WEBVTT 116 00:42:46.560 --> 00:42:57.210 Janae: All right. Good afternoon, everyone, and welcome to the Minnesota score chapter workshop how small businesses in Florida can combat the coronavirus economic crisis. 117 00:42:58.320 --> 00:43:05.610 Janae: I'm Jeanette Courtney and I'm the workshop coordinator before we started this workshop. I'd like to explain a few aspects of the presentation. 118 00:43:06.180 --> 00:43:21.810 Janae: First, this workshop is being recorded and the video will be available on our website minnesota.score.org in a few days. If you would like to revisit any portion of this workshop, please visit our website in a few days to view the video. 119 00:43:23.010 --> 00:43:34.230 Janae: Secondly, the presentation will last about an hour and 15 minutes after the presentation. The panelists will review your questions and try to answer them as best that they can 120 00:43:35.130 --> 00:43:41.610 Janae: If you would like to submit a question for the panelists, please use the Q AMP. A icon on your screen. 121 00:43:42.090 --> 00:43:51.360 Janae: This way we can organize and respond to as many questions as possible. We ask that you also include the slide number that corresponds to each of your questions as well. 122 00:43:52.260 --> 00:43:58.290 Janae: registrants may pose more than one question, but please use separate Q AMP. A requests for each of them. 123 00:43:59.190 --> 00:44:05.580 Janae: Now that we have the workshop logistics out of the way, I'd like to introduce our first panelist. Mr. Tom Darrow 124 00:44:06.240 --> 00:44:11.520 Janae: Tom retired in 2013 after a 40 year career with General Motors Corporation 125 00:44:12.090 --> 00:44:20.490 Janae: Starting as a college co op student Tom held management positions in auto assembly and executive positions in dealer field management. 126 00:44:20.880 --> 00:44:33.810 Janae: GM AC finance customer relations and contact center management Tom completed his career at GM with a six year assignment in Shanghai, Tom. I'm now handing the presentation over to you. 127 00:44:35.310 --> 00:44:36.240 Tom Garove: Thank you. Janine. 128 00:44:37.620 --> 00:44:38.670 Tom Garove: Good evening, everybody. 129 00:44:39.780 --> 00:44:46.680 Tom Garove: Welcome to the webinar. I wish we had better circumstances that we were meeting this evening. But hopefully you will 130 00:44:47.370 --> 00:44:54.990 Tom Garove: Get everything you need out of the information we're going to share just other come up a couple other quick housekeeping items. 131 00:44:55.410 --> 00:45:06.420 Tom Garove: As Jenny mentioned, we are recording this webinar which will be available on the website. Additionally, when you received your invitation today with your link to login 132 00:45:07.170 --> 00:45:24.330 Tom Garove: You should have received a PDF file, which also includes the embedded links to websites that have probably 99% of the information we're going to provide for you this evening. So I encourage you to 133 00:45:25.560 --> 00:45:35.700 Tom Garove: To take a look at those that PDF file. Take a look at the embedded links, if you have some other questions that we don't answer this evening about any information that you have 134 00:45:36.690 --> 00:45:42.690 Tom Garove: I will say that these programs that we're going to talk about today and the strategy. We're going to share with you. 135 00:45:43.200 --> 00:45:48.720 Tom Garove: Is a sort. Sort of like drinking from a firehose. There is a lot of information here, so be patient. 136 00:45:49.410 --> 00:45:55.440 Tom Garove: Please pay close attention because the better you understand what the information we're going to share with you. 137 00:45:56.070 --> 00:46:06.180 Tom Garove: The better a decision, you will make as far as a strategy of which one of these programs and strategies you want to implement in your particular business that's very, very, very important. 138 00:46:07.770 --> 00:46:17.310 Tom Garove: So with that being said, Let me let's move into the slides I'm going to tell you a little bit about score, who we are. 139 00:46:17.880 --> 00:46:34.530 Tom Garove: If you're not aware. We're a national nonprofit organization that is an independent resource partner of the US Small Business Administration out of Washington. We are a group of volunteers, I repeat, volunteers. So none of us are paid 140 00:46:36.600 --> 00:46:45.600 Tom Garove: We are. We provide America small businesses with free, confidential business mentoring in a in person and online. 141 00:46:46.530 --> 00:47:06.270 Tom Garove: You're here and the Minnesota score chapter. If you notice, her name is Manny sota our chapter has roughly 80 to 90 members, depending on the time of year, we have snowbirds coming and going. But our 80 or 90 members we service. The Minnesota. The manatee and Sarasota counties for score. 142 00:47:07.320 --> 00:47:19.680 Tom Garove: We have free educational services such as these local workshops my current role within the score organization is to coordinate the workshops and education and training for our 143 00:47:20.040 --> 00:47:28.200 Tom Garove: For our mentors, as well as our clients for the workshops. Typically these workshops we charge 2020 to $25 144 00:47:29.130 --> 00:47:41.100 Tom Garove: At on site. They're usually conducted at manatee Technical College up on Route 70 in Manatee County and because of the crisis we are waving those and we're holding all of our workshops now. 145 00:47:41.850 --> 00:47:55.620 Tom Garove: Remotely on this webinar webinar process through through zoom. We have roughly 300 chapters 11,000 volunteers throughout the United States in roughly 1500 communities. 146 00:47:56.400 --> 00:48:05.760 Tom Garove: And since 1964 when score was organized. Then add an acronym score. By the way, at that time, stood for the service corps of retired executives. 147 00:48:06.630 --> 00:48:20.820 Tom Garove: As that an accurate of we just shortened to just score, we typically don't refer to that but it it pretty indicative and descriptive of the group of people that you have. We're a group of retired executives, we have 10 million clot. We've served over 10 million clients. 148 00:48:22.260 --> 00:48:24.300 Tom Garove: Businesses across the United States. 149 00:48:26.100 --> 00:48:28.350 Tom Garove: How do we help we mentor. 150 00:48:29.370 --> 00:48:43.020 Tom Garove: Small businesses typically 500 employees or less, which is what most of these programs are going to address this evening we we assist small businesses all the way from startup through the startup phase and opening 151 00:48:44.040 --> 00:48:55.170 Tom Garove: In the growth phases of your business, all the way to the end and the event that you want to exit your business and you need some ideas and mentoring on how to exit your business and or sell it. 152 00:48:55.650 --> 00:49:07.080 Tom Garove: So as you can see we are part of part of the process from the start to finish of your business, your notice on the bottom of this slide we have our website minnesota.score.org 153 00:49:07.560 --> 00:49:15.660 Tom Garove: Where you can request a mentor at the end of this presentation if you still feel that you need some assistance. 154 00:49:16.230 --> 00:49:33.180 Tom Garove: Helping you to understand these programs, feel free to go on our website and request a mentor. We for this particular crisis. We have a special group of mentors that we are setting aside to address just these specific items in the event that you may need some assistance. 155 00:49:35.880 --> 00:49:42.150 Tom Garove: This, this slide shows a little bit about who's going to be speaking to you today. Today was kind enough to introduce me 156 00:49:43.110 --> 00:49:51.690 Tom Garove: A little later on I'll be introducing the Beale, and then Barry will be joining us towards the end of the presentation as 157 00:49:52.290 --> 00:50:09.690 Tom Garove: Junaid mentioned it's about an hour and 15 minutes so be patient. Make yourself comfortable and try to understand as much as you possibly can. I'm going to call this webinar, your government US Treasury are open for business all hands on deck. 158 00:50:11.490 --> 00:50:21.300 Tom Garove: Typically that's not necessarily the way you may describe our US government, but I can tell you in all of my years living in this country. It's just amazing to see what 159 00:50:21.720 --> 00:50:30.330 Tom Garove: Our government is trying to do for small businesses in the economy in this country and hopefully as you go through this, you'll understand a little bit more of what's going on. 160 00:50:33.660 --> 00:50:39.840 Tom Garove: A little bit more. Just before I start the first slide about current events in the news today. 161 00:50:41.670 --> 00:50:51.870 Tom Garove: The SBA has already processed over 30,000 applications which they have received and processed and responded to just in the last couple days. 162 00:50:53.250 --> 00:50:58.980 Tom Garove: You have to understand that the SBA this process that you will see to this evening. 163 00:51:00.000 --> 00:51:14.940 Tom Garove: The programs, typically the SBA does what are called seven eight loans and it's operated through the what they call the E Tran system e t r a n trans system is the system that they have set up with SBA banks. 164 00:51:15.390 --> 00:51:23.160 Tom Garove: Those loans were designed and are available and are simply guaranteed by the Small Business Administration of your government 165 00:51:23.700 --> 00:51:31.470 Tom Garove: For for small businesses. A 500 or less employees and that system is the system that we are trying to use to get 166 00:51:31.860 --> 00:51:40.890 Tom Garove: This literally hundreds of millions if not trillions of dollars out into the small business community, as we speak. So as you can. Suspect 167 00:51:41.310 --> 00:51:48.360 Tom Garove: There are there are some glitches because at no point when this system was designed was never designed to take on this kind of volume. 168 00:51:49.320 --> 00:51:53.790 Tom Garove: So I think patients will be the thing to understand. You'll see all sorts of 169 00:51:54.240 --> 00:52:00.840 Tom Garove: Issues on the news about people being able to get their application and people not being able to get their application in 170 00:52:01.200 --> 00:52:06.780 Tom Garove: We will share with you some real life experiences. We have some, some of our clients have actually gone in. 171 00:52:07.290 --> 00:52:18.900 Tom Garove: And app and applied and they find sometimes later in the evening. The system is open and they have a better luck getting their applications in but we'll talk about that a little bit more, a little bit later. 172 00:52:20.370 --> 00:52:38.010 Tom Garove: Gone under the SBA loan program are the requirements that may the SBA Loan Program, not necessarily the most popular and small businesses, some of the requirements were that you had to be in business at least two years, you had to have a personal credit score of 650 or greater. 173 00:52:39.960 --> 00:52:47.580 Tom Garove: And there were restrictions on the amount of money that you could borrow anywhere from 30,000 to 350,000 174 00:52:48.000 --> 00:52:55.080 Tom Garove: You can now apply for substantially much more money in the case of the PPP program and some of the others. We're going to talk about. So 175 00:52:55.380 --> 00:53:02.820 Tom Garove: The requirements have been changed significantly the entire process has changed and and our government is trying to react. 176 00:53:03.120 --> 00:53:10.020 Tom Garove: Along with the banking system to move as quickly as they possibly can. There are currently 3500 banks up and running. 177 00:53:10.530 --> 00:53:23.520 Tom Garove: Many of those 3500 banks were not in the SBA business so many of your local banks regional banks and larger banks, some of the larger branch banks are still trying to get into the system and get up and running. 178 00:53:24.090 --> 00:53:38.070 Tom Garove: Steve minutia has went so far as to say today on the news that if you don't get alone this week you will next week, he is confident as pushing our government to get this system up running as quickly as possible. Your job is going to be to get your application in 179 00:53:39.240 --> 00:53:48.450 Tom Garove: That being said, let's talk about small business in Florida, and what we can do to combat the coronavirus economic crisis because 180 00:53:49.140 --> 00:53:57.420 Tom Garove: This crisis is not just one of financial but it's also psychological and has to do with how you manage your business in your employees. 181 00:53:58.170 --> 00:54:00.660 Tom Garove: Which brings up the topic of crisis management. 182 00:54:01.620 --> 00:54:13.350 Tom Garove: We're also going to. So we're going to talk to you a little bit about that this evening. We're going to talk about business continuity and disaster recovery, what plans, if any, do you have in place with your business. We're going to try to spur on your imagination. 183 00:54:13.650 --> 00:54:15.090 Tom Garove: And thoughts to make you think 184 00:54:16.470 --> 00:54:18.960 Tom Garove: We're going to talk about increased unemployment benefits. 185 00:54:19.290 --> 00:54:29.850 Tom Garove: Which are over and above the loan programs that are available to you and your business, you may be aware of those the unemployment benefits for laid off employees have been significantly increased to take care of. 186 00:54:30.420 --> 00:54:37.770 Tom Garove: Those that have unfortunately lost their job in this time of crisis, the family first coronavirus response act will be addressed. 187 00:54:39.660 --> 00:54:47.640 Tom Garove: Financial aid the cares Act, which is, is basically the umbrella for most of all of the programs, which includes the SBA express bridge loan. 188 00:54:48.180 --> 00:55:02.460 Tom Garove: And includes the payroll Protection Program PPP, which is probably what you see the most talked about on the news. In addition to the economic injury disaster loan program, we're also going to talk about. Next slide please. 189 00:55:03.780 --> 00:55:06.030 Tom Garove: Small business debt relief program. 190 00:55:08.160 --> 00:55:10.530 Tom Garove: Payroll tax deferral and forgiveness. 191 00:55:11.880 --> 00:55:13.500 Tom Garove: And then how score can help you. 192 00:55:14.430 --> 00:55:26.790 Tom Garove: Each one of those bullets may or may not be the best strategy for you and your personal circumstances and financial such situation for your business. So we will even talk about that a little bit. 193 00:55:27.180 --> 00:55:37.950 Tom Garove: To try to get you to think a little bit of which ones are of these are appropriate. And then, of course, how can score help and what other available resources are available to you. Next slide. 194 00:55:40.020 --> 00:55:47.220 Tom Garove: So what do we know and what don't we know at this point. Obviously, this is an emergency like no other experienced in the United States. 195 00:55:48.030 --> 00:55:52.260 Tom Garove: As a small business owner, you're going to need to have a balanced plan we we 196 00:55:53.220 --> 00:56:07.620 Tom Garove: You know we hyphenated and and italicize these words. So that should make you think a balanced plan for your employees and for your business. So it's, it's, it's a, it's a, it's a thought process that you need to think through 197 00:56:09.090 --> 00:56:18.900 Tom Garove: The recently signed legislation and economic recovery support is a bridge once again it's a bridge to get you and your employees and your business to the end of the crisis. 198 00:56:19.290 --> 00:56:30.090 Tom Garove: Some of that bridge isn't no cost to you and is free and is excusable. Some of it is in the form of loans and some of it as a form of support that score can help you in terms of strategy. 199 00:56:31.470 --> 00:56:38.940 Tom Garove: The various economic support programs should be only one one part of your thought process and the BIA will address that in just a moment. 200 00:56:39.750 --> 00:56:46.260 Tom Garove: But the important thing that you need to understand as a small business owner is that it's this whole 201 00:56:47.250 --> 00:56:52.140 Tom Garove: Seminar and everything. We talked about is going to require intensive research and aggressive action. 202 00:56:52.500 --> 00:57:00.330 Tom Garove: On your part, I see that we've got some comments from some participants that have already applied for some of these loans hats off to you. 203 00:57:00.630 --> 00:57:10.350 Tom Garove: Your, your steps ahead of what we're going to talk about some of this may be a repeat for you if it is so be it. But perhaps you'll get some ideas also of other things you can do. 204 00:57:10.800 --> 00:57:18.450 Tom Garove: But once again, you're going to, it's going to be intensive research concentration understanding of the programs and then aggressive action on your part. 205 00:57:19.140 --> 00:57:25.560 Tom Garove: Be aware that a legislative support details are available through score and we're here to assist you. 206 00:57:26.460 --> 00:57:38.040 Tom Garove: Will are also going to schedule future other future zoom webinars as this program in this crisis continues to unfold. We're going to have webinars, either. 207 00:57:38.640 --> 00:57:41.520 Tom Garove: We're not sure yet whether weekly or bi weekly 208 00:57:42.450 --> 00:57:55.980 Tom Garove: On topics that we feel are pertinent to the crisis situation that help as many people as we possibly can, through this process. So stay tuned to the minnesota.score.org website on the bottom of the screen there. 209 00:57:56.310 --> 00:58:01.050 Tom Garove: For other webinars that we're going to schedule and have available for your, for your support. 210 00:58:03.300 --> 00:58:11.730 Tom Garove: So obviously the global economic picture looks pretty bleak at this point. And this is not just in the United States, as we know. 211 00:58:12.210 --> 00:58:22.740 Tom Garove: Most of this. It's across the entire world is pandemic has struck everybody by surprise, but there will be a recovery we will get to the other side of this 212 00:58:23.220 --> 00:58:33.930 Tom Garove: And while uncertainty still uncertainty still remains high. Be aware that your federal government is opened up the coffers. As I mentioned, the start 213 00:58:34.320 --> 00:58:50.640 Tom Garove: Then title of this is your government and the US Treasury are open for business to keep the US economy bridge to through this process to get us back in business and back to work. And we're optimistic that this was going to happen sooner than later. Next slide. 214 00:58:51.960 --> 00:58:57.150 Tom Garove: So that being said, I'm going to introduce our next speaker Nabeel who 215 00:58:57.930 --> 00:59:09.750 Tom Garove: The Beale, let me tell you a little bit about the bo. He worked in several large and small companies and varying engineering and management positions, including founding and running a small business of his own which he recently sold 216 00:59:10.350 --> 00:59:27.240 Tom Garove: So he's he's one of you. He's, he's a he's a very aggressive smart businessman, a problem solver entrepreneur, he draws most of his various technical and management skills to streamline his business processes and operations minimizing costs and maximizing profitability, so 217 00:59:28.320 --> 00:59:37.050 Tom Garove: The bill has been pushing us as a team to get this presentation together. So at this point I'm going to turn the meeting over to Abele, be able to Ron 218 00:59:38.100 --> 00:59:49.260 Nabil Freij: Thank you very much. Some good evening, everybody. It is obvious that we are in a crisis mode. Today it's unfortunate, but that's the case and 219 00:59:50.040 --> 00:59:58.950 Nabil Freij: As you know, Florida companies are hardened by crises, our the crisis that we are used to or a custom to 220 00:59:59.370 --> 01:00:06.270 Nabil Freij: Are typically whether Christ is relating to floods, tornadoes and hurricanes, not necessarily pandemics and epidemics. 