Prep for Additional Paycheck Protection Program (PPP) funding

During this interim time between PPP appropriations – the U.S. House is expected to vote today, April 23rd following the U.S. Senate’s vote – small businesses can continue to work with their lenders on possible future PPP options.

The best way to find a PPP lender is to start with your existing bank or lending institution. If they don’t plan to offer PPP loans should more funding become available, businesses can search online for eligible PPP lenders or contact their local SBA district office.

Three things you can do today include:

Explore other funding options

Since funding continues to be a top need for small businesses, traditional SBA lending programs – ranging from $500 to $5.5 million – are still an option for small business. Plus, the SBA is automatically paying the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months; and, on new loans issued prior to September 27, 2020. The SBA also offers Express Bridge Loans which enable small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

Create a business plan for now and life after COVID-19

The SBA Resource Partner Network – which includes Small Business Development Centers, SCORE Mentors and Women’s Business Centers – has experienced business advisers who are guiding businesses through this crisis and helping them plan what their business will look like on the other side of this outbreak. SBA Resource Partners provide business resiliency readiness webinars and virtual one-on-one advising at no-cost to small businesses.

Connect with local, state and federal resources

Government at all levels are doing all they can to support small businesses during this difficult time. Visit your local city, county or borough’s website for resources along with the Washington, Oregon, Idaho and Alaska state government websites. Also look into additional federal resources for small businesses, like tax relief from the IRS, scam alerts from the FTC, and USDA funding relief for agriculture businesses.

Pending Vote: Fourth COVID-19 Relief Package – Focus on Small Business

U.S Congress to Vote 4/21 – 4/23
Fourth COVID-19 Relief Package – Focus on Small Business

4/21/20

Congress has reportedly reached an agreement on the fourth stimulus and relief package to assist Americans impacted by the COVID-19 response measures. Votes on the new package are expected as early as this afternoon, April 21st in the Senate and Thursday, April 23rd in the House of Representatives.
 
The vote will appropriate nearly $500 billion and become the fourth COVID-19 virus-related bill rushed through Congress in just two months.
 
The new package would amount to roughly $470 billion in new spending, with $370 billion directed to small businesses, $75 billion going to hospitals, and $25 billion set aside for testing, which has been deemed critical to getting the U.S. back open for business. Specific to small businesses, the new measure reportedly devotes an additional $310 billion to the Paycheck Protection Program (PPP) created by last month’s Cares Act that was initially funded $349 billion. It has since run out of funds.
 
There are several workshops that are being held later this week and based on the anticipation of relief appropriations, could be of interest to our Chamber members. Please click below to access additional information and registration instructions:

4/23 3p: U.S. Rep. Pramila Jayapal CARES Act Workshop

Magnolia Chamber of Commerce 4/20

Congresswoman Pramila Jayapal CARES Act Workshop, Thursday, April 23, 2020 3:00pm-4:00pm PDT

Pre-Register for Zoom meeting.

(You will submit your name and email address at this link along with any questions or comments.  Once you register, you will receive an email with a link to join by device as well as phone numbers if you prefer to join by phone.)

U.S. Congresswoman Pramila Jayapal, who represents Magnolia and the 7th Congressional district, reports that she has received many constituent calls about existing CARES Act relief programs.  During the workshop this coming Thursday, the Congresswoman will take your feedback and answer your questions about these programs, and what to anticipate in the next phase in the economic relief effort should look like. 

Congress is expected to vote as early as this coming Wednesday, April 22nd,  to infuse an additional $300 billion into the Paycheck Protection Program. She will discuss her specific proposal for a Paycheck Guarantee Act that proposes the most direct and streamlined relief to small businesses and the workers they employ. Learn more during the briefing; it is anticipated that the final bill voted on this week will include some of the measures offered by Congresswoman Jayapal.

