Navigating Coronavirus: 7 Financial Support Opportunities for MSPs
There are no easy words in this unpredictable time. The consequences of COVID-19 continue to impact our health, our lives and our economy. Due to daily changes and challenges, it’s impossible for us to understand the collective effect this will have on small to medium-sized businesses (SMBs). Regardless, Axcient is committed to supporting our employees and partners by doing our part.
With our entire Axcient team working from home, we’re continuing to provide additional support to our managed service provider (MSP) partners and the Channel community. The Axcient Financial team has been researching the government funded support opportunities available for small businesses like yours.
Additionally, we’re offering some of our own products at no charge in order to empower remote workers as they navigate the new normal. While the vast majority of MSPs should qualify for the highlighted resources below, we encourage you to visit each governmental website individually to fully understand each program and opportunity.
Please note that while we believe this information is current and accurate, details are changing quickly and you should confirm everything in real-time.
1. Free File Sync and Share, and Office 365 Backup Solutions
Axcient is helping MSPs transition to a remote workforce with free solutions that enable employee productivity and collaboration, while protecting business critical data.
- Free Anchor (file sync and share) Not for Resale (NFR) licenses for your MSP forever.
- Free Anchor and CloudFinder (Office 365 backup) for all of your new clients and additional end-users through June 2020.
2. Paycheck Protection Program
The Small Business Administration (SBA) is helping small businesses (fewer than 500 employees) make payroll and cover other expenses.
- Available from February 15, 2020 to June 30, 2020
- If you, the employer, maintain payroll, the portion of the loan used to cover payroll costs, interest on mortgage obligations, rent and utilities, will be forgiven.
3. CARES Act Loan Program for Small and Midsize Businesses
The Coronavirus Aid, Relief and Economic Security (CARES) Act contains $376 billion in relief for American workers and small businesses.
- Funding options include Economic Injury Disaster Loans (EIDL), SBA Express Bridge Loans, and SBA Debt Relief.
- Key tax provisions, including several retroactive provisions may help you access an influx of cash.
- Less publicized benefits including retirement plan changes, payroll tax credits, deferred payments, expanded net operating loss carrybacks, bonus depreciation and many others.
- Full text of the CARES Act
4. Deferral of Employer Payroll Taxes
The CARES Act offers employers the ability to defer tax payments until 2021 and 2022.
- Defer your Social Security payroll tax on wages paid from March 27, 2020 through December, 31, 2020.
- 50% of deferred payment due by December 31, 2021, with remaining 50% due by December 31, 2022.
5. Employee Retention Credit
The Treasury Department and the Internal Revenue Service (IRS) launched the Employee Retention Credit to encourage businesses to keep employees on their payroll.
- Employers are eligible for a 50% refundable payroll tax credit on wages paid up to $10,000 during the crisis.
- Available to employers whose businesses were fully or partially suspended, or businesses experiencing a decrease in gross receipts of 50% or more.
6. Employee Rights – FFCRA or Act
The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave.
- FFCRA provisions apply to private employers with fewer than 500 employees.
- Small businesses with fewer than 50 employees may qualify for exemption from the requirement depending on reasons for leave.
7. Unemployment Assistance for Independent Contractors
Independent contractors, also known as gig workers, freelancers and the self-employed, may be eligible for assistance under CARES and FFCRA.
- States are permitted to provide Pandemic Unemployment Assistance (PUA) to individuals who otherwise would not qualify for regular unemployment compensation.
- Paid leave opportunities, including paid sick leave and paid family leave may also be available.
We hope this provides some clarity as you maneuver through the opportunities available to you and your business. If you’d like to take advantage of Axcient’s free licenses, contact us and we’ll get you set up immediately.
For insights on how to navigate the day-to-day COVID-19 crises, join our executive leadership team via Facebook Live each week. We host MSP, technical and financial experts who provide best practices for keeping your business running smoothly.
Until then, stay safe!
About the Author:
John Blood // Chief Financial Officer, Axcient
As Chief Financial Officer for Axcient, John Blood brings his experience as a financial executive and former private equity investor to lead Axcient’s finance team to manage business growth and operations. Although professional experiences have shaped his approach to building teams, he has probably learned most about being a great teammate from raising two young kids with his (much smarter) wife. Along with appreciating the power of humility, John is a firm believer in good espresso and running in the mountains of Colorado.