Funding sources, conference call with Rep. Joyce, and more

Information has been coming at us quickly and there is so much of it right now. Chamber staff continues to work remotely, but we are doing everything we can to make sure you receive all the information that you need. It can be very confusing so we are sending the different financing options to you in this newsletter. There are two included here: the Economic Injury Disaster Loan, and the Paycheck Protection Program Loan.

We know that this is a difficult time, so please remember that we are here for you.

Gov. Wolf, Sec. of Health: Pennsylvania on Statewide Stay-at-Home Order Beginning at 8 PM Tonight, “Most Prudent Option to Stop the Spread”

Governor Wolf’s Order

Secretary of Health’s Order

Stay at Home Guidance

Industry Operation Guidance

Harrisburg, PA - Governor Tom Wolf and Secretary of Health Dr. Rachel Levine today announced all 67 Pennsylvania counties will be under stay-at-home orders effective tonight, Wednesday, April 1, at 8 p.m.

“This is the most prudent option to stop the spread of COVID-19 across our commonwealth, where cases continue to grow daily,” Gov. Wolf said. “We appreciate the shared sacrifice of all 12.8 million Pennsylvanians; we are in this together and this statewide stay-at-home order is being made after many discussions with multiple state agencies; Dr. Levine; and state, county and local officials as we continue to monitor the most effective ways to save lives and stop the spread of COVID-19.”

Previously, there were 33 counties on statewide stay-at-home orders. The first orders were issued on March 23 for seven counties.

The statewide stay-at-home order takes effect at 8 p.m. today, Wednesday, April 1, 2020, and will continue until April 30. All Pennsylvania schools will remain closed until further notice and non-life-sustaining business closures remain in effect. All essential state services will continue.

“This statewide stay-at-home order is not just to protect ourselves from exposure to COVID-19, but it protects those on the front lines,” Dr. Levine said. “Our doctors, nurses, police, fire, EMTs need us to do this. And the CNAs who are taking care of our family in nursing or long-term care facilities need us to do this. Staying at home doesn’t mean making a daily stop at the grocery store because you need to get out of the house. Staying at home means you must stay at home.”

Click here to read the rest.

Small Businesses and Non-Profits can get up to a $10,000 advance on an Economic Injury Disaster Loan (EIDL)

Due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, small businesses and non-profits can get up to a $10,000 advance on an Economic Injury Disaster Loan even if their previous application was declined or is pending.

The EIDLs expanded provisions include:

· EIDLS can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required) . Mr. Contreras specified that a prior bankruptcy doesn’t disqualify you.

· EIDLS smaller than $200,000 can be approved without a personal guarantee. They are also not requiring real estate as collateral and will take a general security interest in business property.

· Borrowers can receive $10,000 in an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss.

· It expands access to sole proprietors or independent contractors, as well as tribal businesses, cooperatives, and ESOPs with fewer than 500 employees and all non-profits.

Apply now for an advance at: sba.gov/disaster .

The Economic Injury Loan Application has been simplified and can be completed 100% online at covid19relief.sba.gov .

SBA Office of Disaster Customer Service is available for questions or to check on application status at 1-800-659-2955 (TTY: 1-800-877-8339) or via email at disastercustomerservice@sba.gov .

Information on SBA Disaster Assistance, including Funding Programs, is available at sba.gov/funding-programs/disaster-assistance.

Paycheck Protection Program

There are new Paycheck Protection Program Loans for businesses with less than 500 employees and some non-profits, including those with a 501(c)(3) designation.

This program provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during COVID-19. The Paycheck Protection Program has attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.

You can apply for this loan at approved financial institutions. We have confirmed that you can apply at the following local banks and are working on getting the contact name for each location. CBT Bank a Division of Riverview Bank (855-455-9027 or careactloans@riverviewbankpa.com ) , Community State Bank of Orbisonia (Dawn Snyder dlsnyder@csborbisonia.com or 814-617-1519), Kish Bank (ask for Jackie Confer or Larry Burger 814- 641-5474), First National Bank (814- 643-5960), Northwest Bank (81-) 643-8720), Juniata Valley Bank (ask for the branch manager 855- 582-5101 ). Some banks also have COVID-19 links on their website. If you are a bank offering this service and not on this list please email me at ymartin@huntingdonchamber.com.

Here are some of the guidelines:

• Independently owned franchises with less than 500 employees

• “Accommodation and Food Services,” if each location has less than 500 employees

• Sole proprietors, independent contractors, self-employed individuals

• AND

• Been in business since 2/15/2020 and paid taxes on your employees or independent contractors.

• Businesses can borrow 2.5x average monthly payroll for previous year, up to $10 million

• For seasonal employers, the average total employees shall be calculated for the period between 2/15/19 and 6/30/19.

What are the terms of the loan?

• Loan payments (including interest) will be deferred for at least 6 months and up to one year starting at the origination of the loan.

