 Good afternoon everyone. Welcome to the city of Columbia office of business opportunities webinar. Our topic today is what you need to know to access the paycheck protection program, otherwise known as PPP during round two. We're really excited to share this information with the group and make sure you're aware of any changes that have occurred recently are that are occurring and answer any questions that we can to walk you through the process. My name is Aisha triggers. I'm the program administrator at the city of Columbia office of business opportunity on the call. We also have our director Miss Melissa, Melissa Lendler and you'll hear from her in just a minute. Brett lighting is on the call. He's our loan officer. Latanya Germany is on the call as well. She's in our compliance area. Carla Eichelberger is another staff member that's on the call, and she helps in all the areas. And then Kalina Gignard is on the call as well she'll be monitoring the chat and helping us with the question and answer portion of the webinar. She's also responsible for our supplier diversity initiatives. And now I'm going to turn it over to Melissa to do our welcome and talk about some funding. Hello everyone, thank you so much for joining us for this very, very, very important webinar. We're helping people understand exactly what the payroll protection program funding means to our small business community. How do you access those funds, what things you need to have in order. And also what are the implications of the most recent American rescue plan that was passed by and signed into law by the president on March 11. So, we're going to talk about those things. We currently have funding available at the city of Columbia, through our economic development administration cares at grant that we receive. And hopefully, we will receive additional funds to supply that that commercial rebound loan fund that was put in place in October. With the American rescue plan act of 2021, the city of Columbia will receive millions of dollars to help our small business community but also for safety implications for our first responders, and other costs related economic injury caused by COVID. So the city of Columbia will be receiving some funds, we probably will not receive those funds until 60 days from the passage of the legislation so the city of Columbia is in the process of putting together a plan for how we're going to spend those dollars. And I urge you as a small business community to make sure we're going to send out a survey very shortly in short order to get a sense of where our small business community is what your needs are to help us do a better assessment on how these dollars should be in regards to what comes to our small business community. So, please be able to look out for that. And again, please participate in the survey so we can have your voices heard, you can be an advocate for how these funds can be spent. And one more thing and I know that the Hamilton's will talk about this, the House passed the bill to extend the application deadline for March 31 to March 31. I'm sorry for March 31 to May 31 recently, and it probably will pass the Senate hopefully this week to become law so the deadline for PPP has been extended or will be extended, but that does not mean that you should delay getting your papers and your information in order as the Hamilton's will share with you. So again, welcome. We look forward to your participation. We look forward also to your involvement and your advocacy on behalf of your small business to tell us what your needs are. And we certainly look forward to hearing from the Hamilton's this morning about the PPP round two fund. Thank you. And thanks to our OVO team as well. Thank you, Melissa. I just want to briefly go over some of the services that our office provides if you are not aware, which hopefully you are. We have our commercial lending which is our first financial assistance to start up and existing businesses per growth, and we also offer assistance in the creation of new jobs and we also offer assistance in the redevelopment of commercial corridors. Our funding opportunities are limited to those businesses that are located within the city of Columbia. However, the other program areas are open to any small businesses interested in doing business with the city. The Subcontractor and Supplier Diversity area that offers training and support for city initiatives is designed to increase the local contractor's capacity to compete for government contracts and other procurement opportunities. It's really the mission of our office that our procurement reflect the diversity of our great city. So we've established several programs to help us. Those include the Subcontractor Outreach program, our Mentor Protege program, our local business enterprise program, and the Columbia Disadvantaged Enterprise program as well. If you have any questions about any of those programs or how you can participate, please contact our office at Columbia. You can look on the website at columbiasc.gov or you can email us at obo at columbia.gov. We'll put that that information in the chat as well. We also have our technical assistance education and advocacy area. It offers business development assistance and courses for startups and existing businesses that are looking to grow and expand. Those topics include marketing, the use of social media, business plan development, finances, legal issues, and more. We also try to stay abreast of the current news or events or funding such as PPP and we offer those webinars as well. We encourage you if there's a training that you are interested in, we would love to hear about that and potentially offer that to you in the future. Here's our contact information for the Office of Business Opportunities. Our building is currently close to the public right now due to COVID, but if you call us at 803-545-3950, our staff member will get you directed to whichever individual you need to speak with to help with whatever needs you have. Or you can send us an email like I said at obo at columbiasc.gov and we monitor that on a regular basis so you will get a response in a timely fashion. Next, I want to introduce you to our presenters which we always enjoy when we have the grants join us. They provide such great information to our business community and they're very knowledgeable. After working with Bank of America for 20 years, Mr. Tony Grant formed Grant Business Advisors, also known as GBA. It's a strategic and financial advisory firm for middle market and small business companies, churches, for-profit and not-for-profit entities. He has spent the last 19 years as a business owner providing coaching, strategic and financial advisory services. During Mr. Grant's 40-year career, he has successfully directed business advisory activities to arrange and coordinate over $1 billion in commercial financing and commercial projects for national, regional and local organizations. Mr. Hamilton Grant currently serves as president for GBA. For over 10 years, Hamilton has worked with the company in a leadership role. He is responsible for many of the financing projects of the company. Hamilton works with clients to understand their financial needs and develop solutions. So I now introduce you, Mr. Tony and Hamilton Grant. Thank you. Hamilton. All right, thank you. Good afternoon. Sorry, I was on mute for a second, but to City of Columbia Office of Business Opportunities, thank you all so much for making this