rex is a principal of hbk cpas & consultants and directs · rex is a principal of hbk cpas...
TRANSCRIPT
Rex is a Principal of HBK CPAs & Consultants and directs the firm’s Dealership Solutions Group . He has worked extensively in the dealership industry since 1984 as a department manager, a general manager and an owner, as well as providing tax, accounting and operational consulting services exclusively to dealers as an independent CPA. This experience includes working closely with hundreds of dealers from coast-to-coast since 1987 on creative tax planning and financial statements issues. He provides clients with a wide range of transaction work services and consults for them in specialty areas such as operations, government regulatory compliance, valuations and M&A feasibility studies. Rex is active in many professional associations. He is the current Chairman of the BDO Dealership Industry Group, contributes articles and commentary to dealership industry publications, is frequently called upon to speak to industry associations and conferences, provides expert testimony, and is regularly quoted by industry and the general media.
Rex Collins, CPA, CVAPrincipal
Dealership Solutions [email protected]
317-504-7900
Amy Reynallt (330) 758-8613 [email protected]
Amy M. Reynallt, MBA, COVID-19 Business Management Advocate & SBA Loan Specialist
Amy is a manager of HBK'sManufacturing Industry Group located in the Youngstown, Ohio office. She joined the firm in 2019, after spending thirteen years in the manufacturing industry. Amy has experience navigating strategic and financial matters associated with manufacturing companies. She works closely with these companies to help them plan, execute, and meet their short- and long-term goals.
Amy Reynallt, MBAManager, Manufacturing Solutions
Coronavirus CrisisWebinar Series
Join HBK Dealership Solutions GroupNext week for another installment of our Third Thursday
July 2nd
11:00 – 12:00 EDTRegistration link below.https://attendee.gotowebinar.com/register/6272627383029676813
Hill, Barth & King, LLC (“HBK”) is a multidisciplinary financial services firm, offering the collective intelligence of hundreds of professionals committed to delivering exceptional client service across a wide range of tax, accounting, audit, business advisory, valuation, financial planning, wealth management and support services.
Copyright © 2020 Hill, Barth & King, LLC. All rights reserved.
This Presentation contains general information only, and HBK is not providing through this presentation accounting, tax, business, financial, investment, legal or other professional services or advice. This presentation is not a substitute for professional services or advice, and it must not be used as a basis for any decision or action that may affect you or your business. Please consult a qualified business advisor before making any decision or taking any action that may affect your business. HBK shall not be responsible for any loss sustained by any person who relies on this presentation.
Nothing is certain but change…Things are changing on a frequent basis please contact us or check our website.https://hbkcpa.com/covid
Paycheck Protection Program Popular Questions
Should I choose the 8-week Covered Period or the 24-week Covered Period?
Paycheck Protection Program Popular Questions
?
Should I use the Standard Application or the EZ Application?
Paycheck Protection Program Popular Questions
Can I apply for forgiveness before the end of the
24-week Covered Period?
Paycheck Protection Program Popular Questions
I restored my FTE count by June 30, so I’m in good shape, right?
Paycheck Protection Program Popular Questions
For FTE Counts –What do I need to
measure?
Paycheck Protection Program Popular Questions
For Salary/Wage Calculations –What do I need to measure?
Paycheck Protection Program Popular Questions
When do I need to apply for forgiveness?
Paycheck Protection Program Popular Questions
What are the considerations if I am selling my business?
What was your June like?
Strong profitModest profit Break even Loss
Poll #1
Relief ProgramsEconomic Injury Disaster Loan (EIDL)
• Reopened to all eligible businesses on June 15, 2020
• Supports working capital affected by COVID-19
• $2 million maximum
• Up to 30-year amortization
• 3.75% interest rate
• Option for Emergency Advance/Grant (EIDG) - $1,000 per employee up to $10,000
o Does not need to be repaid
o Will reduce forgiveness for Borrowers of Paycheck Protection Program (PPP) loans
• To apply, visit sba.gov/disaster
Relief ProgramsOther SBA Relief Options
• Express Bridge Loanso Through an SBA Express Lender
o Access to $25,000 to provide support due to a temporary loss of revenue or to bridge the gap while applying for an EIDL. Loan will be repaid in full or in part by proceeds from the EIDL.
• SBA Debt Reliefo Paying 6 months of principal, interest, and fees that borrowers owe for current SBA
7(a), 504, and Microloans in regular servicing status or that are disbursed prior to September 27, 2020.
o Contact lender on these loans for more information.