221 01:00:06.960 --> 01:00:12.420 Nabil Freij: So unfortunately, while we are prepared for some crisis, maybe we're not fully prepared for this kind of crises. 222 01:00:12.930 --> 01:00:22.980 Nabil Freij: And under crisis management that helps to be prepared. But if you don't, if you're not prepared you need to you need to anticipate and assess your risks as this crisis goes on. 223 01:00:26.010 --> 01:00:42.120 Nabil Freij: In order to do that, you're going to need to have a plan put in place and that plan needs to be executed and tested against how it's going to impact your staff your property your supply chain, your equipment and even your IT infrastructure. 224 01:00:43.860 --> 01:00:48.000 Nabil Freij: Make sure you have that plan in place as soon as possible. So you could execute it. 225 01:00:48.780 --> 01:00:57.300 Nabil Freij: Also, it is a good time at this point to look into your insurance policies, see if you have a business interruption insurance and if you do 226 01:00:57.900 --> 01:01:07.260 Nabil Freij: Do read the clauses, or any disclaimers. Quite often, these insurance policies do not cover you under these circumstances. 227 01:01:07.620 --> 01:01:25.920 Nabil Freij: Unless you pre negotiated to be covered for that, so check them out. See if you could get some payments due to the closures, or the disruption in your business, that'd be great if you can. Otherwise, this is something to think about in the future to add the coverage for your business. 228 01:01:28.020 --> 01:01:40.650 Nabil Freij: Very important during crisis is to have a crisis communication team. If you don't have one. Assemble one as soon as you can. It is important that that team monitors. 229 01:01:41.850 --> 01:01:45.240 Nabil Freij: All all the changes in your company. So for instance, 230 01:01:46.230 --> 01:01:53.520 Nabil Freij: Your key performance indicators, how, how are they changing, given that crises, look at the vital signs of their company. 231 01:01:53.850 --> 01:02:01.020 Nabil Freij: And then established notification systems. That's the medium in which they could communicate with all the stakeholders that are involved in this. 232 01:02:01.860 --> 01:02:07.620 Nabil Freij: Once you have the notification monitoring systems in place, obviously communicate and communicate 233 01:02:08.400 --> 01:02:15.780 Nabil Freij: The more you do that the better your team and all the stakeholders are prepared in order to deal with emergencies and with a crisis. 234 01:02:16.380 --> 01:02:25.740 Nabil Freij: And once this crisis is over, and it will be over. It is time to sit down and review what's what. What is it that you've done, how you could improve on it. 235 01:02:26.250 --> 01:02:37.290 Nabil Freij: In case there is a recurrence of the virus and another shutdown that may follow God forbids in the fall, or maybe in the winter, at least will be better prepared to handle that at that point. 236 01:02:38.070 --> 01:02:43.680 Nabil Freij: In order to deal with all this, what we're suggesting is you reach deep and look for the leader in you. 237 01:02:44.970 --> 01:02:48.390 Nabil Freij: brushing up your leadership skills and use them. This is the time to use it. 238 01:02:49.470 --> 01:03:01.260 Nabil Freij: You want to rally your troops when and where it needed. So what you need to do is define your priorities and establish task forces but attend to the most needed tasks and a lot of these tasks. 239 01:03:01.650 --> 01:03:10.140 Nabil Freij: Are going to be tactical you're going to be like a fire department, putting out fires as much as you can. Also, what you're while you're doing that because it's quite 240 01:03:10.740 --> 01:03:20.400 Nabil Freij: Intensive you need to try to maintain the team morale and a positive attitude throughout this crisis, this is what's going to help pull you through 241 01:03:20.850 --> 01:03:32.580 Nabil Freij: And one strategy that we recommend that you follow is applied transparency across your organization with all your stakeholders that includes your investors customers and employees. 242 01:03:33.030 --> 01:03:41.220 Nabil Freij: And finally, you got to stay focused on what is important and you got to minimize your panic. 243 01:03:42.090 --> 01:03:54.210 Nabil Freij: When you panic. You can't think when you can't think you can't put together a solid plan, you can execute you need to focus. You need to be able to keep your staff safe, you need to keep your business afloat. 244 01:03:57.450 --> 01:04:05.910 Nabil Freij: So if your business does not have a business, continue, continue with the plan or disaster recovery plan. This is again the time to put it in place. 245 01:04:06.420 --> 01:04:14.790 Nabil Freij: And the first thing you got to think about is safety, the safety of your employees of your clients everybody that is involved with your business. 246 01:04:15.240 --> 01:04:23.370 Nabil Freij: And what we recommend that you do is you follow the federal, state, and local guidelines for maintaining that safety. So for instance, if 247 01:04:23.910 --> 01:04:29.460 Nabil Freij: Those guidelines are required to shut down do shut down if they required to send your employees home, send them home. 248 01:04:30.120 --> 01:04:39.510 Nabil Freij: If you have to quarantine. You have to warranty. If you have essential employees that are required to go to work. Are you taking their temperatures. The second day walk through that door. 249 01:04:39.990 --> 01:04:44.820 Nabil Freij: Are you posting signs on the walls, reminding to wash their hands. The minute they walk through that door. 250 01:04:45.720 --> 01:04:51.000 Nabil Freij: Do they have all the sanitary equipment that they need in order to keep their workspaces clean 251 01:04:51.510 --> 01:05:00.960 Nabil Freij: Are you cleaning on a regular basis. Are you keeping your employees six feet apart. Are you separating the clients from the employees as as needed. And as recommended 252 01:05:01.950 --> 01:05:13.590 Nabil Freij: Are you sending six sick employees home. These are all all the things that you got to think about. And you have to put in place in order to maintain the safety of your workplace. So that comes first. 253 01:05:14.070 --> 01:05:26.490 Nabil Freij: Right after safety people typically look at their cash flow. This is the second most important item, you got to visit your cash flow and you have to conserve your cash and you do that by minimizing 254 01:05:27.150 --> 01:05:39.420 Nabil Freij: Any bleeding of your cash. So take a look at your profit and loss statement from last year or last quarter and look at all the major expenditures that you have in your business. 255 01:05:40.350 --> 01:05:48.240 Nabil Freij: What are they, is it payroll. Is it your rent or lease. Are they supplier charges that you get charged 256 01:05:49.050 --> 01:05:58.500 Nabil Freij: Consider every one of them and look at ways to reduce it or minimize it. So, for instance, your employee payroll, what can you do about 257 01:05:59.070 --> 01:06:10.500 Nabil Freij: reducing cost. Obviously there are there are options either reduction of salary or reduction of employees, but you have to consider these very seriously. 258 01:06:11.010 --> 01:06:20.130 Nabil Freij: As far as your suppliers contact them, are they willing to discount their rates or push their payment terms from net 30 to net 60 or even 90 259 01:06:21.090 --> 01:06:30.510 Nabil Freij: It is not unusual that suppliers will do that in times like these, talk to your supplier, see what they could do for you talk to your landlord. 260 01:06:31.050 --> 01:06:37.650 Nabil Freij: Is your landlord willing to defer your rental payment or lease payment for a month two or even three 261 01:06:38.040 --> 01:06:49.560 Nabil Freij: These are the options that you have to evaluate internally before you look outside because those are the. Those are the steps that you could take to maintain the long term viability of your company. 262 01:06:51.180 --> 01:07:01.410 Nabil Freij: We will also discuss in this workshop in great detail all the options available to you in terms of loans or grants that you could get from the government through the cares act. 263 01:07:01.920 --> 01:07:09.270 Nabil Freij: So bear with us as we go through this. There's a lot of options available for you here in order to maintain a positive cash flow and shorter 264 01:07:10.140 --> 01:07:15.840 Nabil Freij: also define your mission critical protocols. And why is that important for instance. 265 01:07:16.260 --> 01:07:23.820 Nabil Freij: Your supply chain may be very important for your business as as it usually is. And what you want to do is minimize your supply chain disruptions. 266 01:07:24.120 --> 01:07:33.360 Nabil Freij: You can do that by building redundancies and adding backup suppliers. The longer you can maintain your supply chain. The more you could maintain your 267 01:07:34.590 --> 01:07:43.260 Nabil Freij: Sales and revenue and boost up your cash flow. So it's very important that you attend to that and try to keep your supply chain operational. 268 01:07:43.770 --> 01:07:58.770 Nabil Freij: Also, as we talked before communicate, communicate, communicate so oversee investor client and public relations as the crisis. Go on, keep everybody abreast and up to date. Lastly instill trust and hope. 269 01:08:00.390 --> 01:08:11.040 Nabil Freij: This crisis will be over. And what you want is everybody on your team and your staff to support you and support your activities, while we are going through this. So, 270 01:08:11.610 --> 01:08:17.850 Nabil Freij: Make sure that people see the light at the end of the tunnel and keep reminding them that we will see that light and we get to that light. 271 01:08:20.280 --> 01:08:23.670 Nabil Freij: At this point I'd like to initiate the poll, just to get an idea of 272 01:08:25.110 --> 01:08:27.930 Nabil Freij: Who our audiences. If you got 273 01:08:30.480 --> 01:08:36.540 Nabil Freij: Some time please go ahead and answer this question we'd like you to identify your business legal structure. 274 01:08:45.330 --> 01:08:56.520 Nabil Freij: And while you're answering this, I'd like to remind everybody that please continue to enter your questions in the q&a box will be addressing as many as possible. Towards the end of this presentation. 275 01:09:08.730 --> 01:09:10.890 Nabil Freij: Okay, I'll give it a few more seconds. 276 01:09:16.350 --> 01:09:19.800 Nabil Freij: All right, I'm going to end the polling and I will be 277 01:09:21.540 --> 01:09:32.310 Nabil Freij: As well, sharing the results with you so that you have an idea of who is joining us here. So I see 20% of sole proprietors 278 01:09:33.390 --> 01:09:33.900 Nabil Freij: About 279 01:09:35.190 --> 01:09:44.490 Nabil Freij: 32% LLC is 34% s corpse 6% C corpse and 3% nonprofit. Thank you. 280 01:09:51.690 --> 01:09:57.750 Nabil Freij: Okay, so let's move on. I would like to talk a little bit about the increased unemployment benefits. 281 01:09:58.170 --> 01:10:06.780 Nabil Freij: That are offered in the cares act. There's 250 billion dollars to be given to the unemployed in order to help them through this crisis. 282 01:10:07.290 --> 01:10:22.080 Nabil Freij: And what I'd like to say is that actually this program here is like an unemployment benefits on steroids. The Cures Act provides eligible employees and will define who these eligible employees are in a minute. 283 01:10:23.130 --> 01:10:35.250 Nabil Freij: It provides them with $600 per week, not per month of additional unemployment benefits for four months that is on top of what the state is going to provide 284 01:10:36.390 --> 01:10:44.280 Nabil Freij: Okay. On top of that, they will get 13 weeks of the continued 600 weekly payments. 285 01:10:45.660 --> 01:10:58.470 Nabil Freij: After they are state unemployment benefits expire. So for instance, here in Florida, the unemployed gets anywhere between 12 to 23 weeks of unemployment benefits. 286 01:10:59.430 --> 01:11:16.470 Nabil Freij: It depends on the number of unemployed with this program here this will extend it from being around three to five months to being between seven and eight months of unemployment benefits. That's quite a bit of additional time of benefits, where they were received money. 287 01:11:17.730 --> 01:11:29.190 Nabil Freij: If you add up the total benefits, it could add up to up to $18,000 on top of what the state pays you and Florida. It is $275 per week. 288 01:11:30.330 --> 01:11:46.530 Nabil Freij: So it's quite substantial if you're looking for more information on this program, you could go ahead to the PDF file that we gave you access to that PDF file with a slide deck has active link. So if you click on it, it will take you straight to that information. 289 01:11:48.510 --> 01:11:50.820 Nabil Freij: Now, who is eligible for this program. 290 01:11:52.470 --> 01:12:05.670 Nabil Freij: Actually what the Cures Act requires unemployed people is to self certify any of the following conditions to be eligible. So again, it's self certify self certification. They rely on you to 291 01:12:06.090 --> 01:12:14.730 Nabil Freij: Be honest about it and claim these conditions. What are they all go through them quickly. You could go back and read them through the slides. 292 01:12:15.750 --> 01:12:18.510 Nabil Freij: If a person is diagnosed with coven 293 01:12:19.590 --> 01:12:30.120 Nabil Freij: And undergoing treatment they qualify for these expanded on unemployment benefits if a member of the individual is hot household is diagnosed 294 01:12:31.290 --> 01:12:46.470 Nabil Freij: If you are providing care to a family member who has been diagnosed. If, for instance, you have a child that needs to stay home because the schools are closed and you have to take care of that child, then you would qualify 295 01:12:47.940 --> 01:13:02.250 Nabil Freij: Any individual that is unable to reach the place of employment, because he or she has been quarantined or the place of employment is quarantined in both of these cases that individual will qualify 296 01:13:03.330 --> 01:13:12.720 Nabil Freij: Even if you haven't worked a day before, and you were scheduled to start your employment and you can no longer show up to your work, then you would qualify 297 01:13:13.740 --> 01:13:20.220 Nabil Freij: If you are if you become the breadwinner after the head of household has died. 298 01:13:21.420 --> 01:13:33.840 Nabil Freij: Of covert 19 then that person would qualify. If an individual must quit their job as a result of covert 19 they would qualify. And if the place of employment is closed. 299 01:13:34.350 --> 01:13:48.300 Nabil Freij: You to go with 19 public health emergency then that person would also qualify. Now what I'd like to note here is that the eligibility has also been expanded to include individuals who are self employed. 300 01:13:48.900 --> 01:13:58.260 Nabil Freij: Like gate workers 1099 freelancers independent contractors and even part time workers. So it's no longer only eligible for full time employees. 301 01:13:58.950 --> 01:14:11.220 Nabil Freij: That's very important to note. Now, who is not eligible to to qualify based on what we've read is is if you have a fear of contracting covert 19 302 01:14:11.700 --> 01:14:21.480 Nabil Freij: If any of your employees call in and say, Yeah, I'm scared of contract, contract and over 90 and I'm not going to show up to work unfortunate that person will not qualify 303 01:14:22.260 --> 01:14:41.970 Nabil Freij: Those people who can tell a work with pay they will not qualify. If they have already receiving paid leave from either the employer or applicable federal or state local laws they will not qualify. If a person graduates from college and is looking for a job and can't find one. 304 01:14:43.050 --> 01:14:55.050 Nabil Freij: They don't qualify. So it. This will give you an idea of what your employees are entitled to and what they're not. Now, why, why should you care. 305 01:14:56.370 --> 01:15:10.740 Nabil Freij: You may want to consider some operators operational changes within your company, given this information and the fact that there is a substantial amount of money that's being distributed through the unemployment program also 306 01:15:11.550 --> 01:15:16.920 Nabil Freij: If you are considering putting somebody on a paid leave also you need to know the impact of that. 307 01:15:17.370 --> 01:15:31.680 Nabil Freij: With respect to that person getting the enhanced unemployment benefits. So make sure that you know what the circumstances are so you could communicate them to your employees so that they are better prepared for 308 01:15:33.300 --> 01:15:34.380 Nabil Freij: For their unemployment. 309 01:15:38.040 --> 01:15:47.490 Nabil Freij: With that, I would like to introduce our next speaker, very portable Barry has been a mentor with the Minnesota score chapter for almost three years. 310 01:15:48.210 --> 01:15:55.350 Nabil Freij: Very recently retired after 35 years from his role as President of a healthcare industry management consulting firm. 311 01:15:55.890 --> 01:16:06.960 Nabil Freij: In addition to his hospital healthcare and medical group clients Barry was off console to the American Hospital Association regarding complex federal legislation. 312 01:16:07.590 --> 01:16:25.470 Nabil Freij: During his career very helped his clients understand how to use federal regulations to their advantage and use that experience to help our score chapter developed information for this workshop on top of all this Barry is one of the kindest guys I know very it's yours. 313 01:16:27.360 --> 01:16:27.930 Barry Portugal: Thank you. 314 01:16:29.580 --> 01:16:30.690 Barry Portugal: Good evening, everyone. 315 01:16:31.860 --> 01:16:44.220 Barry Portugal: Welcome to the workshop. My role in the presentation is to focus on four elements first is how you get cash. Second is getting paid for sick leave. 316 01:16:45.060 --> 01:16:58.500 Barry Portugal: Third is, I'm going to highlight what the cares actives and its components. And then lastly, I'm going to be describing something called the paycheck protection program known as a triple P loan. 317 01:16:59.670 --> 01:17:04.170 Barry Portugal: Let's get started. First, talking about cash and these economic impact payments. 318 01:17:05.550 --> 01:17:16.950 Barry Portugal: Most of you know this, and I won't spend a lot of time on this slide. But essentially, the government is going to be sending checks to taxpayers 1200 dollars. 