COVID-19 Relief Programs
Helping Our Customers, Now More Than Ever
Paycheck Protection Program
- 100% Forgiveness available
- Get 2.5x your monthly payroll (10 wks), up to $10MM
- Use it for payroll and other bills like rent and utilities
- Small businesses with 500 or fewer employees are eligible
- No personal guarantee or collateral needed
Economic Injury Disaster Loan and Advance
- Apply through the Small Business Administration website
- Business owners economically impacted by the pandemic can apply for and receive working capital loans of up to $2 million
- Terms up to 30 years
- Term loans or lines of credit
- Uses: To overcome the temporary loss of revenue
- Applicants can request a $10,000 advance after with application
State & Local Relief Programs
States, localities, and communities of people have stepped up alongside our federal government to offer relief where they know the need is great. Grants and special term loans from $1,000 up to $200,000 are available to keep business owners going – until they can start growing again.
- Find the information you need about your state’s programs.
- Connect directly with your state and local funding programs.
- We are continually working to update this page with the best information available so please check back often for changes.
Additional Aid Programs
The federal government has additional relief programs that can help business owners get through the economic impact of the global pandemic. Learn what is available and make sure your recovery plan has every benefit you can qualify for:
IRS Tax Extension for special payment relief: The Treasury Department and IRS are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak.
SBA Express Bridge Loans: Businesses who currently have a business relationship with an SBA Express Lender are able to access up to $25,000 quickly.
SBA Debt Relief: The SBA is providing financial reprieve to small businesses during the COVID-19 pandemic by paying principal, interest, and fees on some business debt.
We're In This Together
We’re all in this together, and Kingswood is here to help you succeed as a business. We are here to help you work through today’s challenges and access the funding you need to help you get through and move forward.
If you are a current Kingswood customer, speak with a team member to learn more about assistance programs you may qualify for.
We extend our fullest well wishes for the health and safety of you, your employees, and your family.
Here Are Some Of The Ways We Make Equipment Financing Easy…
Paperwork, Schmaperwork – App Only up to $250K!
Kingswood now has application only funding limits up to $250,000. That means less time and paperwork needed to get you the financing you want to make that next big equipment purchase. And typically these credit decisions are made within 2-4 business hours.
Minimum Ownership Requirements – Corp Only Options
Kingswood has options to secure businesses with established credit without a personal guarantor, an option called Corp Only. And for businesses without the established credit, Kingswood has options to secure financing with a minimum of 1% ownership. Either way, that means less time getting every owner’s signature to apply or to sign for financial documents.
When it comes to closing the deal for your equipment, almost no one wants to wait for paper documents in the mail any more. With eDocs financial documents can be sent instantly to your email address for signing.
Buy Now, Pay Later!
No Monthly Payments for 90 Days
The popular 90 Day Deferred Program is back! That means you can buy the equipment you want now and let it earn you money for 90 days before making your first monthly payment. Save your hard earned cash and still get the equipment you need!
How Does This Work?
Qualified buyers may now choose a 90 Day Deferred Payment Program. Qualified buyers that proceed with the 90 Day Deferred Payment Program have their first monthly payment due 90 days from the date of the funded transaction. For example, if a deal is funded December 15th, the first payment will be due by March 15th. This option is only available to qualified buyers purchasing eligible equipment.
How Do I Qualify?
Just ask. Call us, email us, or says so when filling out our online application:
We simply need to know that you are interested in this program in order to qualify you for this option.
What Are You Waiting For?
It’s that easy. Get the equipment you want without having to make a payment for 90 days. Put the equipment to work right away and let the equipment pay for itself. Get pre-approved today and go shopping!
Ask us for a Line of Credit. And get all the benefits that come with it:
- $3,000 – $1,000,000 of working capital
- Accessible for you to draw upon as needed
- You pay nothing until you withdraw funds, and only on the funds you draw
- Use your capital in any way you see fit to grow your business
A Line of Credit can be made available to you in as little as 5 business days, with minimal paperwork required.
It gives you easy access to working capital. And the security of never having to worry about cash flow.
Maximize Your Section 179 Tax Savings Every Year!
What Is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small businesses. Although large businesses benefit from Section 179, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are actually taking action and getting real benefits.
How Does Section 179 Work?
When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example). Now, while it’s true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it. In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That’s the whole purpose behind Section 179 – to motivate the American economy (and your business) to move in a positive direction. For most small businesses the entire cost can be written-off on that year’s tax return.
