Braintree COVID-19 update: PPP loan rules relaxed; outdoor dining fast-tracked

​In the Braintree Chamber of Commerce’s fourth COVID-19 update, local business leaders learned about recent improvements to the federal Paycheck Protection Program (PPP), as well as phase 2 reopenings facilitated by the mayor’s office.
 
The June 8 video conference was led by Chamber Chair Kim Kroha of Baker, Braverman & Barbadoro, P.C. Here’s the recap:

PPP loan program updates

On June 5, the president signed into law the bipartisan Paycheck Protection Program (PPP) Flexibility Act, which addresses problems with the original PPP loans for small business owners.
 
Representatives from the Massachusetts District Office of the U.S. Small Business Administration (SBA), Bob Nelson and Susan Lourie, led a discussion of the PPP Flexibility Act and other PPP loan information. Margaret Laforest from the Massachusetts Economic Development Office provided additional information on PPP and reopening.
 
Applications: Assistance funds are still available, and new PPP applications must be approved by June 30. SBA has guidance for calculating maximum loan amounts.  

• Any businesses that applied for a PPP loan before March 30 must reapply for Disaster Loan Assistance here to be eligible for the grant (forgivable) portion of the loan.
• The state is processing loan applications more quickly now that the initial rush has passed. If you received a request from the SBA for more information, respond as quickly as possible. Many applications are held up due to missing information (like an account number) or an error.

 
Repayment: The PPP Flexibility Act answered many questions of small businesses related to repayment requirements.

• It extended the payment period from 8 weeks to 24 weeks, and it allows up to 40% of the funds to be used for nonpayroll costs instead of 25% under the original program. There are no regulations created for the act at this point.

• Interest rates remain 1% (any remaining loan amounts not forgiven), but the loan term has been extended from 2 years to 5 years.
• Unlike the initial PPP application, there is no rush for forgiveness, so please take time to consult resources.
• Only costs that were regularly incurred as of February 15, 2020, can be counted for nonpayroll expenses.
• Businesses will not be penalized if they cannot restore operations to February 15 levels due to shutdown orders.

 
Employment issues: Businesses will not be penalized if former employees decline offers to come back to work, or if businesses are unable to find qualified employees.

• It is important to document all offers and attempts to hire and to keep clear employment records.
• An employee risks losing unemployment if he or she refuses to return to work based on fears of COVID-19.

 
For more information, or if you have questions: Contact your local SBA partners for free consultations, and sign up for SBA email notifications on PPP and other programs. 

Mayor to fast-track outdoor dining permits

Phase 2 of the governor’s reopening plan officially started June 8. It allows for outdoor dining at the start of phase and indoor dining in the later part of phase.
 
Braintree’s sit-down restaurants can serve diners outdoors with appropriate licensing, according to Mayor Kokoros.
 

• Owners must apply for a license with the town, which is arranging for an expedited review and approval, hopefully within 24 hours. The license board was set to vote on the expedited regulations on June 9 at 2:00 p.m.
• Restaurants must comply with the state’s safety standards and checklist for restaurants. Along with social distancing and hygiene guidelines, alcohol can only be served with food and must be consumed on the premises.
• Restaurants interested in outdoor dining are welcome to submit their application for expedited review as soon as possible. The mayor’s office made applications available on June 5.

 
Phase 2 reopenings are moving ahead consistent with the governor’s guidelines and sector-specific protocols and best practices. New Covid-19 cases and deaths have declined sharply but could tick up again with reopenings, although hopefully not, the mayor said.
 

State battling unemployment fraud; anticipates “staggering” deficits

New COVID-19 cases and deaths have greatly declined, according to State Senator John Keenan. Unemployment rates are “still alarming, although trending better,” he said, with the food and accommodation industries hit hardest.
 
The state is battling unemployment fraud by criminals using stolen personal information obtained through data breaches. Most identity-theft victims only learn about the fraud after receiving a notice from state about the claim. Individuals and employers can report unemployment benefits fraud here, call the Dept. of Unemployment Assistance (877) 626-6800, or contact Sen. Keenan’s office.
 
“The deficits we are looking at are staggering,” said State Senator Walter Timilty on the state’s fiscal year 2021 budget outlook. The shortfall could run $6-8 billion against a budget of $44-46 billion, and stimulus funding from the federal government is needed but uncertain.

What support does your small business need?

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