 Hello, everyone. Thank you for joining us today for this important webinar. My name is Jennifer Anderson, and I am the Vice President of Marketing for Fairfield University. On behalf of the university, I want to start by saying I hope you and your loved ones are safe and healthy during this unprecedented time. Fairfield University is pleased to host this webinar featuring our alum, Chris Pilkerton. Chris is the former Small Business Administration Acting Administrator and is currently White House Policy Advisor on Small Business Relief. Chris will speak today for about 10 to 15 minutes, and we will then have time for a couple of questions. Please use the Q&A feature to ask. I'll now turn it over to Chris. Thank you, Jen, and thank you to Fairfield University for hosting this important webinar today. I also want to thank all the other folks from other universities and other alums and small businesses for attending. I want to extend my thoughts and prayers to all of you, your loved ones, and your families for this incredibly difficult time, both personally and professionally. And I also want to let you know that this information really is critical to small business relief and the feedback that I get from you also enables me to go back to my colleagues within the government to ensure that the information sharing process is working well. I've had a chance to do a number of webinars across different groups across the country, and my goal is to ensure that we're communicating the message to anyone and everyone so that small businesses across the country have the opportunity to get this relief. So, let me begin by talking about probably the major program that's on everyone's minds, the Paycheck Protection Program. And the importance of this program is that it's an investment in our country's most valuable resource, and that's its people. A lot of the information that I'm going to be talking about today can be found at www.sba.gov as well as coronavirus.gov backslash small business. Starting with the PPP, the Paycheck Protection Program. Now, as many of you know, the Paycheck Protection Program is a $349 billion program that was part of the CARES Act that was passed by Congress. And it serves to ensure that small businesses are able to continue to pay employees and cover other certain costs during this period. So, for up to eight weeks, the program can be used to cover payroll, paid sick leave, insurance premiums, certain rent and mortgage obligations, utilities, and interest on other prior debts. Now, the focus that you've probably heard is that 75% of the dollars that are received from this program should be going to payroll. The remaining other 25% could go to some of the other obligations that I mentioned before. Now, these loans are up to $10 million, and if you're able to retain, bring back your full staff to cover that payroll piece, then the loans will be forgiven by the bank. So you've probably heard people refer to this as a grant. Well, it's not technically a grant because there is a 1% interest rate associated with it. You're able to demonstrate to your lender that you have used this for the appropriate purposes that in fact it will be forgiven. So that's what people mean when they say that it acts like a grant. So the eligible parties for this are small businesses. And in the legislation, and this is the general rule that small businesses are businesses with under 500 employees. So there are some modifications of that associated with SBA rules around size standards, but the general application is under 500 employees. This can also be used by certain nonprofits, which is something that is not typically done in the SBA loan programs. I'm sure that folks were aware of that and that includes religious institutions. There's information at SBA.gov about that as well. Veterans organizations as well as tribal groups are also eligible. Now the loans are made directly by the banks. So when people think about the SBA, they think about small business loans. But what the SBA typically does, and we'll talk a little bit about this in a different context in a second, is that they guarantee the loans. So the loans are made by the lenders. So the most important thing, if you take nothing else away from this section of the webinar today, is for you to reach out to your lender. Now what lenders are those? Well, the SBA has on its site all the lenders that are going to be part of this program, but there's sort of three buckets associated with that. The first are the traditional 7A SBA lenders, and you'll hear me use the term 7A, because that's the general name of an SBA loan program. Now those folks have connectivity into SBA and work with them on an ongoing basis. But there's two other groups that have been considered and referenced by the Treasury Secretary. The second group are FDI-insured institutions. FDI-insured institutions, and those are ones that are coming online. And then there's also the third bucket of FinTech, sort of more traditional online type lending, and those will also ultimately be a part of this process. So I just wanted to make sure that that piece of it was clear. Now the process for these loans is very streamlined. So the application is very short as compared to a traditional SBA loan. There's no collateral required. And there's also no personal guarantee. So this is definitely a much more expedited process with the obvious goal of getting the money into the small business hands as soon as possible. There are some affiliation requirements, which has been discussed publicly as well. But I will mention that the legislation itself exempts what's called a NAICS Code, NAICS Code 72, which is generally hospitality organizations, as well as franchises that have been approved to be on the franchise directory. So the rationale for