Corona Virus Update

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SBA Releases Guidance on Paycheck Protection Program

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers who have been most impacted by COVID-19.

This round of the PPP provides $284 in funding through March 31, 2021 and allows certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates and clarifications include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • For the first PPP loan, the maximum loan amount is the lesser of $10 million or a 2.5 times the borrower’s average monthly payroll costs from 2019 or 2020;
  • PPP loans will cover payroll costs, rent, mortgage, utilities and additional expenses, including refinancing an SBA EIDL loan; personal protection equipment; technology operations expenditures; supplier costs; property damage costs related to public disturbances in 2020;
  • Payroll costs have been expanded to include compensation to employees (salary, wages, commissions, or similar compensation); cash tips or the equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care or group life, disability, vision, or dental insurance, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation;
  • The SBA retains the 60/40 requirements where at least 60 percent of the PPP loan proceeds must be used for payroll costs;
  • Loans will be guaranteed under the PPP under the same terms, conditions and processes as other 7(a) loans, with certain changes including but not limited to: (1) The guarantee percentage is 100 percent; (2) No collateral will be required; (3) No personal guarantees will be required; (4) The interest rate will be 100 basis points or one percent; (5) The maturity date on a PPP loan is five years; and (6) certain fees are waived. The “credit elsewhere test” does not apply for the PPP.
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount;
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan;
  • Borrowers begin paying principal and interest on their PPP loan within 10 months after the end of the loan forgiveness covered period unless they submit to their lender a loan forgiveness application;
  • To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attributable to nonpayroll costs;
  • A business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues;
  • Eligible entries include 501(c)(6) organizations so long as they meet other requirements like (1) they do no receive more than 15% of their receipts from lobbying or lobbying activities; (2) the lobbying activities of the organization do not comprise more than 15 percent of the total activities of the organization; (3) the cost of the lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year of the organization that ended prior to February 15, 2020; and (4) the organization employs not more than 300 employees;
  • Businesses are not eligible if: (1) they were not in operations on February 15, 2020; and (2) the applicant or the owner of the applicant is the debtor in a bankruptcy proceeding, either at the time it submits the application or at any time before the loan is disbursed.

Second Draw PPP:

  • A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • The maximum loan amount is the lesser of $2 million or a 2.5 times the borrower’s average monthly payroll costs based on the calendar years 2019 or 2020 (or 3.5 times the average payroll costs if your business is under NAICS code 72).
  • Second Draw PPP Loans are eligible for loan forgiveness on the same terms and conditions as First Draw PPP Loans.

The new guidance released includes:

  • PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
  • Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act; and
  • Interim Final Rule on Second Draw PPP Loans.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares

President Trump Signs Fourth COVID-19 Relief Bill

On December 21, 2020, Congress reached a deal on a $900 billion stimulus package to help Americans and small businesses address challenges with COVID-19. On December 27, President Trump signed the bill into law.

Below is an overview of some key provisions, including another round of PPP, tax incentives, and direct payments to individuals. Liability protections for businesses and additional state and local funding are not included in the bill so that Congress could set aside these two top contentious provisions and advance the rest of a relief bill.

Small Business:

$325 billion - $284 for PPP; $20 billion for EIDL; $2.5 billion for SBA Debt Relief Payments; $2 billion for SBA Lending Programs

PPP: The fourth package of relief includes over $284 billion for first and a second forgivable PPP loans and dedicated set-asides for very small businesses. SBA will release guidance within 10 days of President Trump signing the bill, and we expect PPP to roll out in the first half of January with some members of Congress pushing for the program to be open by January 1. The PPP will be open through March 31, 2021.

PPP Second Draw Loans:

  • Creates a second round of PPP loans for eligible businesses.
  • Defines eligibility for the PPP second draw as small businesses that have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020. If second-time returning PPP borrower, first round of PPP funds must have been used.
  • Establishes a maximum loan size is the lesser of $2 million or 2.5X average monthly payroll costs.
    • Allows small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) to receive PPP second draw loans equal to 3.5X average monthly payroll costs in order to helps these businesses combat onerous State and local restrictions.
    • Maintains existing expansions in eligibility for businesses assigned to the industry NAICS code 72 (Accommodation and Food Services).
    • Information on NAICS codes: Every industry has been assigned a NAICS code, and each business is assigned a NAICS code as referenced on tax documentation. The NAICS code is self-identified by the company, and businesses may have more than one code, but they are determined by the primary industry a business is in. For instance, if the company reasonably believes it belongs in a particular industry, and that it qualifies as small based on SBA’s size standards for each NAICS code, it can certify as small when applying for an SBA loan.
      • SBA determines NAICS codes by considering factors like the distribution of receipts, employees and costs of doing business among different industries in which business operations occurred in the most recent fiscal year.
      • Some of the NAICS codes that could apply to bowling proprietors:
        • Bowling Centers: 713950
        • Full-Service Restaurants: 722511
        • Limited-Service Restaurants: 722513
      • Borrowers receive full loan forgiveness if they spend at least 60 percent of their PPP second draw loan on payroll costs over a time period of their choosing between 8 weeks and 24 weeks.
      • Affirms the eligibility of churches and religious organizations and prohibits a future administration from making them ineligible.
      • Preserves the application of affiliation rules to nonprofits, which makes Planned Parenthood ineligible.
      • Includes set-asides to support first-time PPP borrowers with 10 or fewer employees, second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers who have been made newly eligible, and second-time returning PPP borrowers. Additionally, provides for a set-aside for loans made by community lenders.

PPP Improvements:

  • Expands PPP allowable and forgivable expenses to include supplier costs on existing contracts and purchase orders, including the cost for perishable goods at any time, costs relating to worker protective equipment and adaptive costs, and technology operations expenditures.
  • Provides needed assurances to PPP lenders that no enforcement action could be taken against a lender who originated the loan in good faith, complied with all regulations, and relied in good faith on a borrower’s certification and documentation.
  • Enhances borrower flexibility by allowing borrowers to select their loan forgiveness covered period between 8 weeks and 24 weeks.
  • Simplifies the forgiveness application process for smaller loans up to $150,000 while increasing SBA’s ability to audit and review forgiven loans.
  • Allows PPP borrowers to include additional group insurance payments when calculating their PPP payroll costs. This would cover insurance plans such as vision, dental, disability and life insurance.
  • Allows borrowers who returned all or part of their PPP loan to reapply for the maximum amount applicable. It also allows lenders to recalculate borrower’s loan amounts due to changes in regulations regardless of whether SBA Form 1502 has been submitted.
  • Defines “seasonal employer.”
  • Expands PPP eligibility for certain 501(c)(6) nonprofits and Destination Marketing Organizations with 300 or fewer employees that do not receive more than 15 percent of their revenue from lobbying.
  • Establishes a procedure in the bankruptcy process if the Administrator determines certain small business debtors in Chapter 11 are eligible for PPP loans.
  • Eliminates the requirement that EIDL advances be subtracted from PPP forgiveness.

EDIL and Other Small Business:  The bill includes $20 billion is included for new EIDL Grants for businesses in low-income communities, and the EIDL will be open through December 31, 2021 or while funds remain. Small businesses and nonprofits in low-income communities are eligible to receive $10,000 grants. Any small businesses and nonprofits in low-income communities that received an EIDL Advance previously are also eligible to receive the full $10,000 if their award was less in the first round of grants.

Extended SBA Debt Relief Payments: This bill provides $3.5 billion to resume debt relief payments of principal and interest (P&I) on small business loans guaranteed by the SBA under the 7(a), 504 and microloan programs.

