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Gerber Financial Advisors


COVID-19 RESOURCE GUIDE

This is our latest resource of the programs currently available to you. We do believe there will be additional programs, changes to existing programs and in general more resources to address our economic issues as a result of the COVID-19 pandemic. While each client situation is different, we have attempted to prioritize the programs to assist you.
 
LOAN PROGRAMS
 
OUR FIRST CHOICE | PAYCHECK PROTECTION PROGRAM LOAN - SECTION 7(A) OF SBA (PPP)
This program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loan would be forgiven. This would help workers remain employed and help affected small businesses, and our economy, snap-back quicker after the crisis.
 
The SBA has decided to use the banks as the processing portal. If you have an SBA loan already, work with your existing banker to process your loan. If you do NOT have an SBA loan you will need to work with a bank that does SBA loans. Only 14% of the banks in the country work with the SBA. In our local market, Huntington Bank is the largest SBA lender in the region. We are working with Huntington to identify a single point of contact for our clients that do not already have SBA loans. The range of times we have heard for funding has varied from 7 to 30 days after the application is processed; applications should take one dat to process. I do believe those banks with the highest existing volumes with the SBA will process faster than other banks.
 
What we do know you will need (at a minimum) these items to apply:
  • Proof your corporate entity (or sole proprietor) was in business prior to February 15th, 2020
  • Payroll records
  • Driver's License
 
The PPP program was part of the largest stimulus package in US history and was completed in 8 days. Glitches are bound to be embedded and there are certainly technical corrections coming. Based on a variety of information sources, including those involved in the construction of the legislation, we have highlighted the key points to the PPP below.
  • No collateral, revenue or personal guarantee required
  • Companies under 500 people per location are eligible
  • Loan borrowing base is calculated as 2.5x the average monthly payroll costs over the preceding 12 months from the date of the loan. Payroll costs include salary, wages, payment of cash tips (up to $100,000), employee group health care benefits, retirement contributions and covered leave
  • Maximum interest rate of 4%
  • No payments for first 6 to 12 months
  • Loan forgiveness for payroll of costs, mortgage interest, rent and certain utility payments in the 8 week period following the date of the loan
    • Forgiven amount of the loan is tax free income to the business
    • Loan forgiveness cannot exceed the principal amount of the loan
  • Amount of forgiveness will be reduced if your full-time equivalents (FTE's) as of June 30, 2020 are fewer than the FTE's prior to the crisis (February 15, 2020) or if individual employee compensation is reduced by more than 25% of their compensation prior to the crisis
  • Borrowers that rehire workers laid off due to the COVID-19 pandemic will not be penalized in an effort to encourage the rehiring of laid off workers
  • To seek forgiveness, an application will be provided to the lender that includes the documented employer costs during the 8 week period subsequent to loan closing
  • Maximum loan is $10,000,000
  • SBA Fee is waived
  • No prepayment penalties
  • Any excess loan proceeds over the Loan Forgiveness after year one amount will be amortized over 10 years at 4% interest. Still no personal guarantees or collateral required
  • Borrowers that already applied for an Economic Injury Disaster Loan are allowed to apply a PPP loan with an option to finance that loan into a PPP loan
 
OUR SECOND CHOICE | ECONOMIC INJURY DISASTER LOAN - SECTION 7(B) OF SBA (EIDL)
This program has been available for years via the SBA. Ohio businesses have officially been declared to be included as eligible for these loans as a result of the COVID-19 process.
 
If you apply for this loan, make sure your application is 100% accurate and complete. Those applications that are not complete will be returned to you. There ARE underwriting guidelines and personal guarantees for this loan. We understand the loans are currently taking 3-4 weeks to process. We expect this timeline to take longer as time goes on as the SBA is totally overwhelmed at the moment.
  • Currently, this is the only SBA loan for which you an apply related to the crisis
  • Loans up to $2,000,000
  • Interest rate of 3.75%
  • Up to 30-year terms
  • This loan will have to be paid - it will not be forgiven
  • This loan is for working capital
  • No personal guarantee will be required on loans up to $200,000 under this program
  • If you apply for this loan, you can request an emergency grant of up to $10,000 which the SBA must provide within 3 business days
    • Money from the grant may be used to pay for employee sick leave (COVID-19 related), mortgage or rent, and other overhead expenses
    • This grant will not have to be repaid if you are not approved for the loan
  • Can be rolled into the PPP loan described above
  • Applying through the website has been challenging, so most are applying with the PDF application and submitting the application through the website
  • Must prove you were unable to get conventional financing to get approved
  • Your current bank will also want to remain in its first security position, which may also complicate getting approved
  • Link to the application: https://disasterloan.sba.gov/apply-for-disaster-loan/index.html

ADDITIONAL SBA LOAN INFORMATION | SMALL BUSINESS DEBT RELIEF PROGRAM
This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, fees, for 6 months. This relief will also be available to new non-PPP borrowers who take out loans within 6 months of the President signing the bill into law.
 