Limits of Section 179
Section 179 does come with limits – there are caps to the total amount written off, and limits to the total amount of the equipment purchased. See our “IMPORTANT NOTICE: Section 179 Expanded” post for details on limits for a given tax year.
How Can I See How Much Money I Can Save?
Included on our Finance Calculators is a “Section 179 Tax Savings” feature to show you an estimate of how much you can save with this benefit. Simply put an amount in the calculator, and hit the calculate button to see Potential Tax Savings. By default, a 21% tax bracket is assumed for calculation purposes.
Business Is All About The Bottom Line!
When considering equipment for your business the decision almost always depends upon the bottom line. For your convenience, our finance calculators automatically print the total Bottom Line Equipment Cost After Tax Savings along with every quote.
Make sure you consult with your tax advisor to understand your eligibility and to discuss any specific questions you have about these tax benefits.
Kingswood Comes Through For Local Brewery
“Less than 2 years into business and we needed to buy more equipment to grow. Kingswood Leasing came through with a deal that no one else could match. A year later we needed working capital to take advantage of a contract that otherwise would have hindered our cash flow. Now Kingswood has helped us get a small business loan and line of credit, which is enabling our next phase of growth at the brewery. Every time I have a financial need, Kingswood has come through.” – Mike Nadeau, Founder & CFO, Garrison City Beerworks
Garrison City Beerworks (GCB) entered the scene at the end of 2013 with the mission to become NH’s premier craft brewery. Fortunately for us, they took up residence just a couple blocks from our own primary office in Dover, NH. Founder Mike Nadeau didn’t need our help to get started, but after his initial investment to get going, he realized that much more would be needed to be as successful as he wanted to be. In 2015 Mike came to us to make a big investment in a canning system that would significantly increase the brewery’s ability to distribute the premium craft beer that they make. In addition to the canning system, Garrison City would need a lot of cans to take advantage of this new piece of equipment. The challenge for us was how to get this brewery that was less than 2 years old the full amount of money that they needed in order to accomplish the full order of equipment and cans.
The Equipment Loan
Garrison City qualified for the best start-up rates available in the marketplace, and had several options of how to finance the canning system. The ‘soft costs’ of the project, however, including the large inventory of cans, exceeded the normal 25% allowance of the transaction. In this case the shipping, installation, accessories and inventory was a whopping 55% of the total transaction we were attempting to finance. We could have separated the transactions, but that would have cost Garrison City Beerworks more in total. And we have great relationships with our banks, some of which we have been doing business with for 26 years. So we leveraged our experience and great relationships to earn an exception on this deal that would typically be unheard of. The bank would finance the full amount for our neighbors down the block. We made every attempt to do what was best for our client, and our funding source rewarded us and our client with everything they needed to get the job done.
Working Capital Loan
About a year later, Mike came to us looking for a line of credit. His primary need at the time was to secure a yearlong hops contract that would set up the next years’ worth of craft beer production. True business lines of credit have been harder to secure for businesses since the economic recession of 2008, and at that time Garrison City Beerworks did not have enough time in business to earn what was reserved for more established companies. But that didn’t mean that Garrison City didn’t have other options for working capital. Small business loans are one of the industry’s most popular products and any company with more than 6 months’ time in business can secure a short term unsecured business loan based on the strength of their monthly deposits. Fortunately for Garrison City, their monthly deposits exceeded the amount that they needed to secure the hops contract, and we secured for Mike a small business loan equal to what he needed. That loan helped smooth out GCB’s cash flow and set them up for sustained growth.
Term Loan & Line of Credit
Well into their third year in business and GCB is growing again. They have expanded their service and capacity and have sustained year over year growth every year in business. To take advantage of the opportunity before them, GCB needed the tools that other established businesses have at their disposal. We are so pleased to play our part in securing GCB a 5-year term loan and a true business line of credit, both of which were earned by Garrison City Beerworks for all their hard work and dedication. It truly is an honor to watch a business grow and succeed. And regarding Garrison City Beerworks, we can’t wait to watch what they do next!
Are you a Greater Dover Chamber of Commerce member?
Working with local businesses is an experience unlike any other, and we could not be more proud to serve Garrison City Beerworks. And as this experience with GCB shows, sometimes a hometown company can do things for you that no other company can. What could be better than that? How about a hometown discount?! From now on any Greater Dover Chamber of Commerce member will receive a discount on any contractual fees up to $250!
