Updates from Michael Best Strategies - June 17, 2020
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 [Linked Here], 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
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.
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,
Small Business Administration Reopens Economic Injury Disaster Loan
The U.S. Small Business Administration announced [Linked Here]that it has
reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance
program portal [Linked Here] to all eligible applicants experiencing economic
impacts due to COVID-19 today.
The EIDL [Linked Here] 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 [Linked Here].
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
The Bowling University team continues to develop both memes and video assets for your center to use on your website, social channels as well as email.
As states are preparing or allowing businesses to start to ease back into operation, the team has developed a NEW campaign for you to use.
If your location has made the decision to open for business and you are ready to welcome back guests, we have new messaging and assets to help.
Your messaging should shift from “Bowling will be Back” to “Bowling is Back”.
Below are some helpful links. Check them out.
For those that are not able or have chosen not to open yet, the
“Bowling will Be Back – #BowlingStrong”
campaign is still available for your use to keep bowling top of mind for your guests.