and YOUR Kitsapeda.org/covid-19 BUSINESS KEDAS WEEKLY WEBINAR - - PowerPoint PPT Presentation

COVID 19

and YOUR

BUSINESS

KEDA’S WEEKLY WEBINAR April 23rd, 2020

Kitsapeda.org/covid-19

Panelists:

Hosted by:

Kathy Cocus

KEDA Business Development Director

cocus@kitsapeda.org

COVID-19 Resources & Information

Current updates & reliable resources: Funding Relief SBA Loans CARES Act Lenders Unemployment Grants FAQs

Local Resources

SBDC Lenders Local Governments & Chambers Government Contracting (PTAC) Industry Sectors

Kitsapeda.org/Covid-19

Working Washington Small Business Grants

April 8, 2020 Governor Jay Inslee introduced WWSBG Within Hours

KEDA posts to website, SM & sends newsletter Applications immediately begin coming in

Thurs - April 9th

KEDA creates FAQs to guide applicants, posts updates

600 applications received KEDA Staff & volunteers create database & process to evaluate apps

Friday, April 10th

• ver 1000

applications & inquiries received by noon

Review in Process

KEDA will forward 64 to Dept

• f Commerce

Approx 16 expected to be funded for Kitsap

FEDERAL UPDATE: $484 B add’l emergency coronavirus aid passed by Senate

• Expected to be passed by the House and signed into law on Thursday bringing total coronavirus relief

spending to nearly $3 trillion.

• $321 B add’l funding for the Paycheck Protection Program targeted at small businesses
• $30 B reserved for community-based lenders, small banks and credit unions
• $30 B reserved for mid-sized banks and credit unions
• $60 B add’l funding for the Economic Injury Disaster program for small businesses
• including $50 B for loans & $10 B for grants;
• $75 B for hospitals
• $25 B for testing &contact tracing
• includes $11 B to be distributed to states; $1B for CDC; $1.8 B for NIH; $1 B for Biomedical Advanced R&D Authority;

$1 B testing the uninsured; $825 million for community and rural health centers;

• $2.1 B for Small Business Administration administrative expenses.

WASHINGTON STATE UPDATE:

Governor Inslee: Expect most restrictions to remain in place beyond May 4th

Weekly Webinars: Partnering to Inform & Update

COVID-19 & Your Business

Upcoming:

April 30: What Does Doing Business Look Like Now? May 7: The New Marketplace – Making it Work for Your Business May 14th: Your Business Resource Partners

Thursdays @ 10am -details @kitsapeda.org View past webinars:

Crisis Finance: Small Businesses to Startups

Joe Morrison Investor x Entrepreneurial Ecosystem Builder

About

Daily – Run Anchorage’s 49th State Angel Fund Occasionally —Teach, Consult Interest – Impact Businesses (Startups, Triple Bottom Line, and “ESG”—Environmental, Social, Governance models) Joe Morrison (Alaska + Kitsap)

Today

COVID-19 Disclaimer: Things are changing, rapidly.

https://www.cnbc.com/2020/04/09/this-map- shows-the-states-that-suffered-the-biggest- job-losses-last-week-due-to-coronavirus.html

Framing

Communities Talk “Reopening”

https://www.seattletimes.com/seattle- news/health/uw-coronavirus-model-says-washington- state-can-start-safely-reopening-the-week-of-may-18/

V Shaped Recession U Shaped Recession Depression (L Shape)

https://en.wikipedia.org/wiki/Recession_shapes

Framing: The Floor and the Ceiling

CARES ACT –$2.2 Trillion: Largest governmental aid package in US History. And at the SBA:

• Funding of the “PPP” or Paycheck Protection

Program ($349 Billion).

• 70% applied, 20% say they were approved.
• Expanded the “EIDL” or Economic Injury

Disaster Loan eligibility.

• 50% applied.