All borrowers with qualifying loans approved by the SBA prior to the CARES Act will receive an additional three months of P&I, starting in February 2021. Going forward, those payments will be capped at $9,000 per borrower per month. After the three-month period described above, borrowers considered to be underserved—namely the smallest or hardest-hit by the pandemic—will receive an additional five months of P&I payments, also capped at $9,000 per borrower per month. SBA payments of P&I on the first 6 months of newly approved loans will resume for all loans approved between February 1 and September 30, 2021, also capped at $9,000 per month.

Enhancements of SBA Lending Programs: This bill provides $2 billion to enhance SBA’s core programs, including 7(a), Community Advantage, 504, and the Microloan program, by making them more affordable and useful to small businesses. It also provides $57 million for the SBA Microloan Program to provide technical assistance and leverage about $64 million in microloans for minority-owned and other underserved small businesses. More specifically,

  • Temporarily enhances the terms of the 7(a) loan program by increasing the loan guarantee to 90 percent and offering reduced or no fees for the borrower and the lender. Additionally, it would temporarily increase the 7(a) express loan limit and loan guarantee to provide access to needed working capital.
  • Temporarily eliminates fees for the 504 loan program and favorable terms for refinancing loans.
  • Increases the aggregate loan limit for microloan intermediaries in order to ensure intermediaries have increased capacity to make loans to underserved and underbanked borrowers.
  • Extends the Small Business Debt Relief program, Section 1112 of the CARES Act, which would defer payments of principal and interest on new and existing SBA 7(a), 504, and Microloan programs for eligible entities.

Tax Incentives:

PPP Taxable Income and Deductions: The bill specifies that forgiven Paycheck Protection Program (PPP) loans will not be included in taxable income. It also clarifies that deductions are allowed for expenses paid with proceeds of a forgiven PPP loan, effective as of the date of enactment of the CARES Act and applicable to subsequent PPP loans. This same tax treatment also applies to EIDL grants and certain loans and loan repayment assistance.

This PPP tax deduction provision overrides Treasury Secretary Mnuchin and the IRS, who blocked businesses from writing off rent, utilities and other business expenses paid for with PPP funds. The deduction benefit could generate more than $100 billion in tax savings for business owners, according to Brookings Institution estimates. 

Extension of the Employee Retention Tax Credit: The bill extends and expands the refundable Employee Retention Tax Credit (ERTC), which was established in the CARES Act. The extension of this tax credit is through July 1, 2021. Specifically, this legislation, among other changes:

  • Increases the credit rate, from 50% to 70%;
  • Raises the limit on per-employee creditable wages from $10,000 for the year, to $10,000 for each quarter;
  • Expands eligibility for the credit by reducing the required year-over-year decline in gross receipts from 50% to 20%; and
  • Modifies the threshold for treatment as a ‘large employer’ by increasing the 100-employee delineation for determining the relevant qualified wage base to employers with 500 or fewer employees.

Extension of Paid Leave Credits: The bill extends the refundable payroll tax credits for paid sick and family leave that were established in the Families First Coronavirus Response Act, through March 31, 2021. The bill also allows self-employed individuals to use their average daily self-employment income from 2019, rather than 2020, for purposes of computing these credits.

Extension of Charitable Giving Incentives: The bill includes a one-year extension of the $300 above-the-line-deduction, which was established in the CARES Act and set to expire the end of this year. It also increases the amount for 2021 that married couples filing jointly can deduct for charitable contributions, from $300 to $600. This will continue to incentivize individuals who do not itemize to support charitable organizations during this crisis. Additionally, the bill extends through the end of 2021 the increased limits on deductible charitable contributions for companies and taxpayers who itemize.

Relief for Individuals with Flexible Spending Arrangements (FSAs): The legislation provides relief for individuals with health and dependent care FSAs, ensuring U.S. workers and families do not unfairly lose out on these employer-sponsored benefits at the end of the year, through no fault of their own. Specifically, it allows individuals to carryover any unused health and dependent care FSA benefits from 2020 into the 2021 plan year, along with other FSA plan flexibilities.

Direct Economic Relief:

 $120 billion in Unemployment Insurance and $166 in Economic Impact Payments

Direct Payments: An additional round of Economic Impact Payments of $600 for individuals making up to $75,000 per year and $1,200 for couples making up to $150,000 per year, as well as a $600 payment for each child dependent. This means a family of four will receive $2,400 in direct payments. Treasury Secretary Mnuchin said the checks would start to be sent out as soon as the week of December 28.

Unemployment Insurance: The bill includes an additional $300 per week enhanced federal unemployment insurance bump through the Federal Pandemic Unemployment Compensation (FPUC) after the initial program in the CARES Act expired in July. The $300 per week benefit goes for 10 weeks from December 26, 2020 through March 14, 2021.

This bill also extends the Pandemic Unemployment Assistance (PUA) program, which provides additional weeks of federally-funded unemployment benefits to eligible individuals who became unemployed as a result of the pandemic and are either self-employed, do not have sufficient work history to be eligible for a claim, or have exhausted other forms of unemployment insurance benefits. Additionally, the bill increases the maximum number of weeks an individual may claim benefits from 38 weeks to 50 weeks.

The bill extends the Pandemic Emergency Unemployment Compensation (PEUC) program, providing additional weeks of federally funded benefits to workers who have exhausted their regular state unemployment benefits. It also increases the weeks of PEUC benefits an individual may claim, from 13 to 24.

Some of the other relief provisions include funding for healthcare (vaccines, testing, and tracing); transportation (airlines, Amtrak, motorcoach, and transit agencies); education; and rental assistance. 

BPAA will continue to send details on these relief provisions.

Congress Reaches a Deal on the Fourth COVID-19 Relief Package

BPAA Members:

While the ink is not yet dry on the stimulus package we expect Congress to vote on today, we have included what we believe to be the highlights of the legislation. It is subject to change as members of Congress and their staffs are just now pouring over the details. We will continue to provide you updates on developments and details as that information becomes available.  

Congress Reaches a Deal on the Fourth COVID-19 Relief Package

On December 21, 2020, Congress reached a deal on a $900 billion stimulus package to help Americans and small businesses address challenges with COVID-19. The bill is expected to pass today.

Below is an overview of some key provisions, including another round of PPP, tax incentives, and direct payments to individuals. Liability protections for businesses and additional state and local funding do not appear to be included in the bill so that Congress could set aside these two top contentious provisions and advance the rest of a relief bill. The BPAA team will follow up with additional details as they are released.

Small Business:

$325 billion - $284 for PPP and $20 billion for EIDL

PPP: The fourth package of relief includes over $284 billion for first and second forgivable PPP loans and dedicated set-asides for very small businesses. It also expanded PPP eligibility for 501(c)(6) nonprofits. Specific details about eligibility requirements, covered expenses, and streamlined forgiveness provisions will be released soon.

EDIL and Other Small Business:  The bill includes $20 billion is included for new EIDL Grants for businesses in low-income communities, $3.5 billion for continued SBA debt relief payments, and $2 billion for enhancements to SBA lending.

Tax Incentives:

PPP Deduction: The relief bill clarifies that business owners can deduct expenses paid for with PPP loans, which can be forgiven by the government without incurring a tax. This provision overrides Treasury Secretary Mnuchin and the IRS, who blocked businesses from writing off rent, utilities and other business expenses paid for with PPP funds. The deduction benefit could generate more than $100 billion in tax savings for business owners, according to Brookings Institution estimates. 

