Thread by @Inc

Today's virtual Town Hall is starting at 12pm! If you registered for the event, tune in to hear @Inc's @weisul and @USChamber's @NeilBradleyDC discuss the latest news on the $2 trillion stimulus package. Follow this thread for updates. #SmallBizTownHall

The paycheck protection program will be available to small businesses under 500 employees. It’s $350 billion in loans designed to help business owners cover payroll for 8 weeks--and the loan can be forgiven. #SmallBizTownHall

The interest rate was less than 4%, then 0.5%, now 1%. Will the interest rate change again? "It’s not a final regulation," says @NeilBradleyDC, the @USChamber chief policy officer. There's a possibility it will change again, he says. #SmallBizTownHall

If small business owners are using these loans to pay employees, they're very likely to have much of it forgiven, according to @USChamber's @NeilBradleyDC. Before you apply, think about how you’ll use the proceeds. #SmallBizTownHall

If you recently took out an Economic Injury Disaster Loan, there will be a question about that when you apply for paycheck protection program. That loan can be rolled into your regular PPP loan, which is a good thing for most small businesses. #SmallBizTownHall

If small businesses have already laid people off, can they use the paycheck protection program to bring them back? “Yes, and that is the intention," says @USChamber's @NeilBradleyDC. The goal is that businesses bring back employees and pay them. #SmallBizTownHall

Entrepreneurs will need to be patient when they go to banks starting today. Banks have had to update their computer programs with the latest information--and that's still in progress. #SmallBizTownHall

The big question for many small businesses: Will the money run out? The reality: It's possible. Consider $350 billion is equal to six weeks of payroll for every small business fewer than 500 in America. #SmallBizTownHall

Here are some stats on U.S. small businesses:
- 24% reported that they’ve already shut down their current operations
- Another 40% think they could shut down within the next two weeks
- About 1 in 10 don’t think they can make it through more than a month. #SmallBizTownHall

One bright spot: “One in four small businesses say they intend to add more employees over the course of the year," says @USChamber's @NeilBradleyDC. "So they know we’re going to get through this and we’re going to get back to hiring and growing." #SmallBizTownHall

Wondering about 1099s? As an employer borrower, what you pay independent contractors does not count toward your payroll cost for the purposes of calculating how much you can borrow. Independent contractors will be eligible starting next Friday. #SmallBizTownHall

Basic Business Concepts CEO Marilyn Landis explains how to avoid scams: If someone wants to charge you to put a loan application together, don’t do that. Consider having a CPA look over the paperwork, but don’t pay someone else. #SmallBizTownHall

Other scam warning signs from @dannyjfitz, associate regional director for the @SDSBDCNetwork: Only work with trusted advisers. “The SBA is not going to email you telling you to apply to this," he says. Don't trust emails coming from non-.gov addresses. #SmallBizTownHall

There will be a record-keeping challenge for small businesses that get a PPP loan, says Manny Cosme, the CEO of @CFOServicesGrou. Make sure you keep tight payroll records to account for the dollars that you spent. Consider setting up a tracking system. #SmallBizTownHall

So, where do you start? Dan Martini, vice president of Congressional Relations and Public Policy at @ABABankers, says reach out to your existing lender first. Again, be patient--bankers are inundated with requests and are working around the clock. #SmallBizTownHall

Loan applications may not have to be filed in person. @ABABankers's Dan Martini says the form can be submitted online to your lender via email. Some may be setting up automated processes. #SmallBizTownHall

If you started a small business in 2020, you will have payroll records but no past tax records. "This should not hurt your eligibility," says @USChamber's @NeilBradleyDC. The new guidance adds the ability to use non-tax records for payroll expense verifications. #SmallBizTownHall

What happens if shelter-in-place orders last longer than eight weeks? @NeilBradleyDC: Your loan forgiveness is tied to what you’re spending in those eight weeks, but also maintaining your headcount. #SmallBizTownHall

For bankers concerned about liability for verifying employer information: @ABABankers's Dan Martini says the borrower will certify that they have met the criteria to qualify for PPP. This makes the process faster, but make sure paperwork is in order. #SmallBizTownHall

Advice on laying people off vs. applying for a loan: @CFOServicesGrou's Manny Cosme suggests diversifying revenue as much as possible to start making money from new products and services. Use existing employees to make something new. #SmallBizTownHall

Basic Business Concepts CEO Marilyn Landis says local development agencies can help small business owners. Each one knows what the local industry needs, and they're looking at what businesses will need when they come out of this tunnel. #SmallBizTownHall

Thanks for joining our virtual Town Hall with @USChamber + @growwithco. We'll see you again next Friday (4/10) at 12pm for another #SmallBizTownHall.