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NEW GRANT FOR HAYS COUNTY BUSINESSES
Emergency Cash Assistance Program (ECAP) to Provide $600K for Small Businesses
As part of a county-wide collaboration, Hays County established the Emergency Cash Assistance Program (ECAP) grant fund, which will deploy $600,000 in grants to local businesses. This free financial resource is designed to aid small businesses in Hays County that are struggling to sustain operations due to the COVID-19 health crisis.
The ECAP fund, which was initiated by the Hays County Commissioners Court, is a collaboration between the County, the City of Kyle, PeopleFund, and the Greater San Marcos Partnership (GSMP). The fund will provide a grant of up to $10,000 to qualifying businesses on a first-come, first served basis. The loan agency PeopleFund, a non-profit community lender, will manage the application process.
“Hays County led this effort, recognizing that some small businesses were not able to access any of the federal assistance programs,” said Jason Giulietti, president of GSMP. “The ECAP fund will provide much-needed relief to members of our business community that are essential to our region’s economy and recovery.”
At this time, there is $600,000 available for disbursement - $500,000 provided by Hays County and $100,000 provided by the City of Kyle. However, this figure may grow if additional funds are contributed.
The grants will be awarded to small businesses located within Hays County that were unable to secure assistance via the Payroll Protection Program (PPP) loan through the CARES Act or the Economic Injury Disaster Loan program through the US Small Business Administration.
Grants shall be awarded on the basis of $1,000 per qualifying employee up to a maximum of total grant per business of $10,000. Grant funds may be used for:
Working capital (including rent, pre-existing mortgage and utilities)
Inventory or supplies
Furniture or fixtures
Machinery or equipment
Maintenance or repairs
Payroll or Employment Benefits for Qualifying Employees
“We at PeopleFund are honored to join this collaborative and put our experience and infrastructure at the service of small businesses in Hays County,” said Gustavo Lasala, President and CEO of PeopleFund. “Anyone requiring help with navigating the application process or in need technical assistance for their business can contact our team at 512-222-1016.”
A PDF version of the application is available for review now at www.HaysCountyECAP.com to help prepare applicants for the information that will be requested. On Monday, August 10, applicants may begin submitting their application and required documents online at www.peoplefund.org/hays/. Hard-copy applications will be made available at various locations around Hays County.
Applications will close once all funds have been awarded or until December 31, 2020, whichever comes first. Complete details are available at www.HaysCountyECAP.com.
UPDATE ON PPP AND STIMULUS BILL
Hello All;
I hope this email finds you well. I had hoped to have an update on passage of a second round of stimulus, but sadly, that didn't happen this week.
WHAT'S ON THE TABLE
This is the legislation being debated now: https://www.cnet.com/personal-finance/next-stimulus-package-heals-act-benefits-go-far-beyond-a-second-payment/
We hope that the legislators pick this back up next week and come to some agreement to keep the American economy going. I encourage you to continue to reach out to your elected officials and tell them what you want to see for this country and for small businesses. Not sure who represents you? https://www.usa.gov/elected-officials
WHAT ABOUT FORGIVENESS
I know we are all anxious to have our PPP loans forgiven. At the moment we are still in a holding pattern. If you have spoken to me on the phone about this you will have likely heard my reasons for believing most smaller PPP loans will be given blanket forgiveness. Now a growing number of businesses and banks are calling for this very thing https://www.bizjournals.com/washington/news/2020/07/20/sba-ppp-paypal-support-blanket-loan-forgiveness.html. This push was also a part of the legislation that failed this week.
For loans over 150K a tiered forgiveness plan has been tossed around that would require the following:
"For those loans, their proposal only requires businesses to complete a certification and retain relevant records and worksheets for up to three years, though banks would still need to submit a loan forgiveness application to the SBA."
What is certain is that there will be more debate about this in the coming weeks. I will send out a new update the moment I find out anything useful. Please continue to check my website at www.revatx.com and click on the NEWS section for updates on any local loans and grants I come across. Please send me anything you hear about so that I can share with the REV ATX family.
As always, we are here to support you in any way you need at this time. My schedule is below if you need to talk.