Extension of the Employee Retention Tax Credit: The bill extends and expands the refundable Employee Retention Tax Credit (ERTC), which was established in the CARES Act. The extension of this tax credit is to help keep additional U.S. workers on payroll and more small businesses and nonprofits across the country afloat.

Direct Economic Relief:

$120 billion in Unemployment Insurance and $166 in Economic Impact Payments

Direct Payments: An additional round of Economic Impact Payments of $600 for individuals making up to $75,000 per year and $1,200 for couples making up to $150,000 per year, as well as a $600 payment for each child dependent. This means a family of four will receive $2,400 in direct payments. Treasury Secretary Mnuchin said the checks would start to be sent out next week.

Unemployment Insurance: The bill includes an additional $300 per week enhanced federal unemployment insurance bump after the initial provision in the CARES Act expired in July. The $300 per week benefit goes through March 14, 2021.

This bill also extends the Pandemic Unemployment Assistance (PUA) program, which provides additional weeks of federally-funded unemployment benefits to eligible individuals who became unemployed as a result of the pandemic and are either self-employed, do not have sufficient work history to be eligible for a claim, or have exhausted other forms of unemployment insurance benefits. Additionally, the bill increases the maximum number of weeks an individual may claim benefits through regular state unemployment plus the PEUC program, or through the PUA program, to 50 weeks.

The bill also provides an extra benefit of $100 per week for certain workers who have both wage and self-employment income but whose base UI benefit calculation doesn’t take their self-employment into account.

Some of the other relief provisions include funding for healthcare (vaccines, testing, and tracing); transportation (airlines, Amtrak, motorcoach, and transit agencies); education; and rental assistance. 

BPAA will follow up with additional details of the relief package as the language is released.

Update on SBA Paycheck Protection Program and Loan Forgiveness

The greatest attraction for small businesses about Small Business Administration’s (SBA) Paycheck Protection Program (PPP) was SBA’s forgiveness of loan proceeds that are used for certain expenses like wages, benefits, mortgages and rent. Borrowers may be receiving different information about the status of the loan forgiveness timeline and process. Below is an overview of loan forgiveness and what lender and borrowers can expect to happen on the PPP in the future.

Current PPP Loan Forgiveness– Process and Timeline

While the SBA began accepting loan forgiveness applications in August, it just began approving them in on October 2. 

To apply for loan forgiveness, PPP borrowers should work with their lenders that issued the PPP loan on the submission of the application form. Borrowers with loans under $50,000 may use a simpler loan forgiveness application that will provide for a streamlined process that focuses more on certifications and less on calculations. Borrowers must submit documentation on payroll periods, business mortgage interest payments, business rent or lease payments, and business utility payments during the covered period of the loan. 

SBA details in its factsheet that a borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan, which is either two years or five years. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.”

Lenders have 60 days to review the borrower’s application and submit it to the SBA. SBA then has up to 90 days to review the submission and issue a decision. SBA has said that applications are expected to be approved quickly unless the loan is above $2 million. Loans above $2 million are subject to additional scrutiny as detailed below.

Note that each lender is approaching the forgives process differently, with several who have held off on proceeding through the application process and others who have opened up applications for certain borrowers like those who have loans above $150,000. Lenders who have delayed proceedings are largely doing so because of the expectation that the forgiveness process may change with the passage of a fourth COVID-19 relief bill. Additionally, some delay in the process has allowed lenders to see how SBA approaches loan forgiveness without being the guinea pig given the initial rollout of the PPP created much uncertainty that led to several changes in the weeks and months after.

Potential Changes to PPP Loan Forgiveness

Congress is considering several changes to the PPP in a fourth COVID-19 relief bill. Congress has proposed to issue small businesses that have been hit the hardest by the pandemic a second PPP loan. The proposed second PPP loan would available to qualifying small businesses that meet the applicable SBA revenue size standard, have no more than 300 employees, and demonstrate at least a 50 percent reduction in gross receipts in the first or second quarter of 2020 relative to the same 2019 quarter.

In general, borrowers may receive a loan amount of to 2.5 times average total monthly payroll costs in the one year prior to the loan, up to $2 million. Businesses that received a PPP loan may not receive another PPP loan that aggregates to more than $10 million. The 60/40 cost allocation for payroll and non-payroll costs to receive PPP forgiveness would continue to apply. Issuing a second PPP loan has broad bipartisan support and is expected to be a part of a fourth stimulus package, or it may pass separately pending on hold up on a broader package.

A second change to the PPP that Congress is considering is to streamline forgiveness for PPP loans under $150,000 by granting blanket forgiveness to borrowers who can attest the processed were used in accordance with the guidelines and regulations. This proposal for automatic forgiveness is what has caused some lenders to delay forgiveness proceedings, so they do not need to submit unnecessary information for borrowers with loans less than $150,000.

Michael Best Strategies and BPAA have been engaging with Members of Congress on the fourth stimulus bill. We have been advocating for a second round of PPP, streamlined forgiveness processes for the PPP, a long-term relief program for small and medium-sized businesses, and liability protections for employers who are acting in good faith and implementing best practices to protect your employees and customers. A relief package may pass before the year-end. Negotiations between the House, Senate and administration are ongoing as significant differences between parties still need to be resolved.

Necessity Questionnaires for PPP Loans Above $2 Million

SBA recently started to issue “necessity questionnaires” for PPP loans over $2 million. On October 26, 2020, the SBA posted a notice in the federal register that includes two borrower questionnaires (Form 3509 and Form 3510). The questionnaires are directed to profit and non-profit borrowers who obtained loans in excess of $2 million. SBA has shared with Michael Best Strategies that the questionnaires have been circulated to banks who will process the forms for the purposes of the forgiveness phase of the PPP program.

The questionnaires require information from borrowers on a variety of topics including: (1) second quarter revenue for 2019 and 2020, (2) information about voluntary or mandatory cessation of or alteration of operations, including expenditures on capital projects, (3) a requirement to disclose cash and cash equivalents on hand on the date of the application, (4) the number of employees paid salaries above $250k, (5) the amount of distributions to owners, and (6) a disclosure of private equity and venture capital ownership. Such answers bear on the good faith compliance with the necessity requirement of borrowers and the forgiveness phase of the PPP program—the form stating, “the information collected will be used to inform SBA’s review of your good-faith certification that economic uncertainty made your loan request necessary to support your ongoing operations.” Further, the questionnaires state:

  • Receipt of this form does not mean that SBA is challenging that certification . . . [But] failure to complete the form and provide the required supporting documents may result in SBA’s determination that you were ineligible for either the PPP loan, the PPP loan amount, or any forgiveness amount claimed, and SBA may seek repayment of the loan or pursue other available remedies.

Given the $2 million threshold, only a small number of borrowers are required to complete the questionnaires at this time. This is likely a part of the auditing process that the administration said it would do for loans over $2 million. 

Read more about these questionnaires in Michael Best’ article.

For additional information, please contact Sarah Helton or Tom Schreibel at Michael Best Strategies. 

House Clears Extension of Small-Business Loan Program

Today, the U.S. House of Representatives passed the Senate legislation extending the deadline for companies to apply for Paycheck Protection Program loans (PPP) through August 8. The bill S.4116, was originally passed by the Senate yesterday, and will now go to President Trump for review.

Originally, the application period was set to expire at the end of the day on June 30th, at which $130 million was remaining in PPP funds. On June 30th, the Senate was quick to pass the bill through to the House.