• Interest rate will not exceed 4% and the loan maturity is 10 years.

• SBA guarantees 100% of the loan. No collateral is required.

• There is no prepayment penalty.

• Funds can be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.

• You must certify that the loan will support the ongoing operations of the business due to current economic conditions.

• The loan can only be used for expenses incurred between 2/15/2020 and 6/30/2020 and a portion of the can be forgiven.

• Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020:

• Payroll costs (including everything listed above)

• Payments on interest of any mortgage obligation

• Rent

• Utilities

***Keep all paperwork on qualifying expenses

A borrower is eligible for loan forgiveness equal to the amount they spent on eligible items during the 8-week period they choose beginning on the date of the origination of the loan.

• Payroll costs (using the same definition of payroll costs used to determine loan eligibility)

• Interest on the mortgage obligation incurred in the ordinary course of business

• Rent on a leasing agreement

• Payments on utilities (electricity, gas, water, transportation, telephone, or internet)

• For borrowers with tipped employees, additional wages paid to those employees The loan forgiveness cannot exceed the principal.

Working Capital Access Program

The COVID-19 Working Capital Access Program is now closed. Now more funds are available.

Invitation from Rep. John Joyce, M.D. (PA-13)

As both a former small business owner and a Member of the House Small Business Committee, Congressman John Joyce understands firsthand the challenges that workers and small business owners are facing during this difficult and uncertain time. To help, Congress already has taken action to provide targeted, compassionate relief to these Pennsylvanians during the coronavirus outbreak.

Congressman Joyce is planning to host a conference call for PA-13 small business owners and local community leaders this Friday, April 3, at 1pm to outline the new Paycheck Protection Program and other assistance opportunities,. The details are listed below.

Call In: 877-229-8493; PIN: 119075

To RSVP for the call or for any questions, please email Pat Himes or Chad Reichard .

IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19

The Treasury Department and the Internal Revenue Service launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. 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.

Does my business qualify to receive the Employee Retention Credit?

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories:

1. The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.

2. The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

These measures are calculated each calendar quarter.

How is the credit calculated?

The amount of the credit is 50% of qualifying wages paid up to $10,000 in total. Wages paid after March 12, 2020, and before Jan. 1, 2021, are eligible for the credit. Wages taken into account are not limited to cash payments, but also include a portion of the cost of employer provided health care.

How do I know which wages qualify?

Qualifying wages are bas ed on the average number of a business’s employees in 2019.

Employers with less than 100 employees : If the employer had 100 or fewer employees on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not. If the employees worked full time and were paid for full time work, the employer still receives the credit.

Employers with more than 100 employees : If the employer had more than 100 employees on average in 2019, then the credit is allowed only for wages paid to employees who did not work during the calendar quarter.

I am an eligible employer. How do I receive my credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200 , Advance Payment of Employer Credits Due to COVID-19.

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

Where can I find more information on the Employer Retention Credit and other COVID-19 economic relief efforts?

Updates on the implementation of this credit , Frequently Asked Questions on T ax Credits for Required Paid Leave and other information can be found on the Coronavirus page of IRS.gov.

Additional Information on the Employee Retention Tax Credit is Now Available

As employers begin to navigate the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, a helpful FAQ document pertaining to the Employee Retention Tax Credit section of the law is now available. Developed by the U.S. Senate Committee on Finance, the document answers a wide range of potential questions – including what types of businesses qualify for the credit, how it is calculated and the availability of the credit. To view the FAQ document, click here .

Unemployment Compensation Update:

Benefits for Self-Employed

Many people who are self-employed or working as private contractors are now eligible for unemployment benefits under the CARES Act. PLEASE NOTE: Claims for the Pandemic Unemployment Assistance Program will be filed through the State Department of Labor and Industry; however, the application must be handled separately and is not yet available. As soon as the program is up and running, I will share information about how to apply. You should not file under the current system, as your claim will be rejected.

Additional Resources to Help Small Businesses Navigate the Coronavirus Pandemic from the US Chamber

Resources created by CO— , the U.S. Chamber's own interactive digital platform designed specifically for business owners and offering unparalleled assets and subject matter expertise from the U.S. Chamber.

CO—has created a Coronavirus Small Business Guide to help you navigate the pandemic with new stories daily—including a detailed breakdown of federal stimulus aid programs , information about managing financial difficulties , keeping your team engaged , supporting and retaining your customers , and more.

Economic Impact Checks

The majority of Americans will receive “economic impact” checks to help during these challenging times. Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Most will need to take no action to receive the check. Please be aware of any scammers contacting you asking for Social Security or bank account information; do not provide such information. More guidance from the IRS available here .

SCAM WARNING

The Office of Attorney General is warning that scammers may try to take advantage of recent news about a federal stimulus check to steal personal information. You are advised not to take unsolicited calls that claim to be about the COVID-19 pandemic or the federal stimulus, and report suspicious emails and calls to the attorney general at scams@attorneygeneral.gov .