319 01:17:17.790 --> 01:17:32.880 Barry Portugal: For a single individuals and 20 $400 for couples file jointly and up to $500 for each of your children if you make up to $75,000 for an individual and 320 01:17:33.450 --> 01:17:43.980 Barry Portugal: Up to $150,000 for a married couple you're eligible. If you make more money than that you're not eligible for those those payments. 321 01:17:44.490 --> 01:18:05.760 Barry Portugal: Here, a couple of other additional quick details seniors who some of them don't file tax returns will need to submit a tax return. In order to get a stimulus payment people who have not yet file their 2019 taxes so the IRS were told is going to use your 2018 tax return. 322 01:18:07.440 --> 01:18:19.590 Barry Portugal: Now the logistics of this as to the best of what I've been able to read is as follows. The IRS will make a direct deposit into your bank account if 323 01:18:20.130 --> 01:18:41.040 Barry Portugal: You use your bank account for tax return purposes. However, if you did not have a direct deposit for your tax returns what the Treasury website is saying is that they're going to create a web based portal for tax pairs to provide their banking information later. 324 01:18:42.180 --> 01:18:43.470 Barry Portugal: On. Next slide please. 325 01:18:49.110 --> 01:18:51.630 Barry Portugal: I want to talk a little bit about the 326 01:18:53.100 --> 01:18:59.850 Barry Portugal: Employees who are unable to work through to coven 19 symptoms in our corn team. 327 01:19:00.960 --> 01:19:05.130 Barry Portugal: They're going to be eligible for something called emergency paid sickly 328 01:19:06.180 --> 01:19:09.540 Barry Portugal: Workers can receive up to 80 hours of paid sickly 329 01:19:11.100 --> 01:19:18.570 Barry Portugal: For their own health or to care for others and an additional 10 weeks of paid leave 330 01:19:19.710 --> 01:19:34.170 Barry Portugal: To care for a child who school is closed or the child providers don't confuse this with with what the bill was talking about earlier about unemployment, this has to do with paid leave as an employee. 331 01:19:35.550 --> 01:19:45.150 Barry Portugal: If an employee is sick or quarantine the employer must pay employees rate of pay for 80 hours over a two week period. 332 01:19:46.290 --> 01:20:02.940 Barry Portugal: If the employee is caring for someone else who's impacted by the virus to pay for the employee is limited to the greater of either two thirds of the employees pay or up to $200 a day for up to 10 day 333 01:20:05.640 --> 01:20:19.860 Barry Portugal: Employees who've been played employed for at least 30 days will be entitled to take up to 12 weeks of job protected leave at the first two weeks of their leave are unpaid 334 01:20:21.120 --> 01:20:33.300 Barry Portugal: And lastly, the pay rate cannot be cannot be less than two thirds of the employees regular pay rate based on the number of hours. The employee would have worn normally 335 01:20:34.380 --> 01:20:43.890 Barry Portugal: I know that's a lot to absorb and would encourage you to go to the next go to the link to learn more about it. Next slide please. 336 01:20:45.390 --> 01:21:03.510 Barry Portugal: Now, if you're an employer and you're responsible for paying for your employees paid leave have a care Zach at an really important element to it that element is a refundable tax credit for employee Paley. And essentially, it works like this. 337 01:21:05.520 --> 01:21:12.480 Barry Portugal: Keeping track of all the money you paid to your employees when they took in emergency paid leave 338 01:21:13.950 --> 01:21:25.020 Barry Portugal: When it comes time to pay your federal income taxes, the amount that you paid 100% of the amount that you pay your employees for their leave 339 01:21:25.440 --> 01:21:43.830 Barry Portugal: Is a tax credit. That means that it will go. It will be a deduction from your federal tax and again for those employers who will be facing that topic. We encourage you to go to the to the link show we have the next slide please. 340 01:21:45.300 --> 01:21:47.550 Barry Portugal: So here we are beginning with a cares that 341 01:21:49.410 --> 01:21:59.790 Barry Portugal: We're here because the SBA has requested that score, as well as other organizations provide canceling is an assistance to the owners of small business. 342 01:22:00.570 --> 01:22:11.040 Barry Portugal: Score chapters around the country are providing information about important elements of the cares that and how owners, a small business can take advantage of government loans. 343 01:22:11.580 --> 01:22:31.830 Barry Portugal: Grants and tax free referrals. So now as we read, we present our next slide, I encourage you to use the Q AMP a feature. I've seen some of you have used it already to ask questions about each of the slides, please remember, if possible, to make reference to to the slide. 344 01:22:35.010 --> 01:22:53.370 Barry Portugal: The care is the act is really part of the federal stimulus program and it includes three important elements to provide loans, grants and other important benefits loan categories are again the paycheck protection program we're referring to it as a triple P loan. 345 01:22:54.600 --> 01:23:06.990 Barry Portugal: The economic entry disaster loan known as he ID L which the bill will cover in a few minutes, as well as a traditional set SBA seven a loans now. 346 01:23:08.070 --> 01:23:14.730 Barry Portugal: At a high level, we want you to know that these loans are available through your local banking connection. 347 01:23:15.840 --> 01:23:27.150 Barry Portugal: And and according to many of the banks. I'm sure you read the articles and seen it on Hulu and news. Most banks are accepting applications first 348 01:23:27.660 --> 01:23:38.820 Barry Portugal: From the businesses that they already deal businesses that have either a business checking account or savings account are going to be first in the queue. Now, 349 01:23:39.690 --> 01:23:49.140 Barry Portugal: We realized after talking to some of our score clients. Some of them do not have a banking relationship with a bank that is an SBA lender. 350 01:23:49.920 --> 01:24:06.870 Barry Portugal: Or they need to apply somewhere else later in the in the in the slide that there is a list of SBA lenders that will you can turn to, if indeed you are have a bank that is not an SBA lender. Next slide please. 351 01:24:08.430 --> 01:24:13.980 Barry Portugal: So at a high level, what is the score at what is the cares at, how will it help you 352 01:24:15.060 --> 01:24:34.500 Barry Portugal: It has again three components and provide series of loans that will provide needed cash. It provides the unemployment, the Federal unemployment benefits that the bill just talked about. And it includes very important provisions for forgiving and deferring certain federal taxes. 353 01:24:36.000 --> 01:24:44.670 Barry Portugal: The loans are guaranteed by the government and some of them require no collateral or a personal guarantee. Next slide. 354 01:24:46.230 --> 01:24:54.630 Barry Portugal: It's a big act. There's over $2 trillion in it. You can see all the different elements of the Act and where the money is going. 355 01:24:55.260 --> 01:25:06.000 Barry Portugal: Today we're going to be talking. We've already talked about unemployment, but now we're going to talk about 350 billion dollars that's been allocated to small business. 356 01:25:07.050 --> 01:25:08.220 Barry Portugal: And. Next slide please. 357 01:25:09.900 --> 01:25:20.880 Barry Portugal: So what is this Acme for small business about what go through it. The first provision is a new loan program name the paycheck protection program. 358 01:25:21.780 --> 01:25:38.520 Barry Portugal: We're going to get into detail for those in just a few minutes. Another act of another element of the cares that is another new loan program called the economic injury disaster loan and again the bill will cover that after I'm done with triple p 359 01:25:39.960 --> 01:25:54.600 Barry Portugal: One of the, one of the tax benefits secures that provides our refundable tax credits and I just mentioned, as well as other benefits dealing with differing taxes. Next slide please. 360 01:25:56.310 --> 01:25:58.140 Barry Portugal: From an overview point of view. 361 01:26:00.510 --> 01:26:03.030 Barry Portugal: The, the emergency grants element. 362 01:26:04.050 --> 01:26:17.790 Barry Portugal: Over $10 billion of of grants up to $10,000 in a grant means that you will not have to pay it back as part of the economic injury disaster loan. 363 01:26:18.810 --> 01:26:20.850 Barry Portugal: To be able to cover that a little bit later. 364 01:26:22.560 --> 01:26:26.250 Barry Portugal: forgivable loans, including the triple P. I'm going to cover in a minute. 365 01:26:27.300 --> 01:26:40.500 Barry Portugal: And there are other loan arrangements that include something called the SBA express bridge loans and debt debt relief will cover those again in just a few minutes. Next slide. 366 01:26:42.090 --> 01:27:03.870 Barry Portugal: So earlier in the presentation when Tom was talking about all the information we're going to be providing I want all of you to know that he stole my my comment about trying to get information like drinking water out of a fire hose. That was me. But in any case. 367 01:27:05.010 --> 01:27:16.530 Barry Portugal: It's really going to be a struggle to get information. We try to present the organization today for the presentation today so that you can click on embedded links. 368 01:27:16.950 --> 01:27:37.680 Barry Portugal: In order to get more information on each of the topics. For example, when we talk about paycheck protection program or Ii Ii DL or debt relief or whatever else. All you need to do on those particular slides is to is to click on now before we move ahead. I do want to mention another thing. 369 01:27:39.600 --> 01:27:42.090 Barry Portugal: Tom also mentioned in his remarks. 370 01:27:43.320 --> 01:27:57.960 Barry Portugal: That it's really important to be patient, you know, we recognize that state unemployment offices banks, credit unions other lending organizations are very, very busy now. 371 01:27:59.070 --> 01:28:09.450 Barry Portugal: But having said that all of our support mentors are here to be a bridge to get you through this crisis, we understand that getting the information you need. 372 01:28:10.050 --> 01:28:26.580 Barry Portugal: Will require intensive research and aggressive action on your part. So you can take advantage of these programs, but please try to be patient. Don't allow yourself to get too frustrated. Remember we are all in this together. Next slide. 373 01:28:27.870 --> 01:28:28.500 Barry Portugal: Next slide. 374 01:28:30.120 --> 01:28:42.330 Barry Portugal: So I'm going to begin now talking about this a triple P loans paycheck protection program. It's a loan protection for small businesses that are impacted by the virus. 375 01:28:43.530 --> 01:28:48.810 Barry Portugal: It's a loan program. It's a program that will fund your payroll for eight weeks. 376 01:28:50.070 --> 01:29:00.960 Barry Portugal: Depending on the size of your business and your payroll, you can borrow up to $10 million and this is if a big if, if you retire, excuse me. 377 01:29:01.620 --> 01:29:16.620 Barry Portugal: If you re hire all the employees or either laid off or furloughed and keep them employed for at least eight weeks alone will be forgiven you will not have to repay the loan. 378 01:29:19.680 --> 01:29:33.390 Barry Portugal: 75% of the money that you borrow must be used for payroll, which I will go over in a minute. If you spend less than 75% of the loan amount the entire loan will not be forgiven. 379 01:29:34.830 --> 01:29:50.490 Barry Portugal: Additionally, no more than 25% of the triple P loan can be used for things other than payroll like rent mortgage interest your utilities. Now when loan proceeds are used for these expenses. 380 01:29:51.690 --> 01:29:59.220 Barry Portugal: They cannot exceed 25% of the entire loan. If that's the case, the entire loan will be forgiven. 381 01:30:00.330 --> 01:30:16.680 Barry Portugal: A couple of other quick points. Your local banker is the single source to submit your typical loan application to you have until June 30 to apply for the triple P loan. I have the next line. 382 01:30:18.480 --> 01:30:25.710 Barry Portugal: So who's eligible. Well, it's tempting to say, everybody's eligible, but I want to go through this with you. 383 01:30:26.340 --> 01:30:39.720 Barry Portugal: First of all businesses that were an operation in February 15 are eligible. I think they chose that date because that was beginning and when people realized that the coven 19 was a pandemic. 384 01:30:40.950 --> 01:30:51.990 Barry Portugal: Additionally, you can have either a for profit or Nan for net profit business as long as you have fewer than 500 employees now. 385 01:30:53.010 --> 01:31:02.070 Barry Portugal: Here's the here is one of the key elements and I noticed that some of the questions earlier dealt with it. So I want to highlight this the last bullet says 386 01:31:02.700 --> 01:31:14.070 Barry Portugal: That who's eligible are people who operate a sole proprietorship or as an independent contractor or somebody who's self employed. 387 01:31:14.610 --> 01:31:32.940 Barry Portugal: Later in the Q AMP. A will take your questions. But please remember that this particular slide, we mentioned that people that are running a small little business are an independent contractor or self employed are eligible for triple P. Next slide. 388 01:31:35.310 --> 01:31:36.480 Barry Portugal: Additionally, 389 01:31:38.700 --> 01:31:42.690 Barry Portugal: This has to do with franchises any 390 01:31:44.280 --> 01:31:57.150 Barry Portugal: Organization that is franchise is eligible additionally food service companies like snapshots and hotels, etc. They're all eligible as well. 391 01:31:58.320 --> 01:31:59.100 Barry Portugal: Lastly, 392 01:32:01.140 --> 01:32:20.010 Barry Portugal: A cares that goes into something called the affiliation rule. I've added a brief description of the affiliation role at the bottom of the slide, but suggested. If you would like to know more about that. I'd suggest you talk to your account or your business manager. Next slide please. 393 01:32:21.270 --> 01:32:25.380 Barry Portugal: So what about that for now profits are you eligible. Yes, you are. 394 01:32:26.460 --> 01:32:48.270 Barry Portugal: If nonprofit is a 501 C three or five almost 501 C 19 which is a veterans organization you are eligible. Now, what are the criteria, the criteria is that you must have paid full time or part time stale. You have to have had a payroll. 395 01:32:50.130 --> 01:33:02.370 Barry Portugal: Additionally, the money that's borrow must be used to fund operations, you will you will have had to have been an operations on February the 15th. 396 01:33:03.750 --> 01:33:24.150 Barry Portugal: And the funds must be used to retain or rehire employees. Again, using that 75% of the loan amount for payroll and no more than 25% of the loan for rent mortgage interest or utilities and one more point that I want to make 397 01:33:25.260 --> 01:33:39.510 Barry Portugal: for nonprofits. We found out that nonprofits in order to be eligible for a triple P loan cannot receive funds from other SBA programs that would be going to be used for the same reason. 398 01:33:40.770 --> 01:33:51.000 Barry Portugal: Okay, let's go on to the next slide. So now we're getting into some of the nitty gritty. And again, please reference the slide number. If you want to go back 399 01:33:51.540 --> 01:34:01.620 Barry Portugal: And ask questions about what kind of class are eligible. So let's go through these one at a time. Salary wages, anything that's compensation related 400 01:34:02.160 --> 01:34:11.490 Barry Portugal: If you pay people for their vacation or family leave. That's also included if you had an employee that you dismissed. 401 01:34:12.180 --> 01:34:17.280 Barry Portugal: And had to pay them separation pay. That's also included in the calculation. 402 01:34:18.000 --> 01:34:38.400 Barry Portugal: Group Health Insurance and the premiums are included retirement benefits are paid by the employer are included, state and local taxes are included. And as I mentioned earlier, rent mortgage and utility expenses included as long as it's less than 25% of the loan. Next slide. 403 01:34:40.050 --> 01:34:51.240 Barry Portugal: So what isn't it eligible. What if you run a business. What can't you include in the calculation. For example, if you have an employee or an owner 404 01:34:51.660 --> 01:35:00.000 Barry Portugal: Who makes more than $100,000 a year in payroll, you can you can include the hunt the first hundred thousand dollars. 405 01:35:00.600 --> 01:35:10.710 Barry Portugal: In the calculation, but anything over the hundred thousand dollars is not eligible additionally taxes that are imposed for certain IRS codes. 406 01:35:11.280 --> 01:35:24.300 Barry Portugal: Are not included, which you'll have to look up if your business in place. Anybody who works outside of the United States, the money that you pay them is also not included. And lastly, 407 01:35:25.980 --> 01:35:27.570 Barry Portugal: Any money that you receive 408 01:35:28.620 --> 01:35:35.340 Barry Portugal: Or your employees receive from the families first app that I mentioned earlier is not included in the 409 01:35:36.570 --> 01:35:55.320 Barry Portugal: Excuse me in the calculations. So now the next slide, this is this is slide 30 something 33 so I'm going to spend some time going through this in detail. And again, I'm going to be reading, mostly from my notes because there's a lot to talk about. 410 01:35:56.580 --> 01:36:08.250 Barry Portugal: First of all, let's get started by going through some of the basic elements. First, the amount of loan will be forgiven. The entire amount of alone will be forgiven. 411 01:36:08.700 --> 01:36:20.430 Barry Portugal: Only if you rehire all of your employees 100% of the employees and you keep them on your payroll for no less than eight weeks. 412 01:36:22.770 --> 01:36:48.510 Barry Portugal: Secondly, if you rehire less than 100% of the people that you fired or furlough the entire amount of alone will not be forgiven. So for example, if you had 10 employees that you fired or furloughed and you rehired say five of them only 50% of your triple loan amount will be forgiven. 413 01:36:50.790 --> 01:37:05.640 Barry Portugal: Let's go over again about What expenses are eligible to include in the triple P application. And again, you must have documentation documentation and more documentation to support your application. 414 01:37:06.990 --> 01:37:26.370 Barry Portugal: Forms a salary and benefits are included all those other items on that former slider included as well as rent mortgage interest and utility. Now, how do you calculate this is a second bullet on the spy. How do you calculate how much money you want to 415 01:37:28.110 --> 01:37:40.830 Barry Portugal: Apply for in a triple P low. It goes like this. It may sound simple, but it might not be the first step is, is to take an average months expenses. 