Matthew Rodgers Business Posts April 1, 2020

Revised 4/28/20

I spent a lot of time this past week researching what government relief options are being provided for restaurants and businesses across the US, who have been affected by COVID-19. In addition, have had many helpful discussions with our clients and consultations with our accountants, banks and related advisors all on this topic.

Here are some key notes, takeaways and options to consider:

1) Disaster Loan Advance of up to $10,000 in up to 3 business days for firms who have experienced a revenue loss during COVID-19. Won’t have to be repaid and is available until 9/30/20. Apply here: https://www.sba.gov/page/ disaster-loan-applications

***4/28 Update*** – No new applications being accepted, SBA is processing current ones in the pipeline.

2) Small Business Relief: CARES ACT – Paycheck Protection Program Loans (500 employees or less, maximum amount $10MM).

-Interest Rate 3.75% for for-profit businesses

-No loan payments required 6 months from issue date

-No personal guarantees required

-Most importantly, a portion of this loan could be forgiven by the government if you retain your staff and use the funds toward covered purposes – in this sense, this is essentially a grant, from the government to your business.

-Use of Funds – Payroll and related cost (admin., sick leave, group health premiums), Mortgage Payments, Rent, Utilities, any other debt obligations that were incurred before Feb. 15th.

-Please note, the government still needs to release more specifics on this one! Also, ask your bank about this and more information can be found here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

3) Mid-Sized Business Relief: CARES ACT Loans (500-10,000 employees):

-Low-Interest (less than 2%) loans, no payments due for 6 months

-These loans do have some restrictions – you must retain 90% of your workforce

-Please note, the government still needs to release more specifics on this one! Also, ask your bank about this and more information can be found here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

***Update PPP Program on 4/2/20*** – 1099’s are not included in the PPP Calculation! I recommend checking the official treasury website: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

Then click “Paycheck Protection Program – Interim Final Rule” to review the 31 page document.

-***4/28 Update***: Second round of funds have been released for PPP $310 billion

Also this video really breaks the document down well!

https://www.youtube.com/watch?v=Dz17I-7yuts&app=desktop

4) SBA 7 (a) loans and 7 (a) express loans updates, ask your bank about this:

-These loans can be good options given interest rates have fallen, terms are more flexible, payments are deferred, and more.

-The maximum SBA 7(a) loan amount will increase to $10,000,000 (up from $5,000,000) through December 31, 2020.

-SBA Express loan program limit will increase to $1,000,000 (up from $350,000) through December 31, 2020, and thereafter will have a maximum amount of $500,000.

-I liked this article that outlined some more details on this: https://www.jdsupra.com/ legalnews/small-business- interruption-loans-62285/ .

-Please note, the government still needs to release more specifics on this one! Also, ask your bank about this.

5) Monitor this SBA page for updates: https://www.sba.gov/disaster- assistance/coronavirus-covid- 19

Hope you found this helpful! In case you missed last weeks newsletter, we talked about how our clients (restaurants & hospitality) are adapting to COVID-19. You can read more by clicking here.

RestaurantZone helps restaurants & hospitality across the nation hire excellent people. For customers experiencing hardship during COVID-19, please contact us by email or call us at 1-800-513-5096 about special staffing support offered. Learn more here.

This information provided above is not final, subject to change, and meant for informational purposes only. Please note that nothing in this newsletter should be regarded as legal advice, and we encourage you to consult with your own advisors before making any business decisions. This information is solely presented as a convenience but is not meant to replace the advice of attorneys or other advisors.