Money-Saving Strategies to Use During the Coronavirus Outbreak

Actions you can take

Below is a list of suggestions for your consideration in addition to what you may be doing already to preserve cash.

  • Any taxes due on your 2020 tax return will not be due for 90 days after April 15th. You will still need to file your return by April 15th, however your payment will be due July 15th.
  • Ask your bank to allow for interest only payment on any business loans until business returns to normal.
  • Utilize your line of credit. If you do not have a business line of credit in place, ask for the availability of an emergency line of credit.
  • Consider taking out loans from your 401(k) plan. Depending on your plan’s provisions you may be eligible to take a loan of up to $50,000 to help fund your emergency cash needs.
  • Discontinue any automated retirement plan contributions until business returns to normal.
  • Consider owner/officer draw instead of taking a weekly paycheck to minimize payroll taxes.
  • Minimize any cash outlay to only those expenses which are essential for you to continue doing business.
  • Suspend any payroll to household relatives such as spouses and children who may be on the payroll.
  • Negotiate with vendors.
  • Depending on your history with your current credit card providers, ask to skip a payment with no penalty or interest.
  • Request a delay or modification of rent payments.
  • Ask for longer terms from major suppliers.
  • If needed, consider home equity as a potential source of cash.
  • Consider Massachusetts and SBA disaster relief loans (see below).