Covid 19 Information For Small Business

DonTechTown

Business Friends, you’re not in this virus and economic challenge alone.  This is a test for every small business, even big businesses are learning. Below are links to resources for help, especially useful are experts who are helping others. Please, in the right-hand column, add any resources or people you’re finding.

Be safe, trust that God is near,,

Don

4/7/2020

Many Updates and links below.

Coronavirus (COVID-19) Pandemic: Private Nonprofit Organizations

Link to FEMA funding for Non-profit assistance.

A business owner applied for the aid but selected a button incorrectly. The form refused to let him edit his mistake. He is waiting for a phone call back for help.

An owner let me know, their largest payor has stopped payments to his company. It represents half of normal April Income.

For those of us in Oakland County Michigan, here’s a link to our local SBA loan center. Applications must be in by Noon Monday, April 6th.

Federal Paycheck-Protection-Program-Application-3-30-2020-v3

COVID CARES act PPP–Fact-Sheet

  • Small Businesses can apply today with SBA lender. (U.S. SBA home page loans)
  • Sole proprietorships can apply today with SBA lender.
  • Independent contractors and self employed have to wait until April 10.
  • Non-SBA lenders have to apply for the program and be approved, this means the SBA lenders will be at the available funds sooner.

 Following and digesting government guidelines is core to every benefit expert I’ve ever known. There’s three of us with 100 years of digesting small print. Here’s a nice quote from the SBA, and a link to the Federal Register 31 page page.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. U.S. SBA

Original link; CARES Act, Federal Register RIN 3245-AH34

CARES ACT Federal Register 4/3/20 copied to DonWatza.com

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6 thoughts on “Covid 19 Help for Small Business”

  1. FOR NON-PROFITS: Clare from Alabama writes: Dear Don,Many community foundations are partnering with United Ways to develop resources that can be used by nonprofits to address their communities’ needs created by COVID-19. Here is one linkUnited Way SE Michigan: https://unitedwaysem.org/covid-19-donation-page/ 
    Here is a very helpful resource page at Council of Michigan Foundations that has a tab that links to all funds in Michigan: https://www.michiganfoundations.org/covid-19-resource-centralOur funds will be used as grants to enable nonprofits to provide greater services for individuals, and it is not tied to the CARES Act.

  2. I got this comment back from Oakland County.
    Can businesses qualify for both SBA funding and MEDC Grant and Loan?
    The MEDC programs are intended to complement SBA programs, not replace them.
    Am I precluded from applying for other grants if I get a grant or Loan from Oakland County / SOM?
    We cannot advise you in this regard as there are numerous state and federal programs that are developed / being developed, with numerous qualification requirements. You are advised to go to those websites and research qualification requirements.

  3. You can put comments here to help other owners.
    It’s moving really fast, but don’t be too quick. The small print looks like this is focused on payroll.

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Update 4/1/2020

3/28/2020

————– SATURDAY’S (28TH) UPDATE, A NOTE FROM JEFF IS COPIED BELOW ———————–

Dan, Don, & others,
So wonderful meeting with all of you virtually this morning! Per Paul’s suggestion, here’s some info about new Federal and State programs that are quickly being put in place to help all of us financially during this COVID-19 crisis.

The new CARES stimulus bill just passed yesterday provides forgivable loans (i.e. grants) to small businesses, independent contractors, gig workers, and sole proprietors. SBAM has done a daily briefing at 3pm which has been fabulous for keeping on top of all of this. If you’re not already caught up on what’s becoming available, listen in to the last week or so of videos here and look at these latest 2 summaries.

Here’s the link to the SBAM daily briefings at 3pm live but history is here: https://www.facebook.com/SmallBusinessAssociationofMichigan/

And their website dedicated to everything a small business needs to know: https://www.sbam.org/Resources/COVID-19-Resources

Also set your calendar for 10am Tuesday and 10am Friday next week where they will hold special 1 hour sessions on Facebook explaining how to navigate all the resources available for small businesses (it’s quite might bending right now).

