Business Assistance Available Pat Sharkey, Tourism Tabitha Hodge, - - PowerPoint PPT Presentation

Coronavirus Aid, Relief, and Economic Security (CARES)

Business Assistance Available

Pat Sharkey, Tourism Tabitha Hodge, Econ Devel Lydeana Martin, Econ Devel John McEnhill, Chamber Kayla Cox, Town of Floyd

Welcome

• Small Businesses
• Non‐profits (including faith‐based)
• Self‐employed, Sole Proprietors, Independent

Contractors!

Today

• Economic Injury Disaster Loans/Cash Advance

Grant

• Paycheck Protection Program
• Q&A
• Tourism Update

You can type a question anytime in the chat box at the bottom of the screen and we’ll cover during Q&A Other help, call 540 745‐9300 ask for Tabitha

Painful Truths

• These are unprecedented times
• CARES legislation passed on Friday, March 27th

is sweeping and many rules still not clear +/or interpretations evolving daily

– We’ll focus on just two new programs today

• No one seems to know all the answers, least
• f all us
• But we’re trying, and we’ll keep trying, to help

Cash: How much do you need each month (bare minimum)?

• Fixed costs (overhead):

– Rent or Mortgage* – Utilities (somewhat) – Insurance* – Property taxes

• Break‐even: when revenue covers fixed &

variable

• Now, if sales not at least covering variable, then

temporary closure might be better.

• These two new fed. programs might factor into

that decision, but response not likely to be fast— plan on a month+ Variable costs: (directly

related to sales): ‐Wages

‐Raw goods, inventory ‐Utilities

Economic Injury Disaster Loan (EIDL) What is it?

• COVID-19 EIDL is one of two new assistance programs for

small businesses supported by Small Business Admin. (SBA)

• Allows borrowing up to $2 million dollars at an interest rate of

3.75% for businesses and 2.75% for nonprofits. Loan term up to 30 years.

• An automatic one-year deferral on repayment, though interest

begins to accrue when the loan is disbursed.

• For loans of less than $200,000, the borrower is not required to

submit personal guarantees. The SBA will request collateral if the loan exceeds $25,000, but the failure to provide collateral does not disqualify the application.

EIDL Cash Advance Grant What is it?

• Unlike the PPP loan, the EIDL is obtained directly through the

SBA.

• And it can provide up to $10,000 cash grant “within three days

after the SBA receives the application” whether or not you pursue or accept a loan.

• Application open now through December 31, 2020, though

funds may run out first.

• These advances are available only for applications related to

COVID-19 crisis.

EIDL Cash Advance Grant What can the cash advance be used for?

Businesses can use the advance for any allowable EIDL purpose under current law, including:

• Providing paid sick leave to employees unable to

work due to COVID-19 (but no double dipping)

• Maintaining payroll
• Meeting increased costs due to interrupted supply

chains

• Making rent or mortgage payments
• Repaying obligations that cannot be met due to

revenue losses

EIDL Cash Advance Grant What Businesses are Eligible?

• In business for the 1-year period before the disaster; and

(CARES Act) still in operation as of January 31, 2020

• Business with not more than 500 employees or
• Sole proprietorship, with or without employees, or
• Independent contractor, or self-employed, or
• Applicant is a cooperative with not more than 500

employees,or

• Applicant is an Employee Stock Ownership Plan (ESOP), per

15 U.S.C. 632, with not more than 500 employees, or

• Applicant is a business, including an agricultural cooperative,

aquaculture enterprise, nursery, or producer cooperative

EIDL Cash Advance Grant What Non-profits are Eligible?

• Applicant is a private non-profit organization
• that is a non-governmental agency or entity that currently

has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954

• Faith-based organization are eligible. Specific guidance

can be found online at: https://www.sba.gov/document/support--faq-regarding- participation-faith-based-organizations-ppp-eidl

EIDL Cash Advance Grant What Businesses aren’t Eligible?

• Applicant is engaged in any illegal activity (as defined by Federal

guidelines).

• A principal of the Applicant with a 50 percent or greater
• wnership interest is more than sixty (60) days delinquent on

child support obligations.

• Agricultural enterprise (e.g., farm), other than an aquaculture

enterprise, agricultural cooperative, or nursery.

• Applicant derives more than one‐third of gross annual revenue

from legal gambling activities.

• Applicant is in the business of lobbying.
• A state, local, or municipal government entity, or member of

Congress.

