BEGINNING JUNE 4, 2020, COUNTY ADMINISTRATOR TIM O’HEARN AND JUDY MCKINNEY CHERRY OF SCOPED will host a virtual meeting every Thursday at 3pm to provide updated information and a forum for Q&A.
Join Zoom Meeting:
https://us02web.zoom.us/j/81196326743pwd=SjZ3VWo5WU4zNVgvemc3RzhDdz09 Meeting ID: 81196326743 Password: 931473
COVID-19 Financial assistance for small businesses:
New EZ and Revised PPP Forgiveness Applications for the Paycheck Protection Program (PPP) Released
On June 17, 2020, the Small Business Association (SBA) in consultation with the Department of the Treasury, posted a revised PPP loan forgiveness application and instructions (Form 3508 – revised June 16, 2020), which implements the PPP Flexibility Act of 2020 that was signed into law on June 5, 2020. In addition, the SBA also published a new “EZ” version of the loan forgiveness application – Form 3508EZ. Links for these forms are provided below.
Do You Meet the Requirements to File Form 3508EZ?
The EZ application form requires fewer calculations and less documentation for eligible borrowers. The EZ loan forgiveness form does not include a calculation for the FTE Reduction Quotient or the 25% pay rate reduction for employees who made up to $100,000 annualized in 2019. However, Borrowers using this form must still maintain documentation that supports these assertions.
Borrowers can use the EZ form if they meet one of the following criteria:
- The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees when they applied for the PPP loan and did not include any employee salaries in the computation of average monthly payroll in the PPP loan application Form 2483; OR
- The Borrower did not reduce the salaries or wages of their employees by more than 25% during the Covered Period or Alternative Payroll Covered Period as compared to January 1, 2020 through March 31, 2020 for employees who did not earn more than $100,000 at an annualized rate during 2019, AND the Borrower did not reduce the number of employees or the average paid hours between January 1, 2020 and the end of the Covered Period. (Borrowers can ignore certain headcount reductions as defined in the instructions); OR
- The Borrower did not reduce the salaries or wages of their employees by more than 25% during the Covered Period (same as bullet above), AND the Borrower was unable to operate during the Covered period at the same level of business activity as before February 15, 2020, due to the issuance of health directives (as issued by the CDC, OSHA and Health and Human Services) between March 1, 2020 and December 31, 2020 related to COVID-19.
Covered Period Can Be 8 Weeks or 24 Weeks
Both applications (Form 3508 and Form 3508EZ) give Borrowers the option of using the original 8-week covered period (if the loan was made before June 5, 2020) or an extended 24-week covered period. There is no current guidance providing an option to use a covered period that is between 8 and 24 weeks. Therefore, if the Borrower believes they will qualify for 100% forgiveness before the end of the 24-week period, it is not yet known whether they will be able to apply at that time or if they will instead need to wait the full 24 weeks.
What are the Maximum Payroll Costs For Employees and Owners?
For both applications, the maximum amount of cash compensation (wages, salary, tips, etc.) that is eligible for forgiveness for each individual employee is $15,385 ($100,000 x 8/52) for the 8-week period and $46,154 ($100,000 x 24/52) for the 24-week period.
Owner compensation (i.e., sole proprietors, general partners and owner-employees) is limited to 2019 net profit up to $15,385 ($100,000 x 8/52) for the 8-week period and $20,833 ($100,000 x 2.5/12) for the 24-week period. The owner compensation cap is inclusive of all payroll costs. In its related Interim Final Rule, the SBA stated that they did not want Borrowers to qualify for additional forgiveness based on owner compensation exceeding the amount they were able to borrow against their compensation, which you may recall was 2.5 months of compensation, capped at $100,000 per annum.
The 60% Rule for Payroll Costs
At least 60% of the PPP loan proceeds shall be used for payroll costs. This rule applies to both the 8-week and 24-week covered periods. The 60% requirement for payroll costs is not an all or nothing rule. The Borrower’s eligible nonpayroll costs cannot exceed 40% of total costs eligible for forgiveness, which includes payroll and nonpayroll costs.
