Shock, What’s Next for Your Business?

You have made the initial quick adjustments to your business to deal with coronavirus shutdowns and covid-19 shelter in place directives.  Hopefully your business is stabilized for now and everyone is safe.   But for most businesses the future is unlikely to look like the past.  For most business owners determining and preparing for changes as the ramp-up back from the coronavirus shut down begins is unclear.

How do you prepare your business, including your employees, customers, suppliers, and others for the future with all this uncertainty?

  • Business planning, strategy, and role playing after covid-19.  Develop a simple easy-to-adjust cash flow projection, key indicators, and bullet point improvement plan for the next 12 months. Overly complex projections will actually impede what needs to be understood.  A simple model that captures the big risks and rewards is perfect.  In the end you want to develop a few pages you actually use.   Run “Best”, “Likely” and “25% below the worst you can imagine” scenarios. Look at how to increase revenues and cut costs.  Work it through to staffing, possible renegotiations on fixed costs, etc.  Bounce this off trusted family members, key employees and advisors.  Talk about it with anyone with business sense you respect and trust that will work through it with you.  This will open up possibilities and solutions so as things happen (good and bad) you will have already given thought to many situations and can make decisions from a place of reason, not just emotion.
  • On a daily basis monitor sales, variable expenses, and cash (as necessary).  Revenues and cash flow are the equivalent of blood.  You must keep some in the business and stay focused on small day to day matters that improve business sales, reduce expenses, and protect business cash flow.
  • If possible, particularly for businesses with substantial contracts, keep your fingers on future sales. Stay in touch with key customers, key suppliers, and politely ask difficult questions essential to your survival.  Is the contract funded?  How will future payments be made?  How is timing of awards in the pipeline expected to change? Are suppliers able to perform?  etc.   For many contractors and others, status WILL change over time as your clients better understand how the response to coronavirus is affecting them and adjust.  Check at least monthly.  Check more if that makes sense.  Make tough decisions early.  Don’t delay.
  • Grow key people. Now is a time where they can shine.  How can you help them take the next steps in responsibility and decision making?  Adjust systems for virtual workers and actual volumes to keep control but not over-control.
  • Communicate and Lead. Leadership counts in times like these.  Covid-19 is scary particularly where many people are infected and ill.  What specific measures are your business instituting to keep people safe?  A communication vacuum allows fear to grow.  People want to know how they are going to come out of this crisis.  What is the plan today, tomorrow, and the next day.  They also realize plans are going to change as necessary.  Treat your employees like the adults they are.  Deliver bad news with empathy and include what is being done to overcome obstacles.

Planning sometimes seems like a silly thing in a crisis but it is your chance to work through options and generate ideas early.  Like the Boy Scouts always said, “Be Prepared”.   That is still very good advice.

We have communication, projection and cash flow tools and experience to assist you in your business planning and preparation. Should you be looking for guidance or support, please reach out.

Greg Caruso, JD, CPA, CVA  Partner, Harvest Business, LLC    |     609-664-7955  GCaruso@HarvestBusiness.com


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia.
Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

Understanding and Preparing for SBA Loan Process

Understanding and Preparing for SBA Loan Process

Paycheck Protection Program  

Currently the Paycheck Protection Program is out of funds.  It is likely that Congress will approve more funds.  It is not clear when.

The Paycheck Protection Program overall allows for the payment of 2.5 months salaries, rents or mortgages, and utilities and will be forgiven if certain conditions are met.  

Forgiveness is based on maintaining salary levels. The unforgiven portion has a 2 year maturity and an interest rate of 1%.  

Salary is fairly broad and includes wages, cash tips, commissions, health care benefits, insurances, vacation or sick leave, retirement benefits and state and local taxes assessed on the compensation of the employee. 

It is capped at $100,000 per employee and the employee must be in the United States.  Benefits can be above the cap.

Details are provided below.  

To prepare for the application process: 

  • 2019 financials and federal payroll filings (940, 941) need to be in good order. 
  • Some banks may request W-3’s and W-2’s.  
  • Leases, invoices or bills for utilities and other source documentation must be provided.  
  • If you are self-employed, tax returns and 1099’s from clients will be required.  

More comprehensive information can be found at the Small Business Administration website.

 

Economic Injury Disaster Loan Emergency Advance

The Economic Injury Disaster Loan Emergency Advance is a $10,000 advance directly from the SBA that does not have to be repaid.  

The Company must meet SBA size tests or have less than 500 employees.   At least one source indicated that the advance will be given at the rate of $1,000 per employee.  

The Company can be a charity, church, business, or self-employed person.   

The loan application requires tax returns and evidence of harm.  The loan amount is make-up for the harm. It is unclear from summary information how that will be calculated. 

 A summary with a reasonable level of detail is available here

Please feel free to reach out to us with questions or issues. We have many resources available and can easily refer you to the appropriate expert if necessary.

 

 


Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia.
Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

SBA – Resource Round-Up – March 31, 2020

SBA – Resource Round-Up – March 31, 2020

The Small Business Administration now has a page on their website dedicated to Small Business
Guidance and Loan Resources regarding Coronavirus (COVID-19).

There you can quickly access information about:

Each local region also has resources available:
Maryland District Office
New Jersey District Office
Pennsylvania (Eastern) District Office
Virginia District Office
Washington Metropolitan District Office

In addition, the SBA is also offering regular webinars on applying for SBA Disaster Loans.

Be certain to check with your local and state Economic Development Administration for additional
support and resources. Many are offering grants to help businesses weather this crisis.

We are reviewing the CARES Act passed by Congress and will more to share about that legislation and
how it may benefit businesses very soon.

We hope you and your family and your employees are doing well and doing what you can to “flatten the
curve” to shorten this down time and return to normal soon. We are here and would be happy to
connect if you need to talk.


Clients choose Harvest Business Advisors for our sage advice on profitably growing their business, accurate business valuations, and when the time is right, a consistent ability to deliver a high price as part of a smooth exit transaction.

Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

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