2. CARES Act for Roasters - Paycheck Protection Program

Today we're learning more details and it seems the Paycheck Protection Program (PPP) will truly be a boost for many small business roasters. 

Purpose of the Program: To keep good employees connected with their employers to create a speedy economic recovery once the COVID crisis ends. I.E. Don't loose your best baristas and staff to a sea of other choices or a forced move to another state!

Benefits include: 

• Receive up to 250% of your average monthly payroll initially as a loan. Once you have the loan, you have to bring your staff back onto your payroll, even if there is no work for them. 
• The loan can be converted into a grant (i.e. the loan is forgiven) if criteria is met for the number of employees you have on payroll is still the same at the end of an 8 week period and you can show that the funds were used for qualifying expenses. This is an amazing, never-seen-before possibility! Look for a SBA in Michigan (SBAM) to share their recorded webinar on CARES Act details on Tuesday, Mar. 31, or join the webinar directly (click here to register).
• Your business can defer payroll tax until the end of 2020. 

How to Apply: Go to your nearest SBA lender! In Michigan, you find the SBA Michigan District Office Resource Guide and the long list of lenders starts on page 27. The lenders do not have the applications yet, but it is still good to contact yours today. "GET IN LINE" is the advice, as these loans will go fast. $350 billion seems like a lot, but it will be used up quickly.

Notes:

• Average monthly payroll is determined by the four months between these two key dates: Feb. 15, 2019 – June 15, 2019. The employer can include not only pay-check pay, but ALL the expenses that go into payroll. For example, retirement contributions and health insurance benefits are included.
• Excellent 2-page info sheet from SBAM.org - click here to download!