A Suite of Solutions to Manage Your Assets

The International Franchise Association is a strong supporter of the Employee Retention Tax Credit, a lesser-known liquidity tool that is important for many sectors of the economy affected by the COVID-19 pandemic. In 2020, IFA spearheaded coalition efforts to gain broad-based support from businesses of all sizes and all affected sectors in support of the program, culminating in a letter to the U.S. Congress with support from over 130 associations.

​​​​​​​As we enter the final few months of 2020, a year marked with economic challenges and uncertainty due to the COVID-19 pandemic, several important deadlines are approaching as the calendar flips from 2020 to 2021.

For franchises and other businesses, it’s time to dust off your “reduce the risk” hat for a while because insurance rates across the board are going to go up in price.

On June 5, 2020 President Trump signed into law several critical fixes to the forgiveness terms of the Paycheck Protection Program (PPP), providing much needed relief for small business borrowers.

This webinar’s panelists discussed payroll system operators’ role in the broader stimulus and loan efforts undertaken by recent government action, and outlined relief options available for small businesses. The panelists focused on the Employee Retention Tax Credit and Paycheck Protection Program Loan provisions of the recent CARES Act, and how payroll processers can act as trusted advisors on the front and back-end of loan forgiveness provisions through documentation and record-keeping compliance.

IFA supplier leaders from global accounting firm Citrin Cooperman provided participants with “timeless tips” and guidance for businesses to conserve cash flow as they contend with business interruption. The panelists offered both short term and long term solutions to deal with the current crisis, including: deferring expenses; communicating with bankers to manage possible refinancing and repayment options; tax deferral; and review of existing contracts. Longer term, the panelists recommended planning for new sources of cash flow via government loans with an eye toward accommodating labor changes, and preparing business for liquidity challenges going forward.

IFA leadership discussed the various loan relief programs offered through government agencies, and as a result of the highly anticipated legislation recently passed by Congress. Though implementation of the Paycheck Protection Program loans (PPPL) by the Small Business Administration and via commercial lenders is forthcoming, the panelists outlined the importance of liquidity at this time and to take advantage of the loans offered by these outlets. The panelists took a step-by-step look at the loan terms and documentation needed by franchise businesses to access new loans and their eligibility for forgiveness within these programs.