Funding depleted April 16 Refunding expected ~April 24. Bill calls for

• +~$310 Billion to the PPP
• $60 Billion: Community Banks + Credit Unions
• 28% of small businesses, maximum?
• +~$50 Billion to the EIDL

Small Business: Financing Survival

Source: Application rates from a National Federation of Independent Businesses survey, as discussed by CNBC. https://www.cnbc.com/2020/04/21/how-small-businesses-can-survive-coronavirus-without-federal-loans.html

SBA products will be re-funded. Be ready. Know Your Bank / Credit Union’s Plan. Examples for PPP:

• Kitsap Credit Union:
• Taking PPP inquiries, has assistance programs
• Kitsap Bank:
• Encourages current customers to prepare

documentation and use loan estimator

• If You’ve Applied
• Review communications to confirm your

application is in queue / will be considered

Financing Survival: What You Can Do (1/3)

SBA products will be re-funded. Be ready. A) Get ready to apply for the EIDL online http://sba.gov/disaster (thereabouts) B) Know the other SBA products

• $25,000 SBA Disaster Bridge Loan
• Debt Relief—SBA pays principal, interest and

fees of current and new (<September 27, 2020) SBA 7 (a), 504 and microloans

Rear View mirror: The importance of—

• The small business banking relationship

(and an SBA Preferred Lender)

Financing Survival: What You Can Do (2/3)

Other resources A) USDA Rural Development loans, grants https://www.rd.usda.gov/coronavirus B) This INC page discusses everything from ad credits (Google, Yelp) to the red backpack fund for women entrepreneurs https://www.inc.com/gabrielle- bienasz/small-business-grants-2020.html

Financing Survival: What You Can Do (3/3)

Startups: Now It’s Even Harder

Entrepreneurs: Mind sectors, opportunities

• Consider accelerating / decelerating sectors
• Volatility Creates Opportunity

Startup Financing Conventional Wisdom:

• - Valuations should decrease
• - VCs will rebalance, value dry powder
• - Angels will pull back but continue

Good startup investors value traction, validation, teams—and companies > ideas.

Startups: Now It’s Even Harder

Source: StartupCommons.org Version 3.6

Let’s Invest here! (Well, Maybe)

Startups: Now It’s Even Harder

Advice for Startups:

• Bootstrap
• Can’t Get Financing?
• What did you need to take your next step?
• How can you get it without relying on cash?
• The Do Not Ever Run Out of Money Rule—

Now Even More Important

+ Good stewardship of rare financial resources

If you have to:

• Pivot
• Earn Income
• Side Hustle

• You already know this: Be Proactive
• Crisis Finance is Simple Math
• Recessions, even Depressions, End
• Getting Through this is a Win

Close

Thanks, Entrepreneurs and Small Businesses Reach me at Biz21consulting@gmail.com Twitter: @joencmorrison Online: biz21.co and 49saf.com

Kol Medina

Kitsap Community Foundation

CHARITABLE GIVING, CHARITABLE ORGANIZATIONS, & COVID-19

Kol Medina, Kitsap Community Foundation

MY TOPICS TODAY

• 1. Kitsap County Nonprofit Survey results
• 2. Reality Check for Nonprofits
• 3. Response Revenue for Nonprofits
• 4. Charitable Dollars for Businesses?

RESULTS OF COVID-19 NONPROFIT SURVEY

Survey closed on April 1

5 10 15 20 25 30 35 Civic/Public Benefit Environment/Animal Welfare/Recreation Education Health/Housing/Human Service Arts

FURLOUGHED OR LAID OFF EMPLOYEES

HOW MANY EMPLOYEES?

50 100 150 200 250 300 Civic/Public Benefit Environment/Animal Welfare/Recreation Education Health/Housing/Human Service Arts

ELIGIBLE FOR UNEMPLOYMENT INSURANCE

Yes No

NEED FOR SPECIFIC RESOURCES

(THINGS SUCH AS MEDICAL EQUIPMENT, TECHNOLOGY, ETC.)

Average Urgency: 4/5

Yes 36% No 64%

NEED FOR LABOR

(WHETHER THIS IS STAFF OR VOLUNTEER OR OTHER)

Average Urgency: 3/5

Yes 24% No 76%

NEED FOR FUNDING

(CAPITAL, PROGRAM, ADMINISTRATIVE, ETC.)