Relief ProgramsMain Street Lending Program
• Current registering lenders (not open to Borrowers)
• Supports lending to small and medium-sized businesses that were in sound financial condition before the onset of COVID-19
• Eligibility criteria includes 15,000 or fewer employees, $5 billion or less of 2019 revenue
• 5-year term
• LIBOR + 3% interest rate
• Loans range between $250,000 and $10 million based on facility, 2019 EBITDA, and current debt structure
• Principal deferred for two years, with 15% due in year 3, 15% due in year 4 and 70% due in year 5; interest deferred for one year
• For more information, contact your lender or visit https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm
Relief ProgramsTax Credits
• Employee Retention Credito A refundable credit available against eligible employer’s FICA taxes
equal to 50% of wages incurred or paid to each employee in each calendar quarter between March 13-December 31, 2020.
o Eligibility: (1) carried on a trade or business during year 2020 and had
operations partially or fully suspended due to a COVID-19-related shut-down order; or,
(2) if still fully operational, had gross receipts decline by more than 50% when compared to the same calendar quarter of the prior year.
o The credit can be taken until the business recovers to 80 percent of gross receipts of the relative prior calendar quarter or until a $10,000 total for all quarters per employee is reached.
o Not available to PPP borrowers
Relief ProgramsTax Credits
• FFCRA Paid Sick and Expanded Medical Leave
o 2 weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis, or
o 2 weeks (up to 80 hours) of paid sick leave at 2/3 the employee’s regular rate of pay because the employee is unable to work due to a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19
o Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19
Relief ProgramsTax Credits
• FFCRA Paid Sick and Expanded Medical Leave (continued)
o Leave related to COVID-19 quarantine/symptoms, sick leave pay is at the regular rate or applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in aggregate (over a 2-week period)
o Leave related to caring for an individual subject to a quarantine order or self-quarantine, sick leave pay is at 2/3 the regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in aggregate (over a 2-week period)
o Leave related to childcare, leave pay is at 2/3 the regular rate or 2/3 the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in aggregate (over a 12-week period)
Relief ProgramsSocial Security Tax Deferral
• Defer employer share of 6.2% Social Security Tax on wages paid from 3/27-12/31/2020
• 50% due on 12/31/2021
• 50% due on 12/31/2022
• PPP Borrowers with forgiven loan may also participate (due to PPPFA)
Relief ProgramsState Programs
• State programs
o Loans
o Deferrals
o Other Relief
Do you anticipate using the 8-week, 24-week or some other period to
calculate forgiveness?
A. 8-weekB. 24-weekC. Something between 8-24D. Don’t know
Poll #2
WHAT SMART DEALERS ARE DOING NOW TO PREPARE FOR THE NEXT (OR NEXT ROUND
OF THE) CORONAVIRUS
The customers paradigm has
shifted.
Has yours?
Adopt an entrepreneurial mindset. The old ways of doing business will not yield optimal results.
Have you developed a plan for your dealership should the coronavirus force you
to close or modify your operations?
Yes No
Poll #3
Learning to Pivot
Focus on becoming a demand driven dealership
Identify new markets & new ways to impact the market
Investing time & funds in new necessary tools & talent
Coronavirus CrisisWebinar Series
Join HBK Dealership Solutions Group
Next week for another installment of our Third Thursday
July 9th 11:00 – 12:00 EDT
Registration link below.https://attendee.gotowebinar.com/register/6272627383029676813
Hill, Barth & King, LLC (“HBK”) is a multidisciplinary financial services firm, offering the collective intelligence of hundreds of professionals committed to delivering exceptional client service across a wide range of tax, accounting, audit, business advisory, valuation, financial planning, wealth management and support services.
Copyright © 2020 Hill, Barth & King, LLC. All rights reserved.
This Presentation contains general information only, and HBK is not providing through this presentation accounting, tax, business, financial, investment, legal or other professional services or advice. This presentation is not a substitute for professional services or advice, and it must not be used as a basis for any decision or action that may affect you or your business. Please consult a qualified business advisor before making any decision or taking any action that may affect your business. HBK shall not be responsible for any loss sustained by any person who relies on this presentation.
Let us answer YOUR dealer specific questions
Rex A. Collins, CPA, CVA317-504-7900
HBK Dealership Solutions Group 317-886-1624