Haven’t Applied for a PPP Loan Yet?
Links to Updated and New Forms
SBA Form 3508 Application (Revised 6-16-2020) – Link here
SBA Form 3508 Instructions (Revised 6-16-2020) – Link here
SBA Form 3508EZ Application (Issued 6-16-2020) – Link here
SBA Form 3508EZ Instructions (Issued 6-16-2020) – Link here
If your business has not yet applied for Economic Injury Disaster Loans and Advance, the SBA is accepting New Applications from all eligible small businesses and U.S. agricultural businesses. To learn more about eligibility and apply, click here.
- Loan Forgiveness
- An inability to rehire employees who were employed as of February 15, 2020, and
- An inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020, or
- An inability to return to the same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements and guidelines issued by Health and Human Services, CDC or OSHA during March 1, 2020 to December 31, 2020 related to certain protocols for responding to COVID-19.
- Deferral of Employer Payroll Taxes
- Loan Term and Deferral Period
- What’s Next?
SBA Lenders accepting PPP Applications: (updated 6/9/2020)
The comprehensive package and additional funding brings to bear the full resources of the federal government to protect the health and well-being of all Americans. As of April 23, a total of $659 Billion has been placed into the Paycheck Protection Program and $20 Billion has been dedicated to the Economic Injury Disaster Loan Fund.
Click Here for SBA PPP Application (updated 4/4/2020)
SBA Lenders serving Schuyler County: (updated 5/29/2020)
Community Bank, N.A. (Not Currently Accepting Applications)
Tompkins Trust (Not Currently Accepting Applications)
Visions FCU (Not Currently Accepting Applications)
Click here to access the PPP Loan Usage Tracker
Click here to access the PPP Frequently Asked Questions
Click here to access the SBA PPP Guidance Information Sheet
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 employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization including 501c3, 501c19, Religious Organizations,Tribal Businesses,, and Veteran Organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
Additional resources and updates:
April 28, 2019: Amid the ongoing COVID-19 pandemic, Governor Andrew M. Cuomo outlined additional guidelines for the phased plan to re-open New York on a regional basis.
- CDC Guidelines: Based on CDC recommendations, once a region experiences a 14-day decline in the hospitalization rate they may begin a phased re-opening.
- Industries: Businesses in each region will re-open in phases. Phase one will include opening construction and manufacturing functions with low risk. Phase two will open certain industries based on priority and risk level. Businesses considered “more essential” with inherent low risks of infection in the workplace and to customers will be prioritized, followed by other businesses considered “less essential” or those that present a higher risk of infection spread. Regions must not open attractions or businesses that would draw a large number of visitors from outside the local area.
- Business Precautions: Each business and industry must have a plan to protect employees and consumers, make the physical work space safer and implement processes that lower risk of infection in the business.
- Building Health Care Capacity: To maintain the phased re-opening plan, each region must have at least 30 percent of hospital beds and ICU beds available after elective surgeries resume.
- Testing Regimen: Regions must implement a testing regimen that prioritizes symptomatic persons and individuals who came into contact with a known COVID-positive person, and conducts frequent tests of frontline and essential workers. Regions must maintain an appropriate number of testing sites to accommodate its population and must fully advertise where and how people can get tested. The region must also use the collected data to track and trace the spread of the virus.
- Tracing System: There must be at least 30 contact tracers for every 100,000 people. The region must also monitor the regional infection rate throughout the re-opening plan.
- Isolation Facilities: Regions must present plans to have rooms available for people who test positive for COVID-19 and who cannot self-isolate.
- Regional Coordination: Regions must coordinate the re-opening of schools, transportation systems, testing and tracing with other surrounding regions.
- Re-imagining Tele-Medicine
- Re-imagining Tele-Education
- Regional Control Rooms: Each region must appoint an oversight institution as its control room to monitor regional indicators during the phased re-opening, including hospital capacity, rate of infection, PPE burn rate and businesses.
