Hopefully those who applied for their PPP got their approval before Phase One funds ran out.

Ms Pelosi says Phase Two is close – I hate to count on her forecast!

There is a great webinar planned at 11 on Monday () by our partner and favorite speaker – Keith Campagna. He will spend 30 minutes piecing together conversations I have had these past few weeks with amazing thought leaders, CEOs, and a range of business leaders from across the globe.  Topics will include the death of work-life balance, organizational transformation basics, and time permitting, a sales methodology that is helping sales organizations grow revenue these next few quarters.

Click here and join me for a special LinkedIn Live session or Watch on Facebook or Watch on YouTube. For those finance leaders not able to join but interested in a one-on-one, they can contact me at keithcampagna@gmail.com or go to www.keithcampagna.com for more information.

For those looking for thoughts on working from home and the impacts on HR and IT, remember the access to the Fox Rothschild webinar that I offered a week ago.  From 1 to 2 on MWF.

For those looking for PPP and EIDL info, remember that Ami Kassar’s webinar are probably the best.

Finally, Eisner Ampner has offered us access to their daily PPP webinars.

I got  lots of thanks for the note (below) on healthcare a few days ago. Some of you thought it “Is too good to be true”. Remember we vet our best practices before we share them.

Please read below and share with those who would benefit from more affordable healthcare.

Two comments:
 1 – If you believe everything a broker, insurance salesman, Blue Cross or Aetna is telling you, I have a book you need to read! (and a horse to sell to you!)  Breaking through the Status Quo is the name of the book.   Written primarily for small and large company plans but the same facts pertain to all healthcare insurance (facts you will NOT read anywhere else).

2 –  Here are two real-life recent examples:
– Husband and wife, John and Carla, aged 58 and 55, were paying $1820 a month.   Replaced it with a better plan, same deductible and copays for $950 per month- a 50% reduction worth 10k a year.
– Husband and wife, Ed and Sue, aged 62 and 60, were paying $1975 and are now paying $1025 for the same coverage, etc.  $11k savings per year, almost a 50% reduction.
PS – These folks were not on COBRA plans. Compared to COBRA plans, their savings would have been greater.

Conclusions:

Not only for couples or folks over 55.  It can work for kids out of college, one person consulting firms, entrepreneurs starting a company, singles, families, or parents with kids.  It can also work for companies with 20 employees.   Worth talking to our SME partner-Patrick.   I am glad to introduce you.  His email address is above. Local Pa guy who can help.

This will work for over 90% of folks.   If you are hard to insure because of history or current medical conditions, then a group plan that gives you the ability to get insured is where you need to get your insurance (and probably cheaper if you are one of those unlucky folks with 25 to 50k of expenses per year).

These customized programs are available in most states however certain states where the insurance commissioner appears to work for the large carriers (NY, NJ for example). They may not be available for someone in that state but worth a look since there are some workarounds.

Another example of truth in healthcare.  Once you have the facts and understand how the money flows you can reduce costs without reducing quality.   We have solutions for individuals, small/ medium and large private companies AND we have best practices that can save corporations, cities, universities and some nonprofits millions per year.

In EVERY CASE, your broker will NEVER tell you what we can teach you (or you can read a lot of it in the book-Breaking Through the Status Quo-an Amazon best seller-on the topic.   I think the book is about ten bucks on amazon.

If not worth the ten bucks and your time, I will buy you lunch or a drink!   IF it is, you can buy me lunch or a drink.

All   I can’t think of a better title for this session offered to us — SELLING IN UNCERTAIN TIMES!

Tony and Alex did a great session on Sales training a year ago that opened our eyes and I think it is great that he offered another session to us.  Please see below and REGISTER. THERE IS NO CHARGE – another great offering to us from our SME partners!  Many thanks to Tony.

All of your contact companies that have Sales Leaders or Sales Reps are welcome to join us for a Session on Friday at Noon on “Selling in Uncertain Times”.  I will be moderating, my business Partner Alex Archawski is former Navy Rescue Swimmer and knows quite a bit about operating in a crisis.  It is 45 minutes with 15 minutes for questions at the end.  Attendees must register but there is no charge:

Sales Evolution would like to invite you to this FREE sales webinar. With our current state of environment, there is a lot of uncertainty as it relates to sales. During this 45 min webinar, we will provide some helpful advice and take any questions you may have.
· Working with your existing customers
· Focusing the right sales activities
· Selling in uncertain times
· Answering your questions (coaching)
Invite anyone on your sales team that could benefit from this.

https://saleswebinar4-17-20.eventbrite.com

Tony Kanak
www.salesevolution.com
Guess-Free Selling
Cell:  (267) 678-6119
Office: (215) 675-1220
https://www.salesevolution.com/tony-kanak/

When the dust settles, I suspect many of the currently unemployed will go back to work but some will not.

