On Friday May 1, Governor Scott gave another small turn to the economic spigot. With Addendum 12, Vermont will see more people able to return to work. Along with this increased flow to the economy comes increased requirements for the safe return to work. It is important to understand that the requirements will continue to be updated, what you put in place today, may very likely need to be updated in the weeks and months ahead. Please be sure to check your specific sector guidance as well as ACCD’s Memorandum to Businesses and Employers for full clarification of Addendum 12. Restart Vermont Resource are available to help you develop your reopening plan.
Waiting for your PPP or EIDL? BDCC has borrowed money from the USDA through its Microentrepreneurship relending program to help businesses bridge any financing gaps they are experiencing. Loans are available for $2500 to $50,000 at a 3% rate with no prepayment penalty. Email RT Brown for details.
We continue to focus on communicating accurate, timely and actionable information to help ensure informed decisions across the region. Last week we focused on hope and resilience, this week we are making time for detailed planning. Please let us know about resources you are finding useful so that we can share that information with others by using this simple form.
Easing of restrictions on healthcare procedures
Governor Phil Scott today announced limited elective procedures would resume, which had previously been put on hold as Vermont’s health care system focused on preparing for, and responding to, COVID-19.
The Governor’s decision comes as the state’s modeling continues to show spread of COVID-19 has slowed – thanks to Vermonters’ physical distancing efforts – and the state’s ability to track and trace outbreaks of COVID-19 has become more robust. Health care providers who recommence these procedures have been provided guidance and must meet specific mitigation criteria to protect patients and clinicians from possible infection.
Health care providers can begin non-essential outpatient clinic visits, diagnostic imaging and outpatient surgeries and procedures if the following steps are taken.
Outpatient clinic visits and diagnostic imaging
Outpatient clinic visits and diagnostic imaging can resume immediately if providers demonstrate they are adhering to physical distancing and relevant CDC guidelines regarding infection control and prevention to maintain a safe environment for patients and staff.
Outpatient surgeries and procedures
Providers may also begin to perform outpatient surgeries and procedures that have a minimal impact on inpatient hospital bed capacity and PPE levels, including those performed in the office or ambulatory surgical center.
Suspension of Operation
If the Vermont Department of Health has determined that a COVID-19 outbreak has occurred and providers cannot safely care for Vermonters in a way that (1) limits the exposure of patients and staff to COVID-19; (2) preserves PPE and ventilators; and (3) preserves inpatient hospital capacity, it will notify and require all providers in the region to return to the standards set out in the executive order issued on March 20, 2020. Depending on the severity of the outbreak, the Vermont Department of Health may require all Vermont providers to return to those standards.
SBA to Make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic
WASHINGTON – U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. SBA’s EIDL portal will reopen today as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by the President one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the Coronavirus (COVID-19) pandemic.
“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” said Administrator Carranza. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”
Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.
The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.
SVEP Getting Back On Track: Project Development Series and Topic-Specific Knowledge Bites
The Southern Vermont Economy Project was launched in 2016 with one main goal: build capacity within the region around economic and workforce development. SVEP delivered 89 trainings and 32 webinars to over 1,000 people, and worked with hundreds of partners over the first three years of the project.
It’s time to get the Southern Vermont Economy Project back on track. Now more than ever, strong and successful project development will be key to rebuilding this region and its economy. SVEP will kick off the planned Project Development Series at the beginning of June, using online platforms and programs adapted to the new format. The series includes four quarterly trainings which will be offered in sequence, twice, but are designed to work as standalone events providing education on project stewardship, financial management, project management and grantwriting. …Read More
So, you’ve applied (or will soon apply) for an SBA Economic Injury Disaster Loan (EIDL). What happens now?
Be sure to retain a screenshot of the Application Confirmation number that appeared at the end of the application, or at least write it down in a safe place. Keep these things in mind: 1) Although there is a “grant“ element to the EIDL (the “advance”), you are applying for a government loan, which will be processed and underwritten just like any other loan and will need to be repaid; 2) Loan applications can be delayed or denied. Have a back-up plan; and 3) This is a preliminary application. The forms you filled out on the SBA EIDL application portal are only the beginning of the EIDL process.
It is likely you will not hear anything directly from the SBA for several weeks. Don’t feel abandoned or lose hope! The SBA received millions of applications and is making their way through the backlog with a small but hardworking staff. The first indication that your preliminary application has been successfully received should be a deposit in your bank account (the one you entered in the EIDL portal) with the label “SBATREAS.” This is the EIDL “Advance” which should be equal to $1,000 per employee, up to $10,000. Receiving the Advance does not mean your loan application has been fully processed or approved. You will never be required to repay the Advance, even if your EIDL is eventually denied, or you refuse the EIDL loan offered by the SBA.