- Protect and Respect Essential Workers: Regions must continue to ensure protections are in place for essential workers.
Shared work programs are unemployment programs that allow businesses to reduce employee wages and hours as an alternative to layoffs. Under a shared work program, employees can receive partial unemployment benefits to offset a portion of their reduced wages.
Employers benefit by retaining skilled employees, eliminating the need to hire and train new employees, and possibly saving recruiting fees when the period of disruption ends. Employees benefit by receiving partial compensation for lost wages while continuing employment and maintaining health insurance and other benefits.
General Requirements of the Shared Work Program:
- Employers must file a Shared Work Plan (the “Plan”) with the Department of Labor identifying the employees included in the Plan.
- Employers are required to estimate the number of layoffs that would occur in the absence of the Plan and to certify that the reduced hours for employees included in the Plan are equal to the hours that would be lost due to layoffs. Reductions in hours and wages must be between 20% and 60% and the Plan cannot exceed 53 weeks. Once approved, a Plan can be modified due to changing business conditions but must not exceed 53 weeks. Employees may receive unemployment benefits for up to 26 weeks during the 53 week period. These 26 weeks do not have to be consecutive.
- A shared work plan covers all employees, or a particular group of employees, which can be a business unit, a shift or a department.
- The reduction in hours must be equal for all employees in the specific group. An employer can develop different plans for different groups within the business. Employee benefits must be maintained during the effective period of the Plan, unless those benefits are eliminated or reduced for the entire workforce. No new employees can be hired for any specific group covered by the Plan, unless they are replacing employees covered by the Plan who voluntarily resigned.
Here are the links to NYS Department of Labor:
- The application should be completed on-line. If submitted in hard copy the system will take 2-3 weeks to process (submit online and complete your weekly submittal (employee & employer) on line to expedite the process.
- The pay and hour reduction percentage must match The corporate officers can be included COVID Special: there is no payment into the business UI account until August (it is essentially cost-free for the business).
There have also been changes to Unemployment Claims process, including waiving the 7 day wait period to apply. If you are a business owner that has needed to lay off your workforce, please click here to go to the Department of Labor.
To apply for a COVID-19 Economic Injury Disaster Loan, click here.
May 4, 2020: Application is open for farms, dairies and other agricultural producers.
In response to the Coronavirus (COVID-19) pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000 ($1,000 per employee for businesses with ten or fewer employees) as part of the EIDL. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available quickly after submission of a successful application, and this loan advance will not have to be repaid.
Additional Forms that may be required (Do not complete unless directed by the SBA).
- Business Loan Application (SBA Form 5)
- Economic Injury Disaster Loan Supporting Information (P-019)
- ELA0-Request for Transcript of Tax Return
- ELA0-Schedule Of Liabilities
- Home or Sole Proprietor Loan Application (SBA Form 5C)
- SBA Form 1368
Food Production, Processing & Safety Questions:
Employment & Workforce Questions:
Cornell Small Farms Resiliency Resources:
Financial & Mental Health Resources for Farmers:
CSS Workforce NY is offering no cost online training opportunities for ALL Schuyler County residents! This is a great opportunity for both laid off/ furloughed workers as well as workers seeking to upskill.
The CSS Skill Up website offers access to over 5,000 online courses in topics ranging from basic literacy through soft skills to technical skills for project managers – and include IT coursework, accounting/bookkeeping, and some medical coursework as well.
Click Here for Information regarding the Employee Retention Credit – The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
Industry round-tables were held on March 30, March 31, and April 1. Below is the webinar and live recording from 3/31
The experienced staff of REV is personally evaluating available resources to support startups through the COVID-19 crisis. We will continue to publish and update these opportunities as the business climate evolves and more resources are made available.
NY OMH Emotional Support Line – 1-844-863-9314
The COVID-19 pandemic has left many New Yorkers feeling anxious and stressed.
Call the support line to talk with a professional if you are feeling anxious, stressed, or in need of emotional support.
The service is free and open to all New York residents.