Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic won’t be subject to the complex accounting rules for troubled debt restructurings (TDRs). Here are the details. Accounting for TDRs Under Accounting Standards Codification (ASC) Topic 310-40, […]
Category: Lending
Weighing The Risks Vs. Rewards Of A Mezzanine Loan
To say that most small to midsize businesses have at least considered taking out a loan this year would probably be an understatement. The economic impact of the COVID-19 pandemic has lowered many companies’ revenue but may have also opened opportunities for others to expand or pivot into more profitable areas. If your company needs […]
The Possible Tax Consequences of PPP Loans
If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance […]
Main Street Lending Program Now Open To Nonprofit Applicants
Last week, the Federal Reserve announced that not-for-profit organizations now may apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms. If your organization needs funding to keep operating during this difficult period, […]
Viewing Your Lender as a Business Partner
It’s easy to get intimidated when applying for a business loan. You have the need; the bank has the money — how can you win them over? One way to lower the stress level is to view your lender as a partner rather than a gatekeeper. After all, it needs your business just as much […]
Speeding up the payment process: Supply chain financing for construction projects
Construction is historically an invoice-based industry. You get paid when work is completed, and only after the invoice is submitted along with other documentation and approved by multiple project stakeholders. This payment process can take weeks or months, creating serious cash flow and working capital challenges for contractors who are waiting to get paid for work […]
Planning can help your nonprofit minimize negative effects
Months after the Tax Cuts and Jobs Act (TCJA) was signed into law, nonprofits are still trying to assess its consequences. Some of the early proposals that raised alarms in the charitable sector — such as a repeal of the Johnson amendment — didn’t make it into the final version of the law. But there’s […]
What Your Lender Really Wants to Hear
What does every contractor’s lender want to hear? Why, “The check is in the mail!” of course. But, seriously, lenders — much like sureties — expect construction companies to operate in a manner that assures both timely payments and the feasibility of future loans. Here are a few choice quotes to lay on your lender […]