“When Congress passed the CARES Act in March, we thought that small businesses would be operational by the end of June, but it is now clear that our nation’s small businesses will still need support in the weeks and months to come,” said Sen. Ben Cardin(D-MD), the bill’s sponsor and ranking member of the Senate Small Business and Entrepreneurship Committee, said in a news release after the Senate’s action.

Paycheck Protection Program

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.

How To Apply

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

What's Next?

In the weeks ahead, senators will continue bipartisan negotiations on the Prioritized Paycheck Protection Program (P4) Act—legislation Cardin, Shaheen, and Coons introduced to authorize new lending under PPP to small businesses with 100 employees or less, including sole proprietorships and self-employed individuals. Eligible businesses must have already expended an initial PPP loan, or be on pace to exhaust the funding, and must demonstrate a revenue loss of 50 percent or more due to the COVID-19 pandemic. The bill would extend the application deadline for initial PPP loans from June 30 to December 30, or longer, at the discretion of the Small Business Administration (SBA), and would use existing PPP funding to make P4 loans.

To ensure that under-served and hardest-hit businesses can access P4 loans, publicly traded companies are ineligible for the loans; hospitality and lodging businesses with multiple locations are limited to an aggregate loan amount of $2 million; and the bill would reserve the lesser of $25 billion or 20 percent of PPP funds for employers with 10 or fewer employees, as well as small businesses in under-served and rural communities. The bill also directs SBA to issue guidance to give priority to businesses with 10 employees or fewer in the processing and disbursement of P4 and PPP loans, and requires SBA to request demographic information of P4 and PPP loan recipients.

Additionally, the P4 Act would:

  • provide eligible small businesses with as much as 250 percent of monthly payroll costs worth up to $2 million;
  • prevent affiliated businesses with separate locations from receiving more than $2 million in aggregate P4 loans; and
  • allow P4 recipients maximum flexibility to apply for loan forgiveness as soon as 8 weeks after the loan disbursement.

Friends, Please know that our Coronavirus Relief team at Michael Best is standing by to assist you with obtaining the relief provided. We can assist you through this crisis. Let us know if you need assistance.

On behalf of the team,

Denise Bode

Click here to visit Michael Best COVID-19 Resource Center with the latest updates on business & legal implications related to the coronavirus.

New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program (PPP)

The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, posted a revised, Paycheck Protection Program (PPP) loan forgiveness application.

SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. The revised full application has been cut to five pages, including a page of instructions, from the original 11, and the new “EZ” application form is just three pages.These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

Revised Application

EZ Forgiveness Application

PPP Loan Forgiveness Application

Friends, Please know that our Coronavirus Relief team at Michael Best is standing by to assist you with obtaining the relief provided. We can assist you through this crisis. Let us know if you need assistance.

On behalf of the team,

Denise Bode

Small Business Administration Reopens Economic Injury Disaster Loan Program

The U.S. Small Business Administration announcedthat it has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19 today.

The EIDL is a long-standing SBA program that is accustomed to dealing with geographically contained disasters, such as hurricanes, tornadoes and wildfires. The program offers long-term, low interest assistance for a small business or non-profit that are suffering substantial economic injury as a result of COVID-19.

The Economic Injury Disaster Loan (EIDL) and EIDL Advance:

  • Loan up to $2 Million.
  • Loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.
  • The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
  • SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
  • Small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan. 

SBA stopped taking new requests for loans and grants from the EIDL, when initial funding ran out on April 15. When funding ran out it prompted Congress to divert more resources to it. In late April, Congress allocated an additional $60 billion for the loan program. Despite the additional funding since May 4, SBA has only been taking requests from agricultural businesses.

SBA Administrator Jovita Carranza said in a statement that the reopening will help small businesses and nonprofits.

“With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low-interest loans and emergency grants – reducing the economic impacts for their businesses, employees and communities they support,” Carranza said.

Carranza also said that the SBA has made improvements to help the program run more smoothly. She said "to meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.”

For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.

Operational Monetary Cash Supply Challenges

It has been reported by a member that Banks are saying they are very short on change. In some cases, banks are limiting change orders. If you are open please monitor your local banks behavior and would recommend a discussion with them. If you are not yet open and you transport change with a bank, please take this under consideration in your opening plans about getting operating cash for units over several weeks.

Senate Passes PPP Bill

By unanimous consent the U.S. Senate passed the House-passed bill to extend the Paycheck Protection Program.

The recently passed bill would:

  • Allow recipients of loan forgiveness under the Paycheck Protection Program to defer payroll taxes.
  • Lower current requirement that 75% of a loan be used on payroll to 60%. The remaining 40% can be used for other expenses including paying rent and utilities.
  • Extend the amount of time the loan covers from 8 weeks (2 months) to 24 weeks (6 months) or Dec. 31, whichever comes sooner.
  • Extend from 2 years to 5 years the time allowed to repay any money owed on a loan.
  • Extend deadline to rehire workers from June 30 to Dec. 31, 2020.

For a full breakdown of what is in the bill click here.

The chamber approved the measure by voice vote hours after Sen. Ron Johnson blocked a Democratic effort to unanimously approve it. The Wisconsin Republican got assurances on making changes to the bill later. He has said he wants the loan system known as the Paycheck Protection Program to expire earlier than initially planned.

The bill will now go to President Trump.

Friends, Please know that our Coronavirus Relief team at Michael Best is standing by to assist you with obtaining the relief provided. We can assist you through this crisis. Let us know if you need assistance.

On behalf of the team,

Denise Bode

Click here to visit Michael Best COVID-19 Resource Center with the latest updates on business & legal implications related to the coronavirus.

House Acts to Provide Corrections and Flexibility to the PPP Program

House Passes Legislation Providing Flexibility to Paycheck Protection Program; Additional Guidance Out On Loan Forgiveness from Treasury and SBA

House Acts to Provide Corrections and Flexibility to the PPP Program

The House of Representatives overwhelming passed The Paycheck Protection Program Flexibility Act of 2020, that will provide flexibility to the Paycheck Protection Program. The Paycheck Protection Program, the core part of the $2 trillion pandemic rescue package passed in March, allows loans of as much as $10 million that can be forgiven if a business spends it within eight weeks on payroll and no more than 25% for rent and other approved expenses. The Small Business Administration has reported that more than 4.4 million loans worth $510.5 billion had been approved as of May 27.

The House bill, H.R. 7010 would:

  • Allow recipients of loan forgiveness under the Paycheck Protection Program to defer payroll taxes.
  • Lower current requirement that 75% of a loan be used on payroll to 60%. The remaining 40% can be used for other expenses including paying rent and utilities.
  • Extend the amount of time the loan covers from 8 weeks (2 months) to 24 weeks (6 months) or Dec. 31, whichever comes sooner.
  • Extend from 2 years to 5 years the time allowed to repay any money owed on a loan.
  • Extend deadline to rehire workers from June 30 to Dec. 31, 2020.

The bill passed 417-1, with many of the Democratic votes read into the record by their assigned proxy, which allows lawmakers to cast votes on behalf of members not present. A rule change that was largely rejected by republican members of the House when introduced.

The bill will now move to the Senate to be voted on. The Senate has already put forward a bill similar to the House bill, but has not yet passed it.