EIDL Cash Advance Grant Application Form – First Page

• Online Form is at:

https://covid19relief.sba.gov/#/

• Should take about 8-10 minutes to complete
• First page asks what type of eligible business

and to confirm that not excluded by any factors listed on previous slide

EIDL Cash Advance Grant Application Form – Second Page

• Basic Name and Contact info
• FEIN or SSN
• Date current ownership started and date business

established

• # of employees as of 1-31-20
• Type of business activity
• For 12 months prior to 1-31-20 (as applicable)
• Gross revenue
• Cost of goods sold
• Operating Expenses
• Lost Rents
• For Faith-based organizations – secular expenses and

activities

EIDL Cash Advance Grant Application Form – Third Page

• Owner/agent info
• Name, residential address, email, phone
• Title
• SSN
• Date of Birth
• Place of Birth
• FEIN or SSN

EIDL Cash Advance Grant Application Form – Fourth/Fifth Page

• Fourth page
• Asks about any criminal history in last year, under indictment,

arrested, banned from federal grants, etc.

• Ask for info about any third party/person preparing application

(like CPA)

• If cash advance requested (must check if wanted)
• Bank info for direct deposit
• Declare under penalty of perjury that info is correct
• Last Page is summary for confirmation and submit button

PRO TIP: Be sure to write down or screenshot the application number that you see on the screen after you complete the application; you won’t receive a confirmation email until your application has been reviewed.

EIDL Cash Advance Grant What to expect

• Do not expect any funds within 3-5 days. At this time,

expect it to take time. PPP applications and funds may be faster

• NEW: grant likely to be $1,000 per employee, so only

employer with 10 or more will get the full $10,000 cash advance.

• Even if denied for the loan, the cash advance received

will not have to be repaid

• You do not have to take a loan to get the cash advance
• The EIDL loan amount is based on information

submitted on the application

CARES Act Paycheck Protection Program (PPP)

PPP provides small businesses with funds to pay for the following for up to 8 weeks, immediately following date of the loan:

– Payroll costs including benefits – Interest on mortgages (as long as obligated prior to 2/15/20) – Rent (as long as obligated prior to 2/15/20) – Utilities (for services begun before 2/15/200 The loan is forgiven proportionally to maintaining employees and pay from before or re‐hiring by June 30, 2020.

Sources: Treasury.gov & U.S. Chamber of Commerce

PPP: WHO is eligible? You are eligible if you are:

• A small business (not more than 500 employees)
• If you are in the accommodation and food

services sector (NAICS 72), the 500‐employee rule is applied on a per physical location basis

• An individual who operates as a sole proprietor
• An individual who operates as independent

contractor

• An individual who is self‐employed who regularly

carries on any trade or business

• A 501(c)(3) and 501(c)19 non‐profits
• Faith‐based organizations, even if not providing

secular service

PPP: WHEN Can I Apply?

• A small business (less than 500 employees)
• If you are in the accommodation and food

services sector (NAICS 72), the 500‐employee rule is applied on a per physical location basis

• An individual who operates as a sole proprietor
• An individual who operates as independent

contractor

• An individual who is self‐employed who regularly

carries on any trade or business

• A 501(c)(3) and 501(c)19 non‐profits
• Faith‐based organizations, even if not providing

secular service

PPP: WHEN do I apply?

• Participating private lenders (approved SBA lender)
• Started April 3, 2020 for small businesses and sole

proprietorships

• Starting April 10, 2020 for independent contractors,

self‐employed individuals, non‐profits

• Program is open until June 30, 2020 but you are

strongly encouraged to apply earlier due to limited funds.

PPP: WHERE do I apply?

• Apply through any participating SBA lender—but in

reality, who you already bank with.

• Consult with your local lender as to whether it is
• participating. Locally, Atlantic Union, Carter and

Skyline Banks are participating.

• A list of participating lenders as well as additional

information and full terms can be found at www.sba.gov. Wells Fargo not taking apps.

• No Fees: Neither the government nor lenders will

charge small businesses any fees

PPP: HOW do I apply?

• The application form is here.
• Contact your lender, ask what supporting

documentation they need—varies somewhat—should include

– 2019 payroll costs and January 1 to February 15, 2020 payroll costs – Calculation identifying the 12‐month average payroll – Payroll tax filings or 1099‐MISC – Income and expenses if sole proprietor

PPP: Loan Details & Forgiveness

• No collateral or personal guarantees are required
• Can only have one loan under this program
• The loan will be fully forgiven if the funds are used

for payroll costs, interest on mortgages, rent, and utilities and

• At least 75% of the forgiven amount must have been

used for payroll; and

• Business has maintained employment level from

“before” or rehires and maintains salary levels *

• Forgiveness will be reduced if full‐time headcount

declines, or if salaries and wages decrease*

PPP: What will lenders be looking for?

• Lenders will also ask you for a good faith certification that:
• the uncertainty of the current economic conditions make

this loan request necessary to support ongoing

• perations
• The borrower will use the loan proceeds to retain

workers and maintain payroll or make mortgage, lease and utility payments.

• Borrower does not have an application pending for a loan

duplicative of the purpose and amounts applied for

• From Feb. 15, 2020 to Dec 31, 2020 the borrower has not

received a loan duplicative of the purpose and amounts applied for here.