At the moment, we do not have any information on how to initiate this program if you have an existing SBA loan. Stay tuned.
 
TAX PROVISIONS
 
EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE OR EXPERIENCING ECONOMIC HARDSHIP
Provides a refundable payroll tax credit for 50 percent of wages paid eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order of limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.
 
Wages of employees who are furloughed or face reduced hours as a result of their employer's closure or economic hardship are eligible for the credit. For employers with 100 or fewer full-time employees, all employee wages are eligible, regardless of whether an employee if furloughed, The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. Wages do not include those taken into account for purposes of the payroll credits for required paid sick leave or required paid family leave, nor for wages taken into account for the employer credit for paid family and medical leave (IRC sec. 455).
  • The credit is not available to employers receiving assistance through the Paycheck Protection Program. The credit is provided through December 31, 2020.

DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES
This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments; one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of the FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of the SECA tax liability.
  • Deferral is not provided to employers receiving assistance through the Paycheck Protection Program
 
DELAY OF FILING 2019 TAXES
Tax return and payments have been delayed until July 15th for federal and state taxes.
 
EMPLOYEE PROGRAMS
 
EMERGENCY PAID SICK LEAVE ACT
  • Employers with less than 500 employees
  • For employees who are unable to work or telework for one of the following reasons:
    • Is under a government - ordered quarantine or isolation order;
    • Has been advised by a healthcare provider to self-quarantine;
    • Is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
    • Is caring for a quarantined individual;
    • Is caring for a minor child whose school or day care center has been closed due to COVID-19; or
    • Is experiencing any other condition similar to any of the above as specified by the Secretary of Health and Human Services
  • Sick Pay is the amount of 2 weeks' pay
  • Payment cap is $5,110 or $511 per day
  • For an employee taking leave to care of another payment cap is $2,000 or $200 per day
  • Employee's job is protected
  • Employers under 50 can be exempted by DOL is payment threatens the viability of business

FMLA EXPANSION ACT
  • Employers with less than 500 employees
  • For employees who are unable to work of telework for one of the following reasons
    • If employees requests leave to care for a minor child if the child's school is closed or if the child's day care provider is no longer available, but only if telecommuting is not an option for the employee
  • First two weeks is unpaid with the remaining 10 weeks paid at 2/3 of employee's regular rate
  • Payment cap is $10,000 or $200 per day
  • Employees' job is protected, unless fewer than 25 employees and business cannot maintain the position because of the crisis and as long as employer makes reasonable attempts to employ the employee in an equivalent position
  • Required to post notice in the workplace in conspicuous place. Notice model to be made public before April 9, 2020.
  • Tax credits will be made available against employment taxes up to the entire amount paid to the employee under these provisions. If payroll taxes are not sufficient to cover the amounts paid, the difference will be fully refundable credit to be paid by the employer
  • ADA is expecting the DOL to issue a blanket exemption for dentists for the FFCRA
 
USEFUL WEBSITES
 
HR HELP AND TIPS
 
MENTAL HEALTH LINKS
 
HELPFUL LINKS
 
All information was researched by utilizing the SBA and the breakdown they have provided regarding the relief packages. The SBA district office is located in downtown Columbus.
 
Columbus District Office
SBA District Office
65 E State St. Suite 1350
Columbus, OH 43215
614-427-0407
 
We hope you are doing well and staying healthy. If you have any questions regarding the material in this packet, please do not hesitate to reach out. You can drop us a line at 614-431-4343 or send us an email at GerberTeam@GerberClarity.com.
 
Stay healthy!