Stay well, and keep your heads up.
-Katie & The REV ATX team
TAX DEADLINE - FRANCHISE TAX & LLCs
Hello All,
As the tax deadline looms, please be aware of the following; If you have not yet filed your 2019 taxes and you are an LLC or sole proprietor 7/15 is the deadline to file or extend. This year the extension gives us until 3/15/2021. Even if you use a CPA please just reach out and make sure you've been extended.
This does not give you extra time to pay your taxes. If you want to make a payment on or before 7/15 this is the site to do so https://www.irs.gov/payments . Payments made after 7/15, regardless of extension, will accumulate late fees and fines.
The IRS prefers you make estimated taxes throughout the year, and they can penalize you for not having done so. If you are unsure about your tax status, please reach out to me so we can discuss.
Franchise tax forms are also due on 7/15. Franchise tax applies to all LLCs and corporations in Texas. If you fail to file your business license can be forfeited. Not sure if this applies to you? When in doubt, just reach out. You can book time to talk to Katie here https://letmetalktokatie.as.me/ or respond to this email with your questions.
I will have a Covid update this week, but also please use the link below to check our website which we've been updating with new info as we come across it.
As always, thank you. Stay well.
-Katie and the REVATX Team
GRANTS FOR AUSTIN SMALL BUSINESS
Relief Grants Open to Support Austin Small Businesses and Non-Profits
Applications July 7 at 10:00am and will close July 24, 2020 at 5:00pm.
The City of Austin Economic Development Department announces two grants to support and sustain local, small businesses as well as local non-profit organizations that are facing extreme hardships due to economic impacts of the COVID-19 pandemic. AIBA and the Local Economies Council has partnered with the City of Austin Economic Development Department to provide application assistance to grant applicants.
Austin Small Business Relief Grant
The Austin Small Business Relief Grant is a $16.5 million fund that will provide grants up to $40,000 to local, small businesses in Austin city limits, including sole proprietors. Eligible local businesses must be able to demonstrate an economic loss associated with COVID-19 and must be headquartered in a City of Austin Council district.
Register to attend an Austin Small Business Relief Grant webinar:
The Austin Small Business Relief Grant English Webinar: Wednesday, July 8 at 10am
The Austin Small Business Relief Grant Spanish Webinar: Wednesday, July 8 at 11:30am
The Austin Small Business Relief Grant Webinar in partnership with Local Economies Council: Thursday, July 9 at 10am
The Austin Small Business Relief Grant Webinar in partnership with Local Economies Council: Wednesday July 15, at 2:00pm
For eligibility questions and application assistance, contact the Better Business Bureau by email businessreliefgrant@austin.bbb.org or by phone 512-318-2683.
Austin Non-Profit Relief Grant
The Austin Non-Profit Relief Grant is a $6.35 million fund that will provide grants up to $20,000 to Austin non-profit organizations serving in specific areas of need. Eligible local non-profits must be headquartered in a City of Austin Council district.
Register to attend an Austin Small Business Relief Grant webinar:
The Austin Non-Profit Relief Grant Webinar in partnership with Mission Capital: Wednesday, July 8 at 1:30pm
The Austin Non-Profit Relief Grant Webinar in partnership with Mission Capital: Tuesday, July 14 at 4:30pm
For eligibility questions and application assistance, contact the Better Business Bureau by email nonprofitreliefgrant@austin.bbb.org or by phone 512-318-2683.
*************
AIBA and Local Economies Council staff are available for one on one assistance for any local business. Reach out to us via email at hello@ibuyaustin.com.
AUSTIN INDEPENDENT BUSINESS ALLIANCE • PO BOX 49545 • AUSTIN, TEXAS 78765
www.ibuyaustin.com • 512-441-2123 • hello@ibuyaustin.com
--Katie and the REVATX Team.
UPDATE ON PPP LOAN FORGIVENESS
Hello Everyone,
The last two weeks have been a whirlwind of activity on the financial front. Legislation is still being debated every day with regard to the CARES act and any future stimulus to our economy.