416 01:37:41.400 --> 01:37:59.310 Barry Portugal: For salaries benefits, etc. And the rent them out over the, over 2019 so you take your entire expenses for those categories only average them and get an average months expenses. Now, if you were not a business in 417 01:38:01.410 --> 01:38:06.900 Barry Portugal: And you have to take the average of expenses for January in February of this here. 418 01:38:09.240 --> 01:38:09.870 Barry Portugal: Next, 419 01:38:10.980 --> 01:38:23.250 Barry Portugal: You take those expenses and you multiply it times 250% which will provide 10 weeks worth of expenses for those expense categories. 420 01:38:24.690 --> 01:38:28.680 Barry Portugal: 250% times and average monthly expenses. 421 01:38:31.200 --> 01:38:42.060 Barry Portugal: Now, we mentioned earlier, but I want to also mention again that when you apply for a triple P loan your bank will not require collateral or a personal guarantee 422 01:38:43.080 --> 01:38:52.440 Barry Portugal: Now if you don't, if the entire amount of your triple P loan is not forgiven, a term of the loan is two years. 423 01:38:53.580 --> 01:38:56.280 Barry Portugal: And the interest rate will be 1% 424 01:38:57.360 --> 01:39:01.650 Barry Portugal: You can defer the first payment for up to six months. 425 01:39:02.730 --> 01:39:11.010 Barry Portugal: Also, according to the US Treasury website employees will not have to pay taxes on any loan amount 426 01:39:11.910 --> 01:39:29.280 Barry Portugal: That forget, excuse me, employers and employees. Let me restate according to the US Treasury employers will not have to pay taxes on any loan amount that's forgiven and and remember the application deadline is at the end of June. 427 01:39:30.930 --> 01:39:33.240 Barry Portugal: Now a few other details. I want to go through 428 01:39:35.940 --> 01:39:37.170 Barry Portugal: If your loan. 429 01:39:38.970 --> 01:39:41.640 Barry Portugal: If you're thinking about the loan and what you want to do. 430 01:39:42.720 --> 01:39:52.350 Barry Portugal: And when it might not entirely be forgiven. Here are a couple of additional criteria, the entire amount of the loan will not be forgiven entirely 431 01:39:52.740 --> 01:40:17.820 Barry Portugal: If you decrease the full time employee headcount when you start re, re hiring people, as I said earlier, if you had 10 employees and we pre hire only five, the entire amount of the law won't be forgiven. Secondly, if you just if you decrease the salaries and the wages by more than 25% 432 01:40:19.050 --> 01:40:24.420 Barry Portugal: For any employee who made less than $100,000 last year. 433 01:40:25.500 --> 01:40:28.830 Barry Portugal: The loan the entire loan will not be forgiven. 434 01:40:30.090 --> 01:40:40.170 Barry Portugal: Lastly, please note that you have until the end of June to restore your full time employment and salary rep levels. 435 01:40:41.790 --> 01:41:02.550 Barry Portugal: For any employment changes that you made between February and the end of April. So you have until the end of June to think about this, but you have to have had made all those changes before the end of June, if you if you wait and make them after end of June, the loan will not be forgiven. 436 01:41:03.930 --> 01:41:06.960 Barry Portugal: So in closing about these details. 437 01:41:08.550 --> 01:41:19.740 Barry Portugal: As you consider you know how and when to apply for triple P loan please think about the timing of the loan and when to bring back your employees on the payroll. 438 01:41:20.430 --> 01:41:31.980 Barry Portugal: Hopefully your employees have applied and a receiving state and federal unemployment benefits as the Bill mentioned earlier, those benefits could amount to 439 01:41:33.600 --> 01:41:40.320 Barry Portugal: $875 a week for more than three months for employees here in Florida. 440 01:41:42.120 --> 01:41:57.270 Barry Portugal: Small business owners will need to work closely with their employees in order to understand when they intend to stop it receiving unemployment benefits and when they're ready to return to work. Next slide please. 441 01:42:00.630 --> 01:42:20.580 Barry Portugal: This talks about the loan size is determined about when which payroll period you you choose. So if you were in business. As I mentioned earlier, from February 15 through the end of June. That's where you would use the 250% 442 01:42:23.400 --> 01:42:33.870 Barry Portugal: If, if your business employees so seasonal workers, you can option absolutely can choose march 1 after as your time period. 443 01:42:35.100 --> 01:42:46.800 Barry Portugal: I like to just go to the last bullet here and we'll be talking about this in a few minutes. If you took out it he idea alone between the middle of February in the end of June. 444 01:42:47.700 --> 01:42:58.620 Barry Portugal: And you want to refinance alone into a PPP loan and have some of it forgiven you would add the outstanding loan balance to the payroll. 445 01:43:00.150 --> 01:43:01.350 Barry Portugal: Next slide please. 446 01:43:02.670 --> 01:43:17.130 Barry Portugal: So, in closing, about the triple P loan we we created this slide is particular slide number 35 so that you had a place to go for detailed information. 447 01:43:18.090 --> 01:43:29.190 Barry Portugal: Top link is an information sheet which you will explain most of what we've talked about and probably some more. But more importantly, the bottom link. 448 01:43:29.670 --> 01:43:44.640 Barry Portugal: Is the application for the pee pee pee loan you can you can look at it, you can print it out and you would submit this application to your local bank. Next slide please. 449 01:43:46.500 --> 01:44:01.140 Barry Portugal: Lastly, if you really want more additional information about the triple P loan program we've added even more links for you to look at. But again, the slides are the information on slide 35 450 01:44:01.740 --> 01:44:07.650 Barry Portugal: Is really the most critical part of this. Now, with this. I'm going to turn the program back over to the Beale. 451 01:44:09.030 --> 01:44:15.990 Barry Portugal: Who is going to talk about another loan loan program called the economic injury disaster long Nabeel 452 01:44:16.980 --> 01:44:32.220 Nabil Freij: Thank you, Barry. Yes, the economic injury disaster loan, which is also known as the idol loan and now that's been in place for some time, but would the cares act. There's been a lot of enhancements to this type of loan. 453 01:44:33.660 --> 01:44:44.070 Nabil Freij: So what is it used for the loan amount is up to $2 million. So it could be a lot more than what your payroll. 454 01:44:45.450 --> 01:44:47.040 Nabil Freij: Value or amount is 455 01:44:48.930 --> 01:44:59.010 Nabil Freij: And that loan could last or could be taken for 30 years lot more than just the two years that the triple P program provides 456 01:45:00.120 --> 01:45:14.850 Nabil Freij: Also, it is a much lower interest rate than the typical SBA loans. So for profit organizations. It's 3.75% for nonprofit. It is 2.75% 457 01:45:16.620 --> 01:45:30.780 Nabil Freij: It's also good to know that both the interest and the principal payments are deferred at the administrators discretion. That's the bank that will be issuing the loan by at least six months up to one year. 458 01:45:32.610 --> 01:45:45.420 Nabil Freij: You could use that loan to pay all expenses that you would have otherwise been able to pay had this covert disaster not occur. This includes payroll and any other operating expenses. 459 01:45:46.950 --> 01:45:55.890 Nabil Freij: Also note that if that loan is approved, potentially the SBA and your bank may be issuing the funds. Gradually, as opposed to all at the same time. 460 01:45:56.610 --> 01:46:02.670 Nabil Freij: So for instance, let's say you got $100,000 loan. They may be issuing $25,000 at a time. 461 01:46:03.240 --> 01:46:13.710 Nabil Freij: Asking you to show documentation on how you use those funds. They just want to make sure that companies are not going to take that loan, put it in their banks and then sit on it when other people need to 462 01:46:16.140 --> 01:46:29.040 Nabil Freij: Also note that if you are denied any ideal loan. You have the right to appeal that decision with the SBA and we're offering you hear the email address so you could contact the SP about their decision. 463 01:46:30.780 --> 01:46:38.010 Nabil Freij: Now, who's eligible for the idol loan. It's pretty much the same companies that Barry just described for the triple P long, it's 464 01:46:38.580 --> 01:46:46.530 Nabil Freij: Almost identical. So sole proprietors, with or without employees independent contractors corporations and and all sees 465 01:46:47.250 --> 01:47:11.490 Nabil Freij: So on and so forth. Also the affiliations conditions also apply. So if you are in the business of the hospitality business industry and a IC S. Code, starting with seven to the 500 employee rule minimum or maximum only applies per physical location and also if you are 466 01:47:12.570 --> 01:47:22.650 Nabil Freij: If you have franchise and the total employees in your franchise locally are under 500 that will also apply to you so you can you are eligible to get that loan. 467 01:47:24.780 --> 01:47:29.190 Nabil Freij: For question that were asked often is, do I need collateral to get the idol alone. 468 01:47:29.970 --> 01:47:42.540 Nabil Freij: And the answer is, not unless you're asking for $25,000 or under if you are asking for more than $25,000 you do need to provide collateral or a personal guarantee 469 01:47:43.320 --> 01:47:50.940 Nabil Freij: Also, you need to know that the bank and the SBA will be checking your credit score. They have not specified the minimum that you need to have 470 01:47:51.420 --> 01:48:09.600 Nabil Freij: But it will be checked. However, having said that, I want to let you know that much of the red tape has been eliminated with the cares act and there's a quite a bit of good faith and soul certification that has taken place while submitting these requests for loans. 471 01:48:11.340 --> 01:48:21.150 Nabil Freij: SBA has informed us that they will take your application application into consideration, even if you cannot provide collateral or personal guarantee so 472 01:48:21.780 --> 01:48:26.760 Nabil Freij: It's going to be on a case by case basis, they will evaluate and they will make a decision. 473 01:48:27.660 --> 01:48:41.220 Nabil Freij: If you want to get more information about the either alone, we provided here a link to their frequently asked questions. If you click on that again on the PDF file that we provided and we'll get you right to that information. 474 01:48:42.540 --> 01:48:52.590 Nabil Freij: Now, how do you prepare to get an idol loan. First thing that you have to do before you submit your application or or start filing 475 01:48:53.160 --> 01:49:00.780 Nabil Freij: Get your drop Ii Ii and number which is your tax ID number. And if you're a sole proprietor or self employed your social security number. 476 01:49:01.410 --> 01:49:09.390 Nabil Freij: You need to know the date the business is established the exact date. And if you purchase that business, the date of the last ownership. 477 01:49:10.290 --> 01:49:23.970 Nabil Freij: Also, you need to find out what your revenue is from February 1 2019 to January 31 2020. So this is not the previous calendar year of revenue. This is over this specific period of time. 478 01:49:25.200 --> 01:49:29.760 Nabil Freij: Also, you need to know what your cost of goods sold over that same period of time. 479 01:49:31.290 --> 01:49:42.480 Nabil Freij: You need to offer the names, addresses telephone numbers and social security numbers of all honors. If you have many owners, they are looking for the people that own 20% 480 01:49:42.990 --> 01:49:53.160 Nabil Freij: Or more stake in that company. Also, make sure you collect your business bank name account number and routing number and I'll show you in a minute why you need those. 481 01:49:54.120 --> 01:50:04.830 Nabil Freij: If you've collected all that information, you could go ahead and file for the Streamlined Application online on the sba.gov website and we'll give you the link in a minute. 482 01:50:05.520 --> 01:50:14.850 Nabil Freij: But after you've done that, immediately after you've done that, what we recommend is that you go ahead and pull together all the additional documents are going to be needed by DSP and by the bank. 483 01:50:15.480 --> 01:50:22.740 Nabil Freij: That's going to administer that loan. So you're going to need your federal tax returns, along with their schedules for the last two years. 484 01:50:23.460 --> 01:50:41.190 Nabil Freij: You need the last year and the current year. Profit and Loss statements and balance sheets with the projected states statements and the reason why you need the projected statements is because you want a document showing that the covert crisis had adversely impacted your operations. 485 01:50:43.410 --> 01:51:01.560 Nabil Freij: Also pull together a list of all your personal assets, including your scheduled fly abilities and any fix that, that you have they'd like to know what your net worth is and you could do that by using either of the forms SBA forms 413 or two to two for both 486 01:51:03.540 --> 01:51:11.820 Nabil Freij: The SBA four and five is I think the one that's now streamline because it contains the same information that you could find online will show you the link in a minute. 487 01:51:12.450 --> 01:51:24.330 Nabil Freij: You need to complete that. And also you need to give authorization to the SP and the bank to pull your tax records and you could do so by filing the IRS Form 45 or 630 488 01:51:26.010 --> 01:51:27.240 Nabil Freij: Having done all this 489 01:51:30.750 --> 01:51:46.980 Nabil Freij: You should be able to go ahead and apply for the idol. Now I'd like to talk a little bit about the Emergency Economic injury grant, which comes along with the I belong. This is in the Cures Act, and they have budgeted $10 billion for these grants. 490 01:51:48.120 --> 01:52:00.600 Nabil Freij: Okay, so what is the Emergency Economic injury, grab it provides an emergency advance of up to $10,000 to the same small business list that we showed you a couple of minutes ago. 491 01:52:03.630 --> 01:52:12.120 Nabil Freij: You could access that grant by applying through the idol and requesting it in the Streamlined Application. 492 01:52:14.070 --> 01:52:24.960 Nabil Freij: Note that the advanced does not need to be repaid, under any circumstances, so this is money that's going to be deposited in your account. And that's why they require the account number one bank name. 493 01:52:26.040 --> 01:52:35.940 Nabil Freij: And you could use that money to pay all the expenses that you would have otherwise been able to pay had the coven 19 crisis not occur. 494 01:52:36.540 --> 01:52:49.680 Nabil Freij: This is a grant so you don't have to repay it. This is not a forgiving forgivable loan it just the crap, the money would be in your bank and you'd be able to use it to pay your operational expenses. 495 01:52:51.570 --> 01:52:54.360 Nabil Freij: Now, who and when who qualifies for it. 496 01:52:55.680 --> 01:53:14.280 Nabil Freij: People that are eligible for this grant are companies that have been into operation since or before January 31 2020. So if you start a company. On February 1 2020 or on, then you do not qualify for this grant 497 01:53:16.260 --> 01:53:17.040 Nabil Freij: Also 498 01:53:18.300 --> 01:53:31.410 Nabil Freij: When can you apply for it pretty much anytime this year. However, keep in mind that there's only $10 billion funds there. So the sooner you apply the better. Also, if you have already applied for an idol alone. 499 01:53:32.730 --> 01:53:35.790 Nabil Freij: After January 31 and 500 01:53:36.810 --> 01:53:46.110 Nabil Freij: At that point the grant was not available, it was not an option. If you already either applied for an idol alone, and you did not request the grant you could go back and you could apply for background again. 501 01:53:49.230 --> 01:53:57.060 Nabil Freij: Okay, so to apply for the idol loan. All you have to do is just go and click on that link here and that will give you this streamline 502 01:53:58.140 --> 01:54:05.940 Nabil Freij: Application, which is an online form, it's not the old fashioned PDF files that you have to fill electronically and submit it just an online form. 503 01:54:06.690 --> 01:54:15.390 Nabil Freij: It's got about four pages and it takes about 10 minutes to complete. If you have all that information that I've asked you to pull together before you apply for that one. 504 01:54:16.020 --> 01:54:25.170 Nabil Freij: Now on the third page, you'll get to a box where it asks you to check off this box where it says, I would like to be considered for in advance of up to $10,000 505 01:54:25.560 --> 01:54:35.130 Nabil Freij: You check that off and you enter your bank name account number and routing number that will qualify you for potentially getting that grant 506 01:54:35.790 --> 01:54:47.700 Nabil Freij: Okay, the SBA is saying that right now that typically it takes 18 to 21 days for them to process these applications. 507 01:54:48.270 --> 01:55:00.450 Nabil Freij: Those are under usual circumstances. And these are very unusual circumstances. So I wouldn't be surprised if it takes more time for them to get back to you and I've seen some questions already in the q&a asking 508 01:55:01.500 --> 01:55:04.890 Nabil Freij: People that have already applied when they're going to be hearing from the SBA 509 01:55:06.330 --> 01:55:18.030 Nabil Freij: It's going to take some time before they get back to you. But once they get back to you and process your application and forward your application to their affiliates and that's the bank that will be issuing that loan. 510 01:55:19.080 --> 01:55:36.210 Nabil Freij: We are told that it will take three business days for this grant to be deposited in your bank account. So there is hope. Just hang in there. It's a matter of few weeks before the SBA will get to you and then hopefully a few days after that when you get that 511 01:55:38.220 --> 01:55:55.530 Nabil Freij: Again, if you have already applied for the I've alone and did not request the grant you could go back to that link and apply for it and request that grant. And now what I was told by SBA is that they will reconcile both applications and process your request for that grant 512 01:55:56.610 --> 01:56:07.770 Nabil Freij: There is some contact information that you have here for SBA look up your local district office or you could email them also for those who have problems. 513 01:56:08.550 --> 01:56:17.880 Nabil Freij: Completing these forms, I would recommend you look on YouTube. There's a lot of videos right now on how to fill these forms. We have a link here for one of the 514 01:56:18.900 --> 01:56:24.900 Nabil Freij: YouTube videos. That's very helpful in filling the idol online streamline form. 515 01:56:25.440 --> 01:56:44.430 Nabil Freij: You could visit that and check it or constantly look for new YouTube videos because as the banks are rolling out all these programs, some of their online forms are changing and they will give you more information about what you have to do in order to apply and process submit your application. 516 01:56:45.900 --> 01:56:56.310 Nabil Freij: Also, what I'd like to note is that once you file that streamlined online form, you will be getting this page on your browser at the end. 517 01:56:56.730 --> 01:57:05.400 Nabil Freij: This is your application number, you're not going to get any other communication from SBA, so make sure you capture that number and keep it in your files. 