Details on new CARES Act Loans below, but first, some GOOD NEWS:

Your Southampton Business Alliance Board of Directors continues to strive to keep you updated as the situation changes (rapidly) due to the Corona Virus Pandemic. However -- first and foremost we hope that you, your family and your staff are all safe and healthy.

In thinking about how to support our community at this time, we contacted Southampton Hospital to see what would be most helpful. We are pleased to announce that we have just donated $7,560 on behalf of you -- our membership -- to fund their purchase of a 2-month supply of vitally needed N95 masks for their medical staff.

Learn more medical details about the virus below, and click here to donate to Southampton Hospital.
Small Business Administration Loans
Under the CARES Act | UPDATED 4/3/20
Lisa D. Tymann, Partner

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27, 2020. Title I (“Keeping American Workers Paid & Employed Act”) addresses two types of loans available to small businesses, both of which greatly expand SBA loan eligibility. 

On April 2, 2020, the SBA issued an Interim Final Rule, effective immediately (though comments will be considered for a period of 30 days and revisions may be made as a result thereof) in connection with the Paycheck Protection Loan Program described below. A brief summary of each of the two types of loans is provided below.

PPP: Paycheck Protection Program
Paycheck Protection Program under Section 7(a) of the Small Business Act- to help employers maintain payroll to prevent job loss & small business failure; 100% federally guaranteed; $349 billion available for loans
      Eligibility: in addition to small business concerns, any business concern, nonprofit organization, veterans organization, or Tribal business concern with not more than 500 employees, including sole proprietors, non-profits, and eligible self-employed individuals; eligible companies must have been in operation on February 15, 2020 and have had employees for whom it paid salaries & payroll taxes or paid independent contractors as of such date
      Application: small businesses and sole proprietorships may apply beginning Friday, April 3; independent contractors and self-employed individuals may apply beginning Friday, April 10; apply directly with SBA-approved lender by June 30, 2020 (funding is capped, so applications should be submitted as soon as possible); the Department of Treasury has authorized FDIC-insured banks and credit unions, certain Farm Credit System institutions, and certain other depository or non-depository financing providers to provide loans in addition to already approved SBA lenders; applicants are advised to contact all lending institutions with whom they do business to gauge such institution’s readiness to provide application and process the loan; applicant may apply with only one bank, however; all lender & borrower fees are waived
      Coverage Period: February 15, 2020 to June 30, 2020
      Loan Amount: Maximum amount of loan is the lesser of $10 million or 2.5 times the average monthly payroll costs based upon the prior year’s payroll
      Interest Rate: 1.0% fixed

Permitted Uses for Loan:
- Payroll Costs (including costs related to healthcare benefits and premiums, payments for vacations and sick, family and medical leave (to the extent a credit is not allowed under the Families First Coronavirus Response Act), salaries (salaries of over $100,000/year are capped at $100,000), wages, commissions, tips and similar compensations, state and local taxes on compensation (NOT available for federal employment taxes imposed or withheld from 2/15/2020-6/30/2020, including FICA,
Railroad Retirement Act taxes and income taxes required to be withheld from employees);
-interest payments on mortgage obligations;
-rent (lease must have been in force as of February 15, 2020);
-utilities for which service began prior to February 15, 2020

Forgiveness: amounts spent during the 8-week period beginning with the origination date on rent, payroll costs, mortgage interest & utilities may be forgiven; 75% of the qualified spending must consist of Payroll Costs (no more than 25% of amount forgiven may be for non-payroll costs); amount forgiven may be reduced if the borrower reduces the number of full-time employees or salaries and wages (pay cut in excess of 25% of prior year’s compensation) during such 8 week period; amount forgiven reduced in proportion to reduction in number of employees & reduction in total salary or wages of employee in excess of 25% (excluding employees with salaries greater than $100,000); reduction penalty does not apply to the extent the borrower restores their workforce count and salaries/wages by June 30, 2020; must apply to lender for forgiveness and include documents verifying the number of full-time equivalent employees and pay rates, along with payments on eligible mortgage, lease and utility obligations; lender must make decision on loan forgiveness within 60 days; amount forgiven may not exceed the principal of the loan; amount forgiven is not included in gross income; SBA will be issuing further guidance on loan forgiveness
      Term: to the extent not forgiven, 2 years
      Deferral: 6 month deferment on payment of principal & interest (interest still accrues during that period)
      Guarantees/Collateral: no personal guarantee or collateral required

