What is HelpBarbershops.com?

What is HelpBarbershops.com?

It’s always been about more than hair.

Barbershops have been the cornerstone of community for thousands of years; a space for grooming not only follicles but ideas. Now, in the wake of COVID-19, we need each other more than ever. Carrying on the industry’s rich tradition of social exchange, SQUIRE is launching HelpBarbershops.com as a community resource for shops everywhere.

Centralizing information on securing loans, grants, and other government stimulus packages, our team is looking out for you and yours in this time of economic uncertainty.

SQUIRE has your back. We will be updating this site frequently with new information and tools to support your business.

The Paycheck Protection Program (PCP) – what it is & how to apply

The Paycheck Protection Program (PCP) – what it is & how to apply

Our friends at the Wefunder blog have broken down everything you need to know about the Paycheck Protection Program – apply today and, if approved, get a loan as soon as April 3rd!

Application form available here. 

Note: the application deadline is June 30th 2020.

 

What is it?

$349 billion is being loaned to small businesses to cover their payroll. Most (if not all) of this loan will be forgiven if you do not lay off employees.

In other words, this is free money from the government to cover your payroll.

Do I qualify?
You are eligible if you have under 500 employees or are a “small business concern” (as defined by the SBA).

Each industry has different criteria for what a small business concern is. Having a venture capital investor who can control your startup might be disqualifying, unless the SBA changes the rules for what is considered an “affiliate” in their definition of a small business concern.  You can read more than you ever want to know about affiliation rules on the SBA’s web site here.

What is the maximum loan?

Take your average monthly payroll expense over the last 12 months (excluding the amount in excess of $100k for employees that make more) and multiply it by 2.5. That is the maximum loan you are eligible for.  However, it can’t exceed $10 million.

How do I apply?
Loans are made through the SBA 7(a) program. Over 800 SBA-approved lenders are expected to be able to distribute loans.

You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool here.

That’s an aggressive timeline. We wouldn’t be surprised if there are delays. The SBA distributed $28 billion in 2019, and they are being asked to deploy over $400 billion in April.  Expect growing pains.

Do I need to personally guarantee the loan?
No.

Do I need collateral to get the loan?
No.

How can I use the money?
You can only use the money for payroll, health care, rent/mortgage/utilities, and interest on debt.

How much of the loan is forgiven?
The amount used for payroll (up to $100K for each employee), health insurance, mortgage interest, rent, and utility payments in any 8 week period from February 15th through June 30th is forgiven, as long as you don’t lay anyone off.

The devil is in the details.  If you lay off people, it gets a little more complex (forgiveness is ratio of payroll reduction).  If you cut salaries of those who earn under $100K by more than 25%, less debt will also be forgiven.

If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30.

What is the interest rate and maturity date fo the amount that is not forgiven?
The legislation mandates that the interest rate cannot exceed 4% and the term not over 10 years.  SBA lenders may offer terms within those limits.

When is the application deadline?
June 30th, 2020

 

Still have questions? Visit here.

Protect your barbers with Apple’s new COVID-19 app

Protect your barbers with Apple’s new COVID-19 app

With all the news surrounding the pandemic, the formal public health policies often get lost in the noise. Apple has teamed up with the Centers for Disease Control and the White House Coronavirus Task Force to launch an app dedicated to protecting individuals and providing information on the virus itself.

The app/website will include up-to-date information on the outbreak, and allow users to ask questions surrounding…

    • COVID-19 symptoms
    • Risk factors and exposure
    • Social distancing/self-isolation policies, etc.

In turn, they will receive CDC recommendations on the next steps. This is an invaluable resource for individuals, especially those with limited health care plans.

You can download app right now at the App Store or by visiting apple.com/covid19.

 

UPDATE: Verizon to waive late fees for 2 months

You read that right, the telecommunications company is waiving late fees incurred by any small business or residential customers due to their economic circumstances related to COVID-19 for the next 60 days.

The company will also not terminate service to any customers who are unable to pay their bills due to COVID-19, and is adding an extra 15GB of data to all consumer and small business plans.

 

For more info, visit verizon.com.

The CARES Act: what you need to know!

The CARES Act: what you need to know!

(UPDATE) The CARES Act has been signed into law; in addition to helping individuals, it has a number of components aimed at helping small businesses survive + recover from the coronavirus outbreak.

