Pandemic Resource Update 5-6-20
Good afternoon clients,
Updates below..
PPP (Payroll Protection Program) Loans
How to Calculate Maximum PPP Loan Amounts – by Business Type
Fantastic resource put out by US Treasury (for lenders – but of definite interest to business owners – wish I would have had it earlier!)
General notes:
Currently the SBA is still accepting applications from eligible lenders – including WWBIC
Additionally, the SBA made moves recently to limit applications accepted from big banks. For example, last Wednesday they temporarily (for 8 hours) shut out banks with more than $1billion in assets from the electronic portal where lenders are to submit PPP applications. We do not know if/when they might do this again.
Both of the above factors are affecting the original expectation for the timeline of when the appropriated money will run out.
Confirmation from Lender:
If you have yet to receive confirmation from your lender that your PPP loan has been approved by the SBA:
Continue to (reasonably) check in with your lender on status.
You could also pursue applying with another lender, however you will only be allowed to accept one PPP loan. If you go this route, please extend the courtesy of immediately notifying your other lenders when/if you have been approved.
Haven’t applied?
If you have yet to apply, there might still be time. Please let me know if you want more information.
Forgiveness:
I know there are lots of questions around the forgiveness aspect of this loan, and unfortunately I can’t get into details of that right now (in part because we’re still lacking guidance from the SBA on important details). However, I would recommend:
Keep the lines of communication open with your lender, checking in (at a reasonable cadence) for updates that are sure (or so I hope) to come from the SBA regarding this.
Review this document (while keeping in mind that a lot is still in flux): https://www.wisbank.com/articles/2020/04/wba-ppp-faqs-for-banks/
On Sunday, May 3, the US Treasury Department added the following question and answer to the Paycheck Protection Program frequently asked questions document:
40. Question: Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer? Answer: No... To qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.
Translation: if you have offered an employee the same wages and hours as their previous job, do so in writing, and get a written response from them that they are declining to come back to work.Save these documents to submit with your request for Paycheck Protection Program loan forgiveness. If the person has rejected the job offer, they are no longer eligible for unemployment payments (see frequently asked questions below).
EIDL (Economic Injury Disaster Loans)
The SBA has yet to allow new applications to be submitted, however, do continue to monitor this website if you haven’t applied since March 30.
If you have applied, but have not received your Advance, please continue to check your bank balances daily as those deposits are continuing to be made (supposedly) in the order the applications were received. (Overall this does appear to be the case, but we have had a few clients who seem to counter this.)
As of 4/24, for Wisconsin 339 EIDL loans had been approved, and 14,277 EIDL Advances processed. On 4/20, those numbers were 195 loans and 9,001 advances, thus we are continuing to see movement in getting these processed.
Please note that this web address has been circulated to find out information regarding the SBA’s disaster loans (how to apply, check application status, etc). It is my understanding this site is specific to applications received prior to March 30 and/or are in regards to other disasters aside from COVID-19. The pop up immediately redirects you here for resources and disaster loans specific to COVID-19:
Economic Impact Payments
Some folks have asked me about the $1200 stimulus checks that have are being issued. I do not know the details of this program, but I can confirm that I have a few clients who did not receive their payments, and we think it’s because they owed taxes from last year. Regardless, here’s where you can find out more info if you have not yet received your stimulus money.
Leases, Rent, etc
On Wednesday the Wisconsin Department of Agriculture, Trade and Consumer Affairs approved an emergency rule prohibiting landlords from charging late fees for 90 days after the end of the public health emergency, which is set to expire May 26 (but is facing legal challenges from Republican lawmakers). You can refer to this article for more information while we work to confirm application of this on commercial leases.
Also, note that protections are currently in place against evictions or foreclosures.
Overall, Tenant Resource Center is great place to stay up-to-speed on tenant rights.
Dane County Small Business Pandemic Support Grant Gets Additional $10M
Via Greater Madison Chamber of Commerce Newsletter: Over the weekend, Dane County Executive Joe Parisi announced an additional $10 million in funding for the county's Small Business Pandemic Support Grant Program, bringing total program funding to $10.8 million. Through the program administered by Dane Buy Local, Dane County small businesses can receive assistance with retaining employees and mitigating losses experienced as a result of the COVID-19 outbreak. Since the program was announced on April 1, 297 local businesses have received awards totaling more than $890,000. Business owners can get information and apply for a grant here. Grants as small as $1,000 will be awarded, and applications will be accepted through June 15, 2020.
CDC Cleaning & Disinfecting Guidelines for Public Spaces
The Centers for Disease Control and Prevention (CDC) has released guidance for cleaning and disinfecting public spaces, including businesses and other workplaces. Proper cleaning and disinfection is an important part of moving toward the reopening phase of responding to the COVID-19 outbreak. I’ve attached a PDF for reference.