518 01:57:05.820 --> 01:57:13.200 Nabil Freij: In case you need to follow up with SBA to find out what the status of your application is you're going to need that number. So make sure you capture it. 519 01:57:15.120 --> 01:57:22.830 Nabil Freij: Now, many people ask, can I apply for the idol loan triple P loan and the grant all at the same time. 520 01:57:24.120 --> 01:57:33.570 Nabil Freij: And the answer is yes. Yes, you can apply for all of them at the same time, there are no restrictions. Okay. 521 01:57:35.100 --> 01:57:43.740 Nabil Freij: The only restrictions are that what we just stated that you had to be in business by a certain date and you have to be eligible based on 522 01:57:44.760 --> 01:57:56.730 Nabil Freij: Your company and your eligibility. So given that, what, what can you do if you've already applied for an E idea alone and you've received it. 523 01:57:57.480 --> 01:58:09.840 Nabil Freij: You have the option just like Barry said is to refinance your either loan with the triple P loan and pay off your either along with it. Just keep in mind that the triple P alone. 524 01:58:11.310 --> 01:58:23.250 Nabil Freij: The duration of it may be shorters while the idol alone could be for up to 30 years. So if you're thinking about paying off that loan fairly quickly, it may make sense to refinance your idol on into a triple P alone. 525 01:58:23.850 --> 01:58:39.000 Nabil Freij: So that you could reduce the interest rate from 3.75% down to 1% okay. Also keep in mind if you do get that Emergency Economic injury grant 526 01:58:39.660 --> 01:58:48.600 Nabil Freij: That dollar amount that you get will be subtracted from the forgivable amount of the triple Pilon that you receive 527 01:58:49.080 --> 01:59:05.160 Nabil Freij: Okay, so let's say let's say you get the $10,000 grant, and you get $100,000 triple P alone. The forgivable amount of your triple P alone will be subtracted by the $10,000 grant that you just received through idol. 528 01:59:06.750 --> 01:59:17.520 Nabil Freij: So no, no double dipping is allowed. If you don't get both the idol loan and the triple P loan. You have to keep separate records of where the funds of these loans are dispersed. 529 01:59:18.000 --> 01:59:27.210 Nabil Freij: For instance, you could use your triple P loan to pay off your, your payroll expenses and if you follow the rules like Barry explained 530 01:59:27.570 --> 01:59:47.400 Nabil Freij: Those will be refundable. And then you could use your idol loan to pay off any other operational expenses like paying your suppliers, you know, paying your mortgage everything that's necessary for you to be able to continue operations hundred route this crisis here. 531 01:59:52.320 --> 02:00:04.080 Nabil Freij: Also, if you do if you did get an SBA bridge loan. There's an ability for you if you already have an SBA loan to get a $25,000 bridge loan good for seven years. 532 02:00:04.620 --> 02:00:08.670 Nabil Freij: That's an option for you if you did get that loan. You could also 533 02:00:09.180 --> 02:00:15.630 Nabil Freij: Or you are required to actually to pay it off with the idol loan. So if you did get an SBA bridge loan and you're thinking about getting an IBO alone. 534 02:00:15.990 --> 02:00:29.400 Nabil Freij: You are required to pay off that bridge loan. Also, if you did get a Florida bridge loan. A YOU COULD refinance it with the I the loan. So pay off the floor. The bridge loan will do it alone. Why do you want to do that. 535 02:00:30.180 --> 02:00:41.970 Nabil Freij: The Florida bridge loan interest rates are much higher than the I belong. And if you don't need all the cash that you get through all these loans. Perhaps it's better just to pay it off this one thing that you want to consider. 536 02:00:43.500 --> 02:00:58.410 Nabil Freij: Okay, again, keep asking your questions in the Q AMP. A we're moving on to the small business debt relief program that's also in the cares act. There are $17 billion to help companies that already have 537 02:00:59.460 --> 02:01:00.840 Nabil Freij: That where the SBA 538 02:01:02.520 --> 02:01:14.340 Nabil Freij: So if you are a small business that already holds, be careful here. Current non disaster SBA loan. So anything that's non disaster related from the SBA 539 02:01:15.150 --> 02:01:30.990 Nabil Freij: You will have the loan payment. The principal the interest and the fee is covered for six months. The, the government's going to pay those for you. That is going to come through that small business debt relief program. Okay. 540 02:01:32.280 --> 02:01:49.290 Nabil Freij: Also the program is offered on new loans that you may get within six months of March 27 so up until September 27 if you get a non disaster SBA loan. The government will pick up this the first six month payments on that loan. 541 02:01:50.310 --> 02:02:00.480 Nabil Freij: This program is automatic. It's going to be put in place automatically by the SBA so you don't need to file an application for it, you will be notified by the SBA 542 02:02:00.810 --> 02:02:08.670 Nabil Freij: About this if you already have of you're going to be getting a non disaster as the law. Also, please note that 543 02:02:09.360 --> 02:02:20.670 Nabil Freij: Your triple P loans and your either loans are not eligible. Okay, they're not eligible for this program. They each have their own payment deferment programs which is at least six months. 544 02:02:22.440 --> 02:02:31.320 Nabil Freij: There are many loans that SBA offers are covered under this program. So make sure that you check with your local as the office for more details. 545 02:02:34.770 --> 02:02:39.570 Nabil Freij: With that, I would like to pass the presentation over to Tom, Tom. 546 02:02:42.090 --> 02:02:42.840 Tom Garove: Excellent deal 547 02:02:44.670 --> 02:02:52.410 Tom Garove: Before eyes. I'm going to partition of my presentation is going to talk about the payroll tax deferral and forgiveness portion of the cares act. 548 02:02:53.160 --> 02:03:05.280 Tom Garove: Before I start to go into this. Let me at this point. As you can see as as Barry and I have all already described, it's these programs are like drinking through a fire hose. 549 02:03:05.790 --> 02:03:17.730 Tom Garove: And can be very, very confusing. So for just a moment here. I want to talk about strategy and how it relates to sections of the cares act as it relates to this payroll tax deferrals 550 02:03:18.480 --> 02:03:30.960 Tom Garove: And I'm going to give you a couple examples for you to think about as we look at the makeup of the business people that are on on this webinar if you are in a situation where you have 551 02:03:32.100 --> 02:03:39.660 Tom Garove: A relatively larger number of employees for a small business, say you have 50 or 100 employees. 552 02:03:40.770 --> 02:03:54.630 Tom Garove: And your business is ongoing and but because of the coronavirus use experiences significant reduction in revenue business traffic in your in your business. 553 02:03:55.170 --> 02:04:07.080 Tom Garove: And that that read significant reduction could have been a result of many things, but you are still generating enough revenue and profits to retain your employees and you 554 02:04:08.220 --> 02:04:14.070 Tom Garove: And you're, you're pretty much, maybe you're breaking even on your on your monthly financial statement. 555 02:04:15.300 --> 02:04:23.430 Tom Garove: In that particular situation you are still capable of retaining 100% of your employees and it may not be financially. 556 02:04:24.120 --> 02:04:35.160 Tom Garove: The best opportunity for you to take advantage of the PPP program because you're still funding through the resources and revenue of the business, your employees but 557 02:04:35.670 --> 02:04:50.460 Tom Garove: You may want to take advantage of some of these some other portion of the care, Zach, which is where this one comes in the payroll tax deferral and forgiveness of the portion of the cares act. Next slide. In that example that I just described. 558 02:04:51.510 --> 02:05:04.920 Tom Garove: You are still employing all of your, your, your current employees and you're normally paying your payroll tax to the federal government on a regular monthly basis or whatever the periodic payment is 559 02:05:05.610 --> 02:05:17.520 Tom Garove: And this particular case, because you have experienced damage to your business as a result of the coven 19 crisis. This cares act as guy could help you 560 02:05:18.060 --> 02:05:28.500 Tom Garove: With refer to refund you a portion of your payroll tax credit, up to 50% of the wages that you're paying you're eligible employees during the covert 19 crisis. 561 02:05:29.130 --> 02:05:36.360 Tom Garove: Now be aware that this particular program if you're taking advantage of the PPP program, you cannot do this. In addition to that, 562 02:05:36.900 --> 02:05:44.010 Tom Garove: But you, but as I mentioned what scenario would you want to consider this, and it's the scenario that I just described. 563 02:05:44.970 --> 02:06:05.220 Tom Garove: This may be financially a larger amount of money to benefit your business where you can either for give your payroll taxes or a significant portion of in this case 50% or you can defer the payment of those taxes and pay them at a later date. Next slide. 564 02:06:07.770 --> 02:06:22.440 Tom Garove: So how does this work, and there's a calculation that I recommend that you refer to the documentation and this one is basically comes through the is is administered through the IRS. 565 02:06:22.890 --> 02:06:33.210 Tom Garove: And and our resources at the end of the slide, you'll see that there's websites that the IRS is providing to help you through this, this process to understand it a little bit more 566 02:06:33.600 --> 02:06:43.920 Tom Garove: But as you'll see, it's the first $10,000 in wages and compensation paid by unemployable to each eligible employee. So whatever taxes, you may be paying 567 02:06:44.670 --> 02:06:54.360 Tom Garove: Up to the first 10,000 during this Kobe crisis, you may be excused from the payroll taxes for that particular employee and or employees. 568 02:06:54.960 --> 02:07:04.440 Tom Garove: The credit is not as I mentioned the credit is not available for employees receiving assistance under the paycheck protection program. So this program portion 569 02:07:04.950 --> 02:07:17.940 Tom Garove: Of the cares act is an either or, you can't do both PPP and this payroll tax deferral but your first inclination, may be this may not apply to me and may not be 570 02:07:18.600 --> 02:07:22.050 Tom Garove: Something I want to consider because it's not a significant amount of money. 571 02:07:22.440 --> 02:07:34.260 Tom Garove: There are certain situations where it is and if you're on this call and you're listening and you may be have a significant number of employees, you may want to consider to do this calculation before you apply for the PPP 572 02:07:36.150 --> 02:07:47.190 Tom Garove: At the end of this presentation, you'll pretty much understand our recommendation as an appeal is already mentioned, you are eligible for both the PPP and the idol. 573 02:07:48.240 --> 02:08:04.890 Tom Garove: Portions of the cares act and our recommendation is that you apply for both in most cases, but there are situations where you may just want to do the payroll tax deferral peace instead of the PPP and apply for the idle loan. 574 02:08:05.910 --> 02:08:07.410 Tom Garove: So as you see on here. 575 02:08:10.020 --> 02:08:22.590 Tom Garove: The reference is through the IRS website. I recommend that you take a look at it. It provides those circumstances where you can actually forgive that portion of 50% of the portion 576 02:08:23.100 --> 02:08:34.050 Tom Garove: Of the tax during the period or you can defer those and make them and two equal payments at the end of 2021 and one equal payment at the end of 2022 577 02:08:34.500 --> 02:08:41.370 Tom Garove: So it could be deferred or it could be forgiven, depending on the circumstances and the details of the program. 578 02:08:41.640 --> 02:08:50.040 Tom Garove: But I recommend you look into it. If you think that you have a large number of employees, your businesses on going. It's still okay but you're barely breaking even 579 02:08:50.610 --> 02:09:04.830 Tom Garove: Running and operating your employees. You don't want to send them out. You don't want to put them on unemployment benefits in the state. You don't want to do the PPP program, this may be something that will help you. Next slide. 580 02:09:07.350 --> 02:09:17.790 Tom Garove: Let's talk about FLORIDA STATE FINANCIAL AID, that's the end of our presentation on the cares act as you can see it, it tries to cover many scenarios, whether you're a single proprietor. 581 02:09:18.000 --> 02:09:28.800 Tom Garove: Or business with as many as 500 employees and each one of those little pieces that little pieces but big pieces, lots of money. There are things that you want to consider. 582 02:09:29.310 --> 02:09:39.930 Tom Garove: In addition, a state of Florida as numerous as a number of programs that are available. I've seen, we've already had a question on the Florida emergency bridge loan. 583 02:09:40.860 --> 02:10:04.830 Tom Garove: Which is up to $50,000 as you can see on the slide, we have the link where you can click to to apply for the bridge loan program. It's administered through the Department of Economic Opportunity. These are short term interest free loans. 584 02:10:06.300 --> 02:10:19.740 Tom Garove: And they're taking applications march 17 through May 8 this bridge loan program ends at this point. Our understanding is, it ends may 8. So if you're interested in the Florida bridge loan program. 585 02:10:20.430 --> 02:10:33.000 Tom Garove: You only have a couple weeks left the governor has allocated $50 million to this program. It's for anywhere from businesses that have to 586 02:10:33.600 --> 02:10:52.290 Tom Garove: Up to 100 employees. So it's a little different than the Federal program, which has a limit of 500 employees. This one limits you to 100 employees and you can request a bridge loan of up to $50,000 interest free one year duration. So it's a one year $50,000 interest free 587 02:10:54.060 --> 02:10:59.400 Tom Garove: Working capital loan that you can use or virtually any part of your business. 588 02:11:00.960 --> 02:11:05.670 Tom Garove: You must have been in business before March 9 of 2020 and 589 02:11:06.780 --> 02:11:18.270 Tom Garove: That's pretty much what we understand about it, keeping in mind that the florida state offices, most of them are closed at this point. When you go to their website, you'll see a disclaimer that says that 590 02:11:18.750 --> 02:11:34.890 Tom Garove: But they, they are supposedly according to the website answering questions on a daily basis through email, but this is certainly something you want to look into between now and once again may 8 interest free bridge loan not forgivable but interest free 591 02:11:36.000 --> 02:11:39.240 Tom Garove: Let's look let's let me take your eyes down to the 592 02:11:41.130 --> 02:11:57.120 Tom Garove: Over to the Florida Sun biz over in the upper right hand corner, you'll see a link for that. This is a general information website for those of you that may be in a situation, I see we have a question for 593 02:11:58.350 --> 02:12:03.210 Tom Garove: One of the questions is, is a business that is currently in bankruptcy. 594 02:12:05.340 --> 02:12:12.600 Tom Garove: Not sure how we're going to answer that whether a bankrupt, a company that's in the bankruptcy process would be eligible for any of these programs. 595 02:12:13.770 --> 02:12:18.630 Tom Garove: My suspicion is that you would have to pull reach out to your attorney, Paul, you're 596 02:12:19.710 --> 02:12:29.100 Tom Garove: Pulling your documentation with your attorney with it you filed with the courts to file for bankruptcy remove those from the bankruptcy process. 597 02:12:29.580 --> 02:12:32.490 Tom Garove: Before you get apply for any of these, but check with your attorney. 598 02:12:33.000 --> 02:12:39.210 Tom Garove: They should be able to seek out and find the answers for those if you're in the currently in the process of bankruptcy. 599 02:12:39.510 --> 02:12:55.470 Tom Garove: And you want to be considered eligible for these loans to keep yourself in business, but check with your attorney on that the sun biz website is probably a website that would help you through that because that that's the state website where they talk about 600 02:12:56.670 --> 02:13:10.590 Tom Garove: How the businesses are registered in the state your status as a Subchapter S chapter C Corp or or your status as a business. So use that as a reference for legal filings with the state. 601 02:13:13.530 --> 02:13:24.630 Tom Garove: Go into the lower right hand corner, the Florida Department of Revenue also has tax and tax relief for sales tax and property tax. 602 02:13:26.280 --> 02:13:27.540 Tom Garove: It's not clear. 603 02:13:29.250 --> 02:13:44.760 Tom Garove: All of the details behind that program, so I apologize. We don't have a lot of detailed information, but it's our understanding that this program through certain dates would perhaps give you the ability to either 604 02:13:46.080 --> 02:13:58.560 Tom Garove: Forgive or submit your, your sales taxes and property taxes on a referral basis, but once again click on that website and take a look to see what may be available there. 605 02:13:58.950 --> 02:14:13.110 Tom Garove: Those that program. It's our understanding is over, and you're eligible for whether you whether you do a pee pee pee idol loan or whatever that program may be over and above the federal programs. 606 02:14:14.550 --> 02:14:22.110 Tom Garove: And then the lower left hand corner is Florida reemployment website, which is a website or 607 02:14:23.490 --> 02:14:30.630 Tom Garove: Replacement of of employees that may be that you may be laid off that are looking for placement services. 608 02:14:31.050 --> 02:14:44.340 Tom Garove: Once again, that office is closed, and I don't think you'll get a lot of response there. It's basically placement services for those employees that that currently may or may not be retained by five years of the employer. Next slide. 609 02:14:46.470 --> 02:14:47.010 Tom Garove: So, 610 02:14:48.120 --> 02:14:49.290 Tom Garove: A lot of information. 611 02:14:51.270 --> 02:14:52.590 Tom Garove: How can score help 612 02:14:54.450 --> 02:14:57.420 Tom Garove: Once again, these programs are 613 02:14:58.800 --> 02:15:05.250 Tom Garove: The team of us, the three of us that have put this presentation together. We've been working on this are roughly 10 days now. 614 02:15:05.790 --> 02:15:11.580 Tom Garove: gathering this information and trying to make some sense out of it. We feel we've done a reasonably good job. 615 02:15:12.420 --> 02:15:20.460 Tom Garove: We are the process of explaining and training more of our score mentors to have as much knowledge as we do so. 616 02:15:21.120 --> 02:15:29.010 Tom Garove: We anticipate that if you request a score mentor, we will be able to assign somebody to you that can help you think through 617 02:15:29.430 --> 02:15:48.390 Tom Garove: These various pieces of the cares act as well as the state programs as well as the unemployment insurance, as well as the 1200 and 20 $400 that's going to all of the taxpayers in our country, we may be able to help you think through how all of those those 618 02:15:49.740 --> 02:15:59.010 Tom Garove: Those benefits relate to each other and what you may want to do as an employer or may not want to do for your as an employer for your employees and 619 02:16:00.960 --> 02:16:06.330 Tom Garove: That's the kind of mentoring and counseling and coaching and ideas thought process. We can we can provide 620 02:16:06.720 --> 02:16:15.600 Tom Garove: We can review continuity plans as an appeal pointed out disaster recovery plans, giving you ideas on when you come out the other side of your business. 