opportunity available to talk about something so important to our online audience on Facebook and whoever may be streaming. Thank you so much for tuning in for conversation purposes. If you all have any questions throughout the presentation, if you would put those in the chat and our friends at OBO, if there are any questions that come in through Facebook, I'm sure you all will help us out so we can answer as many questions as possible. If we could go to the next slide, please. Thank you. So round two of the Paycheck Protection Program pretty much opened up on January 11th of 2021. For the first week for this program, it was accessible only by applying through community financial institutions such as minority depositories or community development financial institutions or certified development companies and micro loan intermediaries. Part of the economic aid that was passed at the end of last year was to assist hard hit small businesses, nonprofits and venues at. So this protection program and the money is allocated for this is really to go towards assisting the fabric of our economy, which are small businesses. Small businesses were hit very hard by the coronavirus. And so making sure that businesses have what they need, not only to stay in existence but to continue thriving is something that Congress understood because with small businesses, our local economies really will be in trouble. So the $284 billion transfer funds was to assist small businesses demonstrating difficulty in being successful resulting from the pandemic. The eligibility for these entities that receive the PPP funds during the first round and those applying for PPP dollars for the first time as well. So we could go to the next slide. Thank you. So what is PPP or Paycheck Protection Program again it was passed by Congress as a natural national financial release effort initiated as a result of the coronavirus aid and economic security known as the CARES Act to small to assist small businesses with eight weeks of cash flow assistance by approving 100% of US small business administration guaranteed loans. So some of the details with these loans is that they have an interest rate fixed at 1% Loans issued prior to June 5 of 2020 have a maturity of two years. Loans issued after June 5 of 2020 have a maturity of five years. The loan payments will be deferred for borrowers who will apply for loan forgiveness until SBA remits the borrowers loans forgiveness amount to the lender. So a lot of questions and conversations have been circulating about loan forgiveness. You have to apply for your loan to be forgiven but you have to apply to your lender. So if the city of Columbia was a lender for you and you decided that you wanted to apply for loan forgiveness you must follow that process with the city of Columbia. It is available but it has to go through your lenders. If a borrower does not apply for a loan forgiveness payment, they are deferred 10 months after the end of the covered period for the borrowers loan forgiveness, which is between eight weeks to 24 weeks. There is no collateral or guarantees that are required, which is huge. You don't have to put up any collateral and no one has to guarantee these loans and I will say if you are worried about applying for this loan because of credit scores. I would advise you to still apply. This relief package was put together because Congress understood that this was a chaotic time in businesses needed relief. And so while credit normally would be something looked at by lenders to get an ordinary loan, this is not one of those ordinary situations. So don't let a credit score necessarily affect you or persuade you not to apply for this money. I definitely would recommend you do that. Neither the government nor lenders will charge small businesses any fees, which is again huge. When you look at your eligibility and characteristics, the following entities that are affected by the coronavirus may be eligible. So if you're a sole proprietor, independent contractor or if you're a self employed, you can be eligible to get this assistance. Any small business concern that meets SBA side standards, either the industry side standard or the alternative side standard, you're eligible businesses such as 501C3 nonprofit organizations, 501C19 veteran organizations or tribal business concerns. Section three subsection B to C of the small business act with the greater of if you've got 500 employees or that meets the SBA industry size standard of more than 25. So any business with the NICS code beginning with 72 your accommodations and food services that has more than one physical location and employees less than 500 per location, you are eligible and this can be awarded to you. So these are very important characteristics, very important details concerning the eligibility about how you can be a recipient of the paycheck protection program. And so with that, I'll turn it over to dad to go into a deeper look and a deeper dive on how to actually apply for these Yeah, thank you Hamilton. A couple of things I want to note is, first of all, again, thank you. City of Columbia office of business opportunities. Melissa. Aisha Brett and your OBO team. Thank you all for allowing us to be a part of this. This opportunity to talk about PPP. Those of you who have applied for PPP. Again, forgiveness just not does not come automatically. There is a process to submit. There is a forum to submit that for those funds to be forgiven, you must go through that process you must complete that forgiveness form in order for that to occur. I should also say to you that it is, it is up to you to do that. It is up to you to ask for those funds to be forgiven. So, you know, that does not come automatically. And just want to make sure everybody's aware of it. PPP, as Melissa said, first round, second round, all of it was scheduled to have a horizon. Go away. March 31. There is a bill to get an extended. They have been funds approved in American rescue at 700. I'm sorry, 7.25 billion dollars. They're at $1.9 trillion for PPP funding. And there are other places where there's money available to help. And Hamilton mentioned that credit score, of course, and I apologize for just going back through it again, but Congress view is as an emergency. And subsequently, as an emergency, some of the normal things that you would entail credit score underwriting just is not a part of the equation for you, for your consideration. So one of the things I want to start with on page four here is, although it's not business types, but I want to make sure we understand our business type. Because you know it when you file your tax return. And so these funds are not available. If you have not filed 2019 tax returns, they will look at 2019 tax return and 2020 tax returns for those who did the first draw. And you have to do from February of 2019 to January of 2020. So you took your sales for 2019. And you only use 11 months of those sales. And then for 2020, you use the month of January. And so that's how you got to your 12 months in 2020 you just use the full year, the business types are so proprietorship. And again, I apologize, I don't want to make it to elementary. I just don't want to make it subject to one's interpretation. And nor do I want someone say well what if I'm a S corporation or C corporation or LLC. These types of business types you should know, because you're doing your tax returns. And so when you do your tax returns just wanted to put the definition