6/9/2020 Parish 3rd Webinar on Updates to the Covid-19 EIDL Acceptance, EIDL Closing, PPP Updates & Adjustment to Shared Expenses Tuesday June 9th 11:00 a.m. Agenda For Today Welcome everyone and opening prayer 1. EIDL Loan Acceptance 60-Day Hold Process 2. EIDL Closing Process Overview 3. EIDL Advance Only Process 4. PPP Loan Forgiveness Changes 5. Loan Forgiveness Period 6. Calculate Payroll Sums in Period 7. GAAP Standards 8. Adjustments to Shared Cluster Expense 9. Thoughts from Kyle Torvinen 10. Q&A 11. Closing thoughts from Bishop Closing Prayer 1
6/9/2020 Economic Injury Disaster Loan (EIDL) Has Two Parts: A Loan & An Advance Loan Information • Up to $2 million • The interest rates for this disaster are 3.75% for small businesses and 2.75% for nonprofit organizations with terms up to 30 years determined on a case-by-case basis • Eligibility is based on the size and type of business and its financial resources • 12 month payment deferral on EIDL loan; interest accrues Two Parts: A Loan & Advance • Advance will be for up to $10,000. • The form to apply is part of the economic injury disaster loan (EIDL) application. • If approved, these funds can be used for payroll and other operating expenses and will be forgiven. • Advance is $1,000 per employee. • Payment will come in two parts , the advance first and then the loan. The amount given is to each entity is determined by SBA. You do not have to accept the full amount. 2
6/9/2020 EIDL-How Can it Be Used? • Fixed debts (rent, etc.) • Payroll • Accounts payable • Some bills that could have been paid had the disaster not occurred. Sample email 3
6/9/2020 Sample email EIDL Portal Acceptance Screens: 4
6/9/2020 EIDL Portal Acceptance Screens: 2.75% Click Review and Accept the Amount, and you return to the initial screen. You can now choose to Verify your Identity. EIDL Portal Acceptance Screens: 5
6/9/2020 EIDL Portal Acceptance Screens: EIDL Portal Acceptance Screens: Stop after submit Click Submit for for processing step Processing, then the screen Do not sign refreshes: closing documents without proper Diocese Approval and unless you want to initiate the loan now. 6
6/9/2020 EIDL Portal Acceptance Screens: EIDL Portal Acceptance Screens: 7
6/9/2020 EIDL Portal Closing Screens: EIDL Portal Closing Screens: 8
6/9/2020 EIDL Portal Closing Screens: EIDL Portal Closing Screens: 9
6/9/2020 EIDL Advance Only The EIDL Advance is a separate approval process from the EIDL Loan process. Therefore you do not need to accept the loan in order to keep the Advance only funds. PPP-Reminder of use of funds: • Must use loan proceeds for: • Payroll costs • Rent • Mortgage interest and • Utilities • SBA advising that not more than 25% of the loan proceeds can be used for non-payroll costs 10
6/9/2020 PPP-Updates • Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs. • Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19. PPP Updates • Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020. • Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020. • Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period). • In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved. 11
6/9/2020 PPP • More updates are coming on the application and forgiveness process along with more specific terms for the 8-24 week period. • We will cover the PPP Application Forgiveness Process in next webinar Questions Contact Information: Andy Donahue Nikki Olson adonahue@uwsuper.edu nolson37@uwsuper.edu (715) 394-8352 (715) 394-8147 12
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