PPP: What will lenders NOT be looking for?

• Whether you sought and couldn’t obtain credit

elsewhere

• A personal guarantee
• Collateral for the loan
• Fees for applying

PPP amount = Up to 2.5 X the average monthly “included” payroll costs

NON‐SEASONAL: If operational in 2019: Average monthly payroll= (Total “included” payroll in 2019)/12 If not operational in 2019: Average monthly payroll = (January and February 2020 “included” payroll/2) SEASONAL: Average monthly payroll = (12 week “included” payroll costs beginning Feb 15, 2019 or March 1, 2019 and endingby June 30, 2019/3)

PPP: Loan Forgiveness

Forgiveness is reduced by two things—reduction in average employment and reduction in salaries (if salaries reduced by more than 25%). Calculations The portion of the loan to be forgiven will be: Average monthly payroll in 8 weeks right after loan approved divided by

PPP: Loan Forgiveness

PPP: Loan Details

• Loan payments will also be deferred for six months
• No collateral or personal guarantees are required
• No Fees: Neither the government nor lenders will

charge small businesses any fees

• Loan has a maturity of 2 years and an interest rate of

1%

PPP: How can I request Loan Forgiveness?

• After the loan is awarded, you can submit a request to

the lender that is servicing the loan.

• The request will include documents that verify the

number of full‐time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations.

• You must certify the documents are true, that you

used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.

• The lender must make a decision on forgiveness

within 60 days.

Can I for both EIDL Cash Advance Grant and PPP?

Generally, yes. BUT borrower must use the EIDL Cash Advance Grant for a purpose other than covering payroll costs, or else the PPP Loan forgiveness will be reduced. Cannot use for exact same expenses. Timing of each may also cause forgiveness reduction, but this is not clear. Before accepting either, talk to your lender about this or the Small Business Development Center (SBDC) in Roanoke https://roanokesmallbusiness.org/covid19 as details still being figured out.

Follow up

Yesfloydva.org We’ll post:

• These slides and follow up FAQ’s
• Business Resource List

Q&A

John McEnhill, Chamber of Commerce Executivedirector@floydchamber.org Lydeana Martin, Economic Development lmartin@floydcova.org www.facebook.com/yesfloydva

Update from Tourism Director

Floyd Tourism

• Tourism marketing is now virtual ‐ not

inviting visitors to Floyd.

• Presently can include broad range of

businesses – regular tourism businesses and

• ther categories as well so be in touch if not

sure.

Tourism Focus presently:

• Helping promote businesses to local residents (ex:

restaurant take out)

• Helping market businesses’ virtual events, classes, tours

and product sales and gift cards to both residents and broader visitor audience throughout VA and NC via social media, email newsletter and website (for as immediate of support as is possible)

• For regional virtual campaign, redirecting some marketing

funds and looking at creative incentive campaigns (giveaways for purchases…)

• Helping coordinate rescheduling of events
• Helping link/network with state and national tourism‐

specific resources

– Media outlets offering free PR

Projects RIGHT NOW you can participate in:

• Share your updates as you can ‐ Social media

posts, business hours/services changes

• On www.VisitFloydVA.com page links
• Businesses update page for restaurants updates,

sharing virtual events and classes, local updates – and changes in your business (hours, services) and creative ways you are reaching out to public

• Virtual Visit/Shop Floyd VA page is going live

TODAY, sharing businesses on‐line shopping and gift card options. Do not need to have website shopping capacity to be promoted. Tell how folks can buy from you.

Roanoke Times ‐ FREE advertising NOW

• Lee Enterprises (new owner) has created a National online

Program for “Buy Local” – Businesses advertise FREE – The directory, branded Buy Local, provides local businesses the platform to sell gift cards during this challenging time.

• Do NOT have to have a storefront (artists/others included)
• Do NOT have to have a gift card set up on website – just

phone number to be reached

• Buy Local is now live: https://localbusiness.lee.net/ Scroll

down to The Roanoke Times and click Link to merchant intake form: https://www.cognitoforms.com/Wehaa/BuyLocalGiftCardDi rectory

VA Tourism Corporation (VTC)

• At the state level, VTC cares about our

communities/businesses. Minimum of 2‐3 zoom conferences/calls per week for support and updates

• Zoom call with VTC staff every Monday, 3pm

questions and updates – welcome.

• Resources for businesses

www.vatc.org/coronavirus/ continually updated

• Regular Marketing Leverage Grants (June/November)

will become recover grants

• Details to follow
• Virginia is for Lovers – traveler’s updates

www.virginia.org/coronavirus

If you want to receive Floyd tourism resource updates (and presently not getting them) or get general support or talk ‐ Be in touch. Pat Sharkey, Floyd County Tourism Director tourismdirector@floydcova.org 540‐239‐8509