there, just in case anyone had any questions and those definitions include for proprietorship C Corp, S Corp, LLC and partnerships. Oftentimes the question we get, what's the difference between a C corporation and an S corporation. We're owners of tax separately from the entity, and also the corporation has income taxation. You know this is, this is generally referred to is that you've got your tax twice. And so for those entities that are looking to look beyond that, that there are other opportunities as corporation, where the funds are passed through funds, the income credits and deductions are passed through to shareholders. And obviously the LLC is an entity that provides protection to the owner for personal liability, you know, considering that C corporations S corporations, or viewed as an entity, and they have a life like. So those corporations can have a legal legal issues and stand as a person. And so for those folks who have that interest and not having their businesses to be subject to those concerns, then they file LLC. In addition, that partnerships agreement between one or two more people are to manage a business in a certain way, where there's a clear understanding through a partnership agreement that here's how the partnerships going to operate. Here's who's going to contribute what he is what percentage I own with a partnership. Here's what my, my potential income could be, and whether the income is distributed in some could be before after expenses but most of the times it's after expenses, and then looking at the bottom line income and the distribution thereof. So I want to make sure I cover that. As we look at paycheck protection program. One of the things I do want to make certain that that we talk about just to make sure there's clarity. And the clarity is making certain that the clarity is making certain we understand what the second draw is. So the second draw means that you got money the first time. And that you are interested, and since the pandemic has continued that you're interested in accessing funding to continue to assist you in your business. And so, you know, the things that you would do is. These are dollars that are available to help you with the same types of expenses that you had the first time, meaning particularly, you know, fund payroll costs, and to pay for mortgage interest rent utilities workers. And also, you know, the financial protection costs that are related to cobit 19 so all of these expenses will have a material impact as it relates to cobit 19. The second draw. PPP loans are again made available for full forgiveness. the time, whether it was eight weeks or 24-week period, that the employee levels are maintained in the same manner that was required to be maintained in PPP first, PPP. Again, the proceeds are spent on those eligible costs, and at least 60% of the proceeds have to be spent on payroll costs. The draws for, I mean, the second draw, you're eligible, and you must have used all of the amount that you got for the first draw. So you can't have money left over for the first draw and go back to the well. So you must have used all of those dollars for the first draw. The other requirement is not to have had more than 300 employees. And here's the kicker also for the second draw. Very important. You have to demonstrate that you've got at least a 25% reduction in gross receipts between 2019 and 2020. So let's just make this simple. So in 2019, one quarter, meaning January, February, March, that's the first quarter. So you'd have to look at total income, gross receipts for that quarter. And so let's say January, February, 2019, and March, you generated $100,000 for that first quarter. And so when you go back around to apply for the second draw, you have to demonstrate that your gross receipts are down by 25%, meaning that if it was 100,000 in the first quarter, now for 2020, so again, you compare in first quarter 2019 to first quarter 2020, it has to have reduced to 75,000. And it's not limited to just first quarter. I want to make that point. It could be any quarter, but you have to demonstrate the comparison and the differential and the 25% reduction in whatever quarter in 2020 you use, 19 you use versus quarter in 2020. So again, that same comparison, if it was 100,000 first quarter, 100,000 second quarter, 100,000 third quarter and fourth quarter, you've got to demonstrate whatever quarter you use and that it is a 25% reduction. And you have to demonstrate that and provide some documentation for that. So the first PPP allowed you to use line 31 of your Schedule C. And that line 31 of your Schedule C, particularly if that was your net income, because there's the two approaches now, net income and gross income. Obviously, net income is your gross income less your expenses, right? Right? So in this case, your gross income would be the total income you have for that quarter. Here's another example. And for example, if in fact, in 2019, if you go using 2019 taxes, your gross income, let's say it was $200,000, then after all of the expenses, payroll, mortgage, utility, water bill, all of those expenses are netted out. Now, you have a net income of 100,000. So the way it worked in the first draw, you take that 100,000, divide it by 12, you get something like 8,000, 3333, multiply it by two and a half, and then that became what you were eligible for for PPP funding. Okay. As it relates to the second draw, you are able to use a couple of approaches. You still may use the income approach, or you may use a gross income approach, a net income or gross income. Okay. And I'll show you that on the next slide. But what I want to make certain that everybody understands second draw means you have to have had a first draw, and the funds for first draw must have been exhausted, spent. And you are going back because you need additional funds. And so, again, both of those loans will qualify for loan forgiveness, but you must take that upon yourself to get it done. There's also a maximum dollar amount, and we'll get to that, which is a $100,000, but we'll get to that if we'll go to the next page. And so here's the form that I was just talking to you about. So if this is the first time for you to request dollars, then you'll see where it says average monthly payroll. And the reason why I said, again, if the example I use, forgive me for using the numbers, but I want to help you understand it, if there's clarification that's needed, put it in the chat, and Hamilton, if there's clarification and need on the numbers, I'll stop and clarify it. But the example I want to make sure everybody use, they do want you to use your average monthly payroll. So in 2019, if your net income was $100,000, you divide that by 12, and that net income number is what's used, multiply that times 2.5, and you'll see there, including plus EIDL loans, you need to make certain that that information is reviewed very carefully. Some people got both. EIDL loan is a different animal. EIDL loan looks at a different approval process, and the government has these forms down to a science. And so we want to make certain that we review those two, but when applying for these dollars, you need to make sure you include those things. When we look at what PPP loans can be used for, it's listed there on the left. 60% must be used to fund payroll, employee benefit costs. And then the remaining 40% can be used for those items that have been enumerated therein, mortgage interest, rent and lease payments, utilities. Damage