Early yesterday morning the SBA released guidance that Sch C filers will use their Gross Profit as the basis for their PPP loans starting today! However, it is unclear how many lenders are ready for this change. Given the short window to apply, everyone that has been waiting should probably apply now. The Application Forms are linked below.

First Draw app

Second Draw app

We will be going over all this on our weekly webinars

• Wednesday: COVID Funding Options
• Thursday: PPP Forgiveness

Register at: https://pcrsbdc.org/workshops/

Eligibility for 5k to 20k grant

·         Must be bricks and mortar businesses serving the neighborhood in which they’re located, where customers can come in during business hours founded by February 2019

·         Business must be located in LA County;

·         Under 20 employees (includes full time, part time, and/or contracted workers);

·         Evidence of profitable business pre-COVID;

·         Evidence of being negatively impacted by COVID;

·         Revenue between $30K and $3M; 

·         Must own at least 50% of the business;

·         Must be willing to complete the application process and submit all required documents; 

·         Must be willing to have your story told in FOUND/LA, TMC Community Capital, and/or Pacific Community Ventures’ print, digital, and audio outlets

·         Businesses with 1 – 5 employees or 6-20 are eligible  https://www.tmccommunitycapital.org/lagrants

·         *Please use employee count during Q1 of 2020 to make this determination.

·         *If you applied during Round One and were not selected, your application will be automatically rolled over into Round Two.

o   Round 1, Dec 14 to Dec 20

o   Round 2  Jan 11 to Jan 17

o   Round 3  Feb 15^th to 21

o   Round 4  Mar 15 to 24

** Please remember to share this information with the business owners in your network.

The “Shuttered Venue” grant is designed to help ensure that venues that host in-person events can survive. Grants can be equal to 45% of gross earned revenue in 2019 up to $10 million. The first $2 billion of this grant money has been reserved (for a limited time) for smaller venues (up to 50 full-time employees). If a business has received a first draw PPP loan in 2020, they can still qualify.

Types of businesses that may qualify:

·         Movie theatres

·         Live venue operators or promoters

·         Performing arts, museums, zoos

·         Talent representatives

·         Other venues that sell tickets and that have as their principal business in-person events

·         The SBA (not banks) will be administering these grants. 

For more information: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant

** Remember to share this information with the business owners in your network.

The SBA now has three PPP Forgiveness forms:

1. Form 3508EZ. You can use this if your loan was less than $150,000 and you meet ANY ONE of these qualifications:

• Self-employed and have no employees
• Did not reduce the salaries or wages of your employees by more than 25 percent and did not reduce the number of hours of your employees
• Were forced to operate at reduced or closed capacity because of Covid-19 health directives

2. Form 3508S. If your PPP loan was for $150,000 or less and you don’t meet the above criteria.

3. Form 3508. If your loan was for more than $150,000.

** Please remember to share this information with the business owners in your network

If you’ve never received a PPP loan, you may still be eligible. 

If you received a PPP loan during the first round, you may be eligible to receive a second one.  For a second draw PPP loan, you must have had at least a 25% reduction in Gross Receipts in one quarter of 2020 versus the same quarter of 2019. And you must have already used the money you received in your first draw completely.  For example, in the below illustration, this company had a 30% decrease in the 2nd quarter; therefore, they would be eligible to apply for the second round of PPP. 

	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr
2019	$25,000	$20,000	$20,000	$25,000
2020	$25,000	$14,000	$18,000	$30,000
		30% Decrease

 

For more information: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/second-draw-ppp-loans

Earlier this month, the world lost a man who in the Armed Forces gave his, but gave even more as a man of the community. 

Ray was born April 25, 1948 to father Raymond and his loving mother Helen who raised Ray and his 3 brothers Dan, Richard and Anthony, and 3 sisters Victoria, Joanne and Mona in Los Angeles. Ray met his wife Annabel at Belmont High School where he served on Student Council and played football making 2nd team for the northern LA Region as a Senior in December 1965; Ray went to California State University in Los Angeles from 1970 to 1975.

Ray was married to Annabel for thirty-three years until her untimely death June 24, 2002 from Leukemia. Ray and Annabel's marriage was blessed their son Vincent in 1991.

Ray ran a very successful landscape company Greenskeeper Company and helped his brother Anthony with his career running ESV Group, Inc.

Ray worked for LA County METRO as a Public Affairs Officer in the mid 1990s.

Ray and Annabel moved to Cambridge Massachusetts and Ray was proud to work for the New England Patriots handling public relations for the Hispanic community.

Ray had long term consulting relationships with So California Gas, LA County Department of Public Works, Rancho Santiago Community College District and many others.

Ray was a proud veteran of the Marine Corps and served as a Board member of the Veterans Chamber of Commerce.

Ray founded Verches Associates to provide Media Relations, Strategic Communications, Crisis Communications, Strategic Planning, Marketing Strategy, Public Affairs, Marketing Communications, Community Development, Research, Policy Analysis, Corporate Communications and Project Management to corporations, non-profits, public sector clients and entrepreneurial enterprises.

Ray helped many elected officials and prospective elected officials with campaigns especially Loretta Sanchez, Linda Sanchez, Gil Cedillo, and OC Latinos for Obama.

Ray served on many boards including, but not limited to the Hispanic Education Endowment Find, the Congressional Hispanic Caucus Institute, and the United Latinx Fund.

Ray lent his talents to diverse endeavors such as the Plaza Community Services (PCS) educational and exhibition uses at the historic Casa de Adobe.

Above all his work, hobbies and activities he thoroughly enjoyed spending time with his son Vin, especially when Vin was in high school and he helped with Vin's football team at Foothill High School.

