To our clients:

First and foremost, we hope that you and your families are well. In these stressful times we can take some comfort in that.

Your business is, I’m sure, addressing the issues of operating in this new reality. If your business is “essential”, you are dealing with continued operations, while striving to comply with guidance from CDC, OSHA and others to keep yourselves and your employees safe. If not, you are likely striving to work remotely, to the extent that your business will support that. And if you are a business that is currently shut down, you are measuring cash resources against current expenses, and hoping that the crisis passes quickly.

You are undoubtedly aware at this point of the Payroll Protection Program (PPP) loans available to small businesses and not for profits under the CARES Act. This program makes available immediate cash loans to pay basic expenses including payroll, rent, mortgage interest and utilities. Advantages of the program include:

+ 100% guaranteed by the SBA, but
+ Approved by your local lender; no SBA pre-approval required
+ No guarantee or collateral required
+ Eligible for forgiveness if used to pay qualified expenses

All loans under this program will have the following identical features:

+ Interest rate of 0.5%
+ Maturity of 2 years
+ First payment deferred for six months
+ No borrower or lender fees payable to SBA

I have attached with this note the Borrower Information Fact Sheet from the SBA, as well as the application form. If you haven’t already done so, you should consider reaching out to your business banker to begin the process. Note that he or she is likely quite busy.

There are also other resources for businesses:

The SBA EIDL (Economic Injury Disaster Loan) program is available to NY businesses, as New York has been declared a disaster area by the federal government. These loans are available to offset actual losses incurred as a result of the disaster (in this case the coronavirus business disruption).In addition, in response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid. To learn more about both of these, visit the SBA website www.sba.gov/disaster-assistance/coronavirus-covid-19.

Monroe County Industrial Development Agency has made available zero-interest loans of up to $10,000 for “working capital to qualifying retail, healthcare, restaurants, real estate, technology, personal/professional services, construction, small manufacturers and other businesses with 50 or fewer full-time equivalent employees; see https://www2.monroecounty.gov/economic2-index.php.

The City of Rochester has expanded its Kiva crowd-funded loan program to permit loans of up to $15,000 and to expand eligibility: see www.cityofrochester.gov/kiva.

Coronavirus Small Business Emergency Loans_U.S. Chamber of Commerce

Of course, Boylan Code will be available to assist in any way we can to help your business through these difficult times.

Our best to you.

Boylan Code LLP
Alan S. Lockwood
Partner