that due to public disturbance is not covered by insurance. And so you've got to make sure you look at the guidelines, stick to the guidelines, of course. And if I could add to that very quickly, I think it's important to note along with what PPP can be used for. I think it's also important to say what it cannot be used for. You cannot access PPP loans to expand your business or do any kind of business expansion, which is very important. If you're looking for business expansion or any kind of projects, you should not apply for PPP instead. You should go through the Small Business Administration for 7A or 504 business loans. But again, the Paycheck Protection Program was put aside specifically for emergencies to help with small businesses fighting against coronavirus and the economy that came with it. So I just wanted to highlight that expanding your business, doing that through PPP is not allowed. I would add that the City of Columbia through OBO has been very, very instrumental, if you will, and working to identify funds to help companies that may do just that and expand their business, perhaps. But the qualifier would be you'd have to demonstrate what your business expansion is for and also what impact it has to assist and work with coronavirus. And I'm speaking specifically about the Columbia, the resilient funds that the City of Columbia received. Some of those funds have been received. Some of the companies have been helped. But specifically, what they've been helped to do is to work to continue to provide resources to COVID-related impacted communities, businesses, et cetera. And so just want to make sure we brought that to your attention as well because I do know that the Office of Business Opportunity has been very forthright and very, on the front end, if you will, of working to assist small businesses in that manner as well. And so I know that they got funding from the Academic Development Agency, EDA, and that they were able to assist small businesses from that regard. Let me stop for a minute, see if there are any questions. We do have one question that did come into the chat, Mr. Grant, from the new parapoli. And I think this was something that you touched on a couple of minutes ago. Let me say that I got funded for round one using Schedule C, Line 35. Can we reapply for round one again using gross income? Well, I do believe that if you go to the next slide for not that one, next one. This is second-draw form. And you see where you typically, what they're looking for is a line 30, 31, 35, where they are looking for those, you can use gross dollars. But the documentation and the things that I've looked at have primarily pointed you towards Line 31. And so I would say that that's a question that we'd have to research just to make certain. But primarily, Line 31 is what they have talked about. We can double check it though. Okay. We don't have any more questions in the chat right now, but I just wanted to let the audience know that if you're watching on Facebook Live and you have a question for Grant Business Advisor, you can put your question in the comments question at the bottom of the screen. I'm also monitoring Facebook Live as well. And please make sure that if you do have questions throughout the webinar, please put your questions in the chat. And we will address your questions at some portion during the webinar. Thank you. Yeah. The one thing I wanted to say to you that there are a bunch of forms. So you have to know what you're looking for. And the gross income number could be a lot more beneficial to some people. Let me give you an example. For some companies that are consultants that don't necessarily have a whole lot of other types of expenses, their Line 7 number could end up being a very, very large number. So in the case where the example was 200,000, that number could end up being a very large number. The package, however, does have a limitation of $100,000 in some cases. So you'd have to make sure that you differentiate between whether you're applying from that angle with no employees. There's a form for second draw, whether you're applying on that income. And then the next slide is a form for second draw, where you have employees. In fact, go to the next slide and I'll come back to this one. So you see the difference in this slide. If you do not have any employees, the IRS form 1040, and you don't have any employees, you would use Line 7. Everybody see that there? It's about halfway down the page. And yeah, come up right here, right there. So your gross income amount from 2019 to 2020 IRS form 1040, your schedule C would be a Line 7. And that form in itself, you take that number and divide it by 12, multiply it by 2.5. The next one is if you have employees. And there's a lot of material out there that if you have employees, that there are a number of documents that they are going to require. But essentially, you're going to need to touch that base. So if you're using net profit from 2019, and your Line 31 that you're using is greater than 100,000, then that number must be reduced to 100. Because remember I told you there was $100,000 cap. So on the second drawer dollars, you're capping that net income number by at $100,000. And so even if that number was 200, in the first example I gave you, and your Line 7 was 200, and your Line 31 was 100. So you get 200 of gross, 100 of expenses, 100 net, right? The net profit number, Line 31 is capped at 100. So that number would be 100,000 divided by 12 would be 8 multiplied by 2.5. And that number would generally that third box over there would be somewhere in the $8,000 range. Everybody with me so far? And if you have employees, again if you're using payroll, using gross income, again, if the amount is over 100,000, you got to reduce it to 100,000. Okay, remember there's a second drawer. And the documentation that you're going to have to provide for that is gross wages. You're going to have to show your 2019 form 941, which is your taxable Medicare wages form, any pre-tax employee contributions or for health care insurance or fringe benefits. And then you need to net out any amounts paid to the individual employee that exceeded the $100,000. So it's a formula. There are other documents that you're going to need to provide the IRS. Lots of steps, particularly for those with employees. There's a link that I can provide to you all that you need to take a look at it. Because there is particular documentation that you're going to need to provide. Okay, so then when you look at A where it says if you have employees, your line 7 minus those other lines that I refer to you, divide that by 12, get the average number and then you take that add B and C and whatever those totals are add B and C and multiply it by 2.5. And the dollar amount cannot in terms of payout cannot exceed $2 million. So what you have to make certain that you look at is especially what they second draw. That you have to make certain that you look at that documentation. And there's some question and answers that are specific that the that the SBA has provided to you that specifically speaks to the forms that they're looking for. And part of this presentation is to talk to you about what are you going to need? What are the forms you're going to need? This link that I thought I left in the presentation, but this link will show you exactly from the SBA website that will show you exactly of the documentation that you're going to need. It is not a walk in the park. And