National Small Business Town Hall – Friday April 24th at 9am

Magnolia Chamber of Commerce 4/20

Small Business Relief – Paycheck Protection Program expected to benefit. Join National Small Business Town Hall on Friday, April 24th at 9:00 am (PT)

The U.S, House could meet as soon as this Wednesday morning, April 22, to consider an expected deal to provide about $300 billion of additional money to the Paycheck Protection Program, a part of the Cares Act. The Trump Administration reports that they are hopeful that an agreement with Democratic congressional leaders will be reached early this week.

In anticipation of Congressional action to reinvest in protecting small business from the impacts of the COVID-19 response, our members may want to access a virtual workshop offered by the U.S. Chamber of Commerce. On Friday, April 24 at noon ET (9:00 am, PT), Inc. and the U.S. Chamber will team up again for a fifth virtual National Small Business Town Hall to help small business owners alike navigate the programs that are available to them. Learn more on how to RSVP by clicking here.

Economic Injury Disaster Loans for Small Businesses

The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Washington small businesses suffering economic injury as a result of COVID-19. Loan amounts are up to $2 million and long-term repayment terms are available. The interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofit organizations.

More details are available https://www.sba.gov/funding-programs/disaster-assistance or on the city of Seattle’s Office of Economic Development site.

OED is also providing assistance to businesses applying for these loans, including helping them navigate the application process and assemble the required documents. Businesses interested in these services should call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. OED staff will reach out within one business day. If a business needs assistance completing the intake they can call OED directly at (206) 684-8090.

Vice Athletics

From Joe Palumbo 3/31

While we are still closed, we are doing several things and running several programs and specials:

1.) This is a link to our ONLINE Training Plan driven by ZOOM and the Vice Athletics Training APP.  We meet one on one online via ZOOM, build your plan with what you have or don’t have at home, and meet again via ZOOM to ensure proper form, technique and progression.

Vice ONLINE

2.) We are offering a one time PDF Download for our Athletes and Adults via our website.  Only $27 gets you a month plan via PDF.

3.) We are selling gift cards for future personal/group training sessions.  Varied dollar values, but can be applied to any service we offer here at Vice when we reopen.  A great way to support you local business and a great way to help us to continue to pay our trainers, our rent, and our bills!  These will be found on our website and available starting APRIL 1st.  

We will reopen as soon as we can.  We will be stronger after this.  And we are going to have one heck of a celebration and party when we ALL get through this!  

Joseph Palumbo BS CSCS
Founder, Vice Athletics LLC

(206) 909 0933 | joe@viceathletics.com

www.viceathletics.com

3243 20th Ave W Seattle, WA 98199

Family First ToolKit

The U.S. House of Representatives Democratic Caucus has created a helpful compilation – or toolkit – of the benefits found within the three specific, and unprecedented pieces of legislation passed since the COVID-19 outbreak has gripped the nation and stalled the economy:

  • The Coronavirus Preparedness and Response Supplemental Appropriations Act

  • The Families First Coronavirus Response Act

  • The Coronavirus Aid, Relief and Economic Security (CARES) Act.

Combined, the new laws provide economic stimulus and immediate financial lifelines for families. They also establish new benefits and provisions for workers, and importantly, create new tools for small businesses to meet payroll and other expenses. Elements provide relief for students and schools.

The toolkit not only helps in understanding the new benefits that are available to individuals, communities, and the small business sector, but links to access the benefits.

The Families First Coronavirus Constituent Service Resource Toolkit will help you understand all the benefits that are available to you and your community — and how to access them.

CARES ACT and Small Business – all the details you need, in a nutshell

Small businesses, including those eligible in Magnolia, received a $370 billion lifeline in the $2 trillion Coronavirus Aid bill approved Friday by the U.S. House of Representatives, and signed into law by President Donald Trump. The largest stimulus in U.S. history, the bill includes relief for taxpayers, the unemployed, and large corporations as well as small businesses.

For an excellent synopsis and for printing and available as a working resource, click here.

We strongly urge all small businesses who are interested in learning more and taking advantage of this unprecedented stimulus and relief package to work with your bank to explore how to best proceed.

