The Macro
2020 has been a year of non-stop bad news. We almost went to war with Iran, we lost Kobe Bryant, COVID-19 has spread far and wide, killing thousands and canceling the many events we look forward to each spring and summer. Our government's slow to the virus hasn’t helped with subsiding our fears, either. In turn, our markets have tanked and thousands of jobs are on the chopping block to help stem the bleeding.
This is the third global crisis I have been through as a 25-year-old. The first being 9/11, the second being the global financial crisis in ‘07-’08, and now today’s COVID-19. Each time America came together and overcame. We realized as a nation that anything hard that has ever been solved, was never solved by panicking. We are a nation that put a man on the moon, invented the polio vaccine and won two world wars.
The panic that has resulted from this crisis, though, has been different from the others. We live in a world dominated by social media, where everyone’s an “expert” on what is currently troubling the world or dominating the media. Isn’t it funny that on social media, everyone suddenly has a friend with insider knowledge from the Department of Homeland Security?
When 9/11 happened, there was no social media platform where people could share their counter-terrorism “expertise.” When the global financial crisis hit, people didn’t immediately take to Twitter to advise others on their finances. In today’s social media age, it appears that everyone wants to be an expert in times of panic, but the only solution they can provide is bad news or unverified information. Likes, re-tweets, and page-views sharing bad news are eating away our resolve as Americans.
The real experts are on the frontlines solving this crisis. They’re treating patients, developing vaccines, re-stocking store shelves and driving trucks filled with supplies to refill those shelves. It may not seem like there is an end to this crisis, but there will be. There is always a solution, and you--as a normal, everyday American--can be a part of that solution without posing as an expert.
You can stay at home. You can wash your hands. You can order delivery from your favorite restaurant and leave a great tip. If your friend is a nurse or a doctor bring them dinner or coffee. If you’re a business owner, you can consider all SBA Loan possibilities before laying off employees. On social media, you can share the good news that will actually benefit people.
We win when we all decide to stop trying to be the expert and start doing our part to become a piece of the solution.
You won’t solve anything by tweeting at AOC or Donald Trump telling them how stupid they are. You won’t solve anything by sharing the tweet or Facebook post written by the person who said he or she “doubts America’s abilities to get a grip on the crisis.” It might make you feel better in the moment, but know that it accomplishes absolutely nothing.
Solutions take time, so be patient and know that the real experts out there are doing everything they can to make sure we will be okay.
*For those of you nervous about the stock market. Zoom out.
What you see every day online in terms of market performance during this crisis.
..is just a smaller part of an otherwise bigger picture.
“Bear Markets all have one thing in common. They End” - Michael Batnick
The Micro
I’m using this week’s micro section of the newsletter to re-share a post that I helped put together with Birmingham Bound on resources and strategies local Birmingham businesses, start-ups, and residents can take to be apart of the solution.
You can find the original post here
Support Birmingham small businesses and their workers by donating to these funds or purchasing gift cards to be used at a later date:
Donate to the Community Foundation BhamStrong Fund
Resources for start-ups and small businesses
Join the Magic City Tech Slack channel
To let TechBirmingham know what challenges (tech-related and otherwise) you are, or will likely, face as you and your businesses navigate the impact of COVID-19, fill out this form here.
Payroll tax credit information: (details found here)
Start-ups and small businesses are eligible to apply to up to $1.25 million or $250,000 per year for five years in credits to offset the FICA portion of their payroll tax.
You don’t have to be a high tech or life sciences company to apply for the credit. If you meet the criteria below you can apply for the tax credit.
To be eligible, a company must meet some requirements:
Have less than $5 million in gross receipts for the credit year
Have no more than five years of gross receipts
Business activities are intended to resolve technological uncertainty that exists at the outset of the project or initiative, related to the capability or methodology for developing or improving the business component or the appropriate design of the business component
Business activities rely on hard science, such as engineering, computer science, biological science, or physical science;
Business activities related to the development of a new or improved business component, defined as new or improved products, processes, internal-use computer software, techniques, formulas, or inventions to be sold or used in the taxpayer’s trade or business; and
Business activities substantially all constitute a process of experimentation involving testing and evaluation of alternatives to eliminate technological uncertainty
Additional notes:
For tech companies: If you are an early-stage company with a mobile app, a cloud-based web app or an e-commerce site, this payroll tax credit was designed for you and you should apply if you fall into either of those categories.
For small businesses: Qualified Small Businesses (QSB) that don’t match the above business models but are still technological in nature can use the R&D tax credit to offset the FICA employer portion of their payroll tax. A QSB is defined as a business with less than $5 million in annual gross receipts and having gross receipts for no more than five years
If your business has no revenue yet, you can still apply for the credit.
You can claim this credit retroactively, and you can get help filing an amended tax return to claim the R&D credit for previously filed Income Tax returns (past 3 years), but you cannot take the PATH Act R&D credit on an amended tax return.
Talk to your accountant and payroll provider about getting the credit. They can get the IRS paperwork started right away and filed immediately.
What to Read
Warren Buffet’s 2008 OP-ED for the New York Times,
Be patient and be a part of the solution.
-Sean