I don't want to cause anyone fear. I just want to make certain that you've got the appropriate documentation you need in order for them to give you a quick response. And they've been pretty fast about this. The first thing I should have said also PPP loans or not submitted direct to the SBA. You have to and I should have said this in the beginning. There are qualified lenders. You have to identify those qualified lenders. That is not the responsibility of the city. That is not the responsibility of the banks. You have to take it upon yourself to identify a bank that you want to make this PPP application through. That is your responsibility. There are a number of banks who are doing PPP loans. Some banks because of their volumes, they started saying, well, if you're a customer of ours, we'll take the application. Some banks have said, no, that doesn't matter. We still want you to come. So their first priority for you is to identify a bank that will take your PPP application. And simple question. Pick up the phone. Hello, Ms. Rogers. My name is ABC. I'm in the interest of submitting a PPP loan, a second draw. And so would you be able to take that application? Typically, if you got a first draw, it would be in your best interest to go back to that same bank for the second draw. However, I do want you to know that you have to identify you being the applicant. You have to identify who that bank is and where you're going to go and what you're going to do to get the application to them. They will take that application. They will submit that application. And then they will advise you whether that application was approved versus the economic injury, disaster loan, EIDL or IDLE, that application is made direct or aligned to the SBA. And the SBA will give you an indication of what you qualify for. When you submit that application to them, and then they will communicate with you direct. Give you a website, email, not website, but an email for you to log in and check on the progress of that application. They will assign that to a loan officer. That loan officer will communicate with you direct. They'll tell you about whether that loan is approved. They'll tell you whether they need an additional application. PPP side, the local bank is the entity that will drive that process for you. They will also be the entity that will either wire funds to you. And for the most part, that's what has been occurring. They will wire the fund directly to your account. A lot of the banks will ask you if you are not customers of theirs, if you open an account at their bank. So I apologize for the deviation. I just wanted to make sure everybody is aware of what you are going to need. Back to the second draw. I do want to make sure you understand that. Four more we're on right now. I do want to make sure you understand that there's a stark difference in the documentation needed if, in fact, you have employees or not. There are a lot more steps in receiving approval for PPP if you have employees or not. And again, that lender who the package has been submitted to will come back to you and tell you exactly what's needed. I'll stop for a minute and see if there are questions. There are no questions in the chat at this time and there are no questions on Facebook Live. Okay. The other thing I want to provide caution for are just, please be careful how you use these funds. Some people have gone out, they've spent the money, they've done different things with it, and some folks have gotten in trouble. You want to make certain that you stick to the cost of what these funds are going to be used for. Go back a slide or two, please, and I want to make sure next one. This is what these dollars can be used for. Again, you must have exhausted all of your funds for phase one, PPP one, before you can draw PPP two, and the same allowable cost on the left, those with 60% of it being used to fund payroll, same allowable cost is what would be allowed in the second draw. The other point I would note is of the second draw, you have to demonstrate that there is a difference in your reduction of revenue being 25% less in revenue from 19 to 20. Again, I'll say it again, you can't have more than 300 employees, you have to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. Pick a quarter, show where you've got 25% reduction at least, and you've got to demonstrate that to be eligible for funding under the second draw dollars. Okay, let's go to page six, if you will, because we skipped over that. Here it is again, I just said it, but under 300 employees, $2 million cap per business, operated before February the 15th, 2020, you have to show reduction in gross receipts or more during any quarter in 2020 when compared to the same quarter 2019, and you can choose between eight weeks or 24 weeks to use the funds. Again, you must agree to comply with OSHA safety to include written injury and illness prevention plans. For forgivable expenditures, PPP equipment, which includes sanitizer, gloves, mask, barriers, expenditures to supply, to a supply of goods that are essential to the operation of the entity, expenditures that allow your business to comply with OSHA, CDC and others, and payroll processing and human resources company to help you provide the documentation you need in order to be compliant. Okay, that's essential to round two funding and round two criteria. I talked about it a minute ago, but here's the documentation as well on page nine, where we talk about what's needed to corroborate that you've shown a 25% reduction in receipts. And the first question is, what do I need to show? And these bullet points is what you need to show. And so quarterly financial statements, especially if the company is not audited, you got to sign the end date, the first page of the statements and initial all pages attesting to the accuracy. If they don't specifically identify the line items that talk about the gross receipts, you must show the annotation about how you got to your gross receipts. Let me pause right there because the number of small businesses are not doing quarterly financial statements. So those statements, and what I mean by maybe not doing it, some small businesses candidly, because I see them, they come to us, they go throughout the year, they don't track the revenue by quarters. And at the end of the year, they take that information and give to their tax provider. For this purpose, you are going to have to demonstrate what your quarterly revenue was for 2019, 2020. If you haven't been doing it, you need to go back and do it, especially if you're applying for these dollars. And when you submit the package to that bank, that bank is going to look for this data. That's the only way they can corroborate or substantiate or verify what you're giving them matches. They have to provide some sense of verification as well. The second bullet point is bank statements that show deposits for those relevant quarters. Again, you've got to show what those statements are to demonstrate what your receipts are. So when you get your bank statement, I know we do our numbers, I'm able to identify every check that goes into the bank and who is from for revenue. So I can pick that on a monthly basis or on quarterly basis. But you have to be able to demonstrate those things, especially where it relates to receipts. And you have to make sure that maybe a monthly, you have to put money in, but that you put money in does not constitute revenue. That is a capital infusion. You put