The bill which was released last week by Chairman Rubio, Senator Cardin, Senator Collins and Senator Shaheen that calls for future action on the Paycheck Protection Program. Several changes include:

  • Pushes deadline to apply for program from June 30, 2020 to December 31, 2020;
  • Extending the covered period of the loan and from 8 week period to 16 weeks;
  • Including “covered worker protection expenditures” as allowable expenditures for using the loan proceeds. This includes various operating or capital expenditures that are required to comply with HHS, CDC or OSHA requirements or guidance; and
  • Hold harmless provision clarifying that borrowers who maintained payroll for eight weeks won’t forfeit loan forgiveness because of the extension, and ensures that lenders aren’t held liable for borrowers’ certifications made for the loans.

There is no language on the 75/25 requirement, but we expect it to be part of the debate. There are a few other Senate bills proposed to fix PPP. Some of their proposals include extending the covered loan period to 16 or 24 weeks for certain borrowers and eliminating or changing the 75/25 requirement.

While the administration has weighed in and called for Congress to make changes to the PPP, it appears to be standing by its 75/25 requirement it added in its regulations.

Given the timing, we expect a bill to be passed the first week of June when the Senate returns from recess. The timing matters because the first companies that received loans after the PPP program opened on April 3 will see the eight-week loan-forgiveness periods begin to expire at the end of next week and in early June. House Majority Leader Steny Hoyer said Tuesday the House and Senate should be able to quickly agree on changes.

SBA and Treasury’s Rule and Application for Loan Forgiveness under PPP

Last week, the SBA and Department of Treasury released the PPP loan forgiveness application and Interim Final Rule on Loan ForgivenessRead our firm’s alert on highlights and considerations for borrowers on the application. The interim rule and application clarifies some questions on period of review for loan forgiveness, how to determine payroll and non-payroll costs paid and incurred during the loan period, reductions in loan forgiveness, among other issues. Borrowers will need to work closely with their lender to ensure loan forgiveness.

Friends, Please know that our Coronavirus Relief team at Michael Best is standing by to assist you with obtaining the relief provided. We can assist you through this crisis. Let us know if you need assistance.

On behalf of the team,
Denise Bode

For more information check our past alerts for a detailed summary of relief.

Sign up for MBS COVID-19 alerts here 

Click here to visit our COVID-19 Resource Center with the latest updates on business & legal implications related to the coronavirus.


What to expect when you open for business?

While no one knows for sure what to expect when you make the decision to reopen for business, we are starting to get some feedback from fellow members that we wanted to share with you. This data is directional only in hopes of providing you some information that might be helpful.

 It would make sense that the customers that would come see you first would be your league bowlers. They are the people that know you best, love the game of bowling and have their own equipment. So around the country the first customers to visit bowling centers are the most loyal customers, league bowlers.

As it relates to location, rural centers are performing better than major metropolitan centers from a revenue perspective. This follows the trend of where COVID-19 has been most prominent. Many rural areas around the country (even in states with higher cases) have had little in the way of COVID-19 cases and thus business has rebounded faster.

From a volume perspective, most centers are seeing between 20% to 25% of previous year volume to start with. And while that number is no where near what you might be hoping for, the positive note is the volume gives you and your team the opportunity to work out the new service model with your customers. The good news is that those who have been open a couple of weeks now, are reporting that sales are increasing (albeit slowly) each day! Business is coming back and making your customers feel safe and secure is key.

 Plotting daily volume in First Data and SYSCO since the shutdown has shown that some centers continued to do what they had to do to generate some income during the shutdown. About 450 centers offered their community take out, delivery and even alcohol curbside (where allowed). There was not a day without activity in SYSCO or First Data. As we open back up; the plotting of charts bring hope as we begin to see the line go up each day.

FOOD AND BEVERAGE FOR OUR CENTERS 

As our centers begin to open, as operators, we might think of a condensed menu for the first few weeks. We might not be able to estimate our business. Also an important aspect is the size of your order as well. As we will be counting nickels, dimes, and quarters, we need to manage our inventory for our food service. Taking some time to review these aspects of our Food and Beverage programs, we feel at BPAA is a must. Feel free to call John Warling at 817-385-8457.

26 That's Quite a Number

That's the percentage of sales that restaurant transactions were down for the week ending May 3 when compared to the same time last year, according to NPD Group, which tracks retail performance via point-of-sale data. But consider the number good news as transactions were down 32 percent the previous week when compared to the same week in 2019, and 43 percent the week ending April 12 when compared to the same week in 2019.

CLA Livestream Series: PPP and EIDL Insights from Washington D.C.


CLA Livestream Series: PPP and EIDL Insights from Washington D.C.

Today - May 14, 2020
Virtual
2 - 2:30 p.m. Central

We look forward to having you join us on today's livestream at 2 p.m. Central.

To join the session, click on the link below.

If you would like to participate in the live chat portion of the session, please sign in to a Google account. If you experience any difficulty connecting to the livestream, please try opening in a different browser.

If you are unable to attend the livestream, you can use the link below to watch the presentation at your convenience.

Click Here to View Live Stream Series Presentation

New guidance clarifies how PPP loan requests will be reviewed in light of good-faith certification requirements.

New Guidance Brings Clarification on PPP Certification Requirements 

Key Insights

The U.S. Department of the Treasury has issued guidance that clarifies how the Small Business Administration (SBA) will review a borrower’s required good-faith certification concerning the necessity of the borrower’s PPP loan request.

FAQ #46, issued on May 13, provides that “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” It should be noted that this $2 million threshold will not be solely based on the loan size of the borrower, but rather will be based on the aggregate loans of the borrower and all of its affiliates.

The new FAQ also provides some comfort for borrowers with loan sizes over $2 million, by explaining that the SBA will not pursue administrative enforcement or referrals to other agencies with regard to a borrower that repays a PPP loan after receiving notification from the SBA that the SBA has determined that the borrower lacked an adequate basis for the required certification concerning the necessity of the loan request.

Click here to Read Full Article

JIM DECKER’S INTERVIEW ON AN ABC NEWS SPECIAL - PANDEMIC: WHAT YOU NEED TO KNOW

In case you missed it, on an ABC News Special, PANDEMIC: WHAT YOU NEED TO KNOW, ABC’s Amy Robach interviewed BPAA President-Elect Jim Decker earlier today about the state of the bowling industry during the Covid-19 Pandemic. Please click the link below to see the interview in its entirety.

Jim Decker Interview

May 6, 2020 | COVID-19 BPAA Member Info

PAYCHECK PROTECTION PROGRAM LOANS

Frequently Asked Questions (FAQs)

The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). Click on the link below to view document with the understanding the document will be updated on a regular basis.

Click here for Paycheck Protection Program FAQ

CLA

Tips for Tracking Information to Help Maximize PPP Loan Forgiveness

While the lending institutions are generally allowing drawdowns on the PPP loan without significant documentation, detailed records will be important to support the loan amount to be forgiven. Technical guidance regarding the specific definitions and clarifications around which expenses are allowable will be forthcoming in the next several weeks and should be monitored closely.

Follow these guidelines to help make the conversations with your lender around forgiveness go smoothly. Communicate with your lender ahead of time so you are prepared. Keep the documentation organized electronically in a secure location on your server so you can adapt to your lender’s specific requirements. In June or July, the goal should be to have all the documentation at your fingertips to help make it easier for you to substantiate and maximize your loan forgiveness.

Click Here for Tips for Tracking Information to Help Maximize PPP Loan Forgiveness

statemap


State-by-State Business Reopening Guidance

Across America, business leaders are restarting our nation’s economic engines and employees are returning to work. However, this process is taking place gradually and non-uniformly across the country depending on regional differences in the prevalence of COVID-19.