Average Urgency: 4/5

Yes 70% No 30%

IMPACT OF QUARANTINE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

ALL SECTORS

IMPACT OF QUARANTINE

ARTS, CULTURE, & HERITAGE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

IMPACT OF QUARANTINE

EDUCATION

IMPACT OF QUARANTINE

ENVIRONMENT/ANIMAL WELFARE/RECREATION

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

IMPACT OF QUARANTINE

CIVIC / PUBLIC BENEFIT

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

IMPACT OF QUARANTINE

HEALTH, HOUSING, & HUMAN SERVICES

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6 Months Shelter in Place 3 Months Shelter in Place 2 Months Shelter in Place 1 Month Shelter in Place 2 Weeks Shelter in Place We likely could NOT survive We likely will survive, but will have significant challenges We likely will survive, but will have few challenges We likely will survive, no significant challenges

REALITY CHECK FOR NONPROFITS

Economy will not “re-open” quickly Usual sources of revenue will be decreased this year: Earned income Government grants Fundraising events Corporate gifts Gifts from individuals

NEW SOURCES OF REVENUE FOR NONPROFITS

• 1. Payroll Protection Program (PPP)
• 2. EIDL
• 3. Other Federal sources of funding
• 4. State or local funding?
• 5. Crisis Response Funds
• 6. Your core donors
• 7. A new paradigm for fundraising events

CHARITABLE DOLLARS FOR BUSINESSES?

How can charitable dollars be used to help businesses?

• Research
• Education
• Direct grants or loans? Must be shown to primarily

benefit the community, not the business.

QUESTIONS?

Kol Medina, CEO, Kitsap Community Foundation 206-755-9205 kol@kitsapfoundation.org

David Beck

One Strategic Capital

CARES AND YOU, THE NEXT STEPS...

APRIL 23RD, 2020 PRESENTED BY: DAVID BECK ONE STRATEGIC CAPITAL, INC PLANS@OSCFP.COM (206) 397-4890

WHO ARE WE?

Retirement Plan Consulting & Fiduciary Services Independent advisory firm Headquartered on Bainbridge Island, WA 3(38) Fiduciary Investment Manager Specialize in retirement planning, wealth management We’re Here, Let’s Talk! Oscfp.com/WHLT

FEAR DRIVING DECISIONS

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

Marc rch h 20th th

• Fear continues to drive market decisions but not at the same level as it dd during the previous week.
• As the reality of the situation sets in and consumers realize that key sectors such as groceries and gas stations remain open, the

worst fears of the unknowns have abated.

GLOBAL EQUITY MARKETS HAVE POWERED THROUGH PAST VIRAL OUTBREAK

• The markets have experienced 7 major viral outbreaks over the last 20 years with the last pandemic hitting in 2009.
• Markets historically recovered quickly from these prior outbreaks however measures in place currently are much more

dramatic.

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

QUALIFIED INDIVIDUALS

CARES Act: provides retirement plan relief for “Qualified Individuals” Defined as anyone who:

1)

Has been diagnosed with the virus (CDC-approved test);

2)

Has a spouse or dependent who has been diagnosed; and/or

3)

Has suffered “adverse financial consequences” resulting from the virus due to being laid-off, furloughed, quarantined, work hours reduced, lack of childcare, or closure or reduction in hours of a business owned or operated → Employees may self-certify they are a qualified individual

CORONAVIRUS-RELATED DISTRIBUTIONS (“CRDS”)

Qualified Individuals can withdraw up to $100,000 from their retirement plan accounts in 2020. (Similar to a hardship withdrawal). Tax Benefits of CRDs:

➢ No 10% early withdrawal penalty for people under age 59-1/2 ➢ No mandatory 20% federal tax withholding ➢ Tax burden may be spread over 3 years ➢ May be paid back to the Plan or IRA within 3 years

This feature is optional; Plans do not have to allow employees to take CRDs

CORONAVIRUS-RELATED LOANS (“CRLS”)

For Qualified Individuals, the limit on Plan loans is raised to $100,000

• r 100% of their vested account balance.

