COVID-19 Special Update: SBA Loans  

In these unprecedented and uncertain times, Printing Industries of America is committed to providing the printing community with the most up-to-date resources on the ongoing COVID-19 situation. Below is important guidance released jointly by the U.S. Department of Treasury and U.S. Small Business Administration regarding the Paycheck Protection Program:
Paycheck Protection Program

On March 31, the U.S. Treasury Department and Small Business Administration issued information regarding what is expected to be one of the most expansive and robust mobilizations of banks and lending institutions to deploy $350 billion in small business loans. This program, also known as the Paycheck Protection Program, was established as part of the CARES Act (a.k.a. Phase III stimulus legislation in response to Coronavirus). Starting Friday, April 3, small businesses with fewer than 500 employees can apply for these fully guaranteed and forgivable loans. (Independent and self-employed individuals can start applying for these loans on April 10.)

It is important to note that time is of the essence in applying for these loans. There is an overall funding cap for this loan program. If you plan to utilize this assistance program, do not wait.

Start today by doing the following:
  1. Review PIA's Paycheck Protection Program FAQ.
  2. Contact your local financial institution to see if it is an eligible lender. If not, visit the SBA's  online lender match tool to find a qualified lender. (Note: The list of eligible lenders is being expanded on a rolling basis.)
  3. Access and complete your  application form.

Keep in mind that the Paycheck Protection Program is a massive undertaking and it's reasonable to assume wait times or glitches will occur. Starting the loan application process now is critical. 
Economic Impact Payment Program
In addition to the small business information above, you may also wish to share with your employees the recently released IRS information  on the Economic Impact Payment program. This program relates to the individual assistance provisions in the CARES Act that will be deployed as direct payments to qualified individual recipients.
Utilizing the SBA Disaster Loan Recovery Program
With the recent introduction of the Small Business Administration's Disaster Loan Recovery Program, there are many questions about what the loans do and do not entail. As more details have become clear, Todd Lesley of Bedford Financial has crafted a short guide to answer some of the most pressing questions about the Economic Injury Disaster Loans.
  1. No collateral is needed for loans $25,000 or less. Anything larger and the SBA will need to take business collateral. If there is no business collateral though, it's not necessarily a deal killer. For example, a staffing company typically does not have collateral other than receivables.
  2. Repayment does not start for 12 months.
  3. Rate is 3.75% and terms are between 15 and 30 years.
  4. These are not grants, and the loans DO have to be paid back.
  5. Use of proceeds...fixed debt, payroll, payables, working capital, etc. Not to be used to refinance debt unless it's another shorter term recovery loan. This is not an expansion loan or business acquisition loan.
  6. If you have a line of credit with a bank that is not being fully utilized you can still apply with SBA for this loan.
  7. You don't need to provide tax returns on loans $500,000 or less. You will need to sign a form 4506 so that the SBA can get a copy of your most recently filed returns.
  8. They are getting help from FEMA to assist with the application process. The system is overloaded and your application, and while worth the wait, will take some time due to the overload of requests.
  9. It will help to show the economic injury you are suffering or are about to suffer. Historical tax returns would help your case. If you are a seasonal business be sure and show the impact this will have.
PIA Joins SGIA and NAPCO Media to Launch  COVID-19 Resource Channel  

Printing Industries of America (PIA), and its affiliates have joined forces with SGIA and NAPCO Media to launch a powerful resource channel dedicated to providing the printing and graphic communications industry with up-to-the-minute news and resources on COVID-19 and how to navigate the latest information about the pandemic. The COVID-19 Resource Channel is now live. 
With content being updated daily, the entire industry can easily access guidelines and best practices as recommended by leading government agencies, such as the Centers for Disease Control and Prevention, World Health Organization, Small Business Administration, Department of Labor as it pertains to the printing industry and relevant operations and procedures. 
"We are living in unprecedented times where print and mailing services have never been more critical to the nation and its economy. PIA and its affiliates are proud to pool their extensive resources with SGIA and NAPCO media to establish the definitive source of information and guidance to the industry during the COVID-19 pandemic," says Michael Makin, President and CEO of Printing Industries of America. "Working together we will get through this and emerge as a strong, united industry which will continue to serve as a vital communications hub for America."
Content on the COVID-19 Resource Channel will be provided daily by industry leaders in subject areas, as follows: 
  • State and Local Legislative Updates: Marci Kinter, Vice President, Government Affairs, SGIA
  • National Legislative Updates: Lisbeth Lyons, Vice President, Government & External Affairs, PIA
  • Safety Updates: Gary Jones, Director, Environmental, Health and Safety Affairs, SGIA
  • Economic Impact on the Printing Industry: Andy Paparozzi, Chief Economist, SGIA
  • Human Resource Updates/Guidance: Adriane Harrison, Vice President of Human Relations, PIA
Small Business Owners' Guide to the CARES Act

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was
just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non- profits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA. 

Business Relief and Support In San Diego 

To ensure the resiliency of local businesses and assist in job retention, the City of San Diego has established a Small Business Relief Fund (SBRF) to provide grants and forgivable or low- to zero-interest-rate loans to eligible small businesses for working capital. Visit the Economic Development Department Business Relief and Support page. 
Loan, Grant, Tax Credit Options 

There are now several loan/grant/tax credit options available for companies to use to get through this crisis.  Here is a rundown:
  1. Dollar-for-dollar tax credits for any employee's use of Emergency Paid Sick Leave and Emergency Family & Medical Leave Expansion (related to COVID-19 only)
  2. Employee Retention credits for continuing to keep employees despite significant downturn in business
  3. Paycheck Protection Program for companies that need to "hibernate" during the downturn due to being nonessential business or a loss of business. It is a forgivable loan, so it works as a grant, and covers payroll expense, mortgage interest, rent, and utilities.
  4. Economic Injury Disaster Loans - a quick, low-interest, loan disbursed in 3 days, to cover business expenses that caps at $10,000.
The specific requirements and details of these programs are found in a variety of locations, but you can get summaries them on the PIA HR COVID-19 page
Mandatory Labor Posters  
On April 1 the Families First Act laws took effect.  This requires displaying the new posters, which can be found on the PIA HR COVID-19 page, along with a FAQ about providing notice (including to those working remotely).  
Here are the individual links to the posters and FAQ taken from the PIA HR page referenced above:
The following posters regarding the new FFCRA are mandatory for employers with fewer than 500 employees.

PIASD Seeking Your Company's COVID-19 Status
Print service providers who serve "essential" supply chains may remain open to serve their essential clients' needs under the stay-at-home order. PIASD is seeking to quantify the essential work of members in all states in our region to determine their current status. Essential work is defined as serving the needs of sectors defined in the  Federal CISA Guidelines. Please take 3-minutes and share the current essential status of your company.   
We value the feedback we get from our members. Take a few minutes of your time to complete the survey, and you'll be automatically entered to win a $25 Amazon gift card. Winners will be announced on our social media pages.   
[This survey is anonymous and only aggregate totals will be made public.]
COVID-19 Webinar
- Critical California Legislation for Your Business
Friday, April 3  I  11am-12pm  I  Members: FREE   
During this webinar with PIC's Lobbyist RJ Cervantes of Fernandez Cervantes Government Affairs, will discuss the recent state and federal action and Legislation related to COVID-19, with particular emphasis on: 
  • New federal legislation including employer responsibilities for Paid Sick Leave, Family Medical Leave, and the Economic Stimulus
  • State of California Actions Affecting Printing companies and their employees.
  • Our efforts to secure printing as a critical infrastructure designation.