COVID-19

On February 23rd, the Biden-Harris Administration and the Small Business Administration announced steps the agency is taking with the Paycheck Protection Program (PPP) to further promote equitable relief for America’s mom-and-pop businesses. With the exception of the first item, the following will start next week:

1. Starting Wednesday, Feb. 24, the SBA will establish a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees.
   
2. The SBA will allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants.
   
3. The agency will eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal. 
   
4. Also, the SBA will eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP. 
   
5. Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

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Steps You Can Take to Access PPP Funding 

• Keep in communication with your PPP lender – regardless the size of your small business, continue to work with your lender to keep the application process moving.
  
• Find a PPP lender if you don’t already have one – use the PPP Lender Map or Lender Match tools to find a lender accepting PPP lenders.
  
• Work with an SBA Resource Partner – connect with local mentors and advisers to help you prepare your application and devise the best financial and strategic plan to move your business forward.
  
• Attend an informational webinar – local SBA staff and SBA Resource Partners are providing webinars that share program information, updates and resources to help you prepare for the PPP application process. View upcoming webinars in the Seattle District

Details about PPP

The newest federal stimulus package has renewed and expanded financial support for small businesses across sectors. Key changes include:

• $284 billion for the renewed Paycheck Protection Program(PPP), including added flexibility. 
• Economic Injury Disaster Loan (EIDL)is extended to December 31, 2021
• $20 billion has been added for additional Loan Advance grants
• $15 billion grants for shuttered live venues

The Paycheck Protection Program (PPP) offers forgivable loans to small businesses to pay their employees and other expenses during the COVID-19 crisis. The Economic Injury Disaster Loan (EIDL) programs offer low-interest working capital loans to help small businesses meet financial obligations and cover operating expenses. The Shuttered Venue Operators Grant provides help for live event venues, promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent agencies who were devastated by the COVID-19 pandemic.  

OED provides  free technical assistance to businesses applying for the Paycheck Protection Program (PPP) , Economic Injury Disaster Loan (EIDL), and Shuttered Venue Operators Grant. This includes helping businesses navigate the application process. For general inquiries, please email OED@seattle.gov or call  (206) 684-8090.

COVID-19 Relief for Small Businesses
Washington Small Business Development Center (WSBDC) is hosting two webinars to support small businesses applying for a Paycheck Protection Program (PPP) Loan and Economic Injury Disaster Loan (EIDL).

Updates to PPP Loan Forgiveness Instruction
January 22, 10:00 – 11:30AM

Join WSBDC and the U.S. Small Business Administration to review the new coronavirus relief bill updates to the loan forgiveness application and related instructions.
SBA Round 2 COVID-19 Relief and PPP Applications
January 29, 10:00 – 11:30AM

New coronavirus relief provisions were signed into law on December 27th. This webinar will cover key elements of the legislation with a focus on the new round of Paycheck Protection Program (PPP) and the application process

Seattle Office of Economic Development is offering FREE technical assistance to small businesses applying for PPP, EIDL, and more. We have bilingual interpretation in Spanish, Vietnamese, Cantonese, Mandarin, Korean, Somali, Amharic, Tgrinya, and Thai. For technical support, contact OED at 206-684-8090 or OED@seattle.gov.

“Safe Start” Guidance Posted for Phase 1, some Phase 2 sectors

Phase 1 Guidance issued; covers construction, vehicle sales, drive-in spiritual services, car washes, landscaping, pet walking and curbside retail.

May 5 kicked off Phase 1 of the four-phase “Safe Start” process to safely reopen Washington’s economy. Phase 1 permits some construction activity, outdoor activity, park access, drive-in spiritual service, landscaping, car washes, vehicle sales, pet walking, and retail sales with curbside pickup.

Statewide advancement to Phase 2 may occur on, but not before, June 1 if the risk assessment is satisfactory to public health officials. Phase 2 permits outdoor recreation, manufacturing, construction, domestic services, retail, real estate, professional services, nail salons, barbers, pet grooming, and restaurants (all with strict safety measures). Each phase will last for a minimum of 3 weeks.

Business activity guidance for all Phase 1 activities and several Phase 2 activities (retail, manufacturing, dine-in restaurants, taverns) has been posted online. Review Phase 1 and Phase 2 Business Activity Guidelines on the Governor’s Website.

New Contact Tracing Initiative Announced

A trained team will conduct voluntary interviews to slow the spread of the virus.

The contact tracing program may be of special note to restaurants. Under Phase 2 guidance, restaurants that offer table service must maintain a daily log of customers, their check-in time, and their contact information to facilitate contact tracing. Review the Contact Tracing Announcement on the Governor Inslee’s Medium page.

ESD Commits to Operation 100%

The Employment Security Department (ESD) expands staff to tackle unprecedented claim volume, resolves to review all applications.

ESD has paid out over $2 billion in benefits to more than half a million Washingtonians since the crisis began. This money is feeding families and paying bills for many, but ESD acknowledges that 57,000 applicants are still waiting for their claims to be reviewed.

ESD’s objective is to provide relief to all eligible Washingtonians. The Department has launched Operation 100%, their plan to accelerate processing and quickly distribute benefits to those eligible.