that is say there's a large nationally known brand, but you have small businesses that actually are running that brand as a franchise. Then under the law, they are permitted to get these and they're not considered one big larger organization for those purposes. So that's the importance of that carve out. But as I mentioned for the PPP program, please, please reach out to your lender. There's a bunch of lenders that are making loans right now. I had the opportunity to speak to an SBA official last night. And obviously the program itself has had hiccups. I think the media has documented that and that's fair to say. But it is working and getting money into the hands of small businesses and getting money into the hands of their employees through this incredibly difficult time. The next thing I'd like to mention is the loan forgiveness component of the SBA that is implemented as part of this. So I mentioned the concept of a seven a loan. So pre coronavirus pandemic, you walk into a bank and you want to get a small business loan. As I mentioned that would be a seven a loan. Now obviously a number of small businesses have these loans. So on average the SBA lends 25 billion give or take and any given year. And you know a big chunk of that is the seven a program as well as some other programs, 504 community advantage and micro loans as well. If you hold one of those loans, then that debt will be paid for six months by the federal government, and you do not need to pay that back. So that's something that's important for folks who currently hold seven a loans to know about. So at least you can still continue to apply for loans during the seven a program, but for clarity, that's not a forgivable loan, it's a low interest rate, but but not a forgivable loan it does need to be ultimately be repaid, except for this upcoming six month period once that program is implemented. There's more information on that at SBA dot gov and of course your lender would have information on that as well. The next thing I'd like to talk about about is the disaster loan program. So, over time, when a natural disaster hits whether it's a hurricane or an earthquake or a flood. The disaster program is really the part of SBA that becomes the most impactful. It's a streamline process to get very low interest and long term repayment loans into areas that are impacted. You'll traditionally see FEMA involved and the SBA gets involved as well. So for the first time, the SBA is now making these loans available across the country in the District of Columbia and in the territories because of this pandemic typically in the context of an earthquake or a hurricane. It's much more isolated in a certain area. And the president has made up to $7 billion at this point available for that loan program. And those loans can be up to $2 million for folks that will apply. Now, the term for this loan is an idle loan or economic injury disaster loan. And this is the one program at SBA where it's direct lending. So in other words, it comes directly from SBA as opposed to you walking into a bank and getting an SBA guaranteed loan. So at SBA.gov backslash disaster, you'll find information on how to apply. And as I mentioned, low interest loan, long term loan, but not a grant once again does need to be repaid. Now what's unique about that program now as part of the CARES Act is that there's up to a $10,000 advance that can come with that loan. And that does not need to be repaid. And in fact, you don't even need to take the idle loan to get that advance and there's more information about that on the website. So one of the things that I will mention as well is technical assistance. So when folks think about SBA, they think about loans, but SBA is very engaged in the technical assistance. So you may be in need of funds right now, or you may not, but you also might need help in both of those circumstances and trying to figure out how to navigate this time period where we've got a time where we're trying to figure out what's going to be happening with the economy, what's going to be happening with your customer base and your general business ecosystem. So the SBA has 68 offices all across the country. The information for those offices that contact information can be found at SBA.gov. And there are people available there to talk to you about different options, different ideas or things that can really consult, educate, train all kinds of information. Now that's available from SBA, but there's also resource partners that the agency works with, people like small business development centers. There are a lot of employees there who are able to be supportive, as well as women's business centers. That information can be found at the agency website, but also at www.americassbdc.org. So what I'd like to do is in kind of closing is demonstrate that there's a lot of different vehicles for small business relief right now. What I've demonstrated are just the ones that are available through the SBA. Obviously, if small businesses have laid folks off, some of their folks may have gone on unemployment insurance. So the goal of the PPP really is to ensure that those employees are connected back to their small business. So that when we get through this time, these companies and your companies will have the ability to engage those folks and move forward. I'm happy to take some questions, Jen, and I do really appreciate the opportunity to convey this information. Last thing I will say is that the agency, the whole of government approach is really working very closely with the banks. Constant feedback strings from small businesses and from the owners and employees and the other agencies across the government. But if there is any information that I can glean from any of you today through your question process, I'm very