Bridge Loan Helps Winter Haven-based Company Meet Payroll
Accounting & Tax Edge LLC of Polk County
Accounting & Tax Edge LLC thrives on preparing tax returns for individuals and small businesses. Based in Winter Haven, owner Christina Hansen, ran into trouble after Hurricane Irma swept through the area. In times of natural disaster, the Internal Revenue Service postpones filing deadlines for small businesses. This means that customers have longer to pay their tax preparation bills, even though the work is already done.
Seeking a solution to stem cash flow until revenues return, Hansen received an email from her local senator informing her of options for disaster recovery. She then reached out the Florida SBDC at University of South Florida for assistance in applying for the State of Florida’s Emergency Bridge Loan.
When asked about her experience with the storm and the assistance received, she recalled:
What type of damage occurred?
It was basically we couldn’t work for about two weeks and because we what we do is tax returns for people and when there is a disaster, the IRS extends the due date on those. Since we serve a lot of small businesses, most of those returns are due September 15th. The rest of them are due on October 15th when extended. So the clients not having the necessity to pick up their tax returns, they don’t pay us even though we’ve already done all the work. It was a tremendous hit on my cash flow in September. It was difficult to make payroll. The stress was tremendous.
How will the Bridge Loan help?
Primarily to make sure that I can keep my employees paid. Even paying my rent for October, I was almost two weeks late for that because the cash flow just isn’t in hand. This will make it a lot easier.
How was the Florida SBDC at USF helpful during this process?
It was extremely simple from that point on. I got an appointment. I knew what to bring. It was just amazing – the whole experience. I’m very grateful to the State of Florida and to the SBDC. Quite honestly, I’ve been promoting it to my clients because I know there are others who can use it. A lot of programs over the years have left us out but when you have payroll, it’s a difficult thing to overcome.