The plan involves rapid hiring of staff, new technology, and triage of phone traffic. ESD’s top priority is to clear the backlog. ESD will also email another 187,000 eligible individuals that have tasks to complete before claims can be processed. 

The objectives of Operation 100% are to substantially reduce the backlog by late May, and to have 100% of the backlog resolved or paid by mid-June. Washington can observe the progress of Operation 100% on ESD’s website.

Business Response Center – Have Questions? Ask Away!

Submit general questions about reopening, health and safety, and relief programs

• The ERT Business Response Center has resolved 2,300 questions since April 8. The team is standing by to respond to questions as quickly as they come in.
• Submit a question to the Business Response Center.

TVW’s The Impact: Road to Recovery series

• Q&A with Chris Gregoire, Former WA Governor & Challenge Seattle CEO (LINK)
• Q&A with Jan Gee, CEO of the Washington Food Industry Association

5/12/20

From the Seattle Times, Stephanie Loh

With eight Washington counties now approved to move to Phase 2 under Gov. Jay Inslee’s four-phase plan to reopen the state, the governor’s office Monday released a set of requirements restaurants will have to comply with if they want to reopen for dine-in service.

Stevens, Wahkiakum, Skamania, Ferry, Pend Oreille, Columbia, Garfield and Lincoln counties have all been cleared for Phase 2, which allows restaurants to reopen at 50% capacity, and caps table sizes at five.

Notably, the 13 criteria that restaurants will have to adhere to in order to reopen for dine-in service during the novel coronavirus pandemic include a stipulation they “create a daily log of customers and maintain that daily log for 30 days, including telephone/email contact information, and time in.”

This is to aid in any contact tracing, should that become necessary.

Under other Phase 2 rules, hand sanitizer must be available to employees and customers;  restaurant tables must be placed far enough apart that guests at one table can maintain 6-foot distance from guests at another; it is “strongly suggested” customers wear a cloth face covering any time they are not seated at the table; buffets and salad bars are not allowed; and menus and condiments must all be single-use. Bar seating is not permitted.

In addition, restaurants are required to screen employees for signs of COVID-19, the disease caused by the coronavirus, at the start of every shift.

Each employer also needs to designate a COVID-19 supervisor to monitor the health of employees and enforce the job site safety plan.

The state mandates that all restaurants demonstrate they can meet all requirements laid out in its COVID-19 safety plan before they will be allowed to reopen.

5/12/20

A major new announcement was made on Monday, May 11th by public health officials in King County that beginning next Monday (May 18) most residents will be directed to wear face coverings in most public settings. This is an essential act which will protect those most in danger of contracting the virus and ultimately slow its spread. 

This means residents must wear a face covering at any indoor or outdoor public space where we may be within 6 feet of someone who does not live in our homes. A face covering is not needed if we are outside walking, exercising, or otherwise outdoors and able to maintain the six-foot distancing guidelines. 

Here are some of the places where we are being strongly urged to wear face coverings: 

• Buses, light rail, and other forms of public transportation.

• Stores that sell food and beverages, including grocery stores, pharmacies, corner stores, convenience stores, liquor stores, farmers’ markets, food banks, farm and produce stands, supermarkets, and big box stores that sell groceries.

• Retail stores, including convenience stores, pet supply stores, auto supplies and repair shops, hardware and home improvement stores, garden stores that sell supplies for growing food, office supply stores, and home appliance stores. 

• Restaurant take-out and food businesses. Employees who prepare, carry out, and deliver food must wear masks.

• Cannabis, tobacco, and vapor shops and stores that sell dietary supplements. 

Health officers want to stress that they are asking us to wearing face coverings. Do not use medical masks. Wear fabric face coverings, such as cloth face masks, scarves, and bandanas. It is important to save medical-grade surgical masks and N95 respirators for healthcare workers and people who have special health needs. 

Some people do not need to follow this directive, including:

• Children ages 2 years and younger. Babies and toddlers under age two should never wear cloth face coverings. Children between 2 and 12 should only wear a face covering if a parent or caregiver supervises to make sure it’s worn safely.

• Anyone with a disability that makes it hard for them to wear or remove a face covering. 

• Anyone who is deaf and moves their face and mouth to communicate. 

• Anyone who has been advised by a medical professional to not wear a face covering because of personal health issues. 

• Anyone who has trouble breathing, is unconscious, or unable to remove the face covering without help. 

Individuals are strongly urged to do their part by wearing masks as outlined in this new Directive. There is no criminal, civil, or financial penalty for failing to wear a face covering in these settings, but we owe it to one another. 

Businesses and individuals must continue to follow all existing COVID-19 orders from the Local Health Officer, Governor, or other local, state, or federal regulatory agencies, and any other relevant local, state, or federal civil rights laws. In addition, businesses are required to post signage advising individuals to wear face coverings on the premises. Businesses can download a sign that can be used for this purpose at http://www.kingcounty.gov/masks.