621 02:16:16.110 --> 02:16:25.050 Tom Garove: Do you, what are you going to do differently, what, how is this crisis affecting your business, you know, will you need to provide safety. 622 02:16:25.650 --> 02:16:32.910 Tom Garove: Types of procedures in your business that if you have a place of business people are coming in. What things do you want to put in place. 623 02:16:33.510 --> 02:16:41.400 Tom Garove: To protect those people that come to your place of business. What do you want to make sure you, what do you want to change on your website and your advertising. 624 02:16:41.760 --> 02:16:49.560 Tom Garove: To make sure that people are comfortable coming to you again to do business. Those sort of continuity and strategy plans for for getting back 625 02:16:50.040 --> 02:16:58.980 Tom Garove: Back to the level of revenue that you had before we can help you prioritize once again in your planning, we can help keep you focused 626 02:16:59.430 --> 02:17:12.480 Tom Garove: We can introduce you to experts that may that you may or may not be in touch with that may be able to provide you some other counseling that perhaps we cannot we we mentioned we have 80 to 90 627 02:17:12.840 --> 02:17:24.180 Tom Garove: Score mentors, with all sorts of different backgrounds and and of course the individual attention is is sometimes the most beneficial for for our clients. 628 02:17:24.810 --> 02:17:29.820 Tom Garove: And then of course there's an ongoing workshops and webinars webinars, which I mentioned to you keep 629 02:17:30.360 --> 02:17:44.430 Tom Garove: Keep in touch with the Minnesota score.org website. We will be posting additional webinars on this subject, and hopefully the series that we provide you will keep you as informed as possible. Next slide. 630 02:17:47.520 --> 02:17:55.170 Tom Garove: Some of the future topics we're considering for workshops interviews with bankers, we have relationships with some of the bankers. 631 02:17:56.040 --> 02:18:15.450 Tom Garove: In the area in the manatee and Sarasota counties as the Bill mentioned one of the resources on the back of this in the end of this slide deck is a list of all of the current SBA lenders in the area. We have, we may invite some of them to come and participate in the webinars. 632 02:18:17.160 --> 02:18:24.810 Tom Garove: Facebook grants, there is some information out on the news that Facebook is offering grants to small businesses don't know all the details there. 633 02:18:25.170 --> 02:18:33.840 Tom Garove: But something you may want to investigate. When you start your, your research by Googling Facebook grants and see what comes up, as I mentioned, we can 634 02:18:34.950 --> 02:18:44.520 Tom Garove: We may have webinars on crisis management continuity planning digital transformation. Perhaps your business is not doing business through 635 02:18:46.050 --> 02:18:55.140 Tom Garove: Through the digital processes as efficiently as you would like it to be Nabeel is our subject matter expert on that topic. And you may find 636 02:18:55.860 --> 02:19:07.560 Tom Garove: It in fact this on this day was the day that bill normally was going to do his digital workshop, but of course the crisis has taken priority and we've moved into this topic. So we will be scheduling a digital 637 02:19:08.400 --> 02:19:25.620 Tom Garove: Web webinar at some point in the near future. And then, of course, we'll have some online town halls that we can have question and answers answered as well as the financial aid, here's the list of SBA partner banks. If you click on, you can click on their website. 638 02:19:27.090 --> 02:19:43.020 Tom Garove: As I mentioned that to start the there's many, many banks that were not s did not have a relationship with the SBA that the federal government is working very hard to try to establish their capability to issue these loans. 639 02:19:44.670 --> 02:19:55.950 Tom Garove: Bearing in mind that the that the system that was in place was never meant to handle this kind of volume. So they are reaching out to the banking community. 640 02:19:56.460 --> 02:20:08.370 Tom Garove: To get as many, many banks on this, on this process as they possibly can, but it's going to take some time and as Barry and all of we have mentioned patients is going to be the key. Next slide. 641 02:20:10.620 --> 02:20:21.360 Tom Garove: What if my bank is not an SBA lender and is not responsive to my loan application. We've already got some questions in here, I see about I've already put my loan in how long is this going to take 642 02:20:23.160 --> 02:20:30.450 Tom Garove: We understand that, as I mentioned, as I've already explained there they're working hard to get the system up and running as quickly as they can. 643 02:20:31.260 --> 02:20:38.790 Tom Garove: And in the beales presentation, you'll notice that you should have gotten alone number if you apply for an E idea alone. That's your reference number 644 02:20:39.060 --> 02:20:47.790 Tom Garove: Whenever you reach out to the SBA or your low the SBA office or your local bank refer to that number and hopefully they can look up the status of your loan quickly. 645 02:20:48.870 --> 02:20:54.720 Tom Garove: But you may want to consider if you have not gone through the application process yet intermediary companies. 646 02:20:55.050 --> 02:21:01.290 Tom Garove: That are actually in the business of providing the service of doing the loan application process for you. 647 02:21:01.740 --> 02:21:11.820 Tom Garove: If you don't have an SBA lender that you've got a relationship with they will they will send your application out to it and come back to you with as many as three different lenders. 648 02:21:12.330 --> 02:21:24.300 Tom Garove: And give you the ability to choose one that you may want to do business. Len do naff.com standard capital Inc and and others. There may be others out there. 649 02:21:24.630 --> 02:21:31.770 Tom Garove: You may want to look into this type of a service and let them handle some of the legwork for you. Another option that's out there. 650 02:21:32.010 --> 02:21:44.100 Tom Garove: We're not clear on whether they charge fees or not, or how big their fees are but there, there may be some fees involved on a case by case basis, depending on which one of those intermediaries, you select next time. 651 02:21:47.070 --> 02:22:03.210 Tom Garove: So what will those intermediaries do, they'll process your PPP loan applications or idle loans and they're in the business and they are also in the business of providing small business loans themselves equipment working capital short term revolving lines of credit 652 02:22:05.040 --> 02:22:19.200 Tom Garove: They have as many of these companies have as many as 75 leading lenders available to them. They'll match you up with multiple lenders for you to choose. And you may want to consider this option. If you're not comfortable with your current bank sign 653 02:22:21.480 --> 02:22:29.310 Tom Garove: Non SBA independent loan options we quite frankly recommend this as a last choice because they 654 02:22:29.790 --> 02:22:40.500 Tom Garove: Typically have high interest rates, you'll notice on this slide, high annual rate as high as 15 to 75% the term of the loans are very short six months to one year. 655 02:22:41.010 --> 02:22:50.670 Tom Garove: They also have high standards to get loan approvals credit scores greater than $550,000 monthly revenue. 656 02:22:51.000 --> 02:23:03.510 Tom Garove: For your business. So it's kind of bigger small business type of lending high cost, but is certainly out there and something you may want to consider if you're in that category of a of a borrower. Next slide. 657 02:23:05.430 --> 02:23:13.290 Tom Garove: So the rest of these slides are all reference slides cares act Department of Labor. Next slide. 658 02:23:14.340 --> 02:23:21.810 Tom Garove: These are the IRS administered programs which we've gone over. That's the page like sick leave for workers act as well as the 659 02:23:23.460 --> 02:23:29.310 Tom Garove: easing of the the payment of taxes, payroll taxes slide. 660 02:23:31.680 --> 02:23:39.660 Tom Garove: Resources for the state of Florida. We talked about those different Florida programs. And then, of course, there's your chamber of commerce. 661 02:23:40.140 --> 02:23:56.130 Tom Garove: One thing I will mention about the chambers of commerce. If you are already a member of the Chamber of Commerce. If you're not, you should be get involved if your chamber of commerce, they have some of the chambers are offering 662 02:23:57.780 --> 02:24:08.250 Tom Garove: Webinars similar to this one that are run by SBA representatives that probably have more of the up to date details of the programs, I'd encourage you to 663 02:24:09.030 --> 02:24:19.380 Tom Garove: Go to your chamber of commerce website. I know that the ones in South County down the Venice port Charlotte area. They've been conducting SBA webinars. 664 02:24:19.800 --> 02:24:35.520 Tom Garove: Every two hours. Most of the five days a week, Monday through Friday. You can you can go on to them and listen in on their webinars and perhaps can pick up some other tidbits of the status of the loan programs under the cares act. Next slide. 665 02:24:37.470 --> 02:24:39.480 Tom Garove: And then there's the score resources. 666 02:24:42.690 --> 02:24:49.830 Tom Garove: The slide just gives you some additional links for funding your business. These are some of the links we use for the information today. Next slide. 667 02:24:52.200 --> 02:25:10.890 Tom Garove: And then last but not least, this is a list of the local banks that we have a relationship with we know these are SBA lenders, because we we have had them come to many of our, our webinars and talk to our, our clients bank united achieve a Wells Fargo. 668 02:25:12.270 --> 02:25:15.720 Tom Garove: And let me say something about what you'll see on the news. 669 02:25:17.010 --> 02:25:25.770 Tom Garove: You seen on the news, for instance, Wells Fargo, there was some federal restrictions on their amount that they could loan under these programs which has been lifted. 670 02:25:26.220 --> 02:25:38.580 Tom Garove: They lifted, quite frankly, just a few hours ago to allow Wells Fargo to loan more money and in the banking system. The SBA process. As I mentioned at the start of this 671 02:25:39.150 --> 02:25:49.470 Tom Garove: Seminar webinar. They were not perceived as a process that very many small businesses would qualify for 672 02:25:50.040 --> 02:25:57.990 Tom Garove: Because of the tight restrictions that they had on guaranteeing loans, the local bankers were reluctant to submit applications because they didn't 673 02:25:58.290 --> 02:26:13.110 Tom Garove: Feel that they would be approved easily and it was difficult for them to be in some cases for banks to do business with the SBA that has all changed this program, as I mentioned, is all hands on deck. You have the federal government and this Treasury. 674 02:26:14.220 --> 02:26:23.100 Tom Garove: Led by Mr minutiae working to loosen up standards of these these loans and get money out into the business community, because the objective 675 02:26:23.490 --> 02:26:31.410 Tom Garove: Is to help you retain your employees and retain your business viability and that's what your government and SBA is working to do 676 02:26:31.830 --> 02:26:45.510 Tom Garove: We as SP has a volunteer portion of the SBA program are going to do our part as best we can to address those those requests for mentors in our score process. Next slide. 677 02:26:46.530 --> 02:26:47.250 Barry Portugal: Thank you, Tom. 678 02:26:50.880 --> 02:26:52.770 Barry Portugal: Beal, do you want to do the poll now. 679 02:26:53.610 --> 02:27:08.190 Nabil Freij: Yeah, we're going to be launching a poll, as we answer the questions that you just submitted. If you could go ahead please and start answering some of these questions, it will help us understand where everybody is standing. Can everybody see the ball at this point. 680 02:27:08.820 --> 02:27:10.770 Tom Garove: Yes, yes. 681 02:27:20.490 --> 02:27:22.650 Nabil Freij: Should we proceed and with the Q AMP a 682 02:27:23.700 --> 02:27:24.660 Barry Portugal: I believe so. 683 02:27:25.500 --> 02:27:26.160 We have 684 02:27:27.660 --> 02:27:42.210 Barry Portugal: A number of quite a lot of questions and we have less than one hour because we must conclude the session at eight o'clock, so I'm going to turn the program over today. And today, would you please 685 02:27:43.350 --> 02:27:45.660 Barry Portugal: Let us know some of the questions, but 686 02:27:46.290 --> 02:27:59.460 Janae: Yes. Okay. So, I first want to kind of touch on a question that we received quite a few times. It's about a vacation rental properties and a couple people asked 687 02:27:59.970 --> 02:28:14.730 Janae: Basically what they're eligible for because due to the virus, they are no longer able to rent out properties in Florida. So if any one of you could answer that question for them. 688 02:28:16.020 --> 02:28:16.950 Barry Portugal: I can add 689 02:28:21.540 --> 02:28:30.930 Nabil Freij: What I'm thinking of is if this property is considered part of a business like running it as a business, either as a sole proprietor or 690 02:28:31.650 --> 02:28:52.680 Nabil Freij: Self Employed and you're reporting the profits on a schedule C in your taxes that may be considered as income that you could qualify for getting the triple P program on but not 100% certain about that this is something that you may want to check with your accountant to see if it qualifies. 691 02:28:54.270 --> 02:29:00.360 Tom Garove: I have one other thought on that to Nabeel, I had a question today from one of our score clients. 692 02:29:01.560 --> 02:29:11.700 Tom Garove: I'll give you this example, this, this person happens to be a hairdresser, and he has three employees that work for him and 693 02:29:12.510 --> 02:29:24.810 Tom Garove: They come to a building, they are independent contractors, they work for him as independent contractors, the building that he has his shop in also happens to be his personal residence so 694 02:29:25.890 --> 02:29:29.460 Tom Garove: In his business accounting. He 695 02:29:30.630 --> 02:29:31.740 Tom Garove: Accounts for 696 02:29:33.000 --> 02:29:39.270 Tom Garove: The rent that the business that the business pays him rent. 697 02:29:40.710 --> 02:30:01.170 Tom Garove: For the use of that space in that particular situation. He's declaring that rent on his taxes as a rental as a rental rental income as a rental property. My advice to him is he's asking, can, can that expense be included in his PP loan calculation. 698 02:30:02.220 --> 02:30:11.340 Tom Garove: So in that particular case I obviously advised him to go talk to his tax attorney on that and try to do some more research on it, but my guess is 699 02:30:11.670 --> 02:30:28.890 Tom Garove: Because he has businesses paying him personally, which he declares on his personal income tax his personal income has personal income rent from the business that probably would not be included in his calculation, but he needs to check with his tax attorney to assure that 700 02:30:32.670 --> 02:30:44.910 Janae: Okay, so for the next question. This comes from slide 13 is a staff who is on personal leave during this time. So for the past six weeks. 701 02:30:46.020 --> 02:30:49.290 Janae: Would they be eligible for these unemployment benefits. 702 02:30:54.060 --> 02:30:58.170 Barry Portugal: Since what excuse me today until since what date. 703 02:30:59.490 --> 02:31:04.410 Janae: Just the past six weeks so they don't specify an exact date. 704 02:31:11.580 --> 02:31:17.940 Nabil Freij: The, the cares and talks about the expanded unemployment eligibility, I believe. 705 02:31:19.170 --> 02:31:33.360 Nabil Freij: That the the act started was assigned to on March 27 how far back, it goes before these benefits are eligible. I'm not 100% certain but if 706 02:31:34.560 --> 02:31:44.010 Nabil Freij: Obviously, if that person is still unemployed and they need the different eligibility requirements then those benefits should be available to that person. 707 02:31:46.620 --> 02:31:48.060 Barry Portugal: Okay. Hey, 708 02:31:50.460 --> 02:32:07.050 Janae: So this question deals with owner draws this person asks, our company does not have payroll. We have done owner draws so we have found out that we are not eligible for the PPP and the bridge loan what loans will they be eligible for 709 02:32:12.180 --> 02:32:16.230 Barry Portugal: I'm not sure I have any answer that question. But going back to owner draws 710 02:32:17.700 --> 02:32:31.920 Barry Portugal: I've talked to a number of people who take a draw from the company and I would, you know, I don't know if the person who asked the question, could identify where he learned that that 711 02:32:32.970 --> 02:32:40.470 Barry Portugal: Draw was not available because from what I believe, based on some of the bankers, with whom I've spoken. 712 02:32:42.060 --> 02:32:56.850 Barry Portugal: The eligibility for the triple P loan in terms of interpreting payroll, what is and what is not eligible is still an unanswered question, but that was that would be not the best of my knowledge at this time. 713 02:33:02.670 --> 02:33:05.010 Janae: Um, this question. 714 02:33:05.700 --> 02:33:13.770 Tom Garove: But, but, go, go back to that question for just a minute q&a, I would say that company is still eligible for an EI DL loan. 715 02:33:15.270 --> 02:33:22.980 Tom Garove: Even though they even if they're not being told they're eligible to apply for PPP, they still should consider the ideal. 716 02:33:26.460 --> 02:33:42.030 Janae: Okay. This question is in regards to the PPP program. They asked why wouldn't you want to participate in this PPP program under what circumstances, besides the tax deferral option. 717 02:33:44.220 --> 02:33:53.190 Barry Portugal: So the question is why would a small business owner, not consider participating in the triple P loan program. 718 02:33:55.320 --> 02:34:08.400 Tom Garove: I think that refers to my remarks was related to the tax, tax forgiveness. I, I think, generally speaking, there be very few businesses that are in that bucket. 719 02:34:10.020 --> 02:34:17.160 Tom Garove: Once again, I tried to describe a scenario in which it may be want to be considered. But generally 99% 720 02:34:17.700 --> 02:34:24.750 Tom Garove: Of the people on this call. I would assume are probably the best benefit to receive for your business would be 721 02:34:25.500 --> 02:34:43.350 Tom Garove: Both the PPP and the idol application that the meal, the bill described reset. Yes, you're eligible for both apply, but there. But once again, there are may circumstances, if you have a large number of employees four or 500 there may be a circumstance where that tax situation. 