In some states, for example, masks are required; in others, they’re suggested. In some states, mask requirements apply only to employees, while in others, customers must wear them, too. In some states, employers are required to screen employees before shifts begin; in others, it’s required after each shift. In still others, it’s not required at all. Meanwhile, some states are leaning on questionnaires, but even then, the questions and retention rules vary.

To help track the differences across each state and provide the latest guidance and information to America’s employers, the U.S. Chamber Staff have launched the following interactive state map and state guides. Below, you will find the latest guidelines, timelines and other critical information for businesses aiming to restart safely and sustainably amid the pandemic, as well as (at the bottom of each state profile) a link to the latest information for employers in that state.

Click Here to View Interactive State Map

April 24, 2020 | COVID-19 BPAA Member Info

Click on link below to view letter sent to Congress to take action to support thousands of bowling proprietors and other small businesses across the country by increasing funding for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) by $250 million and renewing funding for the Economic Injury Disaster Loan program (EIDL).

Click Here to view BPAA PPP Letter to Senate and House Leadership

Below is link for the updated state tracker.We are monitoring GA next steps closely after Trump stated he disagreed with GA Governor’s plan to reopen. Whatever states open up first will certainly be test cases and learning lessons for all other states.

Click here for the COVID-19 State Policy Summary - 04/22/20


Strategic Communications Planning: Looking Around the Corner as We Flatten the COVID-19 Curve

With some initial good news that social distancing and other public health measures are slowing the COVID-19 spread, government and business leaders are looking at what’s next. Most agree it’s likely to be different for different industries and different based on what’s happening in your state or community. 

  • What does a restart, relaunch, rebound look like for your company and your competitors? 
  • What changes are you making in the workplace as you prepare to bring people back to work? 
  • What do your employees want to know before they come back to work? 
  • How will you communicate this to employees, customers, vendors?

Click Here for the Webinar Slide Deck.

FEMA Lists "Best Practices" For Dealing with Essential Services Problems

Coronavirus (COVID-19) Pandemic: Best Practices

FEMA and the U.S. Department of Health and Human Services (HHS) are collecting and sharing best practices and lessons learned from the whole-of-America response to the coronavirus (COVID-19) pandemic. The best practices are intended to help medical practitioners, emergency managers, and other critical stakeholders learn from each other’s approaches and apply solutions to current response and recovery operations.

The  FEMA Coronavirus Emergency Management Best Practices page provides a one-stop shop to explore best practices and lessons learned across all levels of government, private sector, academic institutions, professional associations, and other organizations. HHS has a comprehensive Novel Coronavirus Resources page that highlights technical resources and information for the medical community and emergency responders. 

Best practices are organized around five themes:

  • Helping People which includes best practices on topics such as crisis counseling resources and anticipating and attending to civil rights;
  • Government Operations best practices such as public information and continuity of operations considerations;
  • Private Sector and Infrastructure, which includes best practices for commercial trucking and food stores;
  • Recovery Planning and Implementation, to include the newly released FEMA Disaster Financial Management Guide and economic recovery considerations; and
  • Medical Supplies and Equipment, including best practices for the preservation of personal protective equipment while ensuring workers are protected.

Please visit  www.coronavirus.gov for current health-related guidance and information on COVID-19. 

Friends, Please know that these are just sharing of "best practices" from industry and FEMA and should not be relied upon as standard of care or orders from the federal government. Remember, each state has primacy to date over essential business and business must first comply with the state executive orders. You should consult with counsel on your specific situation. Our Coronavirus Relief team at Michael Best is standing by to assist you with obtaining the relief provided. We can assist you through this crisis. Let us know if you need assistance.  

On behalf of the team,
Denise Bode

For more information check our past alerts for a detailed summary of relief.  
Next Steps
Congress is working on replenishing the appropriation for the PPP loan . Democrats are asking for additional funding for hospitals and state and local governments. Negotiations are ongoing here.
Sign up for MBS COVID-19 alerts here

Click here to visit our COVID-19 Resource Center with the latest updates on business & legal implications related to the coronavirus.


April 16, 2020 | COVID-19 BPAA Member Info Updates

Centers under the BPAA - First Data program have been approved to have monthly account fees waived for 60 days. These fees are not Interchange; but rather any reoccurring fees such as Clover AP fees or PCI assist fees. You do not need to do anything for this. Centers that lease their equipment can have their lease payments deferred for 60 days, but must request this on their own behalf. Below is the information on how to request the payment deferment.

Merchant can call the Leasing Customer Service team at (877)257-2094

  • Merchant can email the Leasing Customer Service team at FDGL@firstdata.com. Merchant should include MID, Lease Number and contact information
  • The Leasing C.S. representative will take the request – and will stop payments.
  • Once the deferral is completed, the merchant will receive an automated email confirming the adjustment

If you had already booked your hotel room for Bowl Expo at the Gaylord Rockies Resort & Convention Center, the hotel will be canceling your reservation. Any refunds typically take 3-5 business days to reflect on bank statements. If you have any questions or require additional information about your canceled reservation and/or refund, please reach out to Dennis.Johnston@GaylordHotels.com.

Any additional questions or concerns, please reach out to Justin Moore, Director of Meetings and Events, at justin@bpaa.com 

Below is a link to the revised version of Michael Best’s COVID-19 Q&A for Employers. This version has been extensively updated as of April 7, 2020, to address federal relief legislation and agency guidance to date. All of the following sections in our Q&A were updated:
  • FMLA AND LEAVE-RELATED QUESTIONS
  • TAX CREDIT QUESTIONS
  • TRAVEL POLICY QUESTIONS
  • WORKPLACE SCENARIOS WITH COVID-19
  • OSHA WORKPLACE SAFETY AND HYGIENE QUESTIONS
  • EMPLOYEE BENEFITS QUESTIONS
  • UNEMPLOYMENT BENEFIT AND RELATED TAX QUESTIONS 

Click Here for Revised Michael Best’s COVID-19 Q&A for Employers

As the COVID-19 continues to disrupt daily life, it’s clear this outbreak will impact all of us across borders and industries. Below you will find additional links to resources to help navigate this challenging time. 

Updated links to all PPP information (of course SBA and Treasury are still adding more guidance and materials):

Click Here for Department of Treasury’s Information on PPP

Small Business Administrations’ Information on Lending Programs:

Click Here for SBA's Information on Lending Programs

Updated State Policy Summary:

Click Here for COVID-19 State Policy Summary-04/09/20

Please note: This is confidential information and should not be passed on outside of your accountants, lenders or family.


How Small Businesses Can Stay Connected to Customers in Tough Times

Register Now

There’s no denying these are challenging times for small businesses, and we know you’re facing a lot. Now more than ever, it’s important for you to stay as connected to your customers as possible, keeping them informed and proactively working with them during these uncertain times. Salesforce is here to help. We launched the Salesforce Care for Small Business initiative to offer tactical advice and tools to help you stay in touch with customers and navigate the current situation.

If you are a current Customer Connect user, now would be a great time to make the transition to the Salesforce platform. If not, let’s talk about getting you started on building your CRM database. Interested? Contact Gary Williams at 817-385-8487 (gary@bpaa.com) or Ronny Dodd at 817-385-8488 (ronny@bpaa.com) for more information. 


Organizational Management: Paycheck Protection Program Updates and Insights

  • 4/9/2020
  • Virtual
  • Hosting

A continued and updated discussion from Tuesday's livestream including the most up-to-date developments.

Thursday, April 9
2 - 2:30 p.m. CT

Join our multipart livestream series to engage in the latest changes related to these uncertain times. You’ll hear strategies for navigating what these developments mean for you. Topics include issues related to legislation, liquidity, workforce, and other relevant topics.