appreciative because I take that information back and ensure that it's used through FAQs or any other kind of guidance that the government is going to be putting out. So thank you very much, Jen, and I'll ask if there's any questions. Sure. Thanks, Chris. Yeah, we do have a few questions. So let me start with this one. I have read that the SBA needs certification from us regarding current economic uncertainty, making the loan necessary to support our ongoing operations. My company has seen some increased volatility with our cash flow and bookings, but the next eight weeks things could rebound also. How do we know that this loan will be forgivable, especially if business rebounds. I appreciate that question and it's a very good one. So, as I mentioned, when you go to get this loan, you will be facing off with a lender. And I would also encourage folks to work with the lenders that they already have as part of their small business. The reason for that is that lender already knows you. They have your documentation to the process that they need to go through on their own level of due diligence will be streamlined and certainly be much faster. When you go in and you complete the application, there's a number of certifications that you need to make to the lender. The certification that you just referenced about impact is one of those certifications and there's a number of other ones. I think what this process is going to be, it's a standard of reasonableness that the lender will have to engage in when they conduct an analysis. Certainly, you know, there is a, when you're doing your analysis of the number of employees, for example, and the cost associated with that. If it's a lender that you worked with, you certainly have that circle of trust that you've developed with them, but ultimately they will need to verify that information in a reasonable way. So I think obviously going in explaining your circumstances to the lender is incredibly important, just like you did through that question. Great, thank you. Another viewer asked if you could address the specifics for self-employed and independent contractors. Sure. So independent contractors and self-employed sole proprietors are treated like their own business. So for example, if you have documented a draw that you take as part of your operational expenses, and that is demonstrated in the documentation that you have an independent source, a K1 or something like that, then those are the kinds of things that a bank is going to be looking for to be able to confirm those expenses. Okay, great. How long before an applicant can expect funding? Some clients are desperate for this cash. It is a great question. I know that, as I mentioned, I spoke to an agency official last night. There are funds that are going out the door, and it's a large part because it took some time for some of the banks to come online. The government was providing the guidance associated with that. So I can't give you an exact time because, and it is a great question, and I'm sorry, I can't provide that. It's in as soon as possible component. And the banks are pushing very hard. The government officials are pushing very hard. But we recognize that for a lot of these small businesses and probably your small business, it's day-to-day and hours and weeks matter. And everyone who I've had the privilege to be working with inside the government and all the calls that have had at the banks really are working around the clock to ensure that this money gets out there in a timely fashion. Thanks. How about private non-profits with more than 500 employees? Can they qualify for an EIDL? So the 500 employee standard is pretty standard in that sense. That's where the non-profit focus would be. So I would certainly contact SBA to see if maybe your circumstances are unique. But those are the typical standards on the small business loan size. It is unique in the PPP program that non-profits have been included. So you may want to take a look at whether the PPP program would be an option for you depending once again on how the entity is set up. One question that I get from time to time, and it was kind of implied in what I just said, but I'd like to make sure everyone understands is that you can apply for both. It's not an either or option. The only distinguishing factor is that you have to use them for different purposes. So on the PPP, the great majority of it is for paycheck, for payroll. But on the disaster loan side, that is much more open and can be used for general business operational expenses. So one does not preclude the other. So I would encourage folks to the extent it's helpful for their business to consider both. Okay, great. Does the EIDL loan help small non-profits that depend upon donations for revenue? So if it's set up as a 501C3 from a business operation perspective, then that's the purpose behind it. So a number of 501C3s would accept donations. So I wouldn't think that your nonprofit would necessarily be any different. But there certainly is a little more specific guidance on SBA.gov. But once again, please, you know, get online and check that information out. What kind of documentation is required for the EIDL loan? Is there a timeframe? So I know the EIDL loans because the way this kind of played out chronologically is that the president was able to work with the SBA administrator and make declarations of disaster in each of the states. And that process requires at this level, the president, the administrator of the SBA, but it starts with the governors. And obviously, you know, the governors were pushing for this or a lot of the governors were pushing for this as soon as possible. So this didn't require legislation. So this was able to start earlier from, you know, a process perspective because the PPP couldn't be