722 02:34:44.940 --> 02:34:49.560 Tom Garove: May may be something you want to consider rather than the PPP portion 723 02:34:50.070 --> 02:35:06.720 Nabil Freij: Right also also Tom the applicant has to self certify that they have been impacted by the covert crises and it has adversely impacted their business if their businesses. Still going as normal. 724 02:35:08.430 --> 02:35:08.850 Nabil Freij: You know, 725 02:35:09.090 --> 02:35:13.170 Tom Garove: Yeah, there you go. They may not be able to prove that they are in 726 02:35:14.430 --> 02:35:15.960 Tom Garove: Races right 727 02:35:18.390 --> 02:35:20.040 Tom Garove: Yep, good point. 728 02:35:22.530 --> 02:35:23.400 Barry Portugal: Go ahead today. 729 02:35:23.850 --> 02:35:35.580 Janae: Okay. So this question is from slide 43 if you don't have a bank account in your business name only your personal name as the owner. Well that present problems for deposit 730 02:35:37.680 --> 02:35:51.120 Nabil Freij: That's part of the idol loan. I don't think so. If you're up either the sole proprietor, or if your own self employed, then it's basically your personal account as opposed to the business. So that should be us, which will be okay. 731 02:35:54.840 --> 02:35:55.410 Janae: Okay, but 732 02:35:55.620 --> 02:35:56.340 Tom Garove: But another 733 02:35:57.060 --> 02:35:59.910 Tom Garove: But one. One thing we do recommend part of score. 734 02:36:01.320 --> 02:36:18.780 Tom Garove: If you even if you're a sole proprietor, we still recommend that you at some point. This may be an opportunity for you to open up a separate account to separate the funds of your business portion of your activity from your personal we always recommend that as a score mentor. Yeah. 735 02:36:21.600 --> 02:36:34.590 Janae: Okay, next question. Uh, regarding the debt forgiveness program. If you have a non disaster related SBA loan and receive the six months forgiven. Is there anything to repay. 736 02:36:40.680 --> 02:36:41.760 Tom Garove: Bill, do you have any 737 02:36:43.530 --> 02:36:49.890 Nabil Freij: You mean, if you get if you have a non disaster SBA loan you are automatically given 738 02:36:51.540 --> 02:37:07.770 Nabil Freij: Six months reprieve from having to pay all of the principal interest and fees. So if you're if you're alone expires within those six months, then you're pretty much done you've paid your loan. I don't know if I got 739 02:37:08.190 --> 02:37:11.040 Tom Garove: But is that is that a deferral or is that a forgiveness. 740 02:37:12.780 --> 02:37:15.870 Tom Garove: forgiveness for six. So that's they make the payments for you for free. 741 02:37:16.440 --> 02:37:24.450 Nabil Freij: Yeah for six months. So if the loan is going to expire be pre be paid off within that time, then that said the loan is going to be paid. Yeah, yeah. 742 02:37:27.690 --> 02:37:38.340 Janae: Okay. So this question is someone works for an IKEA office, but they're only working at about 10% of their normal operations. 743 02:37:38.760 --> 02:37:51.330 Janae: Their staff is working about one day a week. Can they file for partial unemployment and should they they're working to apply for the PPP, and do they pay them for not working. 744 02:37:52.560 --> 02:38:01.590 Barry Portugal: So the bill would you handle the unemployment part and then today. Would you after an appeal responds with you. 745 02:38:03.540 --> 02:38:07.410 Barry Portugal: Repeat the part about the PPP so to be able, would you go first. 746 02:38:08.100 --> 02:38:17.610 Nabil Freij: Yeah, so basically the employees that have been furloughed if they've been furlough because of any of the conditions that we listed in the 747 02:38:18.660 --> 02:38:19.500 Nabil Freij: Unemployment 748 02:38:20.670 --> 02:38:38.370 Nabil Freij: Program with a cares act those employees will will potentially qualify for getting the enhanced program from the federal government and they could all apply for it and on their own, pretty much go and get that additional benefit of the $600 per week pay 749 02:38:40.110 --> 02:38:42.630 Nabil Freij: As far as the PvP go ahead and read it. 750 02:38:44.040 --> 02:38:53.010 Janae: They said that they're working to apply for the PPP and they're wondering if they wouldn't need to pay their employees for not working. 751 02:38:56.010 --> 02:39:07.950 Barry Portugal: Well, the PPP is is as we talked about his loan and the application is there, the choice of an employer to continue paying their employees. 752 02:39:08.580 --> 02:39:25.020 Barry Portugal: is up to each individual employer, obviously the cash flow that they have to consider the loyalty and the importance of the employee. That would be my view, but I'd like to hear from both time and the bill about what they might have to say. 753 02:39:26.250 --> 02:39:38.730 Nabil Freij: Yeah, so I would add that, if, if the company is entitled to refundable PPP loan. Maybe it's best if the employer brings back 754 02:39:39.360 --> 02:39:47.160 Nabil Freij: Their employees. Hundred percent apply for the PPP pay them for eight weeks, see where things go from there. And then after that. 755 02:39:47.700 --> 02:39:57.030 Nabil Freij: If they need to follow them again, they will follow them again and then the unemployment benefits work again. Again, so that will give them like an eight weeks extension into 756 02:39:57.750 --> 02:40:06.390 Nabil Freij: Getting paid their full salaries and potentially after that either keeping their jobs or unfortunately if things deteriorate maybe being furloughed again. 757 02:40:08.070 --> 02:40:18.360 Tom Garove: I have a thought on this, to be honest. I'll use the example of my client that I mentioned earlier, who, who's the hairdresser in his house, his, his three 758 02:40:19.500 --> 02:40:21.330 Tom Garove: His three employees. 759 02:40:23.940 --> 02:40:25.650 Tom Garove: as independent contractors 760 02:40:27.030 --> 02:40:31.950 Tom Garove: When, when the crisis hit and his business dropped to zero. 761 02:40:32.670 --> 02:40:47.820 Tom Garove: He sat down with us three employees and this, this gets to know Beals original comments about transparency and communication, communication, communication with your employees. He sat down with his three employees and said, what will it take 762 02:40:49.320 --> 02:40:59.370 Tom Garove: Apparently this is going to go on for a period of time, at least one month, maybe two months. What do you need to continue your own personal life. 763 02:40:59.790 --> 02:41:06.870 Tom Garove: And income. What do you need for income that I can supply to you to get you through the next 60 days. 764 02:41:07.290 --> 02:41:19.650 Tom Garove: And each one of the employers basically said, well, I need $300 a week or I need $200 a week they each came up with a number and because he was, he had sufficient cash reserves. 765 02:41:20.130 --> 02:41:30.540 Tom Garove: He was able to front them 60 days worth of pay at the amount that they requested, then when he became aware of this PPP program. 766 02:41:32.580 --> 02:41:39.720 Tom Garove: It became apparent that he would be able to most of those people requested less than what he was normally paying them. 767 02:41:40.200 --> 02:41:50.850 Tom Garove: But he now realizes that he can apply for their normal pay go into the PPP program apply for the amount that they would normally been paid for eight weeks apply for it. 768 02:41:51.180 --> 02:41:58.590 Tom Garove: And then once he is approved, and he gets the money he's going to reach out to those three employees and he's going to increase the amount that he gave them. 769 02:41:58.950 --> 02:42:10.530 Tom Garove: To the amount of the PPP amount that that was able to increase. So circumstances circumstances circumstances may be different for everyone. You may not have the cash reserves, you know, so there's 770 02:42:11.010 --> 02:42:19.170 Tom Garove: There's all sorts of different scenarios that we can help coach you through and ideas, you may want to think about in that particular case he's going to be a hero. 771 02:42:19.620 --> 02:42:25.380 Tom Garove: With his employees and he's going to retain them even though they're furloughed and out on on a bit of a leave of absence, if you may. 772 02:42:30.210 --> 02:42:51.600 Janae: Okay, so this question also deals with the PPP this attendee asks if I fire someone who was employed February 15 2024 reasons unrelated to the economic crisis and hire a different employee for the same hours, does that affect PPP loan forgiveness. 773 02:42:52.740 --> 02:42:54.000 Barry Portugal: I think I can take that. 774 02:42:55.680 --> 02:43:01.590 Barry Portugal: So have fired somebody and then rehired someone else the wages that you 775 02:43:02.730 --> 02:43:12.330 Barry Portugal: Paid the new employee would be included in the calculation I mentioned earlier. So it's payroll. It's the payroll. It's not the individual 776 02:43:14.880 --> 02:43:15.450 Barry Portugal: Next, 777 02:43:16.860 --> 02:43:37.050 Janae: Okay, this person started their business in 2019 but their tax return has been delayed their 2018 income was three times higher than what it would be in 2019 will they ever get a stimulus check and will they be eligible after their returns are done. 778 02:43:39.180 --> 02:43:46.020 Barry Portugal: Let's break that down, piece by piece. First, let's start with the economic impact payment. 779 02:43:47.100 --> 02:43:55.680 Barry Portugal: That individual was a taxpayer regardless of how much money they made except if they were over that. 780 02:43:56.700 --> 02:44:12.150 Barry Portugal: The limits that I mentioned over $75,000 and the hundred and 50,000 odd had individual will be eligible for the economic impact payment. That was the first part, what was the second part. 781 02:44:13.260 --> 02:44:14.670 Janae: The second part was 782 02:44:16.740 --> 02:44:23.280 Janae: Will they be eligible after their returns are completed for the stimulus check 783 02:44:25.410 --> 02:44:30.360 Barry Portugal: There's only gonna be one stimulus checking and as long as they were a taxpayer in 784 02:44:33.930 --> 02:44:37.200 Barry Portugal: They will, it's our understanding, they will receive a check. 785 02:44:38.310 --> 02:44:39.030 Nabil Freij: Yeah, I don't think 786 02:44:40.110 --> 02:44:47.670 Nabil Freij: Taxes are required if you have European dolls and balance sheets that should be sufficient for now to submit to the next. 787 02:44:47.790 --> 02:44:55.260 Barry Portugal: Well, no, no. I think we're talking to people about the economic impact payment you know come comes from the government, that doesn't require anything 788 02:44:55.740 --> 02:45:00.000 Barry Portugal: Okay, except that you made a new flat, you have a tax return. 789 02:45:00.750 --> 02:45:02.700 Tom Garove: Right to that point, Barry. 790 02:45:03.720 --> 02:45:10.800 Tom Garove: If I, if I understand the question to if and in 2018 you as an individual. 791 02:45:11.910 --> 02:45:18.840 Tom Garove: Received $75,000 or less. And then you're in the process now of filing your 792 02:45:20.760 --> 02:45:35.790 Tom Garove: Tax Return bear in mind that they have delayed that day, till July 15. You don't have to do it by April 15 so that is different. So you may want to end. And if your income has gone above the $75,000 threshold in 793 02:45:37.890 --> 02:45:49.140 Tom Garove: You may just want to defer and hold off submitting your tax return until July 15 between now and July 15 they'll use your, your, your 794 02:45:50.040 --> 02:46:04.890 Tom Garove: Return, which was 75,000 or less to to award you the 1200 dollar payment. So you may just want to wait till July 15 and file at that point. If your income substantially increased in 2019 yeah 795 02:46:04.950 --> 02:46:25.650 Barry Portugal: I think Tom on that issue without going any further in depth, we would recommend that the individual who asked the question, we go on the IRS website the information that's in the link about the economic impact statement basically says it's relatively straightforward. If you were a taxpayer. 796 02:46:26.970 --> 02:46:42.810 Barry Portugal: And you earn less than $75,000 as an individual or $150,000 filing timely, you will get an impact economic impact payment period you know if there's more to it, let them look at the IRS website. 797 02:46:43.890 --> 02:46:45.690 Barry Portugal: Today, can we go on to the next one. 798 02:46:46.650 --> 02:47:01.590 Janae: Yes, comes from slide 54 they ask, can I apply for a bridge loan as an escort with no payroll, they're using owner distributions to handle their compensation. 799 02:47:03.720 --> 02:47:05.070 Nabil Freij: That's the floor of the original 800 02:47:11.550 --> 02:47:13.920 Tom Garove: say the question again today. Yes. 801 02:47:14.370 --> 02:47:23.760 Janae: I can I apply for a bridge loan as an S Corp with no payroll. I'm using owner distributions to handle my compensation. 802 02:47:26.100 --> 02:47:40.710 Tom Garove: If it's the Florida Blue bridge loan program. I just recommend they go to the website and take a look at the details. I don't know whether any of those would constitute a restriction or not. But, uh, the website should be able provide them that that information. 803 02:47:41.370 --> 02:47:44.100 Nabil Freij: Yeah, I would think so, because it's not paycheck related 804 02:47:49.320 --> 02:47:58.260 Janae: This attendee asks, can an S Corp, with only one employee apply for unemployment and he ideal. 805 02:48:01.530 --> 02:48:02.730 Barry Portugal: That sounds familiar. 806 02:48:04.500 --> 02:48:12.690 Nabil Freij: As far as the idol alone. Yes, an S corporation within one employee can apply for the ideal now unemployment. 807 02:48:13.470 --> 02:48:24.810 Nabil Freij: If you've been reporting yourself as an employee and you become unemployed. I'm not sure if you're the owner of the company, if there's a condition that would prohibit you but I would think, yes you could apply for unemployment. 808 02:48:28.710 --> 02:48:36.630 Janae: Okay, this person asks what relief is available for commercial building owners when tenants are not able to pay their rent. 809 02:48:38.730 --> 02:48:41.280 Barry Portugal: Yeah, like to know the answer that question myself. 810 02:48:41.730 --> 02:48:42.480 Tom Garove: That's a good one. 811 02:48:45.120 --> 02:48:45.720 Nabil Freij: You know, we're gonna 812 02:48:46.590 --> 02:48:47.400 Barry Portugal: Go ahead and appeal. 813 02:48:47.700 --> 02:48:58.020 Nabil Freij: Toward the questions that we can answer what we're going to try to do is so number one recommend that you get requests for the score mentor. We're going to try to come up with the answer post them on our website. 814 02:49:00.690 --> 02:49:05.700 Tom Garove: There was a, I will say, just make one quick comment there was a discussion. 815 02:49:07.110 --> 02:49:13.410 Tom Garove: On the business news today, quite frankly about this very topic of real estate owners. 816 02:49:14.130 --> 02:49:25.230 Tom Garove: And big malls, you know, all sorts of different real estate related businesses with this big drop in revenue that may occur to them and and what programs, does the federal government have for them. 817 02:49:25.890 --> 02:49:34.590 Tom Garove: And I think the general conversation was at this point there there is not any but it was being discussed in Congress, I would you may want to just write to your 818 02:49:34.590 --> 02:49:39.210 Tom Garove: Congressman or Senator and say what's comp what's what's what's coming about. 819 02:49:44.190 --> 02:49:52.560 Janae: Okay, this is a question about the aisle and PvP alone. This person asks, I have heard that you can 820 02:49:54.630 --> 02:50:12.270 Janae: I've heard that you can, but I've heard from some that the idol alone won't affect your PPP loan forgiveness and others have told them that the idol will affect your PPP forgiveness. By about $10,000 and they want to know what you have to say on that topic. 821 02:50:13.470 --> 02:50:15.060 Barry Portugal: Let me begin 822 02:50:16.110 --> 02:50:25.020 Barry Portugal: I've looked at a variety of resources and information sites and relating to the triple P loan. 823 02:50:26.580 --> 02:50:35.040 Barry Portugal: Earlier time the below and I have said it's smart to apply for both 824 02:50:36.630 --> 02:50:39.210 Barry Portugal: Item. There's nothing that I read. 825 02:50:40.470 --> 02:50:46.710 Barry Portugal: At rap that reference anything about a $10,000 disparity. 826 02:50:48.930 --> 02:51:01.410 Barry Portugal: But, but the person who asked the question may have more information than I do. I WOULD TURN TO. AND THE BL and time to see if they have any any better information than I do. 827 02:51:01.950 --> 02:51:06.900 Nabil Freij: Yeah, the 10,000 that possibly what they're referring to is the grant. That's the 828 02:51:07.950 --> 02:51:20.850 Nabil Freij: Grant that they could get. And if they do get that grant the Emergency Economic injury grant, which is up to 10,000 then that is deductible from the forgivable amount of the PPP long 829 02:51:21.630 --> 02:51:31.500 Nabil Freij: So be careful. Again, no double dipping, you can't have the entire forgivable PPP amount as well as the grant. It's going to be either or 830 02:51:32.130 --> 02:51:42.690 Nabil Freij: So if you do get an idol alone. And part of that loan is the $10,000 grant that $10,000 will be subtracted from your PPP forgivable amount 831 02:51:43.260 --> 02:52:00.330 Nabil Freij: Plus, you have to be careful. You got to use the funds for different bills. If you use your idol loan funds to pay the same bells that you're using your PPP funds with then that's double dipping again and the government may not refund you those PPP dollars. 832 02:52:01.950 --> 02:52:02.250 Tom Garove: You know, 833 02:52:02.970 --> 02:52:18.780 Barry Portugal: And then Beals responses, based on the premise that the person asking the question was asking about the $10,000 grant. And obviously that would be true if some businesses have resources. 834 02:52:19.890 --> 02:52:21.030 Barry Portugal: Other than their grant 835 02:52:22.320 --> 02:52:26.700 Barry Portugal: Through dipping into their IRA family and friends. 836 02:52:28.290 --> 02:52:40.170 Barry Portugal: You have to be very careful about how you report that information because again you want to be sure that with it with relate when it relates to the triple P loan. 837 02:52:40.680 --> 02:52:51.450 Barry Portugal: And using it for payroll only, you just want to be sure that you do everything in your power to assure that the loan is not going to be forgiven attended you have something else. 838 02:52:55.260 --> 02:53:10.020 Tom Garove: Yeah, I think this gets to the notion, and I don't recall if we mentioned this, once again, this is a lot of information. If you do as Barry and Bill and I are recommending and you apply for both idol phone as well as the PPP loan. 839 02:53:11.100 --> 02:53:20.760 Tom Garove: There's the issue of the $10,000 grant that would be deducted from the forgivable amount of your PPP loan, but we also recommend that once those two loans are funded 840 02:53:21.750 --> 02:53:30.390 Tom Garove: And you get the cash available to you for your business. You set up very clear separate accounts and accounting processes. 