Sometime after the “Advance” funds are deposited, you may receive an email from the SBA that includes your application number and a request for additional information needed to continue the EIDL loan process. Be ready for an SBA request for additional information. EIDL applicants are encouraged to prepare and have electronically available the business financial information you should know about your business anyway. Click here (https://bit.ly/COVIDLoanPrep) for a list of the information to prepare for any loan application.
EIDL Processing
Once all required documents are provided to the SBA, the primary criteria the SBA will consider is an acceptable credit history and an ability to repay the SBA loan. To qualify for an EIDL under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19. EIDLs under the CARES Act are based on a company’s actual economic injury determined by the SBA, less any recoveries such as insurance proceeds, and any other loans or grants received to mitigate the economic injury, including the EIDL Advance amount. EIDL loans under the CARES Act up to $200,000 do not require personal guarantees or collateral. Loans above $200,000 will require personal guarantees and collateral (if available). The CARES Act waives the requirement for the borrower to demonstrate that it is unable to obtain credit elsewhere. Further, the SBA has the authority to approve a loan based solely on the credit score of the applicant or other means of determining the applicant’s ability to repay the loan, without requiring the submission of tax returns, which should expedite approval of some EIDL applications.
If approved, the borrower will be notified of an EIDL final offer by SBA and assigned to a loan officer. The loan officer may require the completion of additional SBA loan forms and may require some of the financial information mentioned above. If more funds are needed, borrowers can submit supporting documents and a request for an increase. If less funds are needed, applicants can request a reduction in
the loan amount. If the business no longer requires the EIDL, they can refuse it and may keep the EIDL Advance.
If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration. The Advance may be kept if the EIDL is denied.
Use of Funds
EIDLs may be used for payroll and other costs such as fixed debts like rent, accounts payable, as well as to cover increased costs due to supply chain interruption, and to pay obligations that cannot be met due to revenue loss.
EIDL may not be used for dividends and bonuses, disbursements to owners (unless for performance of services), repayment of stockholder/principal loans (with exceptions), expansion of facilities or acquisition of fixed assets, repair or replacement of physical damages, refinancing long term debt, paying down (including regular installment payments) or paying off loans provided or owned by another Federal agency (including SBA) or a Small Business Investment Company, payment of any part of a direct Federal debt (including SBA loans) except IRS obligations, or relocation.
Loan Terms
Maximum loan is $2 million. The interest rate on EIDLs is 3.75% fixed for small businesses and 2.75% for nonprofits. The EIDLs have up to a 30-year term and amortization (determined by SBA on a case-by-case basis).
Interaction with PPP
Companies that have already applied for or received EIDLs due to economic injury attributable to the COVID-19 pandemic can seek to refinance their EIDLs under the PPP to take advantage of the PPP’s loan forgiveness provisions. However, while businesses may be eligible for loans under both programs, they cannot utilize EIDL proceeds for the same costs that are covered by a PPP loan. The amount of the EIDL advance received will be deducted from any loan forgiveness amounts under a PPP loan.
Telecommuting Survey
Researchers at the University of Vermont are examining prospects for telecommuting now and in the future. The survey results are meant to guide additional research into the opportunities and obstacles for continued telecommuting. Responses are confidential. Fill out the survey here. More background here. Contact Richard Watts at UVM
Pandemic Unemployment Assistance Hotline Established for Self-Employed
In addition to the Hotline, individuals seeking information on PUA may also register for the Department’s newsletter, and visit Labor.Vermont.gov.
How to catch up on UI Claims
Claimants can catch up on missed weekly filings by using the link below or by calling 800-983-2300. One claim per day can be filed until claimant is caught up. When a claim has been successfully filed for the first weekly claim, a confirmation page will be displayed. That confirmation will let claimant know when they can log-in and file next claim. Please file before 4pm each day to avoid further errors. When claimant is caught up on weekly claims, they will need to file each week for which they were unemployed. Failing to do so will result in another error. https://uipublic01.labor.vermont.gov/Claimantportal/portal/login.aspx
BDCC’s Rural Microentrepreneur Assistance Program is a USDA program that provides a $400,000 loan to the BDCC. In response to the economic impacts our small businesses are experiencing, USDA approved BDCC’s request to lower the interest rate BDCC must charge for this program to a 3% fixed rate. The loans can range in size from $2,500 to $50,0000 for any business with 10 employees or less. There is no pre-payment penalty for businesses that look to use this funding source as gap financing until other program funds are made available. Contact R.T. Brown rbrown@brattleborodevelopment.com.