Equipment Financing, Bridge Loans, & Business Lines of Credit to get Businesses Back on their Feet
Kingswood Leasing has been around for 26 years and over the years has been witness to natural disasters that have affected many of our partners and clients. Sympathetic to the pain and suffering that was caused by these events, Kingswood has always taken every opportunity to do more than normal to help these people get back on their feet. That experience over the years has evolved into an established commitment to these individuals:
“I am developing a Kingswood Disaster Relief Program that will support the rebuilding of businesses affected by natural disasters.” ~ Clifford Metcalfe Jr., Owner & President, Kingswood Leasing, Inc.
- Reduced Fees: We’ve negotiated with our banks to limit documentation fees to an absolute minimum to process paperwork.
- Flexible Payment Options: Qualified buyers may choose from several popular payment options, such as No Payments Due At Signing or 90 Day Deferred Payments.
- Giving Back: We will donate 1% of the total financed amount to the American Red Cross towards the relief effort of the applicant.
Businesses that have closed down have much more difficulty obtaining financing had they not had the calamity in the first place, it’s a fact of finance life. A less experienced finance professional may not take the time or know how to present a business that has experienced a natural disaster. Getting back on your feet is too important to risk. We suggest that you partner with an experienced finance professional like ourselves who can leverage over 200 years of combined financial experience to get these afflicted business owners the best terms available for their situation. Many finance companies either run away from or try to take advantage of these business owners. This finance company is running towards those in danger, and bringing to bear every available resource we can to get these business owners back on track.
We Want To Do Our Part, Tell Us How We Can Help
If you are a business owner in need of capital following a natural disaster, or know someone who is, please see our page and application customized for this program. This application asks some additional questions about the status of the business that will be relevant for the purposes of securing capital. And please do not hesitate to contact us should you have questions. We want to do our part, tell us how we can help.
Kingswood Leasing Is Proud To Support Louisiana Business’ Return After Great Flood of 2016
In August of 2016 torrential rains dumped three times as much water as Hurricane Katrina in certain areas of Louisiana. Thousands of homes and businesses were literally underwater with significant damage. One of those hardest hit businesses was Big Mike’s Sports Bar & Grill. The flooding forced the closure of the business during a year where they were expecting to break there previous year’s record breaking sales. Mike O’Neil, owner of Big Mike’s, immediately started rebuilding with the hope of reopening within 6 months, but cash flow dried up within 3 months, which put the future of Big Mike’s in jeopardy. An employee of Big Mike’s who was anxious about the return of the business, Emily Ashford, reached out to Jon Taffer via Bar Rescue’s website, and asked for help. Bar Rescue and Jon Taffer responded, flew to Denham Springs, and set a goal of reopening the restaurant within two months.
Taffer himself had concerns about the ambitious renovation and whether it could be finished on a two month schedule. Bar Rescue invested approximately $750,000 into Big Mike’s Sports Bar & Grill in October of 2016 to make it happen. Unlike most Bar Rescue businesses, this show wasn’t about rescuing a failing business, but a once thriving business that was devastated by the Great Flood of 2016. Kingswood Leasing was asked to secure approximately $85,000 in financing for the client in a very short time frame in order to fit into the production team’s schedule. The entire process from application to funding was accomplished within one week so that the new equipment Big Mike’s needed would be delivered and installed in time for the tv production crew’s filming schedule.
In the episode, titled “Bar over Troubled Water”, Taffer expresses his concern about the amount of work needed to do a complete renovation in less than 5 days. Taffer brought 50 crew members and hired 20 local laborers for the project, who worked around the clock for 5 straight days.
“In the end, I want Mike and Jocelyn to tell the people of Denham Springs that ‘if we were able to get back in business, so can you'” – Jon Taffer, Bar Rescue, Bar over Troubled Water
The one-hour episode premiered on Sunday, March 26th, and was watched by hundreds at the bar the same evening. At the end of the program acknowledgements were given to those that contributed to the cause, of which included Kingswood Leasing.
Here is a preview of the episode:
Kingswood Leasing is proud to support Big Mike’s Sports Bar & Grill. We couldn’t be more pleased that everyone trusted us to do our small part to make this a great story for the O’Neils. We congratulate everyone who helped make this possible and look forward to seeing this local community happy and thriving again.
If you would like to learn more about Big Mike’s Sports Bar & Grill visit their website at www.bigmikessportsbarandgrill.com.
