Forward Together: COVID-19 Information

Last Updated Wednesday, December 29, 2020 12:10 pm

PAYROLL PROTECTION PROGRAM (PPP)

ROUND TWO APPROVED

A second round of the PPP has been approved by Congress and the President. It provides approximately $284 billion for small businesses to receive potentially forgivable loans (i.e. a grant). This program will once again be administered by banks. The funds should be available as soon as the federal government provides appropriate guidance for the banks to follow.

PCDA encourages you to contact your banker at your earliest convenience to be prepared to take advantage of this new round. This program is available to small businesses that meet the eligibility requirement (see below) including those that received a PPP loan/grant before.

The following is provided as an overview only and is subject to change pending guidance from the federal government. Check with your bank for official details as the information below is not intended to provide an informational overview only, legal or accounting guidance.

1) The business must meet the eligibility requirement to show that the loan/grant is “necessary.” In general, you must be able to show that the pandemic caused at least a 25% reduction in gross receipts during a similar quarter in 2019;

2) The 25% reduction will include “all revenues” from normal business operations but will not include any loans or first-round PPP funds;

3) The business may not employ more than 300 people unless they meet an alternative size standard;

4) Expenses paid for with PPP funds will be tax-deductible, clarifying, and reversing an IRS decision from earlier in 2020. PCDA strongly encourages you to consult with your tax advisor for more information;

5) The loans will be forgivable if the business meets certain requirements on how the money is spent. Reports say that the federal government has revised the program to make it easier to achieve loan forgiveness than it was in the first round;

6) The business must be a schedule C taxpayer, LLC, S corporation, partnership, or a 501c6 non-profit organization.

7) The maximum loan/grant reportedly may be up to 2.5 times the average monthly payroll up to a maximum of $2 million. There are alternative formulas for seasonal employers;

8) The business must use most of the loan/grant for payroll. The business may use some of the proceeds for necessary expenses such as utilities and other necessary operational expenses. Check with your bank for limitations;

9) The period in which the money must be spent is as few as 8 weeks and as much as 24 weeks;

10) There is a simplified application for loans under $150,000;

To apply for this round of the PPP, contact your bank as the program is exclusively available through banks as it was during round one.

ADDITIONAL ECONOMIC INJURY DISASTER LOANS (EIDL) AVAILABLE

The action by Congress included an additional $20 billion for more EIDL loans. Please note these are loans, not grants, and they will not include the $10,000 upfront “down payment” that the EIDL loans had last spring.

EIDL loans are applied for directly through the Small Business Administration (SBA) and not through banks. Information on EIDL loans will be available at www.sba.gov.

Ponca City Mask Requirements

“On December 14, 2020, the City Commission of Ponca City passed an emergency ordinance that requires face masks or face-coverings in accordance with recommendations from the Center for Disease Control (CDC) to control the spread of Coronavirus.

This emergency ordinance applies only to businesses that are open to the public. Moreover, it will be up to individual businesses to choose whether or not they wish to participate. It is designed to provide appropriate and reasonable measures and it will remain in effect until further notice.

For those businesses that are open to the public and choose to require face coverings backed by this new ordinance, the city will provide, upon request, a yellow sign(s) to indicate to the public entering a business that face masks are required and that the ordinance may be enforced on those premises."

For a copy of the emergency ordinance, please click the following link:

>>>>> Mask Ordinance 6285 for the City of Ponca City.


SBA Debt Relief for 7a and 504 Loans

The SBA is providing a financial reprieve to small businesses who have 7a or 504 loans during the COVID-19 pandemic. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. This is for existing 7a and 504 loans only.

As part of coronavirus debt relief efforts, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

o For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.

o For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.

o For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower's payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA's payment.

Borrowers should contact their lender if they have any questions regarding this payment relief.

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Additional small business assistance funding programs continue to be discussed in Washington DC and this web site will be updated if programs and funding becomes available.

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Business Resources

COVID-19 Business Toolkit:

-----> Download COVID-19 Business Toolkit

OSHA Recommended Workplace Measures

The federal Occupational Safety and Health Administration, better known as OSHA, has released guidelines about workplace safety during the COVID-19 pandemic. Those guidelines can be found at: https://www.osha.gov/Publications/OSHA3990.pdf

Changes to Unemployment Wage Charges that are directly related to COVID-19

A waiver will be applied to benefit wage charges to experience-related employers for allowed claims directly related to the COVID-19 pandemic. The waiver is not across the board and does not affect all wage claims. This waive will remain applicable until all claims related to the pandemic are resolved or the Governor issues a subsequent Executive Order.

For Information, on this COVID-19 related unemployment waiver, go to:

https://www.ok.gov/oesc/Businesses/Employer_FAQs_about_Unemployment_Insurance_and_COVID-19.html?fbclid=IwAR0uRsgsQ7-ZOlIoSruR5uZd4YLrRNCZefy5xA8qHcaWZDtTPjSz2bsSAro

Paid Leave Information

In March, Congress passed and the President signed the "Families First Coronavirus Response Act" that has, among other things, a lot of paid leave requirements. Below are links to some of this information:

For Employers: www.dol.gov/agencies/whd/pande...

For Employees: www.dol.gov/agencies/whd/pande...

Frequently Asked Questions: www.dol.gov/agencies/whd/pande...

Workplace Retention Tax Credit for Businesses Closed During the Pandemic by Government Order

The CARES stimulus package signed into law on March 27th also included a tax credit of 50% of wages paid after March 12th that can be received immediately, for businesses that have been forced to close by government order during the pandemic. The credit is based upon keeping people on the payroll and companies receive it by immediately reducing their normal federal tax payments to the IRS.

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.

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.

Information:

https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

FAQs on this program:

https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs

Video Watch List:

----> Forward Together : Support Local

----> Forward Together : Essential Workers

PCDA’s “Forward Together” Plan is designed to address the immediate impacts of the COVID-19 pandemic and to position Ponca City’s local economy for the next economy that will emerge. It is a living document, subject to change as conditions and opportunities change. Click this link to see the plan.

Contact Us

Ponca City Development Authority

400 E Central Ave, Suite 200 Ponca City, OK 74601

Phone: 580-765-7070 Fax: 580-765-0969

Forward Together: COVID-19 Information