EIDL: Economic Injury Disaster Loan
Economic Injury Disaster Loan Program under Section 7(b) of the Small Business Act (“EIDL” Program)- existing program but expanded by CARES Act with $10 billion of additional funding for emergency grants, expansion of entities eligible for such loans and waivers of certain requirements
      Eligibility: in addition to already eligible small business concerns, private nonprofit organizations, and small agricultural cooperatives, sole proprietors, independent contractors, and any cooperative, ESOP or tribal small business with 500 or fewer employees; must have suffered “substantial economic injury” from COVID-19; usual EIDL requirement that borrower must demonstrate it is unable to obtain credit elsewhere is waived
      Application: through the SBA website at:
      Coverage Period: January 31, 2020 to December 31, 2020
      Loan Amount: based upon company’s actual economic injury as determined by the SBA up to $2 million
      Interest Rate: 3.75% fixed rate for small businesses; 2.75% for nonprofits
      Permitted Uses for Loan: payroll, to cover increased costs due to supply chain interruption, rent and mortgage payments, obligations that cannot be met due to revenue loss
      Term: up to 30 years
      Grants: any entity applying for such a loan may request an advance of up to $10,000 to pay allowable working capital needs; the advance is to be paid by the SBA within 3 days of administrator’s receipt of application, subject to verification that entity is eligible under program; is not required to be repaid, even if the application for the loan is denied (but amount of advance must be deducted from any loan forgiveness amounts under a Paycheck Protection Program Loan)
      Guarantees: no personal guarantees required for loans up to $200,000; SBA must make determination that applicant has ability to repay the loan; can be based solely upon applicant’s credit score (submission of tax returns not required)

Companies may obtain loans under both programs but cannot cover the same costs with both loans; may also apply for other SBA financial assistance as long as there is no duplication in the uses of funds.

In addition to availability of the loans discussed above, the CARES Act allocates an additional $17 billion to subsidize certain existing loans guaranteed by the Small Business Administration under Section 7(a) of the Small Business Act; the Administration will pay principal, interest and fees on such loans for a period of six months and is encouraging lenders to provide payment deferments and extend maturity dates.

For more information on how to apply for assistance, visit the U.S. Chamber of Commerce website at
Corona Virus Q & A with Dr. Fredric Weinbaum,
Stony Brook Southampton Chief Medical Officer
Dr. Weinbaum
(From / The Southampton Press):

There are a lot of questions and a lot of unknowns about how much of a risk going about daily life poses to citizens, even for those who are under the stay-at-home orders from non-essential businesses. Going to the grocery store or pharmacy, getting takeout food, even Amazon deliveries are causes for anxiety among those fearful of contracting and spreading the virus.

Stony Brook Southampton Hospital's Chief Medical Officer and Chief Operating Officer Dr. Fredric I. Weinbaum talked with The Press this week about what concerns are reasonable and how the basic precautions we've all been told to follow work and whether some specific additional precautions might be worthwhile.

Q: We have heard the virus can vaporize and linger in the air. Is that true?
Dr. Weinbaum: The virus can aerosolize during certain procedures where a patient's airway is being manipulated in the hospital. Absent those procedures, the way the virus spreads is through either direct contact or droplets. Droplets are created when someone coughs or sneezes. They are not microscopic particles that remain in the air. They're droplets that fall to earth or a surface by gravity and those surfaces can then become contaminated.

Q: What precautions should people take when outdoors at the beach, walking through their neighborhood or on a nature trail.
Dr. Weinbaum: Certainly outdoors is an environment that's safer [than indoors] because of the ability to maintain sufficient distances between each other and the fact that there aren't a great deal of available surfaces for the virus to land on and potentially be a source of contact.

But that doesn't mean you shouldn't maintain a safe distance wherever you are. Maintain 6 feet.

If you come in contact with any surfaces, don't touch your face and wash your hands. A thorough wash, 20 seconds of scrubbing and rubbing on all surfaces of your hands. Coronavirus is an RNA virus, which is encapsulated in a fatty lipid envelope. Lipids are particularly sensitive to soap and detergent. Soap and water is probably the best thing you can do for prevention of contact spread.

Q: Does wearing a mask help?
Dr. Weinbaum: They are probably unnecessary as protection. Do you get any protection from wearing a mask and gloves? One, you are protecting others from contact with you. And there may be some modicum of protection you are getting. That should not be thought of as absolute personal protection and is no substitute for washing you hands and cleaning surfaces.

Q: How can someone best protect themselves if they have to go to a grocery store or pharmacy?
Dr. Weinbaum: The best advice when gong to a grocery store is to maintain 6-foot distances whenever possible; to clean with a disinfectant wipe the surfaces that you are touching, the cart, to clean that cart before and after you shop, in deference to that next person; to wash your hands thoroughly when you get home and to provide as much distance as you possibly can throughout the entire experience.