This is to share that there is an alternative to COBRA or the individual policies offered by Blue Cross and AETNA and other majors.

Savings of 40% compared to COBRA or big carrier plans are available for a very simple reason.

Employer and large carrier plans MUST BE ACA approved which means you have to include coverages that you likely would not want or want to pay for if you had a choice.

You and your family may not need-maternity related coverage, experimental drug coverage, substance abuse rehab coverage or other mandated big plan coverage.

Also you may want a high deductible high copay plan OR a lower deductible plan which is not available via COBRA(you get to pay for whatever plan you “Used” to be in).

If you are interested OR want to pass this on to someone in a situation described above, contact me or share this and have them contact me.   Share with your networking groups please.

This can work for individuals, families or small businesses (from 2 to 50 lives). Frankly, it may not be worthwhile if there are significant existing medical conditions at which point COBRA is a “group based” alternative that is the only alternative to insurability in those situation.

Something other than an SBA update…

Couple of points that I have seen in various blurbs include:
Some CFOs who were planning or announced their retirement or a move to another opportunity will stay where they are to help their current firm recover and survive showing their loyaltySome CFOs will be recruited away because they prepared to the worst, had a plan and the ability to lead and drive a successful recovery (and they will replace CFOs who were a bit complacent or stunned in the current crisis situation).   I know CFOs who are in search and currently interviewing for exactly this reason.   A casual search turned into an urgent need to replace the incumbent CFO and bring in new thinking, energy and leadership skills.

Ernie Russom shared a blurb on hiring during the crisis: Hiring During The COVID-19 Health Crisis

Businesses are still hiring during the current period of record unemployment. Distributors and manufacturers are hiring hourly wage earners to fulfill demands that are directly related to the crisis. Executives are being hired to fulfill pre-existing vacancies or to fill a gap that has to be filled.

The crisis has created unique hiring challenges that must be addressed to assure a successful hire. These include:

1) During an economic crisis, candidates often resist leaving a known employer for an unknown.
a. Research will reveal the candidate’s unfulfilled employment needs and how the potential employer can fulfill these needs.
b. Position the values of the new employer as the most desirable alternative to fulfill these needs

2) Social Distancing may cause incomplete candidate vetting.
a. Strategic inclusion of Virtual Interviewing Tools creates a thorough hiring process
b. Advanced analysis of the culture of the hiring organization and the candidate will reveal if there is congruency.
c. Thorough professional reference evaluation will validate the candidate’s professional accomplishments and interpersonal skills

Learn more about hiring during the current health crisis by visiting https://lnkd.in/eNN7gY9

Ernest W. Russom III
Executive Director
The Westview Associates
610-405-4818

9:55 AM:

Two points

1. Wells Fargo has opened the doors again – capital limits raised.
2. Has anyone who filed for EIDL 10k grant had feedback AND received the funds yet?  3 days was promised  but I want to know what reality is.

PS … For CFO Forum participantsin the Lehigh Valley, our April session on alternative legal services models will be held in June.   Date to be determined. Our May sessions are still scheduled. Third Tuesday (May 19th) will be on employee development and use of external coaches.  Plan to bring your CEO or HR peer. The special session on Friday, May 15 on the R&D tax credit updates will be held. RSVPs are needed so we can plan.    I misstated the changes. Changes were made in 2019 BUT the last year is 2021. I incorrectly stated that the credit expired in 2019.  Either way now is a good time to implement it if you have taxes to pay for 2019. Get the credit done for several previous years as well as 2019 and keep your cash!

11:55 AM:

Some of you asked about the 3 day promise for EIDL.    I heard from about a dozen of you and no one has received a dollar yet. Thanks for you who shared your experience.

Hopefully, PPP works a little better (or they will have to push back the June 30 endpoint).

Many thanks to Sam Aul for sharing the latest SBA PPP application form.  Apparently they created a comprehensive application form with addendums.

DOWNLOAD THE FORM HERE

Contact me if your banker is not being responsive.   We have an alternative lender (and they don’t require that you shift your banking business to them-I am sure they would appreciate a new account but it is not a requirement).

Good luck.   The portal was jammed or down on Friday and then they updated forms.

First, some of you have already contacted  stating that your banker is not up to speed or that they are not SBA qualified lenders.

So, if your banker is non responsive, confused or not SBA qualified, we have two groups able to assist.  One is a local banker who is a partner with CFO Solution and another is a national partner who can assist with any SBA product and has relationships with many SBA lenders across the country.   I will be sending a one pager out on their offerings with their contact info.

