Enterprise Classification by the risk degree of COVID19 ......On eagles wings: Our recovery from...

On eagles wings: Our recovery from Coronavirus

Eleonora Escalante Strategy.. Strategic Corporate Advisory Services© 2017-2018-2019-2020 Eleonora Escalante-all rights reserved 10th July 2020 1

Enterprise Classification by the risk degree of COVID19 propagation

Classification of essential SMEs (Small and Medium and Big Enterprises): Essential during pandemic

On eagles wings: Our recovery from Coronavirus Enterprise Classification by risk of COVID19 propagation


Indispensable Products/Services

Crucial Economic Sectors

Warehouse, Delivery and Logistics

• These companies are defined as essential

• These enterprises have not stopped to work during the quarantines, these industries are:

• Raw Food Production (crops, aquaculture, fishing, animal feeding products, etc), Essential food retailing (supermarkets), Pharmacies, Hospitals & Healthcare value chain enterprises. Medical-Nurse services.

• Food delivery• Pharmacy delivery• Suppliers logistics to

essential companies• Transportation services from

essential companies to clients

• Ports (for exports and imports) and load terminals

• Airports (only for load of essential products - not open to public)

• Any type of delivery to support on-line commerce

WFH On-line Commerce & Services

ESSENTIAL PRODUCTS AND SERVICES

• This group of companies are defined as the essential main motor of economic value creation for the country.

• These Industries are: Utilities-energy, Gas stations, Water, Finance and banking, Waste Collection, Construction & home centers, Information: News-media (TV, radio, newspapers, telecomunications, etc)

• Essential Government public administration: executive, legislative, justice, public order, prisons, safety, national security and intl. affairs.

• Diplomatic, international cooperation

• Any company that can sell or buy services through internet which are able to work from home (WFH).

• Every WFH sector: accounting, legal support, e-commerce of products, medical telemedicine, on-demand courses which do not require examinations, restaurant on-line delivery,

• Technology support / Call Centers at WFH

• Business services at WFH• Creative services at WFH

Classification of non-essential SMEs (Small and Medium and Big Enterprises) which need a careful social distancing programme to avoid contagion


Manufacturing

Non essential Wholesale & Retail Trade

Professional Services

• These companies are defined as any type of enterprise which has a production economic facility at a medium and large scale

• We can include minery, oil and gas extraction, non-basic food/beverage production, textiles, apparel, leather, pulp and paper, chemicals, plastics and rubber, metals, machinery, electrical-electronic equipments, transportation equipment and miscellaneous

• Any type of company which belongs to professional services such as consulting, administrative support, scientific and technical services

• The WFH alternative works wonders for this sector, since it is not required the presence to do it.

Non essential Public adm. bureaus

• Merchant wholesalers of durable and nun durable goods, wholesale electronic markets, agents and brokers.

• Retail trade that is not inside a mall such as furniture, electronic appliance stores, beauty and personal care stores, clothing stores, sporting-hobbies stores, general merchandise stores, etc.

• Any other store that can function properly with social distancing

• All the public offices and departments related to government general government support, such as administration of public human resources, environmental quality programs, urban planning, community development, art-leisure administration, etc.

On eagles wings: Our recovery from Coronavirus Enterprise Classification by risk of COVID19 propagation

Classification of non-essential SMEs (Small and Medium and Big Enterprises) which are of higher risk for pandemic contagion


Show-Arts, Entertainment and Gambling

Commercial Aviation &

Airports

Social Sports & Recreation closed sites

• Any industry with requires massive amount of people such as museums, expo events, spectacles, sport stadium events, cinemas, theaters, galeries, music concerts, other performing arts, historical sites and similar institutions, amusement, gambling and related spectator industries.

• Contact sport disciplines

• Sport establishments under a closed space

• Massive Stadium sport arenas

• Any recreation or sport center as parks and play rooms

• Sport Children facilities

• Pools • Gyms• Cultural Centers

Tourism , & food/drink

places• Airport hubs

facilities• Terminal Airports

and douanes• All companies

related to the aeronautic industry for commercial passengers

• Restaurants• Bars• Any type of

Accomodation,• Hotels, bed and

breakfasts, airbnb, and any type of accomodation where social distancing is not respected

• All the companies tied to the tourism value chain.

On eagles wings: Our recovery from Coronavirus Enterprise Classification by risk of COVID19 propagation.

Malls and Public

Transportation

Religiousplaces &

conventions • Commercial

Centers facilities• Public

transportation systems such as metros, subways, trains, buses, trams, and its respective stations

• Churches of any denomination and cult

• Convention center events

• Fairs• Any religious event

in which the social distancing of 1.5-2 meters can´t be respected.