841 02:53:30.960 --> 02:53:49.470 Tom Garove: For each of those two loans that clearly documents. The, the inflow of the funds as well as the disbursement of those funds were and to whom they were those funds were dispersed to and for what reason where those funds dispersed. The record keeping will be very, very critical. 842 02:53:50.760 --> 02:54:08.790 Tom Garove: In, in the end, some making absolutely sure. Did you get the you get the full benefit of the excusable part of the forgivable part of those loans record keeping record keeping separate accounts for each each loan is an each program as you go through it. 843 02:54:11.280 --> 02:54:11.850 Barry Portugal: Today, 844 02:54:12.720 --> 02:54:24.060 Janae: Okay, this comes from Chad, he asks what program would you suggest for paying a contracted business loan to a person is not a financial institution. 845 02:54:29.550 --> 02:54:35.460 Tom Garove: So the question is securing a business loan from a non financial institution. Yes. 846 02:54:37.980 --> 02:54:38.070 Tom Garove: Um, 847 02:54:40.320 --> 02:54:45.690 Tom Garove: I would say that you you pursue all of these programs. First, and that would be your last resort. 848 02:54:46.710 --> 02:54:56.790 Tom Garove: Because typically, if it's a friend or family member or somebody that you may have an acquaintance with they're going to charge you some high amount of interest and door. 849 02:54:59.400 --> 02:55:08.610 Tom Garove: And the documentation tax ramifications and all those sort of things just come into play there for your business. And we wouldn't really recommend it. I would say 850 02:55:09.810 --> 02:55:10.620 Tom Garove: Last resort. 851 02:55:11.370 --> 02:55:19.830 Nabil Freij: Yeah, and the proceeds of any of those loans, we talked about today cannot be used to pay off personal loans or other private loans. 852 02:55:23.850 --> 02:55:43.470 Janae: This is a question from slide 23 and they asked or they say that there are lower wage high rental space business their gym 2.5% based on payroll is not nearly enough for them to cover rent and be forgiven. 853 02:55:44.520 --> 02:55:52.110 Janae: Do you have any advice on being more flexible in the 75 25% requirement. 854 02:55:53.730 --> 02:55:55.110 Barry Portugal: I can answer that. 855 02:55:56.760 --> 02:55:58.110 Barry Portugal: From what I read. 856 02:55:59.670 --> 02:56:13.140 Barry Portugal: Everything I've read every single source of information about how to calculate triple P loans and how the funds are use every single one of them said the same thing. 857 02:56:14.190 --> 02:56:18.120 Barry Portugal: Now whether or not there's any flexibility. I can't answer, but 858 02:56:19.500 --> 02:56:24.360 Barry Portugal: In the research that we did for the workshop all the sources said the same thing. 859 02:56:25.980 --> 02:56:35.640 Barry Portugal: 75% of the funds used from the triple P loan must be you underline, must, must be used for payroll. 860 02:56:37.380 --> 02:56:46.050 Barry Portugal: And no more than 25% of the loan amount can be used for rent mortgage interest and utilities. 861 02:56:47.550 --> 02:56:51.060 Barry Portugal: I don't want to sound too dogmatic about it. The but 862 02:56:53.520 --> 02:57:04.560 Barry Portugal: As as a score mentor, having a real up relying on information from a lot of websites, I would not want to go beyond my skis on answering that question. 863 02:57:08.220 --> 02:57:08.940 Barry Portugal: Next, 864 02:57:09.750 --> 02:57:21.420 Janae: Okay, this person asks about the PPP, what if you want to rehire them employees, but they did declined to return to work with the loan be Unforgiven 865 02:57:22.800 --> 02:57:33.300 Barry Portugal: You know, this is good. This is a great question and I think all three of us should put our heads together on this. Here's what, here's the circumstances. 866 02:57:34.230 --> 02:57:55.800 Barry Portugal: If you're a business owner, listening to this workshop and your businesses closed and you furloughed or fired. Some or more, or more, or even all of your employees, you have to be thinking about when are you going to reopen or can you reopen 867 02:57:57.300 --> 02:58:04.380 Barry Portugal: These are these are day to day kinds of issues that drew you to this workshop and probably others. 868 02:58:05.670 --> 02:58:10.500 Barry Portugal: Here's what I would say if you are a business owner 869 02:58:11.700 --> 02:58:33.570 Barry Portugal: And you have some employees, whether they're you using the example of time with the hairdresser or others. I have certain clients who have left who have decided not to hire back employees and have done everything in their power to 870 02:58:34.680 --> 02:58:44.670 Barry Portugal: Help them understand how to file for unemployment both state and federal so it becomes a little bit of more than a little bit of a juggling act. 871 02:58:45.180 --> 02:59:06.060 Barry Portugal: If you're a business owner, because you've got many of your employees are out of work you care for them. You want to see them survive. So if you don't have revenue coming into your business you you know you say go file for unemployment, I don't have the cash to pay you right now. 872 02:59:07.680 --> 02:59:15.090 Barry Portugal: Moving forward, as you think about reopening your business, hopefully, and going for loans and borrowing money. 873 02:59:15.930 --> 02:59:26.280 Barry Portugal: Then you're going to be, you're going to be in a position of talking with your employees alive and you should be doing that right now. 874 02:59:26.910 --> 02:59:47.550 Barry Portugal: Because if if they're unemployed in their file for unemployment benefits and they're getting. For example, here in Florida $275 a week, plus the federal assistance of 600. That means that an employee is getting $875 of unemployment benefit every week. 875 02:59:49.770 --> 03:00:04.980 Barry Portugal: Oh that employee two sides to go back to work is largely going to depend on what you the business owner are going to offer them and how much longer their unemployment benefits go on for 876 03:00:06.570 --> 03:00:11.970 Barry Portugal: It's it's a it's a really difficult tenuous juggling act. 877 03:00:13.380 --> 03:00:19.500 Barry Portugal: That's my kind of answer. But again, I would ask both Nabeel and time to jump in. 878 03:00:21.300 --> 03:00:37.770 Nabil Freij: Yeah, thanks. Marissa, as far as bringing that one employee back if they refuse the way understand the triple P is it doesn't have to be that specific employee, it could be anybody that you bring in, and you'd be able to qualify for the triple P forgivable loan. 879 03:00:40.800 --> 03:00:48.120 Tom Garove: Another option to consider here Barry jumping in and this was a debate, quite frankly, that your legislators. 880 03:00:48.960 --> 03:01:01.560 Tom Garove: As I was watching the business news talked about this when they, when they beefed up the unemployment benefits to $600, a week from the federal government. In addition to the 275, a week from Florida. 881 03:01:02.820 --> 03:01:11.910 Tom Garove: When you calculate that money people are you receiving is as much as 30 $100 a month that's in the state of Florida and that number. 882 03:01:12.390 --> 03:01:19.050 Tom Garove: Keep in mind the state of Florida is one of the weakest amounts of unemployment benefit of all the 50 states. 883 03:01:19.710 --> 03:01:27.600 Tom Garove: That being said, there may be employees out there that you've laid off collecting 3100 as much as 30 $100 a month. 884 03:01:28.500 --> 03:01:45.240 Tom Garove: And that benefit is greater than a would be if you were to bring them back and pay them under the PPP program, which would have been their normal wages that may have been only 2000 or 2500 a month that they debated that so the point is is that 885 03:01:47.100 --> 03:02:02.910 Tom Garove: You a if you want to do the PPP program. If you know of other employees that people that are unemployed that aren't club collecting unemployment benefits you can replace that person with with somebody else that good does the same skills and jobs. 886 03:02:04.110 --> 03:02:10.080 Barry Portugal: Thanks time we're down to about 10 minutes where we have to cut off so Jeanette, can you 887 03:02:11.430 --> 03:02:15.390 Barry Portugal: Give us a few more questions, so we can get others out to talk about 888 03:02:15.810 --> 03:02:28.500 Janae: Yes. So, this person has heard quite a few horror stories about the benefits of the cares act. How do you address those concerns that no one will be getting their applications acknowledged. 889 03:02:30.000 --> 03:02:38.280 Barry Portugal: A time, you seem to be more optimistic than some of us are about the role of the government, you're obviously tuned into the news. 890 03:02:40.350 --> 03:02:45.240 Barry Portugal: You know, there's two sides of this you know optimistic and pessimistic and realistic. 891 03:02:46.500 --> 03:02:47.940 Barry Portugal: I would say 892 03:02:49.050 --> 03:03:06.120 Barry Portugal: That for my clients. I'm encouraging them to go ahead and to submit the applications as soon as possible. For those that don't have a bank relationship to go and use the information in the resources section and try 893 03:03:08.280 --> 03:03:20.490 Barry Portugal: But, but I don't know how soon or how long it's going to take for banks to processes the loan. I would be, you know, I'd be interested to hear what two of you have to say, I 894 03:03:22.680 --> 03:03:29.190 Nabil Freij: Just want to express the experience of head I applied for the idol alone. About a week ago for my wife's business. 895 03:03:29.640 --> 03:03:39.660 Nabil Freij: And the, the application is still in process. I haven't heard anything, but I also applied for the triple P through bank of america that process took about 20 minutes 896 03:03:40.110 --> 03:03:57.060 Nabil Freij: And I've received already notification from them. They've turned on the link to the SBA and I think I truly believe that it's just a matter of time before the thousands and 10s of thousands of applications are processed and the phones are starting to be dispersed. 897 03:03:58.950 --> 03:03:59.520 Barry Portugal: Great. 898 03:04:02.070 --> 03:04:02.970 Barry Portugal: Go ahead today. 899 03:04:04.050 --> 03:04:12.510 Janae: Okay, um, this person asks are companies that with less than 50 employees exempt from the pain relief requirements. 900 03:04:13.980 --> 03:04:14.970 Barry Portugal: Exempt from what 901 03:04:15.360 --> 03:04:17.580 Janae: The page requirements. 902 03:04:26.040 --> 03:04:26.910 Barry Portugal: I don't know. 903 03:04:29.760 --> 03:04:34.710 Barry Portugal: I'm thinking back to the slides and there wasn't much they saw about 904 03:04:36.150 --> 03:04:42.810 Barry Portugal: The size of the business, I would ask both time or an appeal if they've heard anything about the size of the business. 905 03:04:43.170 --> 03:04:44.550 Barry Portugal: Now might be 906 03:04:45.720 --> 03:04:57.210 Nabil Freij: There are exemptions. I'm not sure about the specific number of employees. I think it's under 100 but I'm not sure, but we could look this up and get back on our website with the right answer. 907 03:04:58.050 --> 03:04:58.560 Barry Portugal: Thank you. 908 03:05:00.330 --> 03:05:12.060 Janae: Okay. This question comes from slide 40 as we are currently still in the middle of the crisis. How do we know how much money we will need as a loan to keep us going until things turn around. 909 03:05:16.950 --> 03:05:18.090 Barry Portugal: Well, no. 910 03:05:19.110 --> 03:05:20.010 Nabil Freij: Okay, so 911 03:05:21.390 --> 03:05:29.040 Nabil Freij: For the idol alone. I mean, assume the worst case and apply for as much as you can get. I mean, obviously what the idol. They're going to require some collateral 912 03:05:29.700 --> 03:05:44.190 Nabil Freij: Or a personal guarantee you could always repay that loan if you if you didn't need the money. And it sounds like the SBA is going to dispersing these funds, gradually, they're not going to give you the entire amount that you applied for so 913 03:05:45.330 --> 03:05:55.620 Nabil Freij: Pick the worst case, if you think the shutdown is going to continue for three months, six months, nine months or a year and we don't know. We don't know what the circumstances are going to be pick the worst case that you could think of. 914 03:05:56.160 --> 03:06:05.640 Nabil Freij: And given your Collateral and your personal guarantee. See how much money you could get an SBA when they approve or if they approve your application, they will disperse the funds accordingly. 915 03:06:10.410 --> 03:06:28.110 Janae: Okay, this person had eight employees before five are not willing to work, but they're not sick if they keep three employees on well their loan be forgiven. They didn't follow any of them those employees made the choice not to go to work. 916 03:06:32.490 --> 03:06:33.960 Barry Portugal: I think the answer is yes. 917 03:06:35.670 --> 03:06:37.020 Barry Portugal: Because if they 918 03:06:38.250 --> 03:06:39.300 Barry Portugal: Going back to one of 919 03:06:40.680 --> 03:06:50.670 Barry Portugal: The fields slide about unemployment and being afraid of going to work and that being eligible, I believe that's that may be true for the triple P long 920 03:06:52.470 --> 03:06:56.490 Barry Portugal: As long as there may be documentation that the job was offered to them. 921 03:06:57.630 --> 03:07:11.940 Barry Portugal: And they chose not to accept it and come back to work, the basis of the triple P loan would be the residual number of employees who were available to work, but that just my 922 03:07:13.170 --> 03:07:14.100 Barry Portugal: My gas. 923 03:07:14.820 --> 03:07:30.810 Nabil Freij: Yeah. And while calculating the amount of the loan. Just make sure that you use the amount for the monthly payroll average monthly payroll just for the remaining employees, not for everybody. That's that you had before. You don't want to include the payroll for the people that have left. 924 03:07:33.270 --> 03:07:35.010 Barry Portugal: Well, let's talk about that for a minute. 925 03:07:36.570 --> 03:07:39.840 Barry Portugal: If you go back and you let's say you had 926 03:07:41.220 --> 03:07:49.110 Barry Portugal: 10 employees last year and you use an average month and do the compensation times A 250% 927 03:07:50.310 --> 03:07:57.690 Barry Portugal: The salaries, etc. Health insurance, etc. For those 10 people would be included in your calculation. 928 03:07:58.110 --> 03:08:12.660 Barry Portugal: Correct. And if you so chose to use that amount, I think, like you said earlier, you could get the money and then pay the money back. If it's not us. But none of us know 929 03:08:14.430 --> 03:08:16.110 Barry Portugal: How long this is going to take 930 03:08:17.220 --> 03:08:28.560 Barry Portugal: None of us know what the world's going to look like, or when the businesses of the small owners of businesses for the small business owners on the phone. 931 03:08:29.100 --> 03:08:45.120 Barry Portugal: They're trying to figure out, you know what to do. And when it's going to be that it's good to be optimistic but that to the question of how much money to borrow and what to do. I think, I think the Beatles comment is important to repeat 932 03:08:46.680 --> 03:09:06.750 Barry Portugal: Because none of us really know how long this is going to take, or we don't know how long businesses are going to come back or people are going to return to your customers, having the money in the bank weather and not necessarily having to spend it is probably a very wise business decision. 933 03:09:12.360 --> 03:09:13.170 Tom Garove: I agree very 934 03:09:15.300 --> 03:09:17.940 Barry Portugal: Today, do we have time for another call a question. 935 03:09:18.000 --> 03:09:32.130 Janae: Yes. This one is from slide 33 as a sole proprietor, can the amount of income loss for the owner who has lost clients during this crisis crisis be considered for the PPP loan. 936 03:09:34.290 --> 03:09:37.410 Barry Portugal: I'm sorry. Would you mind repeating that a little bit slower. 937 03:09:38.940 --> 03:09:50.640 Janae: As a sole proprietor. Sorry, as a sole proprietor, can the amount of income loss for the owner who has lost clients during this crisis. He considered for the PPP loan. 938 03:09:51.360 --> 03:09:51.780 No. 939 03:09:52.920 --> 03:09:56.820 Barry Portugal: PPP loan. He has only to do with the payroll. 940 03:09:58.050 --> 03:10:01.440 Barry Portugal: And and the loan amount as we talked about 941 03:10:02.460 --> 03:10:11.400 Barry Portugal: It's it sounds harsh. I don't mean it to be. But, but the triple P loan program has to do with payroll. 942 03:10:12.840 --> 03:10:15.180 Barry Portugal: Now the idea alone. 943 03:10:16.320 --> 03:10:26.640 Barry Portugal: That may be another place, but the amount of business loss in dollars and cents. I've not seen any place where that's the criteria to be able, how about you. 944 03:10:28.080 --> 03:10:37.650 Nabil Freij: I read that, if, if you're a sole proprietor, and you're filing your, your taxes, your personal taxes under Schedule. See if you could clearly 945 03:10:38.610 --> 03:10:51.330 Nabil Freij: Show the actual profit that your personal business has generated that is considered as income because a sole proprietor or private 946 03:10:52.170 --> 03:11:01.590 Nabil Freij: Person that's running their own business. They may not pay themselves a payroll and I think the banks may consider what's on your schedule C as 947 03:11:02.100 --> 03:11:11.880 Nabil Freij: Equivalent to payroll. So it's worth checking with with the bank or with your accountant to make sure that you could potentially apply for a triple P loan. 948 03:11:12.750 --> 03:11:18.870 Barry Portugal: Right time. Can we turn the program now over you to close up closing remarks. 949 03:11:20.640 --> 03:11:28.350 Tom Garove: Sure it's eight o'clock. And unfortunately, we have a hard stop on this once again to all the participants. 950 03:11:31.050 --> 03:11:39.900 Tom Garove: Minnesota score chapters here to assist if you if you still feel you need to request a mentor, feel free to do that on our website. 951 03:11:41.130 --> 03:11:52.560 Tom Garove: We're still assigning mentors through the crisis and we'll try to get somebody to you as quickly as possible. And once again, keep an eye on the website for future webinars on similar topics. 952 03:11:53.580 --> 03:11:59.280 Tom Garove: And once again, we appreciate your participation and hope that we are some assistance. 953 03:12:00.060 --> 03:12:08.490 Nabil Freij: If I may come out as soon as people exit. You're going to be presented with a survey, if you don't mind taking two minutes and respond to the survey, they'll be really appreciate it. 954 03:12:09.480 --> 03:12:10.080 Barry Portugal: All right. 955 03:12:10.950 --> 03:12:15.750 Barry Portugal: There we go. Thanks everyone. Hope you have a nice evening and thank you for joining us. 956 03:12:17.280 --> 03:12:17.730 Nabil Freij: Goodbye. 957 03:12:18.210 --> 03:12:18.810 Tom Garove: Signing off.