Facilitator:
Leslie Boyd, CLA Principal

Panelists:
Jack Rybicki, CLA Managing Principal of Industry, Real Estate
Todd Sprang, CLA Principal

Can’t make it?
Fill out the registration form and you will receive an email with the recording following the event.

Click Here to Register

04/09/2020 BPAA Update

,

By now, you should have received your Pepsi Checks.

The Q1 SYSCO checks will be heading to centers soon. If centers have a temporary address they would like to get the check, please email amy@bpaa.com or call Amy Arcuri at 817-385-8430.  

The broad line food distributors are forecasting that when operations open back up, it may be difficult to get all your regular menu items for a few weeks as demand to re stock restaurants will be high and will come with little notice. Centers may need to be flexible with menu offerings and BPAA can help with digital menu board design services that are easy to update. BPAA is also helping centers design take out, delivery & pick up menus that can be used on websites, emailed and loaded on social media sites.

The ADP Employer Preparedness Toolkit was designed to help you navigate the challenges you and your workforce are facing. ADP is continuously updating this page, please use it as a resource.

Cleaning for Business

There was a discussion with several small business owners sponsored by Sales Force (with Mark Cuban as the moderator) with one of the things that came up was having a business look at their footprints and see how they can implement modified social distancing in their facilities IE: Move tables further apart,(even if they have to remove a few) rearrange furniture/fixtures to avoid crowds from forming or bottlenecks where customers have to be in close contact, in an effort to make the public comfortable once business resumed.

Of course they also talked about making customers aware of what your business is doing to clean/disinfect/safe food handling etc. To review CDC Cleaning and Disinfection for Community Facilities, please click on the link below.

Click Here for CDC Cleaning and Disinfection for Community Facilities

While many proprietors around the country are using this time to knock out all the cleaning and maintenance items that often get put off during normal business operations, this is also a GREAT time to invest in yourself, your family and your team with Bowling University’s Online Education and On Demand training and development courses.

During the month of March over 1,500 online courses were taken through Bowling University which is almost double the results from March 2019. And, so far for the first 8 days of April over 1,100 online courses have been activated!

For those centers that are fortunate enough to still have some staff on payroll, this is the perfect time for them to learn and grow so you are ready when bowling is back! For more information or to activate your courses email Education@bpaa.com #BowlingStrong

With the current situation, now is the perfect time to think about connecting with your customers to start, or continue, to build your relationship. Webservices offers a Customer Relationship Management solution that helps you maintain and segment your list of customers. It is based on the World’s #1 CRM product, Salesforce.

If you are a current Customer Connect user, now would be a great time to make the transition. If not, let’s talk about getting you started on building your CRM database. Interested? Contact Gary Williams at 817-385-8487 ( gary@bpaa.com) or Ronny Dodd at 817-385-8488 (ronny@bpaa.com) for more information.

Additionally, Salesforce is a very socially conscious corporation and they know that it is important to support small businesses at this time. They want to ensure that small businesses have a chance to get through this current crisis and they have announced the Salesforce Care Small Business Grants program to help small businesses get the resources they need. The Salesforce Care Small Business Grants program will soon be offering $10,000 grants to U.S. small businesses to provide capital to help them weather this crisis. Learn more and sign up to be notified when they open applications.

04/02/2020 COVID-19 Relief Opportunities for Bowling Proprietors

On Friday, March 27, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic relief package aimed at helping American workers and businesses impacted by the COVID-19 pandemic. In this webinar, Michael Best Strategies policy experts and BPAA government relations consultants, Tom Schreiber and Sarah Helton will discuss how the CARES Act, the Families First Coronavirus Response Act, and other administrative actions provide relief for bowling proprietors.

Presented By:

Thomas B Schreibel
Partner, Michael Best Strategies

Click to Email

T. 262-844-2428

Sarah C. Helton Principal
Michael Best Strategies

Click to Email

T. 202.747.9575

To download the presentation from
COVID-19 RELIEF OPPORTUNITIES FOR BOWLING PROPRIETORS Webinar

Download Updated 04/03/2020 
COVID-19 RELIEF OPPORTUNITIES FOR
BOWLING PROPRIETORS Presentation

If you have specific questions that you would like to ask, please complete the form below.

Questions for RELIEF OPPORTUNITIES FOR BOWLING PROPRIETORS Webinar

Here is an updated guidebook for BPAA members which includes new information received about the SBA loan programs.

Download Updated 04/03/2020
COVID-19 Relief Guidebook

SBA Debt Relief

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.

Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

Coronavirus (COVID-19): Small Business Guidance & Loan Resources

The link below is a very helpful breakdown from Senate Small Business Committee providing Q&A on the SBA lending programs.

Small Business Owner’s Guide to the CARES Act

March 27, 2020 COVID-19 - Relief Opportunities

The United States federal and state governments are acting swiftly to address the COVID-19 pandemic through legislation, executive orders, guidance, and other relief programs. Most recently, President Trump signed into law the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES).

Michael Best and Michael Best Strategies are tracking these actions very closely and is in close communication with the federal and state governments. We are advising clients on the various United States federal and state avenues of relief, whether through lending, employment, or taxation provisions, that they may be able to use to get through this period of distress. We have a COVID-19 Resource Center and we encourage you to sign up for updates here.

Attached are documents Michael Best Strategies LLC has prepared for BPAA’s members, including a guidebook on the various relief provisions provided under FFCRA and the CARES Act and a state tracker that includes information for small businesses as well.

Please note: This is confidential information and should not be passed on outside of your accountants, lenders or family.

BPAA's COVID-19 Relief Guidance Packet COVID-19 State Policy Summary

A Message From The Staff at BPAA

Members of the BPAA: We are happy with the bipartisan agreement reached in the Senate yesterday to provide relief to bowling centers including their employees (as well as the many other venues) that have had to close due to the COVID-19 pandemic. We can all truly look forward and feel great about re-opening and once again serving communities after this crisis has passed.

At this time, the agreement will help bowling centers and their staff in many ways.

  • A $454 billion loan guarantee fund will provide access to capital allowing centers to pay their fixed costs during the time they cannot generate revenue through normal operations.
  • Small centers, the majority of our members, can benefit from expanded SBA programs that will allow them to also cover their expenses with some items eligible for loan forgiveness.
  • Deferral of payroll taxes.
  • Additional opportunity for loss carrybacks for businesses and technical corrections regarding qualified improvement property.
  • Employee retention tax credit for centers that keep staff on their payroll in spite of closures and loss of revenue and sales.
  • For employees (including part-time staff): Direct aid--up to four months--through extended and expanded unemployment insurance (increases in the weekly dollar amount) and advanced tax deductions payable now.

We feel a bit more confident that proprietors have some solid resources to help them make it through this and can be ready to re-open with the added knowledge that their staff is also receiving assistance through this as well and that their staff will have their jobs waiting for them when it is safe to reopen.

The BPAA appreciates everyone in and out of the bowling industry who support our efforts and recognize the important place bowling centers have in our communities. We look forward to the continued work of Congress and the Administration and to the quick passage in the House and signature by the President of this relief package.

March 24, 2020 COVID-19 UPDATE

In the event your location has temporarily closed for business, we wanted to share with you some best practices on steps to make sure you properly secure your facility safely. While not all of the suggestions will apply based on your business model, we wanted to share this guide in its entirety. In addition to the guide, we have also developed a one-page PDF as an additional resource.