Second, I have attached a worksheet/workbook for calculating and documenting the average month baseline for your PPP loan amount.  Note that some banks are accepting 2019 calendar year vs. trailing 12 months ended March 31, 2020.   The worksheet includes a definition of the employer paid taxes that are included in determining your baseline amount.
Still worth checking with your CPA AND your payroll provider.

Third, some of you have complained that your payroll provider is struggling to create a report for your 12 month trailing wage and salary compensation data.  If you love your payroll provider, let me know.  Likewise, if you are disappointed, let me know.   I will summarize the “survey” and share the results upon request.  Suffice it to say, some of you are likely to be changing payroll providers either now or at year end.

My banker and others have told me to expect a 3 day response to an application and then a 7 to 10 day review and approval process. Following approval, the funds are available within 1 day AND the 8 week time clock begins for spending that can be forgiven (with an end date of June 30).  There is already discussion to slide that end date depending on how long shelter in place requirements remain in effect but we have to assume the end date is June 30, 2020 for now.

Finally, to organize these updates, the CFO Solution website has added a COVID Updates library.  Visit www.thecfosolution.org and the upper left hand corner has a button to take you to the COVID library.  Keep in mind some of the earlier updates have been superseded by SBA so read the latest update-not just the first sharing of information.

Keep your comments coming.  I am receiving some outstanding information from our readers and sharing what is not repetitive.

A productive day.   As I noted in my earlier note, the checklists and guidelines are coming together (there is some chatter about some last minute Treasury changes but we will see what April Fool’s Day brings).

Attached is a plain English explanation.

As I mentioned earlier, really important to visit Chamber of Commerce site for their checklist. www.uschamber.com

Also attached is the SBA application.   You will apply online (www.sba.gov) and this application should be identical or very close to the application online.   I provided it in a word doc so you can fill it in.

One of our banking partners, Frank Heston of Riverview Bank, is available to chat with anyone who desires to work with a bank other than their current bank.  Not all banks are SBA certified and obviously some bankers are better and easier to work with than others.  You are NOT required to execute the PPP with your current bank.  Frank’s email is on the cc line.  Reach out to chat with him.  He will give you honest and correct advice.  I have worked with him for many years and he is the guy that I call when I need an answer.

Finally, my earlier note mentioned payroll providers and the request for a custom report for the previous 12 months of wage and salary and exclusions info.   I was the first to ask my provider and they agreed to create the detailed report in a day or two so I suggest you do the same with your payroll provider.   A certified payroll report will obviously make it easier for a banker to review and approve your request.  I will let you decide how to determine your healthcare costs for the previous 12 months.

Remember you have 8 weeks from the authorization date to spend the money you receive AND the spending must be for INCURRED and PAID expenses so timing may be a little clunky or at least require your attention to dates of checks.

Thanks for the documents and suggestions that I received from some of you.  I know folks are reading these updates and hopefully we get back to work in a month or less.

PS   IF you serve on the board of a non profit, share this info with the right people as most non profits will qualify for this loan program.

Stay safe.

Just finished a very informative webinar on SBA PPP program from our partner Christopher Santomassimo and his team of lawyers in NJ.
 Chris is a partner for our NJ CFO Forum group.

Key takeaways:

  1  www.uschamber.com has a great checklist for PPP
  2  Base period-prior 12 months of payroll (capped at 100k rate for individuals) plus healthcare costs  (last three quarters and first quarter of 2020 for most of us assuming you want to file asap)
  3  Maximum amount of the loan is 2.5 times the above monthly average payroll and healthcare costs.

  3 Expenses incurred AND PAID for the 8 weeks after the loan origination date are forgive-able.  Those expenses are payroll, rent, utilities, healthcare costs and certain interest expense.

  4  Reduction of the forgiven amount is based on change in headcount.   Website has the formula so visit www.uschamber.com

  5  Anything not spent carries over as a loan at 4% interest.

  6 Forms for PPP application are not available yet but their advice is to use the standard 7A SBA application.   It is likely that these forms will be used-perhaps with some of the questions eliminated but those forms are available at sba.gov to get you started.

I hope this helps.  Well worth visiting the Chamber’s website.

Their slides as well as the slides from Multi Funding and from Fox Rothschild CCI Consulting are available at their websites.

Suggestion-contact your payroll provider to provide the payroll info that you will need for the application.  Likely to be last 9 months of 2019 and first 3 months of 2020.

I have been asked for feedback on “recommended” payroll providers.

Give me your comments-if you like your provider OR if you are looking for a better payroll provider.   I will scrub your comments so tell me who provider is and your assessment.  Maybe this is a topic for a future session since a bad payroll provider is not worth a few dollars you might save every month!