Paycheck Protection Program Loans (PPP)

On April 21, Congress passed a $484 billion deal to replenish funding for the Paycheck Protection Program (PPP). To acquire one of these loans, you should apply through your bank. The SBA recently provided additional guidance regarding these loans, which you can view here: https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf.

Your PPP loan will be forgiven if you designate 75% of it for payroll. Make sure to confirm the process with your bank to ensure that you maximize the amount of the loan that is forgiven.

Here are some important points to keep in mind:

• You must use your loan proceeds within eight weeks of being received
• Track and gather data to maximize the forgiveness through the appropriate usage of the funds
• Prepare to deliver to your lender the necessary documentation at the end of the eight-week period

Coronavirus Stimulus Payment App

If you think you are entitled to a stimulus payment and have not received it, you can check on the status of the payment by visiting the IRS’ Get My Payment tool: https://www.irs.gov/coronavirus/get-my-payment.

If the IRS does not have your direct deposit information, you can use the ‘Get My Payment’ online tracker to update it. If you will be receiving a paper check, you can also use this tool to determine when it will be mailed to you.

Do be aware that some who are eligible for a stimulus payment are still experiencing issues with the Get My Payment tool.

State Initiatives

Unemployment for Self-employed

This program is funded by the federal government, but it is administered by the state. More information regarding this can be found here: https://www.uc.pa.gov/Pages/default.aspx.

Reopen Pennsylvania

On April 22, 2020, Governor Wolf announced his plan to reopen businesses in Pennsylvania. The “reopen” is based upon a regional data driven decision making process. This process focuses heavily on the criteria that a region does not exceed a population-based incidence rate of 50 cases per 100,000 individuals over 14 days. For example, if your region has a population of 1,000,000, you would be able to move from one phase (detailed below) to another if your reported new incidences, during a two-week period, did not exceed 500.

It is anticipated that the reopening will be structured based upon three phases, as outlined in the Governor’s plan, and detailed below – Red, Yellow and Green.  Movement between phases will be determined based upon the population incidence rate noted in the preceding paragraph. Currently, all of Pennsylvania is in the red phase, which is the most restrictive.

Red Phase

This phase is centered around the minimization of the spread of COVID-19 through the efforts of social distancing and the temporary closure of schools and non-life sustaining business.

Yellow Phase

During this phase the economy begins to reopen, while maintain social distancing, but easing some restrictions on businesses and travel.

Green Phase

This phase represents a return to normal, with most restrictions relaxed, but as in the red and yellow phases, all businesses must follow Centers for Disease Control and Prevention and Pennsylvania Department of Health guidelines.

Local Initiatives – “Delco Strong Small Business Support”

Delaware County has created “Delco Strong Small Business Support,” a program to be administered by The Delaware County Economic Development Oversight Board, the Delaware County Planning Commission and the Redevelopment Authority of the County of Delaware. Its purpose is to provide $1.75 million in grants to small business affected by the COVID-19 pandemic.

Eligible businesses can apply for grants up to $7,500, to be used for rent, mortgage payments, utilities and inventory.

An eligible business is:

1. For-profit with less than 50 full-time employees on payroll as of March 31, 2020,
2. Presently occupying a “brick and mortar” location in Delaware County in an industrial or commercial district (not a residential house), and
3. Registered or incorporated to conduct business in Pennsylvania.

How to apply:

1. Online applications are to be submitted May 6, 2020 from 12:01 am to 11:59 pm, and
2. In-person/paper applications are to be submitted at the Delaware County Courthouse on May 6, 2020 from 12:00 pm to 4:30 pm, and on May 7, 2020 from 8:50 am to 1:00 pm.

More information on the grant application can be found here: www.delcostrong.delcopa.org.

If your business in not located in Delaware County, please look to your county’s website for economic stimulus initiatives at both the state and local levels.