(Tuesday, April 7, 2020, 8 p.m. EST) -- For business owners who have not yet submitted an application for Paycheck Protection Program (PPP) financial assistance from the U.S. Government, there's good news and bad.
(Thursday, April 1, 2020, 4 p.m. EST) - A cornerstone of the U.S. Government response to the economic crisis caused by the pandemic is the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a history-making $2.2 trillion law that just went into effect. With almost no strings attached, CARES extends financial support to business owners in need under the Paycheck Protection Program (PPP).
(Tuesday, March 24, 2020, 7:30 p.m. EST) The stock market lost about a third of its value before rebounding 9.4% today on news that Congress was closer to an agreement on a $2 trillion economic stimulus package. The coronavirus crisis has reshaped the financial economic landscape and the situation is changing fast. Here are nine financial focal points for your immediate consideration.
March 18, 2020 - No one knows if stock prices bottomed today or if they could go lower. We do know that profits ultimately drive stock prices. So here's the picture of 2020 and 2021 profit expectations in the context of recent market panics.
Seeing the stock market plunge on news about Covid-19 is unnerving but is not so unusual. It's human nature to get worried amid a market plunge and think this is the plunge from which there is no recovery.
March 3, 2020 - (FINANCIAL ADVISOR NEWS SERVICE) The human toll of Covid-19, in sickness, suffering, and death is incalculable. Preliminarily, CNN's Dr. Sanjay Gupta says Covid-19 transmission rate is about the same as the common flu but 20 times more likely to be fatal. The ultimate toll remains unimaginable.
A thousand-point drop just isn't what it used to be. When the Dow traded at 20,000 about three years ago, a 1000 point decline was a 5% loss. With the widely-watched index recently breaking 30,000, a 1,000-point decline is a 3.3% loss. A decade ago, the Dow traded at 10,000 and a 1000-point drop was equivalent to a 10% loss in value. So discount the frightening reports about point drops.
With tens of millions of Americans desperately seeking security in retirement, Uncle Sam should have been more careful about how he named the new tax law, known as the SECURE Act. Instead of co-opting the names of federal laws for marketing purposes, the U.S. government should be able to figure out how to name a new law that skirts the standards in federal truth-in-advertising regulations.
The coronavirus has focused renewed attention to the risk of investing in China, but China may pose a hidden risk to retirement investors holding emerging markets funds.
Whatever your views on income inequality, the trend toward a larger and wealthier middle class is good for consumer spending, which drives 70% of the economy. For investors, that's positively fundamental.
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Business Owners: Paycheck Protection Program Update
(Tuesday, April 7, 2020, 8 p.m. EST) - For business owners who have not yet submitted an application for Paycheck Protection Program (PPP) financial assistance from the U.S. Government, there's good news and bad.
PPP offers small businesses a forgivable loan to help retain employees during the social-distancing mandate spawned by the COVID-19 crisis. PPP is a $349 billion program offered on a first-come, first-served basis. The bad news is that it will run out of money. The good news: The program is reportedly expected to receive additional federal funding in the days ahead. So, unless your business is sitting on sufficient levels of available liquidity to fund your business operations for the next six or 12 months, you may want to swiftly gather the necessary financial data and paperwork and submit your PPP application ASAP.
PPP is the primary program the U.S. Government has funded for small businesses owners with fewer than 500 employees. As long as a business owner uses the loan proceeds for payroll and other specified eligible expenses, the loan will be forgiven by the U.S. Government.
This financial relief program may be used by restaurants, professional services and other small businesses. If you are a sole proprietor, independent contractor and are self-employed, you may also qualify for a PPP loan. Even if your business turns out to be more profitable during the crisis, you may still qualify for a forgivable loan due to the unprecedented level of uncertainty and the determination of the United States government to rescue the economy.
Applying for a PPP loan can be a critically important business planning decision for a small business owner to make amid the swirling COVID-19 crisis.
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Nothing contained herein is to be considered a solicitation or research material. It is subject to change without notice. Strategies referenced herein do not take into account your personal objectives, financial situation or particular needs of any specific person. The material represents an assessment of financial, economic and tax law at a specific point in time. The sources are thought to be reliable but could be wrong about important facts.
The U.S. Government's response to the Coronavirus crisis implements new regulations and their precise impact may not be available at the time this was written or could be subject to change by U.S. Government agencies, such as the SBA..
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