Most notably…

  • Small Business Paycheck Protection Program
          • A new lending program that allows businesses to borrow enough to cover monthly payroll costs for businesses for up to 2.5 months. If used for payroll, mortgage interest or other qualified expenses, these loans will be forgiven as long as the employer continues to employ its workers or rehires them when they reopen for business.
  • Business tax provisions
          • Employers can defer payment of the employer share payroll taxes.
  • Payments for individuals
          • It is anticipated those who make less than $75,000 a year will receive direct payments of $1,200 per individual ($2,400 joint return) plus $500 per child. This will phase out for incomes above $75,000 ($150,000 joint filings).
  • Unemployment assistance
          • If your business is closed because of coronavirus and your employees cannot work from home, or your employees are unable to work due to illness or the need to take care of someone who is ill with the virus, they can collect unemployment.

For more information on the CARES Act, visit the SBA COVID-19 page.

More info on IRS tax changes can be found here.

 

Your barbershop may be eligible for 10K from the government

The government is now awarding up to $10,000 in the form of a COVID-19 Economic Injury Disaster loan. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to the outbreak.

Eligible entities are those with less than 500 employees, and include the following:

  • 501(c)(3) nonprofit organizations
    •  Veterans organizations
    • Certain tribal business concerns
    • Eligible self-employed individuals
    • Independent contractors
    • Sole proprietorships

Watch a YouTube tutorial on how to apply below:

Does my barbershop qualify for federal aid? (Updated)

Does my barbershop qualify for federal aid? (Updated)

If government mandated, COVID-19 related closures are negatively impacting your business, you may be eligible for federal support. Before you panic, we’ve compiled a list of resources where you can find more information.

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The SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Recent legislation (as of March 6) has enabled the U.S. Small Business Association (SBA) to offer $7 billion in disaster assistance loans to small businesses impacted by the virus.

To find out whether or not your area has been officially declared a “Disaster” zone (potentially qualifying you + your business for support), reference this index here.

UPDATE: While the application requirements for an EIDL were originally more extensive, they’ve since simplified it, largely, to submitting gross revenues and your business’s COGS for the most recent year. More info here.

You can apply for a loan at https://disasterloan.sba.gov/ela/, or call 1‐800‐659‐2955 for assistance.

 A week ago they were looking for extensive documentation including full 12 month P&L, monthly cashflows, listing of liabilities, etc… now it is largely submitting two numbers (gross revenues and COGS for the most recent year).

For more information regarding eligibility for…

  • Economic Injury Disaster Loans
  • EDD For Business Owners
  • EDD For Business Employees 
  • Business Interruption Insurance 

Check out this this COVID-19 Relief page

 

For similar information, in addition to…

Check out the SBA page here.

***As of March 25, 2020, the Express Bridge Loan Pilot Program – SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes to small businesses – has been expanded to apply to businesses negatively impacted by Coronavirus. For more information, click here.

To learn if your business qualifies for one of the many Federal Stimulus Aid Programs currently being developed, click here.

The Federal Stimulus Bill Key Points:

  1. Focus on companies with fewer than 500.
  2. Cover employee pay for 6 weeks.
  3. No personal guarantee on the loans.
  4. Waive proving that owner has applied elsewhere.
  5. Individuals, Sole Props and 1099 people are qualified.
  6. Interest rate will be no more than 4%
  7. Max loan to value will be based on average payroll, rent/lease cost per month TIMES 2.5 includes benefits, paid sick leave. Max 10 MM.
  8. No collateral or personal guarantees required.
  9. Verify that business was in existence prior to 2/15/20.
  10. Some portions of these loans can be converted to grants AKA forgiven.
  11. After the 8 weeks Government will look at expenses, expenditures and it will be dollar for dollar waiver on ability to keep employees. The dollar value will be reduced by # of employees terminated or income lowered.
  12. Employer payroll taxes can be deferred 50% for 1 year and the other 50% for 2 years.
  13. Business can request an immediate advance of $10,000 which will be available within 2 weeks and will not have a repayment.

 

Additionally, this page offers daily COVID-19 updates for small businesses, centralizing both national and local support options, including on-demand, free webinars.

