- WorkSuites has launched a consulting team to help small businesses apply for emergency funding under the CARES Act.
- So far a total of 10 WorkSuites employees have switched to become full-time CARES Consultants.
- The team is currently working with around 200 workspace clients, assisting them with the necessary paperwork.
Flexible workspace operator, WorkSuites, announced last week that it had launched a CARES Act Consulting Team.
Flip Howard, CEO and Founder of WorkSuites, spoke with Allwork.Space about the decision to launch the service.
“Basically, in addition to operating our spaces, which are all still open, the WorkSuites team is now working to help small business owners apply for loans under the new CARES Act.”
The CARES Act, which includes a Payroll Protection Program, is an emergency relief fund for businesses.
Every business in the USA with less than 500 employees qualifies for it and should be getting some assistance from the government. The idea is to keep companies from laying off employees and help them stay afloat during the crisis.
“It’s a huge program, but it is also new and complicated.”
“Because some of WorkSuites’ employees are not able to carry out their usual tasks and assignments, we converted 10 employees into full time CARES consultants.
“Our consultants are reaching out to every single client WorkSuites has to ask if they need assistance applying to it.”
Howard mentions that the assistance varies; some companies just have a couple of questions that can be answered within a few minutes, while others need more of a hand-holding approach as they fill out the application.
“Currently, we are working with over 200 clients, assisting them with filling out all of the necessary paperwork.”
The money obtained from the loan can be used for payroll and rent. More importantly, the loan this act provides is forgivable, meaning it doesn’t have to be paid back if the money is used for payroll and rent purposes.
“This provides financial relief for businesses that are struggling to pay their people around the country and also gives some breathing room for people in danger of losing their jobs.”
Asked about the success of the consulting service, Howard mentions that it is the most popular service WorkSuites is offering right now.
“Most of our clients have a CPA or attorney that can help them navigate the application, but we have a couple hundred clients who really needed the help.”
WorkSuites, like many other flexible workspace operators, is trying to find ways in which to bring value to its clients as many of them stay at home and avoid the office.
“This program has been beneficial for everyone involved,” said Howard. “It’s providing our employees with meaningful work, it’s adding value to our clients, and it’s helping WorkSuites because the more clients we help, the more likely they are to stay in business and remain a client of ours.”
Under the CARES Act, businesses are eligible to qualify for 2.5 times the company payroll monthly average for the last 12 months. Independent contractors, self-employed professionals, sole proprietors, and SMEs can all apply to the program.
As of Allwork.Space’s call with Howard last week, no client had received the money from the government, but according to the Act, people can potentially get checks in as little as 2 weeks. Media sources have reported that stimulus checks started arriving this week (week of April 13).
Due to the fact that 25% of funds can be used to pay payroll or rent, it directly benefits WorkSuites as it can help clients cover their rent obligations with the flexible workspace brand.
Below is quick summary of what is required to apply for the program:
- A lender – it is recommended that businesses start with their current bank if they are SBA qualified.
- Complete the 2 page form
- It should only take 10 minutes or less if you have all the supporting documentation ready.
- Provide supporting application documentation (each lender/bank may slightly vary what is required for supporting documentation)
- Payroll tax reports (form 941 for past 4 quarters)
- Tax returns for last 2 years
- Current Financial Statement
- Organizational documents of the Business entity (i.e. formation paperwork from the SOS; LLC or LP doc, etc.).
Here is an overview of the Payroll Protection Program.
Here is the application form to the Payroll Protection Program.
Those applying to the Payroll Protection Program should know that the money received must be spent in 60 days from the date they receive the money. Any money not spent during those 60 days will fall into the “unforgivable loan money”, which must be paid back within 2 years.