COVID 19 Update 28.1
Smart Cash Flow Forecasting
Our Friends and Associate Members PKF O’Connor Davies write that financial executives and managers use cash flow forecasting as a tool to manage their business and project investment rates of return. In a “normal” business environment, often they run forecasts quarterly or annually and operating history is often a good guide. But in a “COVID-19 World,” cash becomes dear and there’s a domino effect.
In addition, many executives are finding it difficult to forecast the duration of this crisis and its tail. As financial professionals know, revenue under accrual accounting does not necessarily translate into cash. And of course, an organization has more control over when it times its payments than when its customers pay.
EEOC Directs Employers to Watch for Bias Amid Pandemic
As the coronavirus pandemic continues, the US Equal Employment Opportunity Commission has warned employers to prevent and correct discrimination, harassment or intimidation against Asian Americans or employees of Asian descent. Title VII of the Civil Rights Act of 1964 protects against this type of improper treatment.
Why You Need to Take the Long View on Wages, Benefits
Many companies need to take steps to cut costs, but now is not the time for knee-jerk responses and short-sighted plans for compensation, says Amanda Wethington of Korn Ferry. Consider staff rotations, deferring salary increases, providing mental health support and making employee safety a top priority.
Full Story: SmartBrief/Leadership
Congress, Fed to Support Small Business Program
Treasury Secretary Steven Mnuchin asked Congress to add $250 billion to a small business coronavirus program that has been flooded with loan applications, The Washington Post (subscription) reports.
“President Trump said banks have processed $70 billion in taxpayer-backed loans for 250,000 small businesses since Friday, as companies seek emergency help to deal with the enormous business disruption caused by the pandemic.”
“Republicans will try to advance the matter through Congress immediately. Senate Majority Leader Mitch McConnell (R-Ky.) said he hoped to pass the cash infusion through the Senate on Thursday.”
In related news, the Federal Reserve will help finance loans through the small business lending program, The Wall Street Journal (subscription) reports.
“The move will free up financial firms to make more loans guaranteed by the Small Business Administration’s Payroll Protection Program, part of a $2.2 trillion economic relief package President Trump signed last month.”
“The Fed said that to facilitate more lending to small businesses, it would establish a facility that offers term financing backed by PPP loans. It said additional details would be announced later this week.”
Treasury Issues FAQs for PPP
Treasury’s Frequently Asked Questions for the Payroll Protection Program offer some guidance to applicants and lenders alike.