Bank Loan or Equipment Loan or Equipment Lease?
Business owners have options when it comes to commercial equipment financing. The most common are bank loans, equipment loans, and equipment leases. This post will address the advantages and disadvantages of each.
What’s the difference?
If you have a good credit history you can qualify for a bank loan. Depending on available terms at your bank, these loans can have the lowest payout. If you are buying new equipment and your dealer or bank qualifies you for promotional-rate financing, such as 0%-5%, take that money and run. No one can offer you better terms.
- Typically the lowest payout over the life of the loan
- Small credit window – 85% of applicants are declined
- Typically require significant down payment
- Normally require significant amounts of tedious documentation and income verification
- Sales tax may be due upfront
- May tie up available lines of credit
- Process usually takes several weeks
Equipment loans can come in many different names; Equipment Finance Agreement (EFA), Capital Lease, Finance Lease, $1.00 Buyout… all are considered equipment loans by the IRS. The IRS does not classify these leases as “True Leases” because even though they incorporate the lease mechanism for the loan, the buyout is not significant enough to be considered a true lease. More recently equipment loans have been very popular because of Section 179. For example, depending on the tax year, businesses could immediately deduct the full cost of equipment, up to $500,000, against their taxes. They are also popular because these loans are easier to qualify for than bank loans, have less paperwork, and typically take much less time to fund.
- Equipment Loans are Lease-To-Own – You own the equipment after completing agreed upon payment schedule
- Easier to qualify for and less paperwork than a bank loan
- Low to no down payment required
- Similar finance terms as bank loans up to 5 years
- Fast funding, in as little as 24 hours after signed documents are received
- Immediate tax deduction available for cost of equipment
- Payments are not fully tax deductible
- Payments can be higher than a lease with a residual buyout
- No option not to buyout equipment
The IRS classifies equipment leases as True Leases, which are the same type of transaction as leasing a car. With a True Lease there is a significant buyout, typically 10% – meaning if you lease a $25,000 piece of equipment, the buyout option would be $2,500. Equipment leases are popular because usually 100% of the payments are tax deductible. They also typically offer the lowest monthly payment option because you’re often only financing 90% or less of the equipment. This type of transaction does include a choice at the end of the lease term to either buyout the equipment, return the equipment, or continue renting the equipment.
- Typically the lowest monthly payment option
- Payments are usually 100% tax deductible
- Easier to qualify for and less paperwork than a bank loan
- Low to no down payment required
- Similar finance terms as a bank loan up to 5 years
- Fast funding, in as little as 24 hours after signed documents are received
- Includes buyout options
- In order to own the equipment the buyer has to pay to the residual amount not financed in the lease agreement
So which one is best and when?
Why Equipment Leasing Is Usually Better Than An Equipment Loan, But Not Always
This is why we have a job. We talk to customers every day looking to finance their next business equipment purchase, and every one has their own situation and experiences. With that being said, in many cases using an Equipment Lease to purchase equipment can have the greatest bottom line savings.
Let’s say you want to buy some equipment for $40,000 and finance it over the next 4 years…
Equipment Cost: $40,000
Loan/Lease Term: 48 Months
Quoted Lease Payment: $1,194
Quoted Loan Payment: $1,261
Lease Residual: 10%
Your Tax Rate: 30%
Total Payments: $57,312 $60,528
Tax Writeoff: $17,194 $12,000
After-Tax Payments: $40,118 $48,528
Residual: $4,000 $1
Net Ownership Cost: $44,118 $48,529
Total Lease Savings: $4,411
This example shows how a borrower can save $4,411 simply by choosing an Equipment Lease over an Equipment Loan for the exact same piece of equipment. Buyers travel hundreds of miles to buy equipment for less when they can save thousands just by choosing to finance with a True Equipment Lease as opposed to a Bank or Equipment Loan.
Is A True Equipment Lease Always The Best Choice?
There is no one solution that is always the best in the world of business finance. That is why we here at Kingswood are ready to find the best solution for your specific situation.
If, for example, you are having an exceptional year and have abnormally high income, a faster depreciation may make a lot of sense. Our finance calculator automatically provides you with a free estimate on total bottom line equipment cost after a Section 179 deduction, so that you can see the potential savings before committing to any purchase. As always, check with your accountant before making any decisions. We are a finance company and are aware of these tax benefits, but only your accountant can tell you if this is the best tax application for your business.