Daily Three: June 16

1. In response to the COVID-19 pandemic, small business owners can apply for an Economic Injury Disaster Loan (“EIDL”) advance designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Today we address deadlines, purpose, and “covered expenses” for which EIDL loans can be used. Tomorrow we will address what expenses cannot be paid from EIDL funds and the interplay between EIDL and PPP.  Authored by Aria Eckersley

• Is there a deadline to spend my EIDL? Is there a defined timeframe in which costs must be incurred, and what are the guidelines around reimbursement, e.g., does this timeframe pre-date when funds were received and does it allow for reimbursement of any previous expenses paid?

• What specific costs are covered/allowed under the EIDL? Can I use the EIDL, for example, to reimburse myself for current bills that are auto-deducted from my bank account/paid by credit card, or does this require a different type of payment transaction?

2. Given the day-to-day challenges and uncertainties facing many businesses, now may seem like an odd time to take a step back and think about succession planning. But, and in many ways, and for many of you, it may be the perfect time to do so. If we have learned anything the past three months it is that change, for better or for worse, comes quickly and without warning, and there is a premium to being resilient, adaptable, agile, and financially astute. Consider why now may be the perfect time for your organization to re-evaluate leadership structure. Authored by Lisa Sprenkle-Jones at Elevate Partners in collaboration with LP’s CEO, Angie Sebastian

3. The COVID-19 pandemic has many clients reviewing their estate plans. The current environment provides significant food for thought for people who are familiar with advanced estate planning techniques, and those who may have been contemplating utilizing some advance techniques. Consider advance estate planning techniques as a part of your overall plan. Authored by Adam S. Garber and Steven L. Kriz

For more resources and LP's response to COVID-19, visit this webpage.