money into the company. So it's not derived from business that you're doing on a month-to-month basis. And you have to be able to differentiate between the two. You don't file quarterly IRS documents, but in this case, especially for second-draw funding, you have to be able to differentiate and demonstrate the decline. And not only do you have to be able to show it, but you have to be able to substantiate it with the documentation. Okay. The last bullet point talks about the annual IRS income text filing that Appalach must fill out the returns, the forms, and sign it. They're looking for you to make certain that you've done what you're supposed to do. And they want you to sign these pages, the first page, sign and date it. And that is their way of saying you looked at it and you are comfortable enough with it and you signed it. So you have to sign the first page and then initial all the other pages. Don't lose sight of that. That's their way of saying you looked at it, you signed it, and because you initially, you can't come back later and tell me you didn't think it was right because you initially, and your initial shows that you're in agreement with it. So you cannot, you cannot, cannot submit this documentation without the expectation that you are going to have to make certain that you can stand for what you said and what you've submitted. And it's real world, real dollars. The government, they want to help, they recognize it's an emergency, but they also recognize in a lot of cases that when programs come along like this, there's a massive degree of fraud. And this eliminates fraud. Okay, so you got to make sure that you understand the justification there are and that you have to provide that justification. Okay, questions. No questions in the chat right now, Mr. Grant. And so that last bullet point, if the entity has yet filed a tax return for 2020, the applicant must fill out the return forms, compute the relevant gross receipts value, and sign and date the return and testing that the value that enter into the gross receipt computation on the same values that will be filed on the entity's tax return. Okay, so if you haven't filed, they're giving you a way to it to steal, get access to the funds, but you've got to do what needs, what's needed to be done. And here it goes again, sign and date it to make certain that you can, you can, you're not held up, but you got to do what you got to do. Okay, let's go to the next slide. I want to dress the item on the right hand side before we go to the left hand side. Documentation needed for $150,000 loans that's greater than $150, and those loans that are less than $150. First bullet point, you must provide documentation substantiating the reduction in receipts. So that's the SBA second draw form that we just had up in front of you, and you see where the SBA form 2483-SD second draw. The documentation must support the amounts provided in the application. Okay, for those that's less than $150, the loan amount is less than $150. Again, documentation substantiating the, substantiating the reduction in gross receipts before or at the time the borrowers seeks loan forgiveness. The documentation must clearly identify both of the reference quarters, 2019 versus 2020, right? And the comparison there of you must contain the gross receipts for both quarters and support the amount provided. It says payroll documentation to substantiate the amount of the loan requested must still be provided with second draw PPP loan application. Again, it's not free money. It's an emergency. It's a way to help you. Again, once you receive the funds you can apply for forgiveness, but you've got to touch a base and you've got to do what you have to do in order to stay within the guardrails for the SBA. Okay, some of the bullet points for calculating gross receipts reduction. And I don't want to belabor the point here, but they're self-explanatory and it tells you where to go get those figures. First one, self-employed individuals who are not ranchers and farmers. It's your form 1040 Schedule C and they want you to take the sum on line four and line 75. And again, so forth and so on talks about non-profit corporation, talks about LLCs, talks about non-profit organizations as well, C corporations, S corporations, partnerships, but it tells you which line and where to go and which form. For example, partnerships are completing 1065 IRS form 1065. And so we're as ranchers and small business entities, self- proprietors, they're using a form 1040. S corporations and C corporations are using a form 1120. S corporations 1120, S. C corporations 1120. Now for profit entities, corporations are using form 990s. And again, non-profit organizations are using form 990 EZ. Keep in mind that depending on your tax status, churches are eligible for PPP dollars. And so it's a whole new ball game with them. They're 501 C corporations. And so they're eligible and a number of churches have received PPP dollars. If you are in a church, they've gotten PPP dollars. Please make certain somebody has, have we filed for forgiveness? And if not, we need to. And churches have been closed for greater than a year, my church has. And I am suggesting to you that there's an effort, should be an effort to be proactive rather than reactive, but recognize that those blue boxes will tell you specifically where to go to get that data when calculating 25% gross, gross receipt reduction. Okay. Next slide, please. That, that's our presentation. I'm happy to go back. I left about some minutes in there. 20 minutes or so to go back and address any questions that anyone may have regarding our presentation. Collina, do you see any right now? Nothing at this time on the chat or I have a question that if you apply for round one, you have to use all of those funds prior to applying for round two. What about, do you have to request the forgiveness prior to applying for round two? No. And that's my understanding. But for folks I've talked to, no. Now, I will double check that question for you with the IRS, but from my understanding, it's no. But the funds, you have to note what the funds are and that you do have. And the bank that you went to, they're gonna, you know, if you go back to that same bank, they're gonna have some discussion with you about the first draw. Okay. Right. Okay. So they're gonna say, okay, we've got this, and we got to do ABCDFG. And then they will tell you whether, you know, we need to go in and get that application in. Because some people have gotten the money and haven't spent it. Haven't spent it all. And it's just sitting there. And so if you haven't spent it all, but there's a need for more, you know, that that bank is that banker will tell you what what they're going to need specifically in terms of how you go to the next level. And it also could have been on that bank policy. You know, the bank policy could say, well, we want you to submit a forgiveness before we try to go back to another round. Because some it's not automatic that the dollars are forgiven. And if no one else hears anything else I say, it's not automatic that is forgiven. Okay. And you've got to demonstrate you've done what you said you're going to do with it. And then the other question that we were going to follow up on is if someone applied in the first round, using their gross income, they wanted to know if they could apply for any overage if they since they can use their net now. When I'll just give you a personal example, I applied, got