SMALL BUSINESS PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.

TOWN OF WARREN, RHODE ISLAND
Office of Planning & Community Development 
​514 Main Street, Warren, Rhode Island 02885-4369
(401) 289-0529        Brulli@townofwarren-ri.gov

MEMORANDUM
From:         Bob Rulli, Director
Re:         MicroEnterprise Grant Program and Small Business Assistance
Date:         April 1, 2020

The Town of Warren has submitted an application to the State’s Office of Housing and Community Development for MicroEnterprise funding through the Community Development Block Grant (CDBG) program.  If approved on a first come basis, businesses with less than 5 employees with the business owner being one of the 5 and with a median household income below 80% of the area median income, would be eligible for a grant up to $10,000. Home based businesses would be eligible for up to $5000.  The below information illustrates income limits based on size of household.  Evidence of income would be verified by income tax returns.  I expect that we will have program regulations and applications available beginning on April 8, 2020.  I will add that this program is not connected to the economic stimulus plan associated with COVID-19 which was passed by Congress last week.  If you have additional questions, please do not hesitate to contact me via email.


                            

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​Additional Small Business Assistance
If you do not qualify for the above program you may be eligible for others, including SBA’s coming loan forgiveness program https://covid19relief.sba.gov/#/ .  For links to multiple small business assistance programs, I refer you to CommerceRI https://commerceri.com/emergency-grants-and-funding/.  Additionally, Local Initiatives Support Corporation  (LISC) just launched a program that is accepting applications only through April 4, 2020.  See https://www.lisc.org/covid-19/verizon-small-business-recovery-fund/ for details.

Rhode Island Department of Business Regulation

​In accordance with Governor Raimondo’s March 28, 2020 executive order, the Department of
Business Regulation is providing the following list of critical and non-critical retail businesses.
For questions on these guidelines, please submit your questions online to the Department of
Business Regulation using the web form available at https://dbr.ri.gov/critical/. You may also call
the Department of Business Regulation at 401-889-5550.

Critical retail businesses include:
- Food and beverage stores (e.g. supermarkets; liquor, specialty food, bodega and
convenience stores; farmers’ markets; food banks and pantries)
- Pharmacies and medical supply stores, compassion centers
- Pet supply stores
- Printing shops, mail and delivery stores and operations, office supply
- Gas stations
- Laundromats
- Electronics and telecommunications stores
- Industrial, construction, agricultural/seafood equipment and supply stores, hardware
stores, general power equipment
- Funeral homes
- Auto repair and supply
- Banks and credit unions
- Firearms stores
- Healthcare and public safety professional uniform stores
- And other stores and businesses identified as critical by the Department of Business
Regulation.

​Non-critical retail businesses include:
- Arts & crafts stores
- Florists
- Furniture stores (by appointment only)
- Car and other motor vehicle dealerships (except for auto repair and by appointment only)
- Music stores
- Billiard stores
- Sporting goods stores
- Home furnishings stores
- Lawn/garden supply stores (note that agricultural/seafood supply would be allowed to be
open)
- Book stores
- Departments stores
- Gift stores
- Beauty supply stores
- Second-hand/consignment stores
- Shoe stores
- Clothing stores
- Jewelry stores

Additional guidance:
- Restaurants and bars may continue to operate only for pickup, drive-through, and
delivery as per the Governor’s Executive Order 20-04.
- All critical retail employers are required to implement social distancing and to work from
home to the extent possible.
- Financial services offered by pawn shops and payday lenders would be allowed to
continue. In-person retail at pawn shops would be considered non-critical and closed.
- For stores that are mixed retail and service, general retail with customers coming in and
out of your store is not permitted.
- For non-critical retail stores, although in-person retail sales are not allowed, retailers may
continue to receive and ship orders made by phone or online.

​We want to assure you that we take the health and well-being of our community, customers, and associates very seriously. Like you, we're closely monitoring the quickly developing effects of the Coronavirus (COVID-19) pandemic ​
We are all in this together. We will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our customers and communities as needed. See below for list of businesses open!

​SBA – Status of Availability
Answer: “The health and safety of our employees is our number one priority. SBA has deployed technology solutions to assist small businesses with any of their needs while also ensuring the safety of our staff and adhering to the CDC guidelines. ”
 
General: Economic Injury Disaster Loans
How can I get information on SBA’s disaster loan program?
Answer: Small businesses can visit our website at www.sba.gov/disaster, call us at (800) 659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.  Also, local district offices are having Webinar’s to cover the essentials of applying for loans.
 
When can I apply for an economic injury disaster loan?
Answer:  Now !  All of southern New England has been approved for SBA disaster loans:  Rhode Island, Connecticut, Massachusetts.  Now a business owner can access the application online at www.sba.gov/disaster.
 
How do I apply for an Economic Injury Disaster Loan?
Answer: Visit SBA at www.sba.gov/disaster and apply online using SBA’s Electronic Loan Application.
 
I have questions about the application, is there someone I can speak with to help me?
Answer: Yes. Please contact our disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.  or reach to your local SBA district office.
 
What documents will I need to submit my application?
Answer: Depending on a small businesses specific situation, we may need different documentation to capture the business’s information, liabilities, and other important financial information. Examples of the type of documents you may be asked for are: signed and completed SBA application form 5, an IRS Tax Authorization, copies of your most recent federal tax return, a personal financial statement and a schedule of liabilities. Some documents my not be required, EIDL applications less than $500k, they are waiving the submittal of business tax returns. 
 