One page PDF Temporary Shutdown Checklist

Click Here

COVID-19 Temporary CPR Closing Preparation Resource

Click Here

Take- out or Delivery Menu

If your center will be offering Take-out or Delivery Service, BPAA can help you create a designed menu that offers some limited menu items. We will create a JPEG to post on your social media sites and to print.

Sample Menu

Call Amy Arcuri at
817-385-8430
amy@bpaa.com

Message from Sysco Foods

Hello BPAA Members,

Thank you for your continued dedication and commitment to Sysco. 

Attached is a letter that outlines forthcoming operational procedures that will be implemented over the next week across Sysco’s U.S. Broadline operations. Our goal is to reduce the complexity of our operations as much as possible, allowing us to best service our customers who are still operational in the current environment.

Click Here

FAQs Regarding COVID-19 and Human Capital, Tax Impact

The Families First Coronavirus Response Act provides paid leave under the Family Medical Leave Act and paid sick leave for absences resulting from COVID-19. There are also refundable tax credits available to reimburse employers for wages paid as a result of the law.

Click Here

March 19, 2020 COVID-19 UPDATE

Today's update covers guidance on Business Interruption Insurance from Specialty Insurance Group/Everest, a message from Sysco, Bowling University's "What to do with perishable food", and resources from Pepsi on temporary shutdown and startup procedures for your fountain operations.

Business Interruption Insurance

A note on Business Income (Business Interruption) Insurance: BPAA is in touch with their Endorsed Insurance Provider: Specialty Insurance Group/Everest. While there are blanket assumptions and statements being made by some in the insurance community via blogs, emails, etc., it is best to understand your own policy and coverage.

Each policy is unique, and only CLAIMS ADJUSTERS will determine coverage per each unique policy. When appropriate; each policyholder who has a claim, should file a claim and allow the process to take place. Policyholders should understand what calculations their unique policy might cover. For example: does it cover 4 weeks, after the first 72 hours? And what is the formula to calculate net profits?

Your broker can help you understand the formula in the policy they sold you. Whether or not the virus is excluded or included; knowing what you could expect if Business Income (Business Interruption) Insurance were to be needed (for a virus or other purposes) should be discussed with your broker.

Message From Sysco Foods

A message to our customers,

The COVID-19 situation is a rapidly changing environment and, as always, it is important that we connect with all of you and provide updates on Sysco’s response to the situation.

The following resources capture our updated COVID-19 responses to date. Please share throughout your organization as necessary.

syscoupdate

What to do with Perishable Food?

Pepsi Equipment Services Update

Click on the link to download pdf
Temporary Shutdown & Startup Procedures

March 18, 2020 Covid-19 Updates for BPAA Members

March 16, 2020, President Trump announced the administration’s action to provide relief to small businesses impacted by the coronavirus (COVID-19) through the Economic Injury Disaster Loan Program.

The SBA’s Economic Injury Disaster Loan program provides small businesses with targeted, low-interest working capital loans of up to $2 million that can provide economic support to help overcome the temporary loss of revenue.  These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the COVID-19’s impact.  The interest rate is 3.75% for small businesses.  The interest rate for non-profits is 2.75%.  SBA offers loans with long-term repayments in order for payments to be affordable (up to a maximum of 30 years).  Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

The SBA is working with designated states and territories to offer these loans.  These loans are made available upon requests received from state Governors. Once a declaration is made for designated areas within a state, small businesses can apply for the disaster relief loan.  The application process for the Economic Injury Disaster Loan assistance will be available to all affected communities as well as updated on SBA’s websiteHere are the states and territories that have been declared disasters as of today.  SBA spokesperson Carol Chastang has stated that SBA generally approves a state’s request within 48 hours and a decision on loan applications typically takes two to three weeks.  If the loan is approved, disbursement of funds can be made within five days of receiving the loan closing documents.

Visit SBA’s webpage to learn about eligible disaster areas, to apply online, and to check your application status. Business owners can call the disaster customer service center at 800-659-2955, or email disastercustomerservice@sba.gov.  The deaf and hearing impaired may call 800-877-8339.

Additional SBA guidance, resources, and information for small businesses impacted by COVID-19 can be found here.

Federal Guidance for Businesses and EmployersOn March 16, the President announced the Coronavirus Guidelines for America – 15 Days to Slow the Spread.  The President’s guidelines serve as national guidance in addition to any directives ordered by state and local authorities. This will help slow the spread of the coronavirus.  The guidelines include actions like:

  • Even if you are young, or otherwise healthy, you are at risk and your activities can increase the risk for others. It is critical that you do your part to stop the spread of the coronavirus.
  • Avoid social gatherings in groups of more than 10 people.
  • Avoid bars, restaurants, and food courts – use drive-thru, pickup, or delivery options.
  • Practice good hygiene, including washing your hands, avoid touching your face, sneeze or cough into a tissue or in the inside of your elbow, and disinfect frequently.

Legislative ReliefCongress is on track to pass several relief packages to address COVID-19.  Michael Best and Michael Best Strategies have a COVID-19 Resource Center and will keep BPAA members up-to-date on provisions that impact BPAA members.  Sign up for updates here.

MARCH 13, 2020 BPAA COVID-19 UPDATE

BPAA Member Update Regarding the Coronavirus (COVID-19) & Downloadable Resources

While every member center will respond to the recent unrest of COVID-19 in their own way and how they feel is best for their family, team members and community they serve, your trade association wanted to provide some resources for your use. You can use these as they are or edit them as needed. All of you as business operators are busy and the goal is to give you the tools you need to navigate these challenging times. While there are a lot of opinions, misinformation and unknowns currently, we at BPAA want to help you, our member, with these resources and best practices.

While the situation is changing rapidly, our stance at BPAA is “Don’t Panic. Be Prepared.” The virus is real, and we should never take the loss of any human life as minor, therefore, it is important to keep things in context and proportional to other viruses and like illnesses. As it relates specifically to your business, we wanted to provide you some tools for you to use with your team members and to be able to communicate with your guests. Below is a brief explanation of each of the assets you now have access to on the BPAA website.

  • Generic Announcementthis is a generic announcement to your guests that can be sent as an email, posted on your website or communicated in your center itself.You can add your logo as well as insert your center name.
  • Specific Steps Announcementthis is more detailed announcement to your guests of specific steps you are taking to ensure a safe place for both guests and team members.You can edit as you like and delete any steps you are not going to utilize as well as add any others you like.
  • CDC Recommendations & Best Practices – this is a list of steps you can take with your team to ensure a safe environment for them and your guests.
  • Facts About COVID-19 – this is a one-page PDF from the CDC that you can use with your team members.
  • CDC Prevention & CDC Symptoms – these are JPG files from the CDC that can be used with your team members.
  • Bowling University COVID-19 Prevention – the Education team here at BPAA has (in record time) developed a new online training course that focuses on symptoms, transmission and prevention of the coronavirus. The course only takes about 20 minutes to complete and based on facts from the CDC.

While no one really knows the impact of the virus, knowledge is power, and we hope that these resources will help you educated your team members and your guests. 

Other Federal Resources

Department of Health and Human Services:  HHS Twitter (here) and HHS Facebook (here)

The CDC provides the most up-to-date information about COVID-19.  Here are some of its resources for businesses:

  • CDC Twitter (here)
  • CDC Facebook (here)

Information for Businesses:

Situation Updates:

Information for Travel and Transportation:

Information for Community Events and Gatherings:

 Click here to view the live tracking of COVID-19 by Johns Hopkins University