Please take BDCC’s new 2-minute survey to help us understand who is accessing relief programs and who is not.
If you haven’t already, please let BDCC know how your business is impacted:
https://www.surveymonkey.com/r/929SVMQ.
We use this information to understand what is happening for you, and advocate for disaster relief to businesses and employers in this region. You may resubmit an update at any time.
Stress Test your business:
Find information on BDCC’s web site on using the Resiliency Assessment “Stress Test”, including a new webinar. This worksheet helps create a plan of action for your business to weather these uncertain times. This tool helps you look at different scenarios and options for liquidity.
Participate in Weekly Business Webinars
Join us every Friday at 2:15 pm for a Zoom webinar – we try to bring you answers to questions and point you to resources as they become available. This week, we will engage with state and regional partners to explore some industry specific considerations. What are the resources for restaurants, hospitality, or manufacturing to help businesses understand their path forward? This will evolve as the week progresses.
Providing Systems and Solutions to help Vermont Manufacturers Innovate, Plan, Perform and Grow
Manufacturing Exchange – Vermont (MXVT.org) is now live with a primary mission of “connecting people and supply chains to deliver solutions.” It also allows manufacturers and suppliers to post their needs and find business opportunities. MXVT uses familiar social media tools in a virtual collaboration space that empowers innovative thinking, helps solve problems, and can create new supply chains. Powered by VMEC, MXVT.org has launched during the COVID-19 Coronavirus crisis with an initial focus on enabling and accelerating connections between urgent health-related equipment needs & personal protective equipment (PPE), potential Vermont manufacturers first, and product and solution providers. MXVT site content will continuously become richer as we connect and all move forward together.
VMEC is working in partnership with the Vermont Agency of Commerce & Community Development (ACCD), the Vermont Procurement Technical Assistance Center (VT PTAC), Associated Industries of Vermont (AIV), Vermont’s Regional Development Corporations (RDCs), and additional partners. Register in MXVT.org TODAY!
VMEC is seeking VT manufacturers interested in the development and possible production of Helmet Based Ventilation. If you can help to develop a solution, please contact Chris Paulk, VMEC Business Advisor, at cpaulk@vmec.org or (480) 201-7982. Please join the conversation and see more information about what is needed and what is happening related to this device and other healthcare PPE on the Manufacturing Exchange – Vermont.
This page includes valuable information such as VMEC Crisis Response Services, which in part include:
1) Support and Problem Solving
2) Supply Chain
3) Re-deployment of Resources and/or Re-Tooling
4) Manufacturer Connections
VMEC is only a phone call or video chat away! Please let us know how we might help you. No issue is too big or too small!
Contact us at (802) 728-1432 (this number’s Voice Mail is being checked multiple times each day), vmec@vmec.org or connect with your VMEC Business Advisor at this link.
Identifying Current and Potentially Convertible Suppliers of Critical Products and Services
AIV, VMEC, VT PTAC, RDCs and other partners are working together and with the the state to identify Vermont manufacturers and other businesses who can currently supply, or could convert operations to supply, products and services needed by Vermont authorities and other response leaders in the COVID-19 crisis. Donations and referrals to suppliers are also encouraged. We are also working to identify the same for federal efforts as opportunities evolve.
NOTE: The state is also asking for non-medical masks that Vermonters can use in accordance with CDC and Department of Health guidance.
You can also respond with other products or services you believe would be needed. The list above might evolve over time, and identifying other items in advance could be helpful. see more info here
Number 01-20 declaring a State of Emergency in Vermont & National Guard Call Out ADDENDUM 1 to 01-20 prohibits all non-essential mass gatherings to the lesser of fifty (50) people or fifty percent (50%) of the occupancy of a facility ADDENDUM 2 to 01-20 Prohibits on-premises consumption of food or drink ADDENDUM 3 to 01-20 Suspension of all Non-Essential Adult Elective Surgery and Medical and Surgical Procedures ADDENDUM 4 to 01-20 Closure of Close-Contact Businesses and Further Restrictions of the Size of Mass Gatherings ADDENDUM 5 to 01-20 Work from Home Order ADDENDUM 6 to 01-20 Stay Home to Stay Safe Order ADDENDUM 7 to 01-20 Requirement to quarantine ADDENDUM 8 to 01-20 Non-Congregate Sheltering in Vermont; Extension of Certain Deadlines Relating to Closures of DMV and Bars and Restaurants ADDENDUM 9 to 01-20 Extension of State of Emergency Declared March 13, 2020; Other COVID-19 Related Directives and Clarifications
SBA to Make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic
