March 17, 2020

CPA: Small Business Loans May Amount to $10,000 or $15,000 of Benefit

 |  By: Clinton Griffiths

Leaders in Washington D.C. are already looking for ways to stem the economic crisis brought on by coronavirus concerns.

The Small Business Administration will start immediately providing low-interest economic loans in affected states and territories to help small businesses overcome temporary economic disruptions caused by the virus.

President Trump is asking for an additional $50 billion to fund the program. The Treasury Department may defer tax payments and there’s also a push to see payroll taxes rolled back as well.

Paul Neiffer, a farm CPA with CliftonLarsonAllen says the low-interest economic loans should help small businesses. However, agriculture may be a different topic.

“On the farm side, I’m not sure how much farmers would really participate in this,” says Neiffer. “I think so far, farmers aren’t being directly impacted [versus when you look at the travel and oil industries]. They’re definitely being immediately impacted by this virus.”

“[The;] $50 billion sounds like a lot of money but it [will be] spread over a couple of million small businesses out there,” says Neiffer.  “We may only be talking $10,000 to $15,000 of benefit.”

Neiffer says it will be ‘to be determined’ whether the loan will benefit.

President Trump also says he would potentially allow individuals and businesses to “defer tax payments without interest or penalties” and urges Congress to cut payroll taxes to provide relief during the coronavirus outbreak.

Watch Farm Journal editor and AgDay host Clinton Griffiths talk with Neiffer about the situation in this clip.