Tips From the US SBA Business Expert | Coronavirus Update April 3

Tips From the US SBA Business Expert | Coronavirus Update April 3

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Posted by Ian H., President

April 3, 2020

Service companies are the backbone of the economy and Housecall Pro is committed to doing everything we can to help during the Coronavirus pandemic. 

I hope you find the resources below helpful. Please share this email with other home services companies. 

Sincerely,

Ian Heidt

CEO, Housecall Pro

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April 3, 2020 update

Globally, Coronavirus cases now top over

1 million

according to Johns Hopkins university. We’ve seen over

58,000 deaths

worldwide and have also celebrated over

225,000 recovered patients

.

In the US the

Johns Hopkins CSSE dashboard

is reporting over

270 Thousand cases

(273,880 US) and

7000 deaths

(7,077) as of about 3:30pm pacific time today (3:28pm). We’ve also seen over

9500

(9,521) recovered patients.

NEW YORK continues to struggle

Governor Andrew Cuomo says he will use the National Guard to seize and redistribute emergency medical supplies with the goal to help hospitals already being overrun by covid-19 patients.

National Guard troops will take unused supplies from hospitals in Upstate New York that aren't yet crowded with patients, and get them into the city.  Cuomo is also asking the federal government and other states for help with ventilators, masks and other equipment. 

The death toll in New York now tops 2900.

US RESPONSE

NEW DIRECTIONS ON WEARING MASKS FROM THE WHITE HOUSE

President Donald Trump said today that the CDC is recommending that Americans should wear non-surgical masks when they're out of their homes to help stop the spread of coronavirus.

The decision was an expected one and was made after the cities of New York and LA (Los Angeles) advised their residents to wear cloth masks. Officials want to save surgical-grade and N95 masks for health workers.

US UNEMPLOYMENT

 

US Department of Labor data published its monthly “jobs report” for March. Nationally, the number of jobs decreased by more than 700,000—a stark contrast to the 273,000 jobs gained in the February report—and the unemployment rate jumped from a 50-year low of 3.5% to 4.4%, the highest since 2017. The data included in this report only covers February 12 through March 12, so it does not account for recent business closures and layoffs resulting from social distancing measures. 

Some estimates forecast that the national unemployment rate could exceed 10% in the near future.

April 3 Topic: An Evening with the US SBA Small Business Champion

Guests:

Brandon Vaughn

Owner, Poolboy Carpet Cleaning & Business Coach at Conquer

Gresham, Oregon

Kedma Ough

Author, Target Funding

Small Business Coach

EIDL

  • You can no longer count Independent contractors as employees for EIDL but  independent contractors can apply for their own PPP instead

  • Keep in mind that the wording is

    up to

    $10,000. 

Changing Interest Rates

  • The interest rate has changed. First it was 4% then it went to a 0.5% then it went to 1% but it went to 1% because the banks lobbied about it. 

Personal Guarantees

  • They will require personal guarantees if the amount is over $200,000

Refundable Employee Retention Program

  • 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

  • Government is getting smart about it’s programs so that you need to pick the one that you really want

What’s Happening with Banks

  • Banks are being cautious - they don’t want to mess this up and then not be paid by SBA and many need to develop the right formula and documents to support their own underwriting requirements.

  • Remember, the SBA is not giving the money. It's the banks that are, so that relationship is critical, but they still have to follow the underwriting. So we are hearing situations where people have told us that some banks are only working with their actual bank holders and bank account holders. 

  • Bigger banks are moving slower, more due diligence and processes to work through so we are seeing quicker action by smaller banks/credit unions but don’t panic if you bank with a large bank, have patience they are putting this all together as quickly as they can

Remember this is still a relationship with your lender so treat them with respect and don’t be rude

Local Grants

 

  • The best way to find out about these opportunities is to search for them online, Go onto Google and search for Covid-19 relief in your local city/county/state or if you are a female-owned business or veteran-owned business for example.

  • These funds are going extremely quickly, so if you find one, apply immediately

Q&A

  • What determines how much of the up to $10,000 you will receive?

    • To be determined, however the $10,000 is an advance so if you are not eligible for a loan of even $10,000 the advance isn’t happening

  • Is there a way to check the status of an application for EIDL or PPP?

    • EIDL: called SBA directly, and said that an update will come via email, as long as you have  a confirmation number, have patience

    • Remember that the 3 day timeframe around receiving the $10,000 is from the time your application processed which can take 18-21 days

    • PPP: you would contact your lender and each bank will be different in how they handle updates

  • While I’m waiting for this funding, what should I be doing?

    • Do your due diligence on whether or not to keep or lay off employees between now and getting PPP money

    • Call your credit card and ask them to bring the interest rate down and tell them you are waiting

  • Would you rather lay off two people or set four people to 50% of the time?

    • It depends- are they sick, are they bad performers etc….

    • Everyone is in an individual situation and you have to do the budget and a 90-day financial plan to determine what the right decision is for you

    • Do not make this an emotional decision, be realistic, err on the side of conservatism, and let the data drive the best decisions you can make, and be honest with yourself

  • Will they look at my credit score when I’m applying to these loans and grants?

    • EIDL is based upon the applicant's credit score and they are looking at at least 690

    • Remember these are new liabilities you are taking on and  it's going to hit your credit report one way or another. So one of the things we want to be mindful of is if you have fantastic credit, just a check in with your lender to see how is this going to really affect it. 

    • Credit Karma is also a great tool because you can look at the simulator and simulate how your credit score would change 

  • Any lenders to avoid? I am receiving emails from private online lenders.

    • First and foremost it should be the lender that you have a relationship with

    • Avoid going to a different lender or ones that have Google Ads. The more reputable sources will be those organizations where you can have an actual relationship with a bank

    • Due your due diligence with any lender before working with them 

  • If I'm a pro, I'm overwhelmed with all the information, all these different grants and things out there, what should I do first? What would you advise me to do? 

    • Have a positive attitude- this is a tunnel and we are going to get through it.

    • Apply for anything and everything that you can,the PPP, the EIDL, let the options be presented to you and then decide what you will take or not

    • Search on Google for any grants you might possibly get

Don’t Forget to Join Us Online

Don’t forget to join your regional meetup and learn more about how to navigate this crazy time, with marketing, sales and operations tips. 

Network with other professionals in your area and receive a $15 Grub Hub gift card, just for participating. Register today! 

Keep Your Industry an Essential Service

We’re making it easy to write to your government representatives and send them a letter urging them to classify your industry as an essential service during this time of uncertainty.

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Legal disclaimer

Housecall Pro is offering the Coronavirus Evening Update for Home Service Businesses for informational purposes only and to foster thoughtful communication and discussion regarding the COVID-19 pandemic; Housecall Pro is not offering advisory services or otherwise advising or representing any members of the group invited to participate.  Housecall Pro is not offering legal, medical or other professional advice in the Coronavirus Evening Update and makes no representations or warranties regarding the content of the Coronavirus Evening Update. Participants should obtain independent advice relating to their businesses and their particular circumstances.

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