It's unlikely that anyone will have a problem when shopping at the grocery store, but my advice is to limit one's shopping at the grocery store as much as humanly possible so as to avoid any surface contact where you could inadvertently touch your eyes or face and infect yourself.

Q: What about bringing the products you purchase into your house?
Dr. Weinbaum: If you want to use a wipe and wipe off any packaging that you bring in the house, I don't think there's anything wrong with that. But the potential for that to transmit infection is extremely unlikely because those surfaces we can assume haven't been covered in droplets like a hospital surface might be in the presence of an infected person.

Q: How long can the virus linger on a food package or cardboard delivery box?
Dr. Weinbaum: Studies from hospital rooms, which are a poor comparison to food shelves, have shown that the virus is capable of lingering on stainless steel surfaces and plastic surfaces for considerable lengths of time. With plastic it can be up to seven days.

But once more, the likelihood is extremely low. You're not putting your packages of tea and the other things you are buying in a grocery store in a hospital room with patients that are actively coughing. Theoretically, the possibility may be there, but realistically, the potential is very low. But when you are handling things, you shouldn't be touching your face and … you need to wash your hands when you are done.

The virus can persist on cardboard. I can't say it couldn't possibly be there. It's unlikely that it's there, but after you handle cardboard, wash your hands.

Q: What about picking up takeout or delivery of prepared food?
Dr. Weinbaum: When you are doing a pickup, if there is a system to avoid contact and maintain social distance, that's better. When you bring food home in a plastic box, you should transfer the food to a plate and discard the plastic box and wash your hands.
The food itself is highly unlikely to [contain] virus since it's been cooked and subject to temperatures.

Q: Should you reheat it?
Dr. Weinbaum: You can reheat it, and if you subject it to adequate reheating that will also destroy the virus.

Q: If you get the disease and recover, are you then immune from getting it again?
Dr. Weinbaum: We believe that to be likely to be true, if this is like every other similar viral infection. But there is inadequate data to prove that everyone who has had the virus is immune from getting it again. There have been some promising reports of patients who after they had been infected have antibodies, and those antibodies, in small studies, have been shown to ameliorate symptoms when infused into other patients.
Counseling available for small businesses
If you're in need of advice, please contact the Stony Brook Small Business Development Center. The SBDC at Stony Brook maintains services both at the Stony Brook University Main Campus and at the Southampton Campus (part-time). The SBDC at Stony Brook can be reached at (631) 632-9837 or by e-mail at:  

Suffolk County has a Business Recovery Unit dedicated to COVID-19 issues
Please take the County's Business Impact Survey to get on list for updated information.
Resources for your small business:
Federal Actions & Resources :
Families First Coronavirus Response Act- provides paid leave for employees absent from work for reasons related to COVID-19  See website here
The act provides for tax credits and tax exemption for businesses as follows:
  • Payroll tax credit for required paid sick leave 
  • Income tax sick leave credit for the self-employed
  • Payroll tax credit for required paid family leave (Emergency Family and Medical Leave Expansion Act)- this leave is available when an employee must take off to care for their children under age 18 because of  a COVID-19 emergency declared by a government authority that either closes a school or place of childcare or makes a childcare provider unavailable   
  • Income tax family leave credit for the self-employed  

The IRS has issued an extension of deadline to file and pay 2019 federal income taxes- any returns or payments due by April 15, 2020 are now due by July 15, 2020 (no forms need to be filed to obtain the extension and no interest   or penalties will accrue until July 16, 2020)

U.S. Small Business Administration
Small business owners in all 50 states are eligible to apply for disaster loans due to the Coronavirus (COVID-19)

Additional Federal Resources:

New York State Actions & Resources :
Local Resources:
Thank you to our corporate sponsors:

Southampton Business Alliance Executive Committee:
President:  Larry Hoffman , Dockers Waterside Restaurant & Marine
Vice President:  John LaMura , Esq
Secretary:  Bob Strebel, Jr. , Sabel & Oplinger
Treasurer:  Joe Mammina , Markowitz, Fenelon & Bank
Immediate Past President:  Ann LaWall,  Ann LaWall & Company

Directors: Ellen Cea , Rechler Equity Partners 
Sheryl Heather   (Executive Director),  Spring & Summer Activities
Tony Panza , Turtle Pond Builders | Mollie Scruggs , Southampton Limousine
Aram Terchunian , First Coastal Corp.

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