INDEX
  • GROWTH WITH PURPOSE DURING COVID-19: DON'T GROW FOR GROWTH'S SAKE
  • COVID-19 RESOURCE GUIDE
  • WHAT WE KNOW: RESTAURANT & BAR UPDATE
  • CONDUCTING BUSINESS IN THE MIDST OF THE COVID-19 OUTBREAK
  • 3 SCARY TRUTHS ABOUT BECOMING AN ENTREPRENEUR
  • Gerber Spotlight: How to Handle Naysayers in Your Business
  • SELF-CARE RESULTS IN TAKING BETTER CARE OF YOUR BUSINESS. HERE'S HOW.
  • NAVIGATING CIRCUMSTANCE AS AN ENTREPRENEUR TO BECOME A BETTER LEADER
  • A day in the life of Randy Gerber
  • HOW TO PROPERLY GUAGE EMPLOYEE PERFORMANCE
  • MUST-HAVE APPS FOR BUSINESS OWNERS
  • THE HAPPINESS FACTOR & WHY IT MATTERS TO EVERY ENTREPRENEUR
  • PEER TO PEER GROUPS, MENTORS, ADVISORS: HOW DO THEY RELATE?
  • WHY YOU SHOULD ''DATE'' YOUR PROFESSIONAL ADVISORS (LAWYER, ACCOUNTANT, ETC.) BEFORE COMMITTING
  • GERBER'S TOP FOUR FAVORITE BOOKS FOR ENTREPRENEURS
  • IMPROVED COMMUNICATION FROM PERSONALITY TESTS [AS SEEN ON INC.COM]
  • 5 THINGS EVERY ENTREPRENEUR NEEDS TO DO TO KICK OFF THE NEW YEAR ON A GOOD FOOT
  • GIFT GIVING FOR THE ENTREPRENEUR-THE ULTIMATE TOUGH PUTT
  • SHOULD I TREAT MY LEADERSHIP TEAM DIFFERENTLY FROM A COMPENSATION PERSPECTIVE?
  • RECAP: NAWBO CANDID CONVERSATION ''5 TIPS FOR BUILDING A BETTER BUSINESS''
  • ONCE YOU'VE CROSSED THE FINISH LINE... HOW DO YOU FIND YOUR NEXT ENTREPRENEURIAL INSPIRATION?
  • THE MYTH OF CORPORATE CULTURE DEBUNKED
  • Gerber, LLC Featured in Columbus CEO | Let's Talk Succession
  • Catered Communication Practices [as seen on Inc.com]
  • REFRESH WITH V POWER YOGA
  • COFFEE TALK WITH TOM
  • ROLLIN' WITH FUSIAN
  • DIVING INTO BUSINESS WITH A PARTNER, OR TWO
  • IS IT TOO EARLY FOR AN ADVISORY BOARD? THREE STEPS TO BUILDING THE BEST NETWORK OF BUSINESS MENTORS
  • SUCCESS STARTS WITH A PLAN | GET IT ON PAPER
  • WATCH OUT FOR THE REVENUE TRAP! BUSINESS GROWTH & QUALITY REVENUE
  • BEHIND BESA WITH MATT GOLDSTEIN
  • BESA ON 'GIVING BACK' AS A BUSY BUSINESS OWNER
  • GOAL SETTING AS AN ENTREPRENEUR
  • FIRST GENERATION ENTREPRENEURS & WHAT MATTERS MOST
  • THE ROADMAP TO ENTREPRENEURSHIP
  • WHY ASKING THE RIGHT QUESTIONS CAN MAKE A DIFFERENCE: A CAUTIONARY TALE
  • AND THE WINNER IS...
  • CAPITAL MARKETS REVIEW: Q2 2016
  • BREXIT | WHAT DOES GERBER THINK?
  • CAPITAL MARKETS REVIEW: Q1 2016
  • CAPITAL MARKETS REVIEW: Q4 2015
  • CAPITAL MARKETS REVIEW: Q3 2015
  • CAPITAL MARKETS REVIEW: Q2 2015
  • CAPITAL MARKETS REVIEW: Q1 2015
  • CAPITAL MARKETS REVIEW: Q4 2014
  • Gerber Hosts OppenheimerFunds Chief Economist
  • Gerber, LLC to Host Entrepreneur-Relationship Expert, Trisha Harp
  • 'Twitter for Dummies' Co-Author Shares Marketing Advice at Gerber
  • Nationally-Circulated REP. Magazine Coins Gerber, LLC ''Not Your Momma's Financial Advisor''
  • Gerber Featured in 'The Metropreneur Columbus'
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