SAFE HARBOR
In our last update we let you know that all loans under 2 million would get safe harbor under the SBA. This means that the loans will be thought to have been taken in good faith. https://cooleypubco.com/2020/05/13/sba-safe-harbor-ppp-loans/
FORGIVENESS APPLICATION
The SBA has released a worksheet for forgiveness. It can be downloaded here: https://www.sba.gov/document/sba-form--paycheck-protection-program-loan-forgiveness-application
This application is complex and hard to understand. I will be speaking with a banker tomorrow to get more clarity on this worksheet so I can answer your questions and help you complete your forgiveness application. Once we've gotten our heads around the application I will post a marked up version on our website. As always we will be on hand to answer your questions and concerns.
NEW LEGISLATION
In good news, the House of Representatives passed a bill today to ease some of the burdens of the SBA Forgiveness Application.
"The House bill, called the Paycheck Protection Flexibility Act, H.R. 7010, extends from eight weeks to 24 weeks the time PPP recipients have to spend their funds. The measure also lowers to 60% from 75% the portion of PPP funds borrowers must spend on payroll costs to qualify for full loan forgiveness. That change would allow borrowers to direct more funds to costs such as rent and utilities"
Meanwhile, the Senate is considering some changes, but nothing as generous as the House has passed today. The two halves of Congress will have to come together if small businesses are to see any relief on the current restrictions and deadlines: https://www.journalofaccountancy.com/news/2020/may/house-bill-relaxes-ppp-loan-forgiveness-requirements.html
OTHER RESOURCES FOR LOANS AND GRANTS
I know some of you haven't gotten any help yet. There are still loans available to apply for. Please reach out if you'd like to start an application and need our help to do so. The City of Austin and a few other municipalities are offering help as well. You can find more here: https://www.bizjournals.com/austin/news/2020/05/06/more-small-business-grant-programs-on-horizon.html
REVATX is here and working for you everyday. Let us know how we can assist you as we continue to navigate these uncertain waters.
In solidarity,
--Katie and the REVATX Team.
FORBEARANCE PIT FALLS - WHAT YOU NEED TO KNOW
Hello Everyone,
Please click the link below to learn more about forbearance pit falls.
-Katie and the REV ATX Team
UPDATE ON PPP LOAN FORGIVENESS
Hello Everyone!
We got some great news today, seems the Treasury Dept and the SBA have decided to give safe harbor to all loans under 2 million dollars:
https://www.journalofaccountancy.com/news/2020/may/sba-safe-harbor-for-ppp-loans-under-2-million.html
"Businesses that together with their affiliates accepted Paycheck Protection Program (PPP) funds of less than $2 million will be assumed to have performed the required certification concerning the necessity of their loan requests in good faith, according to guidance posted by the U.S. Small Business Administration (SBA) on Wednesday."
This means there will be no submission required to prove you spent the funds correctly, unless your bank requires that. All indications are that if you got a PPP loan under 2 million dollars your loan is automatically forgiven.
We'll know more about the tax implications of this money in the future and we will keep you updated as more information becomes available.
Stay safe and healthy,
-Katie and the REV ATX Team
UPDATE & NEW INFO ON PPP LOANS
Hello All,
Wanted to update folks on the PPP loans and their forgiveness, plus new legislation and guidelines for repayment.
NEW GUIDELINES FOR RESTAURANTS AND FUTURE LEGISLATION:
The treasury passed a ruling yesterday that allows for Restaurants and Bars to lower the 75% requirement for staff that won't or can't return to work. This means that business owners need to offer back jobs, in writing, and keep meticulous records of employee refusal.
Additionally, the association of restaurants and other small business groups are pushing to have the requirement lowered to 50% of pre-Covid payroll and extending the time period to spend the money from 8 weeks to several months as well as extending the repayment period to 10 years from 2 years. We will wait to see what the ruling is on those efforts and update you when we can.
Congress will begin debate on a fourth wave of relief next week, and I will update you as soon as we know more.
LOANS AND OTHER HELP STILL OUT THERE:
WILCO businesses can apply for an earmarked 25 million dollar grant here:
All businesses in Texas can inquire with The People Fund for low interest loans to weather this storm here:
https://peoplefund.org/covid-19-disaster-relief-funding-programs/
It's not too late to apply for the Facebook grants, but hurry, applications close on May 8th:
https://apply.facebook.ureeka.biz/prog/facebook_smb_4/
I HAVE MORE QUESTIONS, CAN I TALK TO KATIE?