I have not added the educational sector because it is preferable to don´t open it until all the economy is fully functional



Examples of Economic Protection Rescue Package per type of

company

On April 7th, I proposed the following Rescue Package for each SME, which must be structured with 3 following elements:

Eleonora Escalante Strategy.. Strategic Corporate Advisory Services© 2017-2018-2019-2020 Eleonora Escalante-all rights reserved 6

Analysis and proposal by Eleonora Escalante-Strategic Advisory Services (presented on april 7th 2020)

Long TermLoan

Grant(Gift)

Working Capital Credit Line

• For long term obligations already unpaid in Property, Plant and Equipment (PP&E)

• For consolidation or refinancing of current existing loans

• With at least year 1 year grace period

• Low interest rates (at least 200bps or 2% below market average)

• Extended duration and flexible structured plans or alternatives at expiration date.

• For new projects of expansion (new CAPEX)

• For new branding and marketing

• For new equipment and technology

• For new upgrading processes and improvements or current long term assets.

• For registering the company in the Fiscal System

• For training about cash and financial management

• For assuming any item that is necessary to the company to start to run current normal operations, those items which belong to accounts receivable, accounts payable (employee wages), inventory, etc.


10th July 2020


Long Term ConsolidationLoan

Grant(Gift)


• For consolidation or refinancing of current long term existing loans




• For new branding and marketing update campaign

• For new equipment and technology upgrade

• To improve the conditions of the warehouse facilities and inventory management

• To pay wages of the new employees hired during the pandemic

• To pay the sanitary measures that are offered in their stores to the clients (disposable masks, alcohol gel, etc)

• To pay all the operational expenses of the on-line delivery transport.

On eagles wings: Our recovery from Coronavirus Economic Recovery

The grant won´t exceed between 15% to 20% of the total financing package.

10th July 2020


Analysis and proposal by Eleonora Escalante-Strategic Advisory Services

Long Term Loan

Grant(Gift)


• For long term obligations already acquired before the pandemic, the unpaid bills in Property, Plant and Equipment (PP&E)



• Extended duration of 5 years and flexible structured plans or alternatives at expiration date.

• To create an omnichannel strategy and improve the website capabilities to sell online.

• Working capital to pay off the existing unpaid wages of the personnel, the unpaid suppliers containers which are waiting at the port load terminal

• To pay all fixed expenses of the stores during 12 months

• For assuming any item that is necessary to the company to run efficiently current normal operations,


10th July 2020


Long Term Loan

Grant(Gift)


• No loans for these professionals unless they have had productive loan obligations with unpaid bills related to their creative endeavors operations

• Loan package with at least 2 years grace period



• Government Incentives by promoting quarterly contests or “call for works”.

• Design a year series of competitions for distinct categories in each artistic or knowledge discipline.

• Prize each category accordingly, for example:

1. First Prize: 10,000 USD2. Second Prize: 6,000 USD3. Third Prize: 3,500 USD .

• Pay the artist-knowledge producer a participation award of $500.00 per ouevre, or paper or research report.

• Revolving credit line for working capital expenses for 2 years

• Link the production of oeuvres with grants instead of more debt

• The government can keep a reasonable “copy rights” fee oeuvre for a specific period of time (5 years after the pandemic) in exchange of interest payments of the credit line


10th July 2020


Long Term Loan

Grant(Gift)


• For long term obligations already acquired before the pandemic, the unpaid bills in Property, Plant and Equipment (PP&E)



• Extended duration of 5 years and flexible structured plans or alternatives at expiration date.

• The program “Fostering Innovation Grants for Chefs” See details on next page.

• Create a basic protection rescue package per number of clients lost because of social distancing.

• For example the government may provide a fixed amount fee per client losses per month. This economic aid won´t surpass the deficit to reach monthly break-even.

• Working capital to pay off the existing unpaid wages of the personnel, the unpaid other account payable billsl

• To pay all fixed expenses of the restaurant during 12 months

• For assuming any item that is necessary to the company to run efficiently current normal operations,


10th July 2020


Fostering Innovation

Grants for Chefs(Gift)

• In addition, the government-restaurant associations will promote innovation cuisine contests on a quarterly basis (every 3 months)

• Each contest will promote the origination of new recipes (under different dish-categories: international, folkloric, vegetarian, light, etc)

• In addition the categories can be linked to degree of difficulty, or age, or geographic leagues.• Each participant recipe will have to be recorded on a digital platform with certain high-

quality standards. In addition, each and all participants will receive a participation economic award.

• For each category, three winner prizes will be established. Let´s say 1. First prize: 10,000 USD2. Second Prize: 7,500 USD3. Third Prize: 5,000 USD

• Other recognitions may be awarded such as training scholarships in cooking institutes, a full renovation of the restaurant kitchen, a new architectural interior design, the participation in MasterChef Latino, or international traveling-once the pandemic is over, etc.


10th July 2020

Enterprise Classification by the risk degree of COVID19 ......On eagles wings: Our recovery from...

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