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Industry Action Plan for Covid-19

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7 comments

  • Jessie Betts Dreyfuss

    For the SBA loan I think there is limit of up to $7.5M in revenues for our industry to be considered a small business. I'm using the designation on page 37 of this https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf. This matters because I believe if you are applying for a business disruption loan, and not a loan to cover physical damage, you can only get a loan if you are considered a small business.

    Has anyone heard if these limits are being suspended? If anyone has been spending a lot of time on the SBA site I would very much appreciate any knowlege you have.

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  • Don Crowe

    Great question Jessie.  In looking at the list of industry types, it seems many of us fit into several categories.  I don't know if they let us combine or not.  I know we qualified for an SBA construction loan to build our new facility, and we are far above that level.  I'll ask the SBA loan folks I worked with last time to see what they can tell me. 

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  • Jessie Betts Dreyfuss

    Thanks Don, very helpful.

    Also, for anyone interested, the Fed has made some emergency changes in the last 5 days that should substantially lower the risk of anyone's bank to lend to them now. You can research what all of these are here https://www.federalreserve.gov/

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  • Bryan Finnerty

    The State of Michigan still hasn't been designated for disaster relief so we're in a holding pattern.  In conversation with our bank - they think it'll be at least 90-120 days before we could see funds once/if the SBA application is approved.  I share this as a reminder for everyone to hoard/conserve cash as the highest priority!  Don't be shy about putting everything on pause in terms of payments and be proactive with your suppliers by calling to advise them of your situation/plans.  

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  • Anthony

    Forwarded via Mark Grossman

    Update 3/26/2020 - Deal Reached - $2 Trillion Fiscal Stimulus Set for Approval

    Key Changes: The Small Business relief has transformed to an even more robust paycheck protection plan, with the inclusion of a grant program, expansions on eligibility and loan forgiveness. The unemployment insurance has been expanded from 3-months to 4-months, with a boost of $600 per week and support for furloughed workers. The unemployment section could easily bring the total of this bill above $2 trillion – as the bill contains unlimited funding. The support of impacted industries was not as materially changed as we would have expected. There is more transparency and a prohibition on the President and Members of Congress receiving benefits from the fund, but the most onerous provisions (equity stakes and limits on compensation) are limited to loans given to the airline industry, air cargo industry and national security businesses. The remaining $454 billion in funds do not have these restrictions. The addition of a tax credit for employer retention, should provide some economic support. A 120-day eviction moratorium is included, and not explicit in the package, we expect the Federal Reserve will have to create a credit facility to support the servicing industry and fund advances.

    Read More

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  • Jessie Betts Dreyfuss

    Don, not sure if you or anyone else is having some issues with the affiliations regulations of the SBA in terms of being able to move forward with applying for PPP loans. We are investigating closely. Do you know if USIndoor is planning on doing any lobbying on behalf of our industry so we might get the same relaxed provisions as Hotels and Restaurants? Anyone's input on this would be helpful!

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