Gaining Clarity: Phase 1 reopening guidelines, safety plan template & EIDL and PPP Loan forgiveness
Gaining Clarity……
Reopening NY: The new guidelines & safety plan template for Phase I Industries
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We recently shared NYS’ Phase 1 Reopening Industry Guidelines, as well as the new Safety Plan Template. On our recent Town Hall meeting, businesses cited a lack of clarity as one of the biggest obstacles to navigating reopening, particularly in Phases II through IV.
While NYS reopening industry guidelines for Phases II through IV are not yet available, we highly recommend that you complete the Safety Plan Template as a measure to anticipate protocols for your business in advance of the official state guidelines.
The state’s reopening website, New York Forward, is a great resource for you to bookmark. The site includes detailed information for all companies eligible to reopen in the first phase of New York’s restart.
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As a reminder, Phase I includes businesses in construction, manufacturing, agriculture, forestry, fishing, hunting, manufacturing, wholesale trade, and in-store and curbside pickup at some retailers. As part of the Mid-Hudson Region, Putnam County has not yet met its metrics goal, therefore, we have not yet entered Phase I.
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Access the New York Forward Business Reopening Lookup Tool to determine whether or not your business is eligible to reopen, and the public health and safety standards with which your business must comply.
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Phase I businesses, please access the New York Forward Industries Reopening by Phase page and do the following:
- VIEW Summary Guidelines for your Industry (Construction, Agriculture, Forestry, Fishing and Hunting, Retail [Limited to curbside or in-store pickup or drop off], Manufacturing, Wholesale Trade)
- READ, Affirm Detailed Guidelines, and Submit Online
- PRINT Business Safety Plan Template
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SBA Approving Economic Injury Disaster Loans (EIDLs): What You Need To Know
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The EIDL program and how its loans work.
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Overview of the loan terms
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- Loans up to $2M
- 30-year terms
- Interest rates of 3.75% for small businesses (2.75% for non-profits)
- First payment is 12 months from the date of the promissory note
- EIDLs smaller than $200,000 can be approved without a personal guarantee
- For loans under $25,000, the SBA does not take a security interest in any collateral
- For loans above $25,00 the SBA takes a general security interest in any and all “Collateral” as defined in the promissory note
- There are no prepayment fees
Unlike the Paycheck Protection Program (PPP) loan, EIDLs do not have a forgiveness aspect. However, any advance funds that you received will not be included in the loan.
Additionally, you may request a loan increase for additional disaster-related damages as soon as the need for additional funds is discovered. However, the SBA will not consider a request for a loan increase received more than two years from the date of loan approval unless, “there are extraordinary and unforeseeable circumstances beyond the control of the borrower.”
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Click HERE to view the article in Full
SBA Approving Economic Injury Disaster Loans (EIDLs): What You Need To Know
Forbes (5/20/20)
After a period of silence, last week the SBA started processing and approving applications again. Forbes revisits the EIDL program, how its loans work, and what you need to know now.
- Article Highlights
- Overview of loan terms
- The security interest requirement
- What you can use the loan for
- How will this work with PPP and Unemployment Benefits?
- Certifications
Read the full article.
Paycheck Protection Program Loan Forgiveness Application
PPP Loan Forgiveness Application Overview
Simplifies the 8-week cutoff
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The SBA released the Paycheck Protection Program Loan Forgiveness Application on May 15, 2020. Following are the most salient points from the guidance according to a report from Grassi & Company.
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The new guidance allows use of an 8-week covered period from loan disbursement date or “Alternative Payroll Covered Period,” which begins on the first day of the first payroll period following the loan disbursement date and ends 8 weeks/56 days later.
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It also addresses “incurred and paid” complexity by allowing the last pay period to continue to be eligible for forgiveness if paid on or before the next regular payroll date, even if this date is outside the 8-week period. This removes the need to accelerate pay dates.
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Non-payroll costs can be included as paid during the 8-week period following loan disbursement or incurred during the 8-week period following the loan disbursement and paid on or before the next regular billing date (even if outside the 8-week period following the loan disbursement).
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To see the overview in full, click here.
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Here is the PPP Loan Forgiveness Application
REPLAY: “Leadership Webinar Series” “Figuring out the New Normal: Business in the Time of COVID”
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As a follow up to our recent Leadership Series Webinar with Patricia Mulligan, Esq., here are some additional tips and resources related to COVID-19 & Employer Liability, Employee Precautions and Benefits.
If you missed the webinar, you can view the REPLAY here.