approved. There was not an opportunity to use gross in the first round. Right. When I applied. So matter wouldn't be relevant. You know, because, you know, it wasn't it wasn't available. Now round two, there is some availability. But you have to again demonstrate you exhausted all the funds. And then the second thing is they've got a hundred thousand dollar cap in there too. Right. So you have to make certain that you fall within with the guardrails on that one as well. But those types of things will be will be addressed. But it is it is it was not available on the first round for grossing gross income was not available. And to a to a large extent, I believe because some folks were thinking that maybe the the virus would not in the academic impact would not last as long. I don't think anybody thought a year ago is going to last a year. No, I should longer. Mr. Grant, I have a question. Sure. I know that I've been getting questions from some people with about the paycheck protection program and they're mainly are nonprofit organizations. And I think you may have touched on this a little bit in your presentation, but can you speak to those who are nonprofit organizations and how does the paycheck protection if, you know, does it impact them in any way? It does because they specifically went back and made none profits. You know, normally churches couldn't borrow from the government from the SBA. Yeah, you could not get an SBA loan as a church recognizing that churches and other nonprofit entities were impaired as a result of the coronavirus. Those dollars became available. In addition to that, churches, nonprofit entities are also able to borrow on the idle EIDL economic injury disaster loans. But churches have payroll. They pay the pastor. They pay somebody to clean the church, whether they're not somebody still doing something at the church. Okay. And they are looking at those dollars that that you have used that will that you've been impacted. So yeah, they are available. Churches are available for those dollars. If churches have employees. Again, if you look at that slide on the page if you're not for profit, you are going to have to if churches have employees. Employees got to jump through interview with employees. You got to cover the basis. And so if you got a phase one, I mean a round one, and you're applying for round two as a church, you've got to touch those same bases to show that there was a 25% decline in gross receipts. And those blue boxes that I referred you to for not for profit organization. Churches don't file 990. So I want to make sure everybody understand that. And this speaks to 990 forms and 990 easy that churches don't file tax returns at all. Okay, so a church will have to be able to demonstrate quarter by quarter how the revenue went down. And most churches have that data where they can show it. But they don't they're not required churches are not required to file to file tax returns. Nor are they required to file 990s. Okay, if it is a not for profit. They are not for profit being Urban League not for profit being the Heart Association. You know, other companies that have a not for profit designation, but churches got to go through the same same process. So instead of going to line XYZ on the tax returns, then that documentation that I referred to you about how to look at what's documentation is required. There's a section in here that speaks specifically to not for profits. And that information is a 1213 page document. That's why I want to put it in here. But it does speak to what not for profits need to submit in order to look at the differentiation and demonstrate a 25% reduction year over year. But it is there is a requirement. It's not tax, it's not tax return driven. But it is requirement by the SBA to demonstrate it. Did I answer your question? Yes, sir. And we had some we had a couple people in chat just wanted your contact information. I'm going to post that again in the chat. Okay. As far as you're in Hamilton's contact information. Okay. That's fine. We'll be don't have anything on Facebook live. No questions on Facebook live as well. I think it's imperative for companies, individual churches, leaders, everybody to to to understand that, you know, we're in a very difficult times. And this is a benefit that will help keep the economy. People are hurting. People are hurting. I haven't been able to call on my normal business in a year. You know, so it's called a lot of people to re engineer what they've done for years. And so what you have to understand that with all that said with all that's going on, you still have to provide the documentation for what you're doing. And the thing I want to also mention to you that you have to note that because it's federal dollars, you will be required to substantiate upon request, you know, what you do with what was provided. And I want anybody to be alarmed about it. But I want you to go in there with the approaching for these dollars with that expectation. You got to substantiate what you know what those dollars were for. And you have to be able to justify what those dollars are for. And, you know, spend wisely and provide the necessary documentation if required or called upon to provide it. It could be a very complex matter, especially if their employees, I would only ask you to seek assistance. Ask for assistance. Don't touch a base if you're not sure. Don't skip a base if you're not sure. And the City of Columbia recognizes that these funds provide an economic shot and arm for the total community because you're getting those dollars, you're spending them in the community, and you're actually making up for the dollars that you would have received had the coronavirus not come along. I think you really stress the importance of documentation. I think a lot of companies have recognized that maybe they have that lack of documentation or it wasn't readily available, and it's just so important to be able to access these funds. You have to have that documentation. And then, like you said, be able to maintain that and show that as proof if necessary after you spend those dollars. Yeah, let me say something. If you got money from the first draw, spend $300 for QuickBooks, buy the software, take the necessary training, because QuickBooks can show you how to load your data in from 2019, load your data in from 2020. It also can provide you financial information quarter to quarter. It also can do the analysis for you by the push of a button. You can do a comparative data, comparative analysis. This could be your documentation, but spend $300, maybe four. But you also can get some, you also can call in if you've got questions. They will help you set this information up. Take the time to spend the extra dollars to do that. Okay. And also, you give that information to your bank. The documentation you're going to have to provide to them, you can provide that information to them, but you still have to, in addition to your tax returns, you're still going to have to show them the quarterly comparative data, which is not done in a tax return. So you're going to have to show them both. Take the time to spend the dollars to do that, because it can help you in the long run. That's great advice. And you mentioned the idle funds, and I just want to remind everyone that we will be offering another webinar next Wednesday, March 24th, to go over the idle funding. That'll be at one o'clock, and I'll share that information with everyone who registered. Okay. Do