Hello All,

Hope this email finds you well. In this day and age sanitary is of the utmost importance when going outside your home.  It is amazing the lengths people are going through to just go out and get a gallon of milk.  I'd like to take this moment to introduce you to a product that may entice your customers and ensure a healthy environment when they bring their vehicle to you. Go to www.permasafe.com to see this product.  It may be an added bonus that you can give to your customers and they may appreciate your concern for their well being as well.

Please be advised that this crisis we are enduring is ever changing from day to day, hour to hour and minute to minute.  It is hard to keep up but we are trying our best.  Below is information regarding the PPP and the EIDL.  

As always, if you  have any questions please feel free to call us.  Although we are not in the office, we are working remotely with normal business hours of Monday through Friday, 8am to 4pm.
 

Understanding what the PPP business loan program is, how it works, and how to apply will help you navigate this massive federal stimulus program and get the funds you need as quickly as possible.

KEY TAKEAWAYS

• You should apply for your PPP loan as soon as possible.
• PPP loans are available for the lesser of $10 million or 2.5 times your average monthly payroll.
• 100% of your loan could be forgiven if you follow guidelines.
• You can apply for both a PPP and EIDL loan if you wish.
• Check eligibility before you apply.
• Apply through any SBA approved 7(a) lender.

Source: H.R. 748¹

PPP Eligibility

In addition to meeting the size requirement (500 or fewer employees for most companies), you must show that your business has been negatively impacted by the coronavirus. You will do this, in part, by certifying on your PPP application that current economic uncertainty makes the loan request necessary.²

Eligibility is further broken down to include:

• Any business categorized under "Accommodation or Food Services," such as restaurants and hotels that have 500 or fewer employees per location
• Tribal businesses
• Independently owned franchises
• Self-employed workers, independent contractors, gig workers, and sole proprietors¹

June 30, 2020 The deadline to apply for a Paycheck Protection Program Loan

Where to Apply for PPP

As noted above, PPP loans are being administered by approved SBA lenders and are actually a new form of the existing SBA 7(a) loan program. You can apply for your PPP loan through any of the 1,800 participating SBA approved 7(a) lenders or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution.

Other lenders will be available to make PPP loans once they are approved and enrolled in the program. Start by consulting with your local lender as to whether it is participating. If you have trouble locating a lender, try using the SBA Paycheck Protection Program lender search tool.³

If you are self-employed or an independent contractor, your PPP loan application will go live April 10, 2020, according to the SBA.

How to Apply for PPP

Lenders are accepting applications from small businesses now and will continue until June 30, 2020, when the PPP loan program ends. Start by downloading and filling out the application form on the SBA website. The application includes instructions and is pretty straightforward.

Be prepared to prove that your business was operational on Feb. 15, 2020, that you had employees, and the amount of your average monthly payroll costs following instructions on the application form.⁴

How PPP Loan Forgiveness Works

All or part of the loan you receive under PPP could be forgiven if you keep all employees on payroll—or rehire them by June 30, 2020. Payroll costs must be 75% or more of your approved loan amount. Only 25% of the amount forgiven can be used on non-payroll expenses. The forgiveness won't happen until the end of the eight-week period of employment following receipt of your loan.¹

Employee Payroll Costs: Salary, wages, commissions, tips (capped at $100K per employee); Benefits including vacation, parental, family medical or sick leave; State and local taxes assessed on compensation.

Sole Proprietors: Wages, commissions, income, or net earnings from self-employment (capped at $100K)

Seasonal businesses: Average monthly payroll between Feb. 15 and Jun. 30 (capped at $100K per).

New Businesses: Average monthly payroll from Jan 1 to Feb 29 (capped at $100K per employee).

Other Eligible Forgivable Costs: Interest on mortgages; Rent under lease agreements; Utilities.

You must request forgiveness of your loan from your lender in writing. Your request should document the number of full-time equivalent employees, pay rates, your payments on an eligible mortgage or lease, and utility payments. Your lender has 60 days to reply.⁴

PPP vs. EIDL

The Paycheck Protection Program is one of two programs designed to help small businesses during the coronavirus crisis. The other is the Economic Injury Disaster Loan (EIDL) program. While both programs help struggling businesses get back on their feet financially, they have slightly different goals which are suggested by the names of the two programs.

The Paycheck Protection Program business loans account is a new stimulus package designed to help companies retain workers by covering eight weeks of payroll plus some other costs of remaining in business. This loan is 100% forgivable if you follow forgiveness guidelines.

The Economic Injury Disaster Loan program is an established program that helps small businesses overcome the loss of revenue during a declared disaster such as a hurricane, major fire, or, in this case, the COVID-19 pandemic. 
 

While small-business owners across America line up to get their Paycheck Protection Program (PPP) loans--a process that has been a bit chaotic--the Treasury Department has touted the EIDL as a stopgap option. Small businesses that apply for EIDLs can request an advance of up to $10,000.

Now, there are some caveats. The U.S. Small Business Administration's Massachusetts District Office announced in a bulletin on April 6 that, nationwide, the SBA has decided to implement a $1,000 cap per employee on the advance, up to a maximum of $10,000. So, a business with three employees, for example, would be eligible to receive only $3,000 up front, as opposed to the originally stated $10,000.

You Can Get Both

Many small business owners do not know they can apply for both an EIDL loan and a PPP loan for the same COVID-19 disaster. There are rules, including the key requirement that you can't use money from both loans for the same thing. For example, if you use the proceeds from a PPP loan for payroll, you can't use an EIDL loan for payroll also.

Before you apply for a PPP loan, you may want to look more closely at the EIDL program to see if it might be a better fit or to decide if applying for both loans makes sense in your case. The table below provides a basic comparison of the two programs. Both loan programs apply to small businesses of 500 or fewer employees (more in certain industries).⁵

Source: H.R. 748¹

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Stay Safe and Be Well

Regards,

Carla Obalde
Operations Manager
Service Station Dealers &
Automotive Services of Greater NY
421 Waverly Avenue
Mamaroneck, NY  10543
P. 914-698-5188 F. 914-698-4787
www.ssdgny.org