Chamber President
All,
We are sending this email to help provide as much current information as possible. As you are well aware there is so much new information being released daily it is hard to stay on top of everything. We'll try to provide the latest data for your benefit. This will be a longer email but hopefully helpful as you review the information to find items and information that will work for your business.
We are working hard to help support you during this difficult time. Please call or email the Chamber office with any questions that you have. If we don't know the answer we'll help you find it!
We're also planning to provide you with the opportunity to participate in some upcoming online Lunch & Learn Zoom meetings in the weeks to come. As soon as we get dates and presenters finalized, we'll email you the updated information!
Hang in There!!
SBA Launches New Website - To help keep up with demand
SBA:
As many of you know, SBA Disaster Loans were not initially intended to be used for COVID-19. In the past these funds have been used for events such as droughts or floods. However, when COVID-19 started to have huge effects on businesses, the Administration decided to open up these loans to those that were affected by COVID-19. This lead to hundreds of thousands of applications being sent over to the SBA. This also lead to the SBA’s website crashing because so many people were on it at the same time. Due to the hard work of the SBA’s IT team, the SBA has just launched a new website for individuals looking to apply for Economic Injury Disaster Loans.
Please use this link moving forward. https://covid19relief.sba.gov/#/
Summary of Current Available Monetary Relief Options
Kelly Stone - Custom Fit Training Some of the details are still being worked out and finalized on these programs, however remember the old saying your parents used to tell you, The Early Bird Gets The Worm? In this case it's true. Get organized and apply sooner than later. the funds will go quickly and you'll end up hoping for another round of funding which may or may not happen as of right now.
Here is the fantastic summary that our good friend Kelly Stone provided this morning:
Paycheck Protection Program (PPP)
- This must be applied through your bank.
- You cannot apply for this yet. Your banker will let you know when.
- Can borrow up to 2.5x qualified payroll
- Based on monthly average payroll in 2019
- Excluding above $100,000 employees for the portion above the $100,000
- Forgiveness portion is based on 8-weeks of qualified operating expenses. Remaining balance, if any, is amortized over 10 years at 4% interest with no prepayment penalties of any kind.
- Recommendation: Apply for this through your banker as soon as s/he says it’s available. Figure out how much you want to apply for by strategically thinking about how much can be forgiven. You want to apply for slightly more to make sure you get as much forgiven as possible and can quickly pay off the difference, so there is no real loan.
Economic Injury Disaster Loan (EIDL)
- You must apply yourself through the SBA website.
- This is ready to apply for, now. The sooner the better.
- Loan with a 30-year term at 3.75% fixed interest. No prepayment penalties of any kind.
- The maximum amount allowed is $2 million.
- There is a small portion advance possible with this loan for emergency purpose (ie: you cannot make payroll next week). The advance is simply considered part of your loan amount, you just get it faster.
- They have decreased a lot of the hoops you have to jump through and complicated requirements needed to qualify.
- Recommendation: Apply for between $500,000 - $1,000,000 and use it as a floor so that you only tap into your credit line if absolutely necessary. This creates greater liquidity without tapping into the LOC at a reasonable interest rate with a long term, creating low monthly payback.
- **You can apply for both the PPP and the EIDL.
Salt Lake City Loan
- Maximum: $20,000 with 0% interest
- Terms: 5 years
- Recommendation: May not be worth applying for because it’s not forgivable, it’s just a quick loan option
Utah Leaders Together Business Bridge Loan Program (Utah Loan)
- No more than 50 employees
- Loan amounts range from $5,000 - $20,000 with 0% interest for 5 years (loans can’t be worth more than 3 months of expenses)
- Recommendation: This one is better than the city one. May not be worth applying for because it’s not forgivable, it’s just a quick loan option. Both of these amounts are so small that you are better off with the PPP and the EIDL.
SBA 6-month Mortgage Payments
- *We aren’t sure what this is actually called
- For all current SBA 7A loans
- Pay your April mortgage payment
- May-October (6 months) of mortgage payments is paid for by the SBA with no expectation of repayment
- Bankers expect there is nothing to do and it’s already in place. No action necessary. Your SBA loan servicer automatically processes this. You may need to stop any auto-payments you have set up.
Silicon Slopes Town Hall Meeting Today
The Point of the Mountain Chamber of Commerce is helping to promote the Silicon Slopes Town Hall meeting. Key updates will be provided by several of Utah's government officials. See the agenda below.
Silicon Slopes Town Hall: COVID19Wednesday, April 1, 2020
4:00pm MT
Welcome & SlopesServes.com Update
- Clint Betts, Executive Director, Silicon Slopes
Policy / Public Health / Economic Update
- Mitt Romney, United States Senator
- Spencer Cox, Utah Lieutenant Governor
- Marla Trollan, Utah Director, US Small Business Administration & John Gygi, District Counsel, US Small Business Administration
- Kristen Cox, Executive Director, Governor’s Office of Management & Budget
- Erin Mendenhall, Mayor, Salt Lake City
Industry Update & Discussion
- Josh James, CEO, Domo
Mythbusting
- Clint Betts
Submit questions in advance to townhall@siliconslopes.com
Stream live and recorded: slopes.live/TownHall
Town Halls occur each week on Monday, Wednesday, and Friday at 4:00pm MT
Bookmark this page. This agenda will be updated a few hours before each Town Hall.
GOED - Governors Office of Economic Development - Bridge Loan Program
The Governor’s Office of Economic Development (GOED):
GOED has recently announced their Bridge Loan Program. This program is designed to help businesses with 50 employees or less. Loans range from anywhere between $5,000 - $20,000 and have 0% interest for up to 60 months!
For additional information, please visit: https://business.utah.gov/utah-leads-together-small-business-bridge-loan-program/. It is also worth noting that these loans do not disqualify you from applying for the SBA Disaster Loans, in fact, these loans are designed to assist businesses as they are waiting for the disaster loans to come through.
Released today from the IRS - Employment Tax Issues and Penalty Relief
Partners,
Notice 2020-22 provides a waiver of additions to tax for failure to make a deposit of taxes for employers required to pay qualified sick leave wages and qualified family leave wages mandated by the Families First Coronavirus Response Act (Families First Act) and qualified health plan expenses allocable to these wages. This notice also provides a waiver of additions to tax for failure to make a deposit of taxes for certain employers subject to a full or partial closure order due to the coronavirus disease 2019 (COVID-19) or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This notice applies to deposits of Employment Taxes (including withheld income taxes, taxes under the Federal Insurance Contributions Act and taxes under the Railroad Retirement Act) reduced in anticipation of the credits with respect to qualified sick leave wages and qualified family leave wages paid with respect to the period beginning April 1, 2020, and ending December 31, 2020. This notice applies with respect to deposits of Employment Taxes reduced in anticipation of the credits with respect to qualified wages paid with respect to the period beginning on March 13, 2020, and ending December 31, 2020. This relief ensures that such employers may pay qualified sick leave wages and qualified family leave wages required by the Families First Act or qualified wages under the CARES Act using Employment Taxes that would otherwise be required to be deposited without incurring a failure to deposit penalty.
Notice 2020-22 will be in IRB: 2020-17, dated 03/31/2020.
U.S. Chamber of Commerce - User Friendly Resource Information Site
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