Yes! My schedule is below and it is JAM PACKED. I'm getting lots of folks asking if I can talk to them sooner than my online availability. Unfortunately the reason you're not seeing any open appointments is because I don't have any. Please try to email and see if we can answer your questions that way in the meantime. Luckily we have several weeks to iron out the details. Just know that we value you and we are doing our best to give everyone the attention they need at this time.
If anyone is a member of HBA of Greater Austin I will be doing a webinar on Thursday May 14th at 3 on PPP forgiveness. I believe I can share it with all clients afterward, I will send out an email with a link after the webinar if that's the case.
In good health,
-Katie and the REV ATX TEAM
NEW LOAN TERMS FOR RESTAURANTS LOWERS THE FORGIVENESS THRESHOLD FOR PPP
https://www.restaurantbusinessonline.com/financing/treasury-makes-restaurant-requested-tweak-ppps-forgiveness-rules
This is great news for restaurants who can’t hire back their staff to still have their loan forgiven. The last paragraph gives us hope for future legislation that will continue to help business with this burden.
“The Association and other groups have also asked Treasury and the Small Business Administration, the administrator of the PPP, to lower the 75% payroll expenditure requirement to 50%; extend the eight-week time frame by several months; and reinstate the terms of the loan to 10 years from the current two.”
TALKING ABOUT FORGIVENESS!!! PPP LOAN AND HOW TO SPEND IT
Below is a mash up of the best articles we’ve found on how to get the PPP loan forgiven. We will be documenting your expenses and payroll in the normal course of bookkeeping and we do not recommend our clients need to open a second bank account to track the monies. If clients prefer to do this that’s fine too, just be in touch with your new account info so we know that we need to add it to your file.
So You Got The Paycheck Protection Program. Now what?
The intent of the PPP is to retain your employees and to get employees off State Unemployment. The loan itself follows the same SBA 7a guidelines with the Bank. Check with your SBA lender on questions you have regarding what is qualified for the PPP. The PPP is much more stringent in its requirements and guidelines than the Economic Injury Disaster Loan (EIDL). The PPP is designed to pay out 8 weeks of payroll expenses after loan origination. Payments are deferred for 6 months and you will have 24 months to pay back any unforgiven remainder. You will have to do additional documentation after you receive the loan to apply for the qualified forgivable expenses. Check with your bank.
Lenders will forgive your PPP loan if you spend 100 percent of the funds on payroll, mortgage interest, rent, and utilities in the eight weeks after receiving the loan. You can also use your loan to cover existing debt obligations, such as credit card payments, but you will not receive loan forgiveness on those costs.
The idea is that this loan will keep your workers employed and your lights on for the next two months after you receive the funds.
There are two main actions that will reduce your loan's forgiveness:
Using more than 25 percent of your loan on non-payroll costs: In this case, your maximum forgivable amount will be equal to payroll costs divided by 0.75.
Reducing head count or "material" salary: To maintain 100 percent forgiveness, you'll need to either keep your payroll as it was before February 15, 2020, or hire back and undo wage reductions by the end of the PPP "covered period" on June 30. The total amount forgiven will be reduced proportional to the reduction in head count or decreased by the total amount of reduced salary if you cut an employee's wages by more than 25 percent.
If you have laid off employees or reduced their wages & then received a PPP loan, it's time to hire them back or reinstate their salary. Every dollar that you don't spend on doing so is a dollar you will need to repay, plus interest.
REV ATX will document our client's expenses and we will need you to provide bills and leases to be sure we have all the paperwork we need. Other folks should keep meticulous records. A lender won't simply take your word for it if you tell them you spent your loan proceeds appropriately. From the moment your loan hits your bank account, you'll need to be diligent about how you appropriate your funds and document every expense you make with them.