implemented until there was legislative action. And that started, you know, a bit later. So that having been said, the money on the EIDL loans is going out. Now, there's a queue. There's a number of folks that have applied for those as you can imagine. So there is a queue, but the process is happening. The typical documentation for a disaster loan is somewhat consistent with a 7A loan. But as I mentioned before, given the circumstances around this, it's really being streamlined. I spoke with a small business the other day, and they were surprised how quickly they were able to get through the application. So it's definitely a fast process. And it's a process that hopefully will result in funds to small businesses very soon. Like I said, I know it's already going out the door, but there is a queue associated with it. Okay, great. So here's a question that relates to franchises. We own a business that is part of a franchise. Any issue that would apply to franchisees? So the way it works is on the SBA's website, there is a franchise directory. And at last count, I believe it's close to 5,000 different franchises. And the reason that that exists is so that if I want to start a franchise as a small business owner, I can go look on the website and say, yep, that business is going to be able to be funded by the SBA. And on the flip side, when I go to a bank, that bank is going to be able to say, yes, I know the SBA has determined that that franchise is not tied back to the franchisor as a larger corporation. So here's the issue behind affiliation. It's a, is it a big business, or is it really a small business that is owned by Chris Pilkerton, where I have control and operation, but you know I'm following the standards and, and the branding and some of the things associated with the large business. So to answer this question, I don't know if this franchise is actually on the franchise directory. There are 5,000 franchises there. There's a good chance that it is. So if it is, it is carved out as a franchise and would not be deemed affiliated to the larger franchise or so it could be, it would be eligible for a loan. Okay, great. As a sole proprietor with no partners or employees, what plan should we apply for? You could apply for both the PPP and the disaster loan. Really the key is just going to be the documentation that you're able to demonstrate about how you get paid. So if you can demonstrate, you know, the consistent operational expense of payroll associated with it, then that would be considered by the lender. So Chris, is it possible to get both a PPP loan and an EID loan? It is. It is. And as I mentioned before, I would encourage folks to look at that as an option, but ultimately you have to use both funds for different purposes. So as I mentioned, the PPP very much focused on payroll, although there are some sort of operational expenses that could be included in it. But for Idle, it's a much more open for the disaster loan and that's used for general business operations. So I would definitely consider looking at both and determining if it makes sense for your business. Okay, great. Are there any specifics on the number of applications you have received so far and how many might be funded? I don't have that information. You know, that is an ongoing process with the SBA. As I mentioned, I did speak to an SBA official last night. They are really pushing to ensure that we have more and more lenders that are able to make these loans. There's been a very high number of applications. As I mentioned before, in the given year, any given year, 25 billion or so is lended by the SBA. This program is 350 billion. So ensuring that the money gets out the door, make sure that there's the integrity of the program and the oversight is absolutely key. So bringing lenders on board or ensuring that their processes are working properly, working through any technical kinks or issues like that is job number one. So as I mentioned, I can't give a time or date as to when funds are going to be coming through, but everyone understands and realizes the severity of the situation and is pushing absolutely as hard as they can to get this done. This last question, is there someplace to go to check on the status of an EIDL loan? So if you go to SBA.gov, I don't have the answer for that question. But if you go to SBA.gov backslash disaster, they'll have the most up to date information as guidance associated with that. So I know there have been some information that has gone out about that issue. But I don't know if there is a component where you can find out you know where you stand in line or when you'll actually receive the funds but I do know the funds are going out in large part because I mentioned this program started or was able to start prior to the PPP because it didn't require the legislation. Great. Thank you, Chris. And thank you for everyone who joined today. There are a number of questions that have come in that due to time we won't have a chance to answer. This webinar was recorded and will be put up on to the Fairfield University social channels and we'll be sure to get your questions to Chris so that he can feed them like he said and use those questions for their Q&A. Chris, is there anything in closing that you'd like to add? I want to thank everyone for taking the opportunity to spend some time with us today. Getting the message out about the step by step process that we talked about today is so incredibly important to me. So to be fortunate enough to share this information with you is great. I thank Fairfield. I thank the other schools and alums that have been part of this. Thank you so much from the perspective of someone that's working on this every single day. We will continue to push and get this money out the door. Thank you so much. Thanks, Chris.