"If You Own a Business: Apply for the Paycheck Protection Program. Here is how!" - 04/08/20 Edition
Stephen Says Column
Dear Stephen:
I own a mid-size furniture dealership, and I am worried about my business and being able to keep my employees. Well, I am first worried about the health and safety of my family, my employees and their families, but after that I’m worried about how to keep my business going without having to lay off the great people who work here.
My business is in a state that requires self quarantine until April 30, but the pandemic is so bad where I am, who knows for sure if that date will not have to move to June. It is a mess. Right now everyone in my office is working remotely. We are a modern sales organization so transitioning to working from home for my em-
ployees was not a major problem. I have seen enough articles about that, including yours (thank you very much). My clients at A&D firms, other dealers and smaller manufacturers have one major problem right now, and it is not learning ZOOM. It is our payroll. I think we are all nervous the sharp drop off of revenue and cash flow will force us to fire or furlough our valuable employees. I know you are the expert on recruiting but this is different. How do I save the jobs of the good people I already have? What are your thoughts on the PPP and the CARES Act specific to our industry and my business?
Signed,
Scared Dealer Owner
Dear Dealer Owner:
I am glad you asked, and I am happy to share what I know because we’re in this together. This is a resilient industry and will bounce back but there are some immediate resources I can share that can make a real difference to saving jobs right now. The Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) are the two major options for small businesses to obtain financial help during the coronavirus outbreak — and you should apply for both. You qualify if you employ less than 500 people, so most furniture and floor-covering dealers, A&D firms and small manufacturers qualify. At The Viscusi Group I have been on the phone with many of my dealer, independent rep and manufacturing clients from across the country and with my many friends who own A&D firms. We have been sharing information about these government programs. I have encouraged everyone to apply for this funding.
The PPP can help businesses that keep employees on the payroll or rehire them by June 30 if they have been laid off, and these loans could be fully forgiven. Businesses are able to request 2.5 times their average monthly payroll cost for this loan. Apply as soon as you have finished this column by contacting your banker and accountant and completing a very short online form. Be aware that since PPP is a brand new program rolled out fast on April 3, even the most experienced bankers do not know much about it yet. Everyone is learning together, so be patient with them.
If you cannot get your banker on the phone at this time just go to your bank’s website and see if they are participating in the PPP. Here is something interesting I have learned: Many big banks do not want to participate in the PPP program because, I would guess, there is not enough money in it for them. Who knows for sure, but if your bank is not participating in PPP you can also go to third-party lenders. Here is a LINK to one the third-party lenders — https://sbacares.boefly.com — and there are many others. All of this, of course, should be done in consultation with your CPA.
Even if your business has never taken a loan before I promise you will not regret going online and at least learn about these two programs.
Do not stop there. Go on the www.SBA.GOV and look into the Economic Injury Disaster Loan Program which includes a $10,000 grant that businesses do not need to pay back — ever! Like free money to help keep your business going.
Even if your business has never taken a loan before I promise you will not regret going online and at least learn about these two programs. And do it now because everyone you know who owns a business may have already applied since there is a cap on the funding in the CARE bill. At TVG Recruiters we know what you are going through, we all are in the same boat. This virus is a great leveler. I am here for the industry that has been so good to me and hope I can help. Even if you have never been a client, or we have never spoken, shoot me an email with your questions. We can set up a confidential call, and I will share what I know about these programs. I know how hard it is for you to have to let go of valued, loyal employees so here are two compelling programs you should act on now. There may be other options, like cutting executive’s pay rather than shrinking your salesforce – ideas that we can discuss.
And finally, if you are reading this and are worried about losing your job or have already lost your job, write me as well. Get that resume updated and get it to me, but only after you have applied for unemployment!
Signed,
Stephen
You can send your workplace questions to Stephen at: StephenSays@bellow.press
Questions selected to be answered, will appear in this column. Please use the Subject: Stephen Says for all emails. Stephen Viscusi is a bestselling author, television personality, and CEO of The Viscusi Group, global executive recruiters located in New York. Follow Stephen on Twitter @stephenviscusi, Like Stephen on Facebook and follow him on LinkedIn.
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