OPMCA Connection
Keeping You Informed!


OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA STAFF

Candace McGinnis
Executive Director  
Candace@opmca4you.com 

Hannah May
Director of Member Services  
Hannah@opmca4you.com

OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2020-2021 Board of Directors

Kurtis Hutchinson, Chairman 
 Hutchinson Oil Company

Jerry Davidson
Pete's Corporation

Teresa Hollenbeck
Red Rock Distributing Company

John Netherton
Danielson Fuel Services

Jason Flinn
Flowers Oil Company

Rob Toth
Coffeyville Resource
  • Click Here to View all EMA Coronavirus Related Resources for Petroleum Marketers Including all Regulatory Reports

  • Click HERE to View the Latest Coronavirus Resources Provided NACS Relating to Convenience Stores as Essential Businesses
Tuesday, March 30, 2021
  • Don't Forget - We Have an App!

  • Congressional Update

  • Senate Approves Paycheck Protection Program (PPP) Extension

  • Visa and MasterCard Postpone Swipe Fee Increases Another Year

  • SBA Triples the Amount Small Businesses Can Borrow Through the EIDL Disaster Loan Program

  • EMA Masters: Grow Sales, Grow People, Grow Profits

  • EMA Masters Monthly Article: March 2021 - Budgets That Work

  • Federated Insurance March Educational Articles

  • Federated Insurance Sponsored Webinar
OPMCA Welcomes New Member!
Juul Labs, Inc.
Kenton Stanhope
925 L Street, Suite 300
Sacramento, CA 95814
(530) 400-8668
kenton.stanhope@juul.com
Only ONE MONTH until the 2021 OPMCA Convention!
We are now just one month away from the 2021 OPMCA Convention on May 4th, 2021. The Convention will be taking place in person with COVID-19 safety precautions strongly encouraged.


We ask that those interested in attending to please register in advance online below. We know times are unprecedented, but we are doing everything we can to have a safe and enjoyable event! OPMCA encourages all members to attend and participate in convention activities.
Don't Forget - We Have an App!
Don't forget that the OPMCA app is now available on iOS and Android platforms – and our buyer’s guide website has launched at OBG OK Petroleum (eandmonline.com) We wanted to make sure you had the chance to capitalize on the great marketing opportunities the new app and website gives your company!
 

To view the ad rates and sign up for space in the App, please follow this link: 


The OPMCA app is available to all members, companies and industry members who are seeking petroleum and convenience store business information, quick links for OPMCA association information, OPMCA Board of Directors, events and more. Don’t miss out on including your enhanced company listing in our Member Listings Section!
 

You can download the app by visiting these links for your mobile phone or smart device:



Open ad spaces are almost gone, and this is the last chance to reserve your spot!


If you have questions regarding advertising on the app, please feel free to reach out to an E&M Sales Representative at advertising@emconsultinginc.com or call 800-572-0011 ext. 1005. 
Congressional Update
Earlier in March, the House passed legislation that provides a two-month extension, through May 31, for Paycheck Protection Program (PPP) applications. There is bipartisan Senate support to pass the extension, but Republican Senators introduced a modified version, which would prevent the SBA Administrator from prioritizing certain businesses without approval from Congress. News reports speculate this effort is intended to pre-empt Biden Administration plans to direct certain funds specifically to minority-owned businesses. While the Senate is still expected to pass an extension, this development could delay passage, which will require the support of at least 10 Republican Senators to meet the Senate’s 60-vote threshold.

Congress and the Biden Administration continue considering potential vehicles for a broad infrastructure package. However, battle lines are forming due to disagreements regarding potential tax increases. Democrats and the Biden Administration would prefer to pay for a package by raising corporate taxes, but Senate Minority Leader Mitch McConnell (R-KY) said Republicans would not support tax increases. While senior Senate Democrats and President Biden would prefer a bipartisan package, fundamental disagreements over the scope of a package and how to pay for a package may force Democrats to pursue a smaller package through budget reconciliation – the same process used to pass the most recent COVID-relief package. Alternatively, Democrats could negotiate a tailored bipartisan package with Republicans, likely focusing on surface transportation, and passing additional provisions through a partisan budget reconciliation process. This effort is supported by more moderate Senate democrats such as Sens. Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ). While the House will be out of session the next three weeks, the powerful Ways and Means Committee plans to begin mapping out an infrastructure approach soon. There has been some discussion over a per-mile tax on commercial trucks, however, singling out trucking is a non-starter for conservatives unless the left agrees to repeal the EV tax credit and impose fees on EVs to shore up the highway trust fund. Bill Sullivan, the American Trucking Associations’ executive vice president of advocacy, said the trucking industry “currently pays half the receipts into the Highway Trust Fund, while we’re only 4 percent of vehicles and 9 percent of miles traveled” and they don’t want to be “singled out with discriminatory truck-only fees to pay for our nation’s infrastructure needs.”

Also, this week, the Democratic and Republican leaders of the Senate Energy Committee cautioned the Biden Administration on its promises for Electric Vehicle (EV) deployment. Chairman Joe Manchin said he supports EVs overall but is concerned with U.S. reliance on China for critical minerals integral to EV components. Ranking Member John Barrasso (R-WY) said he was “concerned that [President Biden] wants to regulate the internal combustion engine out of existence and insist that all Americans use electric vehicles.”


Senate Approves Paycheck Protection Program (PPP) Extension
In good news for the country’s small businesses, Congress passed the PPP Extension Act of 2021 – which will extend the time for businesses to apply for, and the Small Business Administration (SBA) to grant, Paycheck Protection Program (PPP) loans. The President is expected to sign the bill into law.

While the latest COVID relief package signed into law by President Biden on March 11 included an additional $7.2 billion for PPP loans and opened the program up to additional tax-exempt entities and online news organizations, the SBA was still facing a looming March 31, 2021 deadline for approving PPP loans.

The PPP Extension Act of 2021 extends the deadlines and provides businesses until May 31, 2021 to apply for a first or second PPP loan and allows the SBA until June 30 to review and approve loan applications submitted before June 1.


Visa and MasterCard Postpone Swipe Fee Increases Another Year
In response to pleas from retailers and pressure from Congress, Visa and Mastercard announced that because of the pandemic they are again delaying planned fee increases. The delayed increases have been moved to April 2022.

Earlier in March, Sen. Dick Durbin (D-IL) and Rep. Peter Welch (D-VT) sent a letter to VISA and MasterCard urging the companies to refrain from increasing swipe fees by $1.2 billion scheduled to take effect in April. An increase in processing fees could be especially hard for convenience stores now that cash has become a less popular payment option with the COVID-19 pandemic. “Just as increased vaccination efforts start to give our Main Street business hope for a summer reopening, your companies propose slamming struggling merchants, and by extension consumers, with fee increases,” Durbin and Welch said in the letter. “Raising your fees would undermine efforts to help the economy recover and further reduce Americans’ purchasing power.”

To read more, click here


SBA Triples the Amount Small Businesses Can Borrow Through the EIDL Disaster Loan Program
Small businesses harmed by the coronavirus pandemic can soon borrow up to $500,000 through the U.S. Small Business Administration’s emergency lending program. The SBA is more than tripling the maximum amount small businesses can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Beginning April 6, 2021, the SBA is raising the existing loan limit of $150,000 for 6 months of economic injury to a maximum loan amount of up to $500,000 for a period covering 24 months of economic injury.

The SBA is implementing the increase in order to distribute the remaining $270 billion in EIDL funding earmarked for small businesses suffering economic harm due to COVID-19. The increase is good news for energy marketers who have been frustrated by the low loan cap limit currently allowed under existing SBA regulations. Unlike Paycheck Protection Program (PPP) loans, EIDL loans must be paid back, but are offered at a below market interest rate over an unusually long repayment period. The SBA is offering the loans at a 3.75 percent interest rate for small businesses with a 30-year repayment period. Borrowers who have already received EIDL loans but who qualify for more are not required to request an increase. Instead, the SBA will email eligible borrowers directly with more details as the April 6 implementation date approaches.

The boost in the maximum loan amount came less than a month after the SBA deferred the scheduled start of EIDL monthly repayments until 2022 to give businesses more time to build back. SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021. The SBA has approved $200 billion in EIDL disaster loans to 3.8 million borrowers since the program began last year. Additional information on the EIDL disaster loan program can be found at: SBA EIDL Program


EMA Masters: Grow Sales, Grow People, Grow Profits
Achieve the Future You Want for Your Business and Family With EMA Masters

Take Your Business from Point A to Point B faster:


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EMA Masters Monthly Article: March 2021 - Budgets That Work
By Betsi Bixby


Do you ever feel your company is like a big ship out on the ocean being tossed and turned with every market trend wave? If so, you may consider budgeting as a means to gain a bit more control. But caution — there is nothing worse than an ineffective, unrealistic, or arbitrary static budget. With that said, an effective, realistic, group-created flexible budget can serve as a key enabler for a company to meet its stated profit targets. For a budget that works, follow these guidelines:


Designate accountability. A single person needs to take responsibility for the entire budget process. This person’s main function is to keep the budget process moving in a timely fashion to meet an ultimate agreed-upon target date.


Start at ground zero. Throw out any preconceived notions of what your company has achieved in the past. Budgets based upon small incremental improvements will ultimately stifle growth. Instead, begin your budgeting process with a vision of the ideal, regardless of past history.  Pretend you are starting a new company from scratch. What would it look like?


Communicate corporate goals. If corporate strategy includes significant new projects, that is the first piece that needs to be built into the budget and communicated to the person in charge of the budget to communicate to the rest of the folks involved in the budget. For instance, if your corporate plans include building six new stores in the next year, that information is critical for accurate revenue and expense forecasts.


Begin the budget with revenue projections. The scope of your revenue projections will impact capital spending and all operating expense line items. Ideally, revenue projections should come from every salesperson and every site. Bear in mind the impact of corporate strategy, however, on revenue. For example, if the company is planning reimaging of a certain store, this information needs to be communicated to the store manager for consideration in the revenue projection for the site.


Consider the impact of sales department optimism.  One of the best qualities of salespeople is their exuberant optimism. We don’t want to squash this enthusiasm in the budget process, but we may need to temper overly optimistic forecasts. Some companies handle this using a two-prong budget approach where the optimistic projections go directly into an aggressive budget that is only used internally, but not shared with folks outside of the company. Bankers, creditors, etc. are must be provided with a conservative budget.


Come to consensus on the revenues before budgeting operating costs and capital spending. The company’s revenue targets will obviously drive the expenses. Have complete buy-in to the total revenue and each of its components before attempting the expenses.


When it comes to expenses, have those persons with the most knowledge provide the data. If you are budgeting fleet expenses, for example, the fleet manager should be providing those numbers, not someone in the accounting department. By using this bottom-up approach to budgeting, you will have more accurate expenses as well as ownership and accountability for the budget numbers.
 

Compile the expenses, then test the net profit results for fit with corporate profit goals. Since you are gathering expense information from autonomous departments, you may find that the first pass at the budget does not produce the company’s target profit. Since revenue was reached by consensus, you must reduce expenses. To do this, share the preliminary budget with everyone involved in the expense forecasts, and ask that they all trim their forecasts the best they can. Do not designate a percentage, or set department targets. Instead, let each area see what they can do to get leaner.


Get commitment to the final budget. This should be easy if you’ve used the bottom-up process. It will be difficult if upper management has forced projections on any individual or department.


Celebrate the completed budget. A company’s first budget is a bit like giving birth, extremely painful but there’s a joyous sense of relief when it’s over with. Allow for a small celebration at the completion of your first budget.


Monitor and modify the budget monthly. Based upon the company’s actual results compared with the budget, the budget should be adjusted regularly. Any time revenue is under budget, it is critical to reduce budgeted expenses. There should be no pride in meeting budgeted expenses when revenues are down. On the other hand, if revenues grow faster than projected, the expense budget will need to be expanded to support the growth. Remember it is the company’s bottom line that really counts. Be sure that the results are shared with everyone in the budget process and ideally, with every employee.
 In summary, budgeting can have painful beginnings, but if you take an ongoing, dynamic approach, accuracy will drastically improve over time. After a few years of budgeting, your company will experience very few surprises. Budget accuracy will allow you to manage your business processes smoothly, anticipate cash flow and capital spending requirements, and provide tight controls. Although you still won’t be able to turn the Queen Mary on a dime, you’ll have the early warnings when you need to turn the wheel, allowing you to have the ship turned by the time that turn is needed.



Federated Insurance March Educational Articles
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A Routine Maintenance Plan...For Your Life Insurance?

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Risk Management Corner
Evaluate Your Mental State Behind the Wheel
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HR Question of the Month
Different Surnames on I-9 Documentation?

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Federated Insurance Sponsored Webinar