The truth is that many business owners have more cash on their balance sheets today than they did at the beginning of the Pandemic.  Between PPP, EIDL, and the ERTC, many business owners have landed up with more cash than when they started.

If you are in this situation, what do you do? 

I suggest three steps.

  1. Decide how many months of overhead reserves you want in your bank account, and it will make you sleep well at night.
  2. If there is more money left than your reserve amount, decide you need to make a plan. For example, how much of it do you want to invest, and where?
  3. If there is more money than you could ever imagine invested or needing in your reserve account, prepay that amount (if a loan) and stop accruing interest expenses.

It's that simple. Keep in mind that this approach assumes you have and will follow all necessary rules and laws for whatever programs you have participated in.