you have any final questions? Anyone want to mute and ask a question or before we wrap up? We'll have anything in the chat right now, Aisha. Okay. Any final words? I have had some individual dialogue with a number of the banks, and they all are very interested. They all are very interested in being a provider of funding. Somebody, if you will put your phone on mute, that'd be helpful. But for those companies that are banks that are still interested, that's also another way of pouring dollars because those funds that go to that bank, that helps that bank, that bank has funds on deposit. And so it's a very helpful scenario for them as well. And all in all, it helps you, it helps the employee, it helps the bank, and it helps the city of Columbia because you're spending those dollars into the city of Columbia, the city's total economic environment. So those dollars are going into the economy, the economy for the city of Columbia, and it's helping to have somebody stay employed. It's also helping for them to go and buy gas. That employee goes to buy gas to come to work. That employee goes, they pay their light bill, they pay their cell phone bill, but they're staying employed. And so it's a phenomenal way to continue to help provide what this economy needs. Keep in mind the city, counties, materially impacted because of the coronavirus. Thank God that the new COVID, I mean, the new rescue act provided some assistance there. But it's an effort to provide a significant impact and fusion of dollars that continue to be rotated and used within the city of Columbia. So the individual who had their phone off of mute, did you have a question? You can feel free to contact our office and if anyone has any additional questions, we'll be happy to answer that. Thank you so much. They just unmuted. Oh, okay. I did have a question, but I think I will contact their office to get answers. Okay. I have more than one and I don't want to take up any more time. I didn't want to delay the presentation with, you know, additional questions, but I'll just contact the office. You can feel free to, if you have a question, it might be the same question someone else has it. If you want to ask your question or if you want to contact them. I will contact them because I have a few questions. Thank you. All right. Aisha, I got a question. Okay. I think I put that question in the chat box, but I didn't get the correct. I still have a question follow up on that. I did apply around the PPP round one with the net income for the round two. I'm not eligible because I didn't get 25% reduction in my income in 2020. Can I still able to go and apply for round one with gross income? Is there any provision that we can reapply or not? So I already got round one and I already got forgiveness and everything is done on round one. And so, Venu, I don't think you can do that because they've given you round one. To be eligible for ground two, you got to show a 25% reduction. And I don't think if you can't show the 25% round two, then you can go back and reapply for round one. I just don't think you can do that. I'm happy to research that and get back to you. But I don't think that's the case. But think about it this way. Round one, I applied. Now, the difference between round one and round two is round two, they allow you to use gross income. But even in that case, they established a maximum of $100,000. And so, I'm not sure. I don't think so. But I'm happy to research it if you email me. My question is, it's very disadvantage for the people who applied quickly on the when it first came and we got less money. And if you have waited for long and now you apply, you should have got more money with gross income. So that's the disadvantage of applying fast. And I will tell you, Venu, I'm in that spot myself, very candidly. Yeah. I mean, had I done round two and waited, or at least waited based on the gross income, I probably could have gotten $25,000 or more in PPP money. I'm in that same spot myself. So I think I can do it. I'm just being very candid because I can show 25% reduction. Okay. And that was 2020. But I'll have to double check. I'm not certain to do what I'm telling y'all I got to do. I got to go and match it off by the quarters. And I will say to you, Venu, that there is, if you go to SBA.gov, there's a place where you can specifically ask that question of an SBA person. And they will tell you exactly what your response is. Sure. I can do that. Okay. Tony, we have another question on Facebook. It says, how is the draw process done? How do you access the PPP funds once approved if it's a draw? I think you said it's wired. Is that what you? Yeah. PPP, once you approve, let's say you get approved for 25 grand, that bank's going to wire that money to your account all at one time. So whatever dollar amount you're eligible for, whatever dollar amount you get approved for, they're not going to dribble it out to you. They're going to wire the full dollar amount to your account. And when you sign it, there's a closing process. So that bank will see you a promissory note. You'll have to sign that with that bank. Let's say it's Optus Bank. And Optus Bank is going to say, okay, here's our promissory note. And because the way this has happened, the bank's alone in the money, and the forgiveness is coming from SBA to pay the bank's back. So the banks will establish their promissory note that the SBA has approved. And then you'll sign that promissory note, and then you'll send them a copy of your ID, your driver's license. You'll send them a copy of your Schedule C. They will ask you for your wiring instructions or a copy of a voided check. Okay. And once you send that to them, then they've got all they need. And so once you sign the promissory note, within a day or so, they'll put that money in your account. And there was one more on Facebook. Can you get PPP and unemployment benefits? Do you know the answer to that? Not sure. Okay. That might be a question that you can ask. Let's just think through that. PPP, if you are an employee, I mean an employer, then you would not be eligible for unemployment. But if you have a job elsewhere and the business, then you might. Not sure, but something you want to double check. Yeah, you might want to check with the Department of Employment and Workforce about that, because I think they did open up unemployment to some sole proprietors at one point. I'm not sure if that's still in effect, but that would be a question for them. All right. Okay. I think that's all we have. For those of you that registered for the event, I will send a survey and a recording along with the link if you are interested in registering to attend the Idle webinar next week. Thank you so much, Toni and Hamilton. It's always pleasure when you come and let us know what's going on when it comes to PPP or financial management and things like that. So we enjoy our partnership with your organization. Aisha, you might want to let them know that the recording will be available on the City's YouTube page. And also, you can also watch it again on our Facebook page as well. Yes. All right. Melissa, Ms. Gignard, Ms. Driggers, Mr. Whiting, and the rest of Carla and the rest of the team, please know we're very grateful to you. For those whose names I did not call, please know we're grateful and we're thankful. We appreciate the partnership as well. All right. Thank you, everyone. I hope you have a great rest of your day. Stay safe. All right. God bless. Bye.