Loans Under Paycheck Protection Program (Section 1102)

Section 1102 of the CARES Act provides $350 billion for expedited individual loans up to $10 million through approved lenders that are guaranteed 100 percent by the U.S. government. 

The loan proceeds can be used to:

  • Cover payroll support, such as employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments incurred from February 15, 2020, through June 30, 2020.

  • The maximum amount of a loan equals 2.5 months of regular payroll expenses (subject to a cap of a $100,000 of annual salary per employee).  

Benefits for Borrowers:

Borrowers are eligible for loan forgiveness equal to the amount spent by the borrower during an eight week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020. 

Borrower and lender fees are waived. 

Collateral and personal guarantee requirements are waived.  The maximum interest rate is four percent and loan maturity can be as long as 10 years. 

No prepayment fees will be charged.  Loan payments can be deferred for 6-12 months.

Benefits for Lenders:  Allows loans to be sold on the secondary market.  Provides the regulatory capital risk weight of loans made under this program, and temporary relief from troubled debt restructuring (TDR) disclosures for loans that are deferred under this program. Lender compensation for servicing the loan is five percent for loans of not more than $350,000; three percent for loans of more than $350,000 and less than $2,000,000; and one percent for loans of not less than $2,000,000.

Eligible businesses include:

  • Businesses with fewer than 500 employees.

  • Small businesses as defined by the Small Business Administration (SBA) Size Standards at 13 C.F.R. 121.201.

  • 501(c)(3) nonprofits, 501(c)(19) veteran’s organization, and Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees.

  • Hotels, motels, restaurants, and franchises with fewer than 500 employees at each physical location without regard to affiliation under 13 C.F.R. 121.103.

  • Businesses that receive financial assistance from Small Business Investment Act Companies licensed under the Small Business Investment Act of 1958 without regard to affiliation under 13 C.F.R. 121.10.

  • Sole proprietors and independent contractors.

Application Process:

Current lenders through the Small Business Administration 7(a) are authorized to make determinations on borrower eligibility and creditworthiness without going through the SBA.  These lenders can be found here. For eligibility purposes, lenders will not be determining eligibility based on repayment ability, but rather whether the business was operational on February 15, 2020, and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.

Timeline:

The SBA is required to issue implementing regulations within 15 days and the U.S. Department of Treasury will be approving new lenders.

Economic Injury Disaster Loans (Section 1110)

Section 1110 of the CARES Act expands the types of entities eligible to receive up to $1.5 million in direct loans from the Small Business Administration and loan guarantees for substantial economic injury caused by the COVID-19 pandemic.

Substantial economic injury is such that a business concern is unable to meet its obligations as they mature or to pay its ordinary and necessary operating expenses.

The loan proceeds may be used for working capital necessary to carry your concern until resumption of normal operations, expenditures necessary to alleviate the specific economic injury, providing paid sick leave to employees, maintaining payroll, meeting increased costs to obtain materials, making rent or mortgage payments and repaying obligations that cannot be met due to revenue losses.

New Eligible Entities:

  • Any business with fewer than 500 employees.

  • Tribal businesses as defined by 15 U.S.C. 657a(b)(2)(C) with fewer than 500 employees.

  • Cooperatives with fewer than 500 employees.

  • ESOPs as defined by 15 USC 632 with fewer than 500 employees.

  • Individuals operating as a sole proprietor or an independent contractor during the covered period (January 31, 2020 to December 31, 2020).

Other Eligible Entities:

  • Small businesses as defined by the Small Business Administration Size Standards at 13 C.F.R. 121.201.

  • Private non-profits with exemptions under sections 510(c), (d) or (e) of the Internal Revenue Code.

Application Process:

The loan form is found at: 
https://www.sba.gov/sites/default/files/files/serv_da_all_loanapp_2_0_0_3.pdf

CARES Act flow chart

Click image below to enlarge; click here for PDF.