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
Update 3/20/20 - Government Assistance & SBA Advice / Webinar
Thanks for Pete Spanos & Chris Turin from Vetta for forwarding these resources:
Consider adding an expense line item called COVID-19 and dump off all expenses in there including your staff and personal time spent dealing with a crisis – this 30 second video by Ron Lovett, author of Outrageous Empowerment, will explain why it will make it easier to apply for government assistance if and when it comes available. https://www.linkedin.com/posts/ron-lovett_outrageousempowerment-activity-6646137020743761920-N9Uo
Ami Kassar will continue with his noon ET SBA Loan webinars tomorrow and next week -- register here: https://9buq9bpp.pages.infusionsoft.net/ He has also put together a community site to help business owners navigate through the SBA loan process during these confusing times. https://multifunding.tribe.so/
And I just sent info on getting Alan Miltz’ SaaS tool for managing cash – no charge for 3 months – stress test your cash with just 6 numbers from your financials. www.cashflowstory.com/stresstest
Started a topic for examples of customer communication, discussions on refunds, chargebacks & Visa MasterCard help links.
I've been talking to a lot of our industry leaders. Thought I would share some of the things we are all doing to survive the shut-down of our industry. I'm not expert. But I hope this helps.
The SBA just came out with a new Disaster Loan Assistance program. It offers up to $2M to small businesses; 3.75% interest; payment terms of 30 years.
Many banks want to keep their valued customers and understand the current shut-down is no our fault. Banks will extend current principal and interest payments into the future. Ask that they accumulate both P&I for the next 6 months and add it to your last payment/balloon.
Landlords are in the same position as banks - they want to keep good tenants rather than try to find someone new. Ask to defer the next 6 months rent until later periods. You may want to offer to continue paying NNN components of the lease so they are not as impacted in the short-run. I believe some local and state governments are coming out with actual programs to require landlords to extend rent terms and won't have the ability to evict.
Our largest expense. There are programs like Shared Work (State of Washington) which are great for this very case. They allow you to reduce work for FT employees down to 20 hours per week, and the employee can immediately qualify for unemployment insurance without having to apply or seek other employment. Allows us to keep vital staff for a while longer so we can open quickly when given the green light. Some clients have put key staff on furlough at a reduced weekly rate. There are many different programs at the local level. Take a look in your area.
Ask your agent about freezing certain components of your insurance, like liability insurance (as you have nothing going on in your buildings so you shouldn't need full coverage) or auto insurance if you've got company vehicles which are going to be sitting around for a few months.
See if you can cancel non-essential health benefits like dental, vision, life, disability, etc. Employees can wait until the fall to get their teeth cleaned, etc.
As the healthcare industry is looking for ways to handle an overload in their facilities, they are considering setting up temporary healthcare stations. Can they use our facilities to be those stations? We have the infrastructure, parking, loading areas, etc. We even have support staff looking for work. There are funds to pay for this from the Federal and State levels. We shouldn't be looking to make money on this, but it could greatly help boost our chances of survival. As I said, wild idea. If anyone has inroads or points to raise on it we should consider. I think it for sure is a positive message to our community that we are trying to help - I know all of us feel helpless and want to do what we can.
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