Much has been written regarding the CARES Act and the PPP loan & EIDL programs. I have updated the original summary of these programs on our website multiple times as the rules continue to change.
While these are certainly unusual times, our advice remains the same as it has for over two decades. For the financial health and well being of your company or church, create and live on a budget. Yes, it takes time, but it is worth it. Also, maintain a cash balance of 3-6 months of operating expenses. Spending 100% of what comes in leaves you vulnerable when a downturn occurs. Many are now forced to cut back much more severely due to a lack of margin.
Those who practice these principles (yes, these recommendations are based on Biblical Principles) will have more peace and will also save money in the long run, especially when borrowing for a loan or mortgage. Banks provide a more favorable interest rate to those that practice these financial disciplines.
Also, in the coming years, be prepared to answer when your bank asks, “how did your company or church do during the Covid-19 crisis?”.
It’s never too late to start.