Brince Manning, Southeastern Region Manager for the US Chamber of Commerce, provides an overview of the Coronavirus Aid, Relief, and. Economic Security Act. The legislation provides provisions to help small businesses get back on their feet.
This episode is sponsored by Truliant Federal Credit Union
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1:00 - In response to the COVID-19 pandemic, we at the Chamber are working with community partners to mitigate its effects on businesses, both large and small. In lieu of our regular podcasts, we will be sharing highlights from our Daily Action Calls, where experts share information and resources for businesses to survive in this unprecedented time.
1:43 - Brent kicks off the Daily Action Call with some general housekeeping, community updates about the Paycheck Protection Program applications and introduces today’s topic of the CARES Act.
4:15 - Brent introduces guest Brince Manning, manager of the Southeastern Region for the U.S. Chamber of Commerce.
5:50 - Brince dives into some background information about the CARES Act package, what it includes, how it is intended to help the economy during the pandemic, and how funds can be used by individuals, businesses, and government entities. Brince also covers changes to unemployment benefits and how eligibility to that benefit has increased.
9:10 - Brince goes into the major provisions of the CARES Act for employers, from large companies to smaller businesses, sole proprietors, and nonprofits. Benefits include provisions like delaying payroll taxes, increased interest deductibility from 2019 and 2020, the Employee Retention Credit, and other methods for employers to increase liquidity that do not have income generating right now.
13:51 - Brince goes into the differences of how the Employee Retention Credit is applied for companies with more than 100 employees, and those with less than 100 employees, and how the credit can be applied depending on the work situation. He highlights that the Employee Retention Credit cannot be used if businesses choose to participate in the Paycheck Protection Program.
15:35 - Brince moves into how the bill affects mid-sized and larger companies and the credit facilities that will be made available to them. The Treasury Department will be supporting financial institutions across the nation to enable them to make more and larger loans to companies.
17:35 - Next, Brince details how small businesses, self-employed, independent contractors, and nonprofits can participate in the CARES Act. $349 billion has been set aside for these entities to apply for Small Business Loans and qualifications have been extended beyond typical SBA conditions to include sole proprietors and independent contractors. These general loans are not issued by SBA, but instead by qualified local lenders. Brince goes into the important details that businesses need to know to navigate these loans and how they work.
24:14 - Another small business provision to take advantage of is the SBA Economic Injury Disaster Loan (EIDL), which have been around for a long time and are generally issued for businesses impacted by natural disasters like hurricanes or tornadoes. These loans are different than what is in the CARES Act because they generally do not convert to grants, you can borrow up to $2 million that can be paid back over 30 years, and payments can be deferred for up to a year.
26:00 - The CARES Act does add to the benefits of EIDLs. Under the Act, EIDLs can be paired with an emergency grant of up to $10,000 that has to be paid to the business or sole proprietor within 3 days. Additionally, if you are denied the EIDL, you do not have to pay back the grant.
26:50 - Brince details how EIDLs interact with the Paycheck Protection Program, as businesses can generally get both, but cannot seek loan forgiveness with both programs. You cannot take out these two loans to pay the same bills, so make sure to do research about what would be most beneficial to your business and employees.
28:18 - Next, Brince updates listeners about paid sick leave for small businesses, some provisions which come from the CARES Act and some from the Families First Act (also known as the Phase II Bill). Employers with less than 500 employees must provide 10 days of paid sick leave to employees affected by the coronavirus, or those who are impacted by childcare center closures. There is more specific guidance for businesses with less than 50 employees, and all businesses can seek out information at the Department of Labor’s website.
31:10 - The Phase II Bill also includes FMLA changes and extended leave due to coronavirus closures. The Bill details how payments are made to the employee, how businesses are protected, and exemptions.
33:18 - Brent thanks Brince for his presentation, and starts with a Q&A session. The first question deals with the funds coming to individuals and how that calculation is made. Brince understands that the funds are based on your most recent income tax filing, whether that is 2018 or 2019, if you have filed already.
34:47 - As a small business with few employees, if you get the EIDL advance but not the SBA Loan, can you still get the Employee Retention Credit? Brince answers that yes, you can.
36:01 - Is there an age restriction for children being classified as a minor-dependent for the CARES Act payments to individuals? Brince confirms that dependents are counted as children.
36:35 - Brent’s next question from the audience deals with investor funds and small businesses with angel funding, and concerns around those situations. However, there is limited guidance from the CARES Act for these situations.
38:25 - What is the best way to calculate monthly payroll? The Paycheck Protection Program application has guidance on how businesses can calculate the average monthly payroll, and Brince goes into a little more detail about how various businesses of different ages can do this.
40:31 - Would foreign ownership of a company be a barrier to receiving assistance? Brince explains that the primary residence of the employee must be within the US, but residency of the owner shouldn’t impact the ability for program assistance.
41:07 - If you’re a franchisee of a franchise that is not on the SBA franchise directory, are you eligible for the Paycheck Protection Program? Brice explains that a franchisee should be permitted to apply for the PPP, as the eligibility list has been expanded and is generally viewed on a case-by-case basis in this situation.
41:50 - Can an individual apply for unemployment if they are in-between leaving one job and starting their next job, which is now on indefinite hold? Brince explains that until the start date of the next job arrives, one should be able to apply for unemployment assistance.
43:13 - What can the $10,000 SBA emergency grant be used for? There are guidelines for how to use those funds, but there are no restrictions on how to use those emergency funds. Just remember that the emergency grant cannot be stacked with the PPP; if you receive both, the emergency grant will be deducted from your PPP funding.
46:16 - Brent and Brince remind listeners to consult with the local SBTDC for assistance with understanding and applying for loans. These experts are here to help you understand which loan is the best fit for you.
48:00 - Brent asks if the $350 million in loan funds is enough to really help the US small businesses survive and if it will be quickly depleted. Brince answers confidently that the loan programs are strong and will not run out of funding for those who need it. However, do your research and don’t wait to apply for the loan that will help your business the most!
Find links discussed in this episode and more resources related to COVID-19at greensboro.org/covid19.
Schedule a virtual or phone appointment with an SBTDC Counselor.
Go to the Office of Disaster Assistance and apply for the Economic Injury Disaster Loan.
disasterloan.sba.gov/ela/account/login
Also reference the Coronavirus Small Business Guidance and Loan Resources page.
Want to help the community by donating blood? Check out OneBlood, the main supplier for Cone Health, to find out how and where you can donate blood.
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Visit the Chamber website at greensboro.org.
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