Clark Construction will be expanding the Vandenberg Air Force Base (VAFB) in the very near future. If you have a business that could benefit from a sub-contracting opportunity, then you MUST attend the Vandenberg Airforce Base CSA Project Virtual Outreach Event where you'll learn project details and ways to become a sub-contractor. The executive

MBA-style program is targeted to small minority-, women-, and veteran-owned firms working in the fields of construction, engineering, and architecture. The event will provide a project overview, as well as more details on opportunities and how to do business with Clark Construction.

You MUST register to participate: https://www.clarkconstruction.com/spp

Then-Tech. Sgt. Tom Burden with his invention, the Grypmat. Grypmat was featured on the TV show "Shark Tank" and now has revenues of more than $4 million. Burden developed the mat as an F-16 Mechanic when he needed to keep his tools from slipping off the fuselage. (U.S. Air Force/Staff Sgt. Shane Hughes). 

Military service and small-business ownership share a distinctive relationship, dating back more than a half century. Veterans remain more likely to own a business than nonveterans and often tend to out-earn nonveteran entrepreneurs.

High-performing entrepreneurs tend to demonstrate good decision-making in chaotic environments, along with confidence, independence and high self-efficacy and achievement -- all traits commonly found in service members and veterans.

Veteran entrepreneurs derive from a diverse population with unique experiences, but they also encounter challenges at all stages of their business ownership journey. As such, here are a few highlights from a recent survey by Syracuse University's Institute for Veterans and Military Families, or IVMF, about veteran entrepreneurs, the reasons they pursue entrepreneurship, and the resources and ecosystems that have helped veteran entrepreneurs with their businesses.

Veteran entrepreneurs possess characteristics that are critical to success. Based on results from IVMF's 2020 National Survey of Military Affiliated Entrepreneurs, nearly 61% of men and women who join the military have ambitions to start their own businesses. The military training they receive reinforces and propels them into career choices amplified by their experiences.

So here is what the survey found to be the primary motivations for pursuing entrepreneurship after service:

• Veterans want to make their own decisions at work (44%).
• They enjoy the chance to chase their own ideas and create something new (43%).
• Vets pursue financial dependence and success (43%).
• Veterans seek to maintain their personal freedom (39%).

Most of these are true of veteran and non-veteran entrepreneurs alike. However, veteran entrepreneurs are unique in that 34% surveyed say they became entrepreneurs out of a desire to support their communities. This data point demonstrates, yet again, veterans' proclivity for service to their communities.

Conversely, according to the research, the three central barriers/challenges facing veteran entrepreneurs remain:

• Lack of initial capital (42%)
• People and Social Capital (29%)
• Irregular Income (24%)

But for those with interest, I am here to tell you that these obstacles can be overcome. The new survey suggests that 94% of military-connected entrepreneurs do not give up in the face of difficulties. By identifying the resources readily available to the veteran community, any willing party can find success.

• 70% of veteran entrepreneurs find support from their friends and family to start their business.
• 58% of veteran entrepreneurs found Community Financial Development Institutions (CDFIs) to be a sufficient or outstanding resource.
• 63% of veteran entrepreneurs found networking resources specifically for veterans to be sufficient or outstanding.

Veterans must identify an "entrepreneur ecosystem," to help them overcome obstacles. At the IVMF, we categorize the success of an ecosystem amongst lines of growth, including developing and utilizing social capital; growing, managing and sustaining business; identifying and developing successful mentorships; accessing appropriate capital; and growing one's business and management skills.

How ecosystems can help veteran entrepreneurs:

Community-based learning and support. This can help veterans grow their informal and formal networks by connecting them with others.

Collaboration between veteran and entrepreneurship service organizations. Increased collaboration and coordination across and between services can help veterans identify appropriate support and resources for their business.

Entrepreneur-friendly policies. Policies that encourage entrepreneurial endeavors have been shown to positively impact entrepreneurial ecosystems.

Information on educational resources and programs. Information will help veterans better understand which programs and services are best for them considering the current state of their business (i.e., ideation, startup and growth).

The data also shows the resources veteran entrepreneurs needed during COVID-19:

• 53% of veteran entrepreneurs took advantage of the Payroll Protection Program (PPP).
• 28% needed government contracting assistance.
• 20% needed emergency funding .
• 56% believe their businesses have been supported by the federal government during the pandemic. 
• 60% believe their business has not been supported by local governments.

Veterans can find pathways to this education in order to maximize their chances for success. For example, you can learn here about the opportunities for education and free training provided by the Institute for Veterans and Military Families at Syracuse University. Courses are offered in person across the country, as well as online.

Ultimately, it's important to remember you are equipped for this. Even in light of the COVID-19 pandemic, veteran entrepreneurs continue to show the resilience that makes veteran entrepreneurs so successful. Sixty-five percent of veteran entrepreneurs indicate that their military experience has moderately or extremely prepared them for their business challenges associated with COVID-19 pandemic.

You are prepared for this.

-- Rosy Maury is director of Applied Research and Analytics at the IVMF at Syracuse University.

This article was first published on Military.com at:  https://www.military.com/veteran-jobs/what-todays-veterans-should-know-about-entrepreneurship.html

Below you will find a link to the most FAQ document incorporating the new/updated information contained in the Forgiveness Application. Click here to see document. 

The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is AUGUST 8, 2020.

Paycheck Protection Program Loan Information
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness.

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 in the program. View a list of lenders participating in the Paycheck Protection Program by state.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form (revised June 24, 2020) to see the information that will be requested from you when you apply with a lender.