From the Seattle Times, Stephanie Loh

With eight Washington counties now approved to move to Phase 2 under Gov. Jay Inslee’s four-phase plan to reopen the state, the governor’s office Monday released a set of requirements restaurants will have to comply with if they want to reopen for dine-in service.

Stevens, Wahkiakum, Skamania, Ferry, Pend Oreille, Columbia, Garfield and Lincoln counties have all been cleared for Phase 2, which allows restaurants to reopen at 50% capacity, and caps table sizes at five.

Notably, the 13 criteria that restaurants will have to adhere to in order to reopen for dine-in service during the novel coronavirus pandemic include a stipulation they “create a daily log of customers and maintain that daily log for 30 days, including telephone/email contact information, and time in.”

This is to aid in any contact tracing, should that become necessary.

Under other Phase 2 rules, hand sanitizer must be available to employees and customers;  restaurant tables must be placed far enough apart that guests at one table can maintain 6-foot distance from guests at another; it is “strongly suggested” customers wear a cloth face covering any time they are not seated at the table; buffets and salad bars are not allowed; and menus and condiments must all be single-use. Bar seating is not permitted.

In addition, restaurants are required to screen employees for signs of COVID-19, the disease caused by the coronavirus, at the start of every shift.

Each employer also needs to designate a COVID-19 supervisor to monitor the health of employees and enforce the job site safety plan.

The state mandates that all restaurants demonstrate they can meet all requirements laid out in its COVID-19 safety plan before they will be allowed to reopen.

Between April 9 through April 22nd, many of the Chamber membership participated in our COVID-19 Business Response Survey. We gathered the most pertinent of responses that will help inform public policy in response to the pandemic and “Stay Home, Stay Healthy” orders and  sent the results to our elected officials. The same letter was individually addressed to Seattle Councilmember Andrew Lewis, King County Councilmember Jeanne Kohl-Welles, the 36th District Legislators including Senator Reuven Carlyle, Gael Tarleton, and Noel Frame, and U.S. Congresswoman Pramila Jaypal. If you don’t have access to Adobe, please either request an emailed copy to the letter by emailing information@discovermagnolia.org or read below to access additional information.

Our survey was designed to help capture the array of businesses in the various business districts throughout Magnolia. We also aimed to capture the kind of impacts our business are experiencing due to the pandemic and response. In addition, we were seeking what relief measures are the most effective and what is most desired by our businesses. Some of the key findings included:

• The vast majority of survey-responding businesses are very small; most responders were either sole proprietor or up to 10 employees (81%). In addition, the vast majority of survey responders earned $1 million dollars or less (90%).

• Responders report that the period between March 1st and June 30th represents approximately 25-50% of their annual income earnings. 75% report significant disruptions to cash flow.

• The impacts of the COVID-19 “Stay Home, Stay Healthy” orders mostly affect the ability of Magnolia businesses to serve customers and sell products/services, earn revenue, secure workforce, and access capital. One responder offered this qualitative assessment of the issues they are facing as a result of the COVID-19 crisis:

“No clear path to the end. What will “re-opening” look like. I will run out of cash by the end of April. There seems to be limited answers, availability specifically as it relates to small biz’s that have been forced to close their doors like restaurants and fitness facilities. There will be a minimum of 90 days once we reopen to then go back and “re-sell” packages we’ve had to cancel or cannot service currently.”

• In answering what kind of public/private responses to the COVID-19 crisis have been most effective, a relatively high percentage say receiving information/guidance from a third-party source are the most effective; organizations like banks, chambers of commerce, and peers (40%). Second highest in effectiveness was receiving information from trade associations.

• In a strong majority, survey responders said direct grants are the most helpful for recovery from the impacts of COVID-19 response (86%) 

  Least helpful are loans from private sector entities (85%)

• We share one of the qualitative response regarding the importance of local, state, and federal government working together to avoid long-term negative impacts to small businesses in Magnolia:

“It will depend on the general public, severity of COVID-19, availability of possible treatments and vaccines, and a host of other things out of my control. Will my clients and athletes feel safe coming back into the gym environment? Remains to be seen, and the lack of clear messages from local, state and federal gov’t makes this extremely challenging.”

Based on these responses, we asked for the following on behalf of our members:

• Coordination, Collaboration, Cooperation. It is imperative that all levels of government work together. We appreciate this can be easier said than done and we applaud the close working relationships between the city of Seattle, King County, and the state of Washington during the COVID-19 crisis. Working together seems ever more important as the state considers lifting stay home orders. The need for cooperation, collaboration and coordination between federal, local and state governments is essential to balance the need to open back up Magnolia small businesses while also keeping residents and the community safe from the pandemic. We look forward to continued efforts to address this critical balancing act and being a positive partner.

• Federal Relief Programs. We continue to advocate for all levels of government to prioritize essential funding for the federal Paycheck Protection Program and the Economic Injury Disaster Loan program at the Small Business Administration. These programs must grant broad eligibility and allow for extended timelines for the Magnolia business community to meet the appropriate requirements to receive this assistance. We also strongly encourage city and state government to take actions to reduce impacts to small businesses, while recognizing you are dealing with your own loss of revenues and increased demands on services.

To see the full results of the survey, please click here