How much can I borrow?
Answer: The maximum loan amount is up to $2 million. The loan amount is based on the working capital needs caused by the coronavirus so the business can meet its ongoing obligations.
 
What are the terms of the Economic Injury Disaster Loan?
Answer: The interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
 
How long will it take to know if I am approved for a loan?
Answer: We are processing applications as soon as possible. Some are even processed as fast as within a few days.
 
Does SBA have any grants available to small businesses?
Answer: No. Our disaster assistance is in the form of federal low-interest, long term loans.
 
Does SBA require collateral?
Answer: It’s important to note that for the first $25,000 no collateral is required. Over $25,000 you may be required to pledge available collateral.
 
Can SBA refinance my loans or mortgages?
Answer: SBA economic injury disaster loan funds cannot be used to refinance pre-existing debt.
 
What can I use the SBA Economic Injury Disaster Loan for?
Answer: Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.
 
Does the SBA have a seat on the federal coronavirus task force?
Answer: All federal agencies are working together in a whole-of-government approach to protect public health, including the SBA. The Agency’s major focus is to provide assistance to small businesses impacted by this health emergency with Economic Injury Disaster Loans, counseling, mentoring, and preparedness services across the country.
 
The President mentioned he wanted to limit the damage to people and our country; how is the SBA helping to limit the damage to small businesses?
Answer: The SBA is offering Economic Injury Disaster Loans of up to $2 million per small business, in addition to accessing other loan resources for working capital and offering all of our counseling, mentoring, and preparedness services across the country. Information on these resources can all be found at www.SBA.gov.
 
 
 

​Coronavirus Update From a Legislative Perspective
Speaker Nick Mattiello and Senate President Dominick Ruggerio announced that the State House will again be closed this week.  No sessions or hearings will be held. To date, no return date has been established.  The leaders have asked their legal counsels to look into the possibility of holding virtual meetings, but that avenue is tricky given Constitutional requirements.
One option under consideration is the convening of a “Disaster emergency funding board.”  RI General Law 30-15-10 allows for such a contingency plan.  It reads:
30-15-10. Financing – Disaster emergency funding board established.

(a) It is the intent of the general assembly and declared to be the policy of the state that funds to meet disaster emergencies shall always be available.
(b) A disaster emergency funding board is hereby established, composed of the president of the senate, the speaker of the house, and the chairpersons of the senate and house finance committees.
(c) It is the legislative intent that the first recourse shall be to funds regularly appropriated to state and local agencies. If the governor finds that the demands placed upon these funds in coping with a particular disaster are unreasonably great, with the concurrence of the disaster emergency funding board, he or she may make funds available by transferring and expending moneys appropriated for other purposes or may borrow for a term not to exceed two (2) years from the United States government or any other private source.
(d) Nothing contained in this section shall be construed to limit the governor's authority to apply for, administer, and expend any grants, gifts, or payments, in aid of disaster prevention, preparedness, response, or recovery.
 
Given that backdrop, leaders are attempting to determine how best to proceed, balancing the health needs of the General Assembly members, staff and stakeholders, with the need to take action to address the economic needs of the State.  As you may have heard, the State is weeks, not months, away from running out of money to pay its bills and payroll.  The State reportedly has $203.8 million in the Rainy Day Fund and $14.8 in the Highway Trust Fund which may be tapped to assist in this crisis.
What is the Rainy Day Fund?  According to the Senate Fiscal Office FY2020 Budget report: “In 1990, the Budget Reserve and Cash Stabilization Account, or Rainy Day Fund, was created to establish a fiscal cushion for the State when actual revenues received are less than State expenditures (deficit). The account is funded by limiting annual State general revenue appropriations to a percentage (currently 97.0 percent) of available revenues. Excess funds are deposited to the Rainy Day Fund. The spending limitation, Rainy Day Fund, and disposition of excess funds are governed by provisions in the RI Constitution and General Laws.  RIGL 35-3-20 institutes a cap on the balance of the Rainy Day Fund, which gradually increased between FY2007 and FY2013. Since FY2013, the balance of the Fund has been capped at 5.0 percent of general revenues. When the limit is reached, excess funds are transferred to the Rhode Island Capital Plan (RICAP) fund for capital improvement projects.”  RI General Law (RIGL) 35-3-20 states that the general assembly may make appropriations from the reserves during the third quarter of the fiscal year when a shortfall is coming. 
 
What Can You Do to Help?  We understand that individuals and businesses are operating in unprecedented times.  Some may be able to help, others are trying to hang on and survive.  If you are able, here are some suggestions to help:

•  Health Perspective – the State is looking for medical equipment and supplies.  The list of items needed can be found at https://rigov.wufoo.com/forms/covid-19-medical-supply-donations/  If you have any of the items, or if you can make these items, fill out the on-line forms and the Department of Health will contact you
• Tax Payments – While the federal and state governments have delayed the tax payment deadline to July 15, 2020, if you are able to make the payment by April 15 2020, please do so.  It will assist with the cash flow difficulties faced by the State. 
•  Business to Business – As long as Rhode Island is not under a shelter-in-place order, please consider ordering take-out from your local restaurant.  If you are holding off on a maintenance service – i.e. hair cut, massage appointment, car maintenance – consider paying in advance for the service to help these businesses with cash flow. 
• Mental Health – Check in with family and friends, but also with business associates.