(The normal limits are $50,000 or 50% of vested balance)

➢ These higher limits apply for loans taken until September 23, 2020 ➢ In general, the Plan must already allow for Loans ➢ This feature is optional; Plans do not have to allow employees to take

CRLs

LOAN SUSPENSION

Qualified Individuals may suspend their 2020 loan repayments for up to 1-year

➢ It appears payments resume in January 2021 ➢ Interest continues to accrue during the suspension and the loan will be re-

amortized, presumably in early 2021

➢ The final due date of the loan will be extended to reflect the suspension period ➢ It appears this feature is optional, but we have seen certain recordkeepers who

automatically implement

OTHER CARES ACT ITEMS

➢ Required Minimum Distributions (“RMDs”) due in 2020 are waived

→ True for everyone, not just Qualified Individuals → Includes 2019 RMDs due by April 1, 2020 → If RMDs were already taken in early 2020, may be able to be reversed

➢ Funding deadline for 2019 Defined Benefit plans is pushed from 9-15-2020 to 1-1-

2021

➢ Plans will need to be amended to reflect CARES Act provisions; deadline is 12-31-

2022

➢ DOL has authority to extend deadlines (e.g. Form 5500 deadline for June 30, 2019

Plan Years has been extended from April 15 to July 15, 2020)

ADDITIONAL RETIREMENT PLAN CONSIDERATIONS

Suspend pending Comp mpan any y Contributions utions (e.g. match or profit sharing)

➢ Usually do-able, but must look to specific plan design and company demographics ➢ Suspending “safe harbor” contributions typically requires 30-days notice and additional compliance

testing

What is a “Termination” of Employment? (vs. a temporary leave, furlough, etc.)

➢

Very facts-and-circumstances based

➢

Possible factors: expectation of return, other benefits, shutting off email account, etc.

➢

Affects various areas, such as taking plan distributions and partial terminations

Pa Partial l Plan Terminat nation

• ns

➢

Occurs when 20% or more of workforce is terminated during the year

➢

Results in full vesting for affected employees

A HISTORY OF MARKET UPS AND DOWNS

Using a 20% threshold for downturns

1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 S&P 500 Index Total Return (Logarithmic Scale) 0%

• 1%

1,000%

• 100%

Bull Market Bear Market

193% 44 months

• 83%

34 months

• 22%

6 months 815% 167 months

• 22%

6 months 936% 181 months 144% 77 months

• 29%

19 months 76% 30 months 844% 155 months

• 43%

21 months

• 45%

25 months

• 30%

3 months

• 51%

16 months 815% 153 months 108% 61 months 451% 130 months

S&P 500 Index total returns in USD, January 1926–December 2019

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

RETURNS OF S&P 500 – MISSING THE BEST DAYS IS DISASTROUS

• Trying to time the market is extremely difficult to do. Market lows often result in emotional decision making. Investing

for the long term while managing volatility has historically led to better performance outcomes.

• Market data – in the form of invest flows in stocks, bonds, and cash – continue to show that market participants are

making the exact wrong decision at the exact wrong time. Attempts at market timing continue to be exposed as failed strategies. As highlighted, just missing a few of the best performance days, which typically immediately proceed the worst performing days, quickly erodes overall portfolio performance.

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

TO SCHEDULE A MEETING WITH US:

Schedule an online meeting with our team at: oscfp.com/WHLT

David Beck, AIF Email plans@oscfp.com Call (206) 397-4890

Past performance is not a guarantee of future results. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser.

Join us next week 4/30 for: What Does Doing Business Look Like Now?

Upcoming:

April 30: What Does Doing Business Look Like Now? May 7: The New Marketplace – Making it Work for Your Business May 14th: Your Business Resource Partners

Thursdays @ 10am -details @kitsapeda.org View past webinars: