IN CASE YOU MISSED IT TUESDAY

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Stephanie Few, a partner at the law firm of Womble Bond Dickinson, has studied the CARES Act extensively. She joined us on Facebook to discuss how radio station owners can apply for federal funds intended to trickle down to small businesses. If you missed it Tuesday, you can catch it HERE on Facebook or HERE on YouTube.

And follow Womble Bond Dickinson on Facebook.

4 COMMENTS

  1. For a small company, this is a nothing burger; a mirage of opportunity. It’s too little to do any good and it will come too late to make any difference.
    Applying for an SBA direct loan or a guaranteed loan through a bank is a gruesome experience. It takes months to get one approved.
    The PPP is equally unfit to respond to companies that function on a cash in and cash out basis.
    The first companies who will be approved are those with paid in-house accountants; those who are able to weather the storm with investor capital. For most of us, we will just “gut it out” like always and add to our battle scars.

  2. Our banker–and a number of others–was bending the ear of Senator Manchin Friday because no-one in the state could get into the SBA’s office. Move fast on this–big players slipped in an exemption for franchise operations that may gobble up all the money.

    Extra tip: Get copies of the 2019 W-2’s from your accountant/bookkeeper for the full-time employees. If you are incorporated and you pay yourself a salary, include your W-2 as manager. This provides proof the bank will need down the road for loan forgiveness.
    The “forgiveable” loan amount is calculated by totaling the GROSS amount paid on the W-2’s for your full-time employees (over 30 hours) in 2019, dividing by 12 to get an average monthly payroll figure. This amount times 2.5 gives you the loan amount that can be forgiven. You can ask for more but the excess will be a straight loan at 4%.

    There’s talk about a period from Feb. 15 to July 20; this is for companies with seasonal payroll increases. Guessing how it works–if you can take 8 weeks in this period to show your full-time payroll was higher than the calculated average monthly amount you could claim forgiveness for the higher amount.
    Our big payrolls are usually in the fall–news guy gets extra pay to call H.S. football, ops mgr. also gets paid extra to supervise busy Fridays w/three live broadcasts.

  3. 1. Eligibility: gross revenues under $5 million, less than 500 employees, + SBA small business criteria;
    2. You need to download the application form. Link is here:

    ttps://www.sba.gov/document/sba-form–paycheck-protection-program-borrower-application-form
    Caution: things are moving fast–this should be a pdf that allows you to fill in the blanks. There are older samples on line.
    2. You need the total payroll expense for 2019 from your bookkeeper. Divide this number by 12–this is your average monthly payroll for the form. Multiply by 2.5 for the loan amount.
    3. Fill in rest of form Shareholders with 20% or more interest must be listed, each must certify the various check boxes (not on drugs, nor criminal, us citizen, etc.)
    4. Add separate exhibits or adendums as needed;
    5. Bang on door of your bank (if SBA lender), hand forms to him with tongs. The bank handles the rest.

  4. THIS IS A GREAT IDEA BUT YOU MAY BE A FEW DAYS LATE. TODAY IS THE FIRST DAY YOU CAN SUBMIT ON THE OPPORTUNITIES TO GET FEDERAL HELP AND IT IS BASED ON A FIRST COME FIRST SERVED BASIS. THIS HELP SHOULD OF HAPPENED LAST TUESDAY. GO TO SBA.COM WHERE THERE IS A LOT OF INFORMATION

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