On April 10th, Matt Ortega and I held an online update on the then new government programs contained in the phase 2 and phase 3 Corona Virus federal legislation.
April 10th was the first day Independent Contractors and Self-employed could apply for the PPP or Paycheck Protection Program loans. Unfortunately, we came to find out the funds in that program were already depleted and even though there was an unanimous consent item to increase the program funds from $350 billion to $600 billion. Some legislators in the House of Representatives would not agree to the stand-alone increased amount, so by April 16th the program was depleted of funds.
On that same day, WeSERV sent a letter to Representative Lesko outlining member experiences with the PPP loan, EIDL loan and $10,000 advance, and the Unemployment Program.
I want to thank members who sent me their experiences and members who participated in our March 27th member survey on the effects of Corona Virus on your business. Without your input it would not have been possible to provide Representative Lesko information on the true impacts of government actions.
Within less than an hour of sending the email letter, Representative Lesko’s office notified me that our information was very import and helpful in her Washington, D.C. discussions. Please keep sending me your experiences. We are using your experiences as part of the WeSERV local advocacy to government and other small business associations.
PPP/Paycheck Protection Program – Originally envisioned as a tool for small business, self-employed and Independent Contractors to preserve payroll and pay themselves, this program started out with $350 billion and two start dates. April 3rd was for small business applicants, April 10th was for self-employed and Independent Contractors. April 3rd had a rocky start as the SBA and Treasury did not provide guidance to lenders until a few hours before the program start. Add to that they changed the program from the 10 year, up to 4% interest, forgivable loan program set in legislation to a 2-year, 1% interest program making it difficult for lenders to make the loans and break even.
By the time April 10th rolled around, my best advice was to call your lender, ask if they were lending in the PPP program and if not, ask if they knew who was because the SBA lender portal was not as current as members needed.
EIDL Loan and EIDL Loan advance – The EDIL loan was designed to help with businesses hard costs such as rent, mortgage, utilities, some taxes, accounts payable, etc. As part of the CARES Act legislation, a $10,000 forgivable loan advance or grant was installed. Originally, as designed in law, the $10,000 could only be accessed by applying for an EIDL loan with the promise that a local lender would be able to review and approve the business, self-employed person or independent contractor within 3 days, they would release the funds and even if the applicant did not qualify for the low interest EIDL loan, the $10,000 did not need to be paid back as long as it was used according to program requirements.
By April 13th, the SBA had unilaterally changed the underlying criteria from based on hard costs, to $1,000 per employee. Obviously, that is a drastic change and renders the program unusable for a lot of small business, self-employed and independent contractors since hard costs such as rent has nothing to do with the number of employees.
Unemployment Insurance – At the time of our GAD Update on April 10th, the number one question was “How do I apply for Unemployment”. Already members who had applied had received denial notices. The problem was, unemployment insurance for W-2 employees is a state run, long established process and system. For the first time ever, it was being extended to self-employed, independent contractors and small business owners. When you fill out the unemployment insurance application, make sure you correctly identify yourself as either self-employed or independent contractor.
The new employer/business owner/IC program is a federal program requiring federal guidance to the state. The State of Arizona is requesting guidance from the SBA and Treasury on the program set up and processes and the Federal Government seems to feel they provided enough guidance on April 5th. On April 15th, Arizona REALTORS Government Affairs Director, Matthew Contorelli was updated by the Arizona Department of Economic Security (DES) and told it would be a “handful of weeks” before the program would be up and running. As a note: Rep. Lesko’s office is attempting to aid in the communications between DES and the federal government. Until this program is created, plan to apply for unemployment insurance weekly. Even if you are currently being denied, DES encourages you to apply weekly.
The Arizona Chamber of Commerce in conjunction with the asba (Arizona small business association), provide a very helpful set of video webinars and access to lenders participating in these programs. Access the CARES Act Readiness Program for Small Business.
Our Association: With the social distancing and drastic changes to our lives and businesses, some members are unsure what our association resources and services are. I was able to catch up with WeSERV CEO Roger Nelson last week and he provided us with a quick overview and reminder of all the services WeSERV still provides to members.
GAD Updates: For a review of items discussed on our April 10th GAD Update, go to www.weservgad.org, click on Corona Virus.
West Valley Government Affairs Advisory Council – April 30th will be our next Government Affairs Advisory Council meeting, this time instead of your usual hybrid live/and live streamed event, it will be a 100% live Zoom event. All members, regardless of chapter, are invited to attend.
Our program will start with an update on the State of Arizona programs and legislation you need to know about by Matthew Contorelli from Arizona REALTORS.
Next, we will have several cities briefly zoom in to provide quick 15-minute economic development updates. Currently, Avondale, Glendale and Casa Grande are confirmed. The information these cities provide will be helpful as you work with the cities you do business in.
Next, Representative Lesko will Zoom in to provide us an update on the Washington, D.C. programs and what Congress is doing to help business through the Corona Virus Economic crisis.
We will complete our event with a member driven issues forum. Tell us what you are experiencing, how can WeSERV help?
You can register for this event at www.weservgad.org or at weserv.realtor.
2020 Candidate Interviews: The West Valley Chapter and the Pinal Chapter are still looking for members willing to give one day to interview candidates running for office. If you are a member of one of these WeSERV chapters, affiliate or REALTOR, and wish to be part of the candidate interview workgroup, please email me for more information.
WeSERV GAD: Advocating for private property rights, the right to private contract and YOUR business!