 

 

Local/state aid available to barbershops impacted by COVID-19

Local/state aid available to barbershops impacted by COVID-19

In addition to federal support, there are state resources available to you + your business at this difficult time.

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NEW YORK CITY

Your business has…

    • 1 to 4 employees that can demonstrate at least a 25% decrease in revenue as a result of COVID-19
    • Been in operation for at least 6 months
    • No outstanding tax liens or legal judgments 
    • Located within the five boroughs of New York City

You may be eligible for the a NYC Employee Retention Grant, covering up to 40% of their payroll for two months and businesses can access up to $27,000. For more info, click here

 

ATLANTA

For a ATL-specific, small business COVID-19 resource list, click here.

Through the ATL Business Continuity Loan Fund, businesses can apply for a loan between $5,000 and $30,000 to cover rent and mortgage payments and employee wages. For more info click here.

 

CALIFORNIA 

California Coronavirus Response Website  

California Small Business FAQs

 

TEXAS

For the TX government Coronavirus economic response page, click here.

 

FLORIDA

For info on FL’s state business recovery information, click here.

 

CONNECTICUT 

For information on the CT Recovery Bridge Loan Program, click here.

EFFECTIVE IMMEDIATELY: the DRS extends the filing deadline for certain annual state business tax returns – for more info, click here.

WASHINGTON 

If your business is seeking a tax filing extension, you’ll need to apply – more info here

The state is working to compile a larger list of local bankers, financial associations, telecoms, utilities and major employers that may be able to provide relief, such as:

  • Deferred bills, waived fees, discounts, no-interest loans and other support. ​
  • Debt and late-penalty forgiveness for companies and workers in order to help keep people employed.
  • Favorable credit terms for firms that encounter cash flow problems.

For Washington state-specific relief during COVID-19, check out this webpage.

There are also the Washington state “SharedWork” programs worth exploring. SharedWork is a voluntary business sustainability program that provides flexibility to retain employees at reduced hours, designed to…

  • Support business stability
  • Retain skilled workers
  • Reduce payroll costs
  • Be a smart alternative to layoffs
  • Explore training programs that develop workforce skills

 

For more general info on the programs available, click here.

To apply, head over to this page.

WISCONSIN

For a list of resources available to small businesses in Wisconsin during the COVID-19 outbreak, click here

 

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For a full list of SBA Guidance & Loan resources, click here.

For more generalized information hub regarding small bushiness response to coronavirus, click here.

 

UK resources for barbershops affected by Coronavirus

UK resources for barbershops affected by Coronavirus

If you’re a business owner in the UK, here are some helpful links.

The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes a package of measures to support businesses including:

  • a Coronavirus Job Retention Scheme
  • deferring VAT and Income Tax payments
  • a Self-employment Income Support Scheme
  • a Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
  • a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
  • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  • the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
  • a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
  • the HMRC Time To Pay Scheme

For more information on eligibility, etc. – click here.

 

The FSB page for “advice and guidance for small businesses and the self-employed” in the wake of COVID-19, including news updates, tips, and webinars. Click here.

 

What about my shop employees?

What about my shop employees?

Ensuring the survival of your business as well as supporting the livelihood of your employees is complicated.

Signed into law on March 18, the Families First Coronavirus Response Act (FFCRA) is designed to provide assistance to covered employees and households with eligible children affected by COVID-19. This affects small businesses in two key ways:

  • Paid sick and family leave. The law requires all private businesses with fewer than 500 employees to provide emergency paid sick or family leave for employees affected by the coronavirus outbreak.
  • Employer tax credits. The law provides employers with fewer than 500 employees with refundable payroll tax credits to cover the cost of providing the paid sick leave and the paid FMLA leave to their employees. Specifically, the law states that:
        • Employers will receive 100% tax credit against their payroll tax liability up to the capped amount of benefits they must pay.
        • Health insurance costs are also included in the credit.
        • Self-employed individuals receive an equivalent credit.If an employer is owed more than the capped amount and a refund is owed, the IRS will send the refund as quickly as possible.
        • Reimbursement will be quick and easy to obtain.

For the full text, visit Congress.gov here. For more info on the mandatory emergency paid sick leave, see this detailed guide provided by the U.S. Department of Labor.

More information on filing for unemployment assistance can be found at the U.S. Department of Labor, though you or your employees will need to file through your state’s unemployment program.