Rising Above the Chaos

Consider: Business Relief Options

As our community navigates through this crisis, our focus is on 5 major business initiatives:

  • Health, Safety and Wellness
  • Conserve Cash
  • Support your Suppliers, Service Providers and Customers
  • Maximizing Relief Benefits
  • Minimizing Layoffs

In support of that effort, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), was signed into law on Friday March 27, 2020.  As the business community races to keep up with the changing landscape, we summarized actionable steps for your consideration:


Business Relief Loans & Employee Retention Incentives.

The Federal government has approved a bevy of new relief loan and incentive packages. We have summarized the current options in a comparative table (click to launch).  We suspect the two most popular programs will be:

  • The SBA Economic Injury Disaster Loan (EIDL) which has favorable interest rates and terms and appears easy to apply for, directly with the Small Business Association.
  • For those who intend to maintain employment levels, the SBA Paycheck Protection Program loan has provisions for loan forgiveness of 8 weeks of payroll, rent and utilities expenses forgiven.The program may allow you to deploy your workforce to finally accomplish strategic initiatives which always seemed to get delayed during busier times.

We recommend you start initial conversations with your current banker, even on the EIDL that allows you to go directly to the SBA. The key is to ensure that your current bank facility allows the new loan.

All banks are working quickly to roll out their own programs. We believe most banks will want to work with you no matter which program works best for you. The Kane Firm and your banker can assist you in working through your long-term debt and equity structure in this new environment.

SBA Resources:


Reduce In-Office Expense.

As many of are working remote, the frequency of regular services likely can be reduced – shredding services, garbage pickup, water supply, cleaning services, etc. Also consider reducing temperature settings in vacant areas of buildings.


Take Advantage of Vendor Relief Programs.

Most regional and national vendors have announced COVID-19 payment/fee relief options.

  • Vital Large Corporate SuppliersContact your representative to take advantage of announced programs or negotiate a temporary extension of terms. In our current news cycle, a 10 to 15-day extension can make a big impact.
  • Less Critical SuppliersConsider your history and judge if you can simply delay payment.



New York State’s major electric and gas utility companies have committed to suspend shut offs. Call smaller providers to discuss a strategy.


Keep Americas Connected Initiative. 

Coordinated by the FCC, a number of large corporate connectivity providers have pledged to suspend shut-offs and waive late fees.  The FCC has provided a list of participating providers here.


Credit Cards.

Most major credit card issuers have released statements detailing their relief offerings. Click for additional detail.


Mortgage & Rent.

New York State has suspended eviction proceedings indefinitely and announced a 90-day suspension on mortgage payments (based on financial hardship) and foreclosures.  A few points to consider:

  • Small local landlords may need your payments sooner that larger corporate landlords.
  • Weigh the potential impact of defaulting on your lease, after the 90-day period ends.


Reduce Payroll Costs (Without Layoffs).

Federal and New York State leaves have been announced. We have summarized the leaves and associated tax credits here. (click to launch) We recommend that you review these options with your Human Resources, Legal and Management teams.

  • NYS Paid Family Leave (for COVID-related leave).
  • NYS Paid Sick Leave.
  • Federal Emergency Paid FMLA.
  • Federal Emergency Paid Sick Leave


Tax Incentives.

Many tax changes and incentives were included in the new law.  This does not solve immediate cash concerns but can be beneficial in the longer term.  We have listed the highlights below for your information.  We will be analyzing each client’s situation in order to maximize benefit.

  • Net Operating Losses (NOLs): Relaxed restrictions on the use of Net Operating Losses by businesses and individuals. Specifically, some corporations can carry back losses generated in 2019 and 2020 to five previous tax years.
  • Deductibility of Interest Expense: The complex restrictions on the deductibility of interest expense have been temporarily relaxed for businesses and rentals properties.
  • Depreciation: Accelerated deductions on property formally known as “Leasehold Improvement.”


Further Reading


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