A couple summaries from the 800-page stimulus bill:

https://www.sbam.org/Portals/0/CARESAct_1PagerForSmallBiz_Coronavirus1pager.pdf?fbclid=IwAR0_aLXumKdd-YrBEonnRcn27a4hN4TUQA_ooCYVh-1lcurjCcdiOEBdyQo

https://www.sbam.org/Portals/0/PayCheckProtectionProgramAndLoans_ForSmallBiz_Coronavirus.pdf?fbclid=IwAR1I3jCnkUbKAIkXJrzyCSJ1JBsv3DyTJtbtkJr9wuQgowLY82a_n-vMRTA

Of all the new help being made available, here are a few that hit home.:

  1. Unemployment compensation – emergency expansion to be made available for almost everyone, even business owners, independent contractors, etc.
    1. The Federal government is going to add $600/week to everyone getting unemployment. For us in MI, this makes the max $368 + $600 = $968/week. This is more than many people earned when they were employed, and the gov’t realizes this, but the unemployment systems are so antiquated they have no other choice other than do nothing.
    2. If unemployed because of COVID-related reasons, it will not negatively impact the employers unemployment insurance rates. See https://www.michigan.gov/whitmer/0,9309,7-387-90499_90705-523056–,00.html
  2. Families First Coronavirus Response Act – mandates that even the smallest companies provide FMLA coverage, but will reimburse those companies via their quarterly tax returns
    1. https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
    2. https://www.dol.gov/agencies/whd/fmla/pandemic
  3. SBA Disaster Loans
    Apply and they will decide how much to loan you, just like a credit card credit limit. 3.75% interest with no payments required for 11 months. Can be used alongside the forgiveable Paycheck Protection Loans as long as they are used for different purposes. https://disasterloan.sba.gov/

  4. Paycheck Protection Loans

    • new loan product within the Small Business Administration’s 7(a) Loan Program.
    • The new loan will be 100 percent guaranteed by the SBA and have an interest rate of 4 percent.
    • The new loan will be able to cover
      • payroll costs including
        • costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums,
        • employee salaries,
        • commissions, or similar compensations;
        • (and they mentioned retirement plan contributions on 3/27)
      • payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation);
      • rent (including rent under a lease agreement);
      • utilities; and,
      • interest on any other debt obligations that were incurred before Feb. 15, 2020.
    • Businesses and 501(c)(3)s with less than 500 employees will be eligible for this new loan.
    • Additionally, sole proprietors, independent contractors, and self-employed individuals will also be eligible.
    • The maximum loan amount will be the lesser of $10 million dollars or 2.5 times the average monthly payroll based on the prior year’s payroll.
    • To increase speed and turnaround time within this new loan product, all lenders will have delegated authority. Delegated authority allows the lender to process, close, and service a loan without SBA review.
    • All borrower and lenders fees for Paycheck Protection loans will be waived. Additionally, the Credit Elsewhere Test, collateral requirements, and all requirements for personal guarantees under Paycheck Protection loans will be waived.
    • Built into the new Paycheck Protection loans will be automatic deferrals of principal, interest, and fees for six months.
    • A small business can obtain a new Paycheck Protection loan and an SBA Economic Injury Disaster Loan (EIDL) so long as they cover different items.
      • Flexibility is granted through no prepayment penalties on either the Paycheck Protection loan or the EIDLs and a refinancing option has been included.
    • Loan Forgiveness
      • The Senate proposal also establishes a loan forgiveness tool that allows businesses that maintain payroll continuity from February 15, 2020 through June 30, 2020 as defined by headcount, to request forgiveness on a Paycheck Protection loan used on payroll costs; mortgage interest rent and utility pay over an 8 week period.
      • The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation.
      • The loan forgiveness program provides flexibility for businesses that re-hire workers that were previously laid off.
      • To receive loan forgiveness, a business will have to work with a lender to justify their payroll was maintained through documentation.
    • Lenders will be held harmless on decisions of eligibility and SBA will purchase the loan after the lender grants approval.
    • $350 billion dollars will be provided for the Paycheck Protection Program and Loan Forgiveness.
If I didn’t get any of that right or someone had other resources please weigh in

Jeff

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