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HOUSEKEEPING ITEMS

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All attendees will stay muted. Please submit questions through the GoToWebinar Questions Pane using the following “buckets” at the front end of your question to help our panelists manage questions more efficiently: Workforce Technology Regulatory Cash Flow Human Resources

Slide deck available for download in the “Handout” section of the GoToWebinar panel.

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Please note – all information presented today is based on what we know on April 7, 2020. This remains a fluid situation.

NEXT STEPS Next Town Hall Tuesday, April 14

01Visit COVID-19 section of website for additional insight and information

02Reach out to us via website “Contact” page

03

QUESTIONBUCKETS

WORKFORCE

TECHNOLOGY

REGULATORY

CASH FLOW

HUMAN RESOURCES

CASH FLOW

Poll Question #1

Have you seen a change in your projects/orders/workload? Yes, many things have been canceled.

Yes, many things have been delayed/postponed.

No change, business as usual.

Poll Question #2

How confident are you with your cash flow forecast? Very confident.

Somewhat confident.

Not very confident.

Not sure where to even start.

SBA LOANS:

The Who, What, When

Can start filing April 10, 2020

Self-Employed Interpreted as: Only employee itself

SMLLC with no other employees

Can start filing April 3, 2020

Sole Proprietor Interpreted as: No Corporate or Legal

Entity SMLLC Must have other

employees

SMALL BUSINESSES & SOLE PROPRIETORSHIPS

INDEPENDENT CONTRACTORS & SELF-EMPLOYED INDIVIDUALS

SBA LOANS:

The Details

Deferment: 6 Months Loan: Two (2) Years Interest: 1.0%

REPAYMENT

Payroll Rent Utilities Mortgage Interest

ELIGIBLE USES

SBA LOANS:

PAYROLL

COMPUTING PAYROLL Monthly Average Cost for 2019

WHAT IS CONSIDERED A PAYROLL COST? Wages, Salaries, Commissions, and Cash Compensation (capped at

$100,000 -annualized) Group Healthcare Benefits Sick, Parental, Vacation, Medical Leave Retirement Benefits Local/State Taxes on Compensation

COMPUTING PAYROLL FOR LLC MEMBERS Allocation of Earnings Subject to Self Employment Taxes Guaranteed Payments

SBA LOANS:

Forgiveness

75% of loan proceeds must be spent on payroll costs

Loan amounts will not be forgiven (or the amount forgiven will be reduced) if a business does not maintain its staff and payroll.

Number of Staff: Loan forgiveness will be reduced if a business decreases its full-time employee headcount.

Level of Payroll: Loan forgiveness will also be reduced if a business decreases salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

Re-Hiring: A business will have until June 30, 2020 to restore its full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

SBA LOANS:

Underwriting Requirements

BUSINESS REQUIREMENTS In Operation on February 15, 2020 Dollar Amount of Average Monthly Payroll Costs Employee Count

SBA LOANS:

What tax documents do I need?

May Differ Depending on the Bank

2019 federal and state payroll tax filings Employment verification documentsW2s Supporting documents for other payroll cost

items Insurance Invoices & Retirement Contributions Form 1099s (for independent contractors)

Most Likely to Include:

SBA LOANS:

Helpful Links

BORROWER INFORMATION SHEET: https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

BORROWER APPLICATION: https://home.treasury.gov/system/files/136/Paycheck-Protection-

Program-Application-3-30-2020-v3.pdf

FAQ SECTION: https://home.treasury.gov/system/files/136/Paycheck-Protection-

Program-Frequenty-Asked-Questions.pdf

INTERIM FINAL RULE – DETAILED GUIDANCE: https://home.treasury.gov/system/files/136/PPP--

IFRN%20FINAL.pdf

Poll Question #3

Do you see opportunities for your business as a result of this disruption? Yes, we’ve already changed direction to create

opportunities.

Not yet, but we’re actively looking.

No, we are just trying to stay afloat.

WORKFORCE

FFCRA -Paid Sick Leave (PSL) and Extended FMLA Small Business Exemption (fewer than 50 employees)

Refer to DOL’s FAQs – Questions #58 & #59

PSL

Employee unable to work due to

COVID-19

Employee caring for a family member due

to COVID-19

Exemption NOTAvailable

PSL & EFMLA

Employee unable to work due to child’s

school closing

Employee unable to work due to childcare provider unavailable

Exemption Available

Employee Requests Time Off due to COVID-19

Employee Submits Request

Employer provides

employee with rights &

responsibilities

Employer verifies if request meets FFCRA criteria,

and requests additional supporting

documentation (if applicable)

Employer approves/denies

request

Employer notifies employee of approval or

denial

If employee approved,

employer should track separately

to take advantage of

available credits/grants

REGULATORY UPDATE

TECHNOLOGY

Poll Question #4

How comfortable are you with the security of your IT system in this remote environment? Very comfortable – we were prepared!

Somewhat comfortable – not 100% prepared, butadjusting.

Uncomfortable – we don’t know what we don’t know.

HUMAN RESOURCES

Poll Question #5

Will COVID-19 impact your approach to remote vs on-site employees? Yes, we will consider some or all of our employees

going remote.

No, we expect all of our employees to return to a physical office.

Culture Shift