When it's time to apply for loan forgiveness, bring the following documentation with you to the table, assuming you spent your loan proceeds on all eligible categories:
PAYROLL RELATED: Documents verifying the number of full-time equivalent employees on payroll, and their salary/wages for the period you used the loan to pay them. These could include payroll reports from a payroll provider, payroll tax filings, income/payroll/unemployment insurance filings from your state, and paperwork that verifies retirement and health insurance contributions.
OTHER COVERED EXPENSES UP TO 24% OF TOTAL LOAN: Documents showing payments of mortgage interest, rent, and utilities. These could include canceled checks, payment receipts, or account statements.
Sole proprietors and other self-employed workers can use loan proceeds to replace lost income (up to $100,000 annualized), but if you do this, the remainder of your loan must be used on non-payroll costs in order to qualify for full forgiveness.
Q. Is a 501c6 Non-profit company eligible?
A. Not at this time.
Q. Can the PPP loan be used for seasonal employees that will not be hired until mid-May? And if so, will that loan be forgiven?
A. If you are a seasonal business, you will have to prove that you have already been adversely affected by the disaster. If you are not currently affected, you will not qualify for this loan until you have evidence that you are. If the economic situation continues through your normal start up time and your business revenue is adversely affected, then at that point you could qualify. Stay in touch with your lender so they can monitor your situation.
Q. Do salaries include Social Security and Medicare taxes?
A. No, salaries include state and local taxes. You will still be required to pay Federal withholding on your employees and Medicare taxes, but these are not included in what will be calculated for forgiveness.
Q. Is there a minimum of employees I must keep on my payroll to be eligible for the PPP?
A. No, check with your bank to see if your needs make sense for this program. There may be better options for your business if you have a small number of employees.
Q. Do payroll-related costs include independent contractor costs?
A. No. 1099 contract employees AND Self-employed can apply to the PPP on their own
Q. If I have closed my business because of this virus, am I eligible for this loan?
A. Yes. The purpose of this loan is to retain your employees and allow you to pay them even while your business is closed. If you receive this loan, all costs for payroll (excluding federal taxes and withholding) will be forgiven.
Q. can I apply for both PPP and EIDL?
A. Yes, you can apply for both. If you receive both, you’ll have to roll the EIDL into the PPP, limiting your payback time to 6 months rather than 12. Check with your bank.
. When in operation, employee hours vary week to week, but always less than 40 hrs. How do I pay them? Do I average their hours out or just pay them 40 hrs a week?
A. You can do an average if you like, as long as you meet the rule: Employee and compensation levels are maintained, to qualify for loan forgiveness.
Q. My employees are already receiving unemployment benefits. What if they would rather continue collecting unemployment (because they are most likely making more money)? What do I do as an employer?
A. The point of the PPP is to get employees off of Unemployment. In normal situations unemployment does not pay as much as a full-time job. If you receive the PPP loan you will have two weeks to call back your employees whether you are open or not for business. If they refuse to come back to work, they will not be qualified for unemployment.
Q. So - only 8 weeks of payroll will be forgiven and then I will be responsible for the rest of the loan?
A. The loan proceeds are used to cover payroll costs and most mortgage interest, rent, and utility costs over the eight-week period after the loan is made. There is the expectation that 75% of the loan will be for payroll and related payroll expenses, excluding federal taxes and withholding, to be eligible for forgiveness.
Q. If you have just recently introduced hazard pay to maintain your work force, can the PPP used to fund it? Even though is something you normally don't provide. 2
A. Yes. Talk with your bank.
BUSINESS REALITIES. Many people these days are fixated on the forgiveness feature of the PPP loans. Forgiveness is certainly an important part of the CARES Act incentives for small businesses to retain as many employees as possible and to keep up their wage levels. However, the ultimate objective for those who own and operate such a company will be to protect the long-term health of the business. If business realities are such that you are unable to achieve 100% forgiveness, do remind yourself that, at worst, this is a 1% loan with a two-year payback period with no collateral and no personal guarantee. These are artificially favorable terms and offer a significant injection of cash to help support your company’s operations.
The loan forgiveness features of the Paycheck Protection Program are complex and will require detailed planning, precise execution, and meticulous documentation. REV ATX has got your back.
In good health,
--
-Katie and the REVATX team