Can I Sign New Mexico Banking Document

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hi good morning thank you so much for joining us my name is joanna nelson and i am with the economic development department for the state of new mexico and today you have joined us to for a webinar on the small business recovery loan fund and today's focus will be on eligibility and how to apply we are very happy that you can join us and um i did want to cover a few things before we get started we will be recording this presentation and it will be available online afterward we will send the link to the recording out after the presentation you should get that this afternoon as well you will get the presentation slide deck in your email we want to encourage everyone to ask questions you can do that in the questions box that you should see on the right side of your screen it's a gray horizontal box you tap that arrow and you should see a white blank box just type your questions in as they come to you and we will do our best to answer those at the end of the session we also got your questions if you submitted any when you registered so we will be addressing those as well i did want to make sure all the attendees are aware of the economic development department's covid19 response in regard to how we're getting information and resources out to new mexicans on our website you can find a page that is specific for covid19 response which you can see on that top link we also every week are putting out a resource wrap up which includes opportunities around grants loans we're highlighting news articles we are finding relevant webinars that are occurring and most of them are focused on covid19 relief and recovery for businesses as well as nonprofits and communities so if you aren't getting those currently take a few seconds to sign up at this link you can also find that link at the bottom of our website and you will start getting those updates also on our social media channels facebook twitter and linkedin we are also making sure that news gets out in relation to different opportunities for businesses and communities here is our website you also can find your regional rep for the department we have six of them in the state you can do that using this link in our website on our youtube channel you can find all previous webinars that address financing programs and opportunities our opportunity zones website can be found at nmopportunity.com and here i have listed mark roper the division directors contact as well as mine so please reach out to us excuse me if we can be of any assistance so i'm very excited to get the webinar started i wanted to introduce daniel schlegel first and he is with the governor's office and he is the entrepreneur and small business advisor for the governor's office so dan thank you joanna and thank you all for joining today again my name is dan schlegel in the small business of entrepreneurship advisor and the governor's office um thank you again for joining and looking forward to kicking off this new loan program um as small business owners you all have suffered the brunt of the economic fallout from cobit 19. i know it's been devastating for you and your employees customers and your communities that rely on your services and you know your resilience during nearly five months of this unprecedented pandemic has been to truly tested and proven and now we all have to learn to live and survive and thrive in a covet positive world as the federal paycheck protection program is coming to an abrupt end soon i hope this new small business recovery fund will serve as a lifeline for your businesses the legislature set aside 400 million dollars for these borrower friendly very low interest loans to cover day to day expenses and new expenses you might be encountering like the purchase of ppe that protective care for your employees or hand sanitizer for your customers or even to redesign your business to have a new business model or a new physical space to be safer for your customers and employees i'd like to thank the new mexico finance authority represented today by marquita russell and adam johnson who worked very quickly to get this loan program up and running and who will providing us all with an in-depth view of the program and how to apply for it and with that i'll pass it back to you joanna thank you thank you so much dan and now i would like to introduce marquita russell who is the ceo of the new mexico finance authority marquita great um thank you very much thank you dan thank you joanna we are very excited to be here today um to share with you uh the program that will unroll that will roll out next week um as dan mentioned the small business recovery act of 2020 was signed into law by governor michelle lujan grisham on july 7th a mere 23 days ago seems like a lifetime ago um the 400 million dollar program will provide low interest rate loans to businesses that have experienced financial hardship they are three-year loans and can be used as dan mentioned for a variety of businesses for business expenses um importantly though they do not require personal guarantees or collateral and have no payments for the first year the specific terms of the loan and we'll get into some of this in greater detail a little further on in the presentation the loan amount is two times the monthly average expenses not to exceed seventy five thousand dollars um there's a technical calculation that we have to go through to determine your monthly average expenses and the application process uh we'll help you we'll guide you through that the interest rate is one half of wall street journal prime wall street journal prime today is at 3.25 percent so the interest rate on the loan is currently at 1.625 percent and that interest rate will be fixed at the time that the loan is closed and will stay the relevant interest rate for the entire loan so it doesn't uh it does not float or move during the length of the loan as i just mentioned there is no collateral and personal guarantees are not required the initial term of the loan is three years these are interest only paid annually so you'll have your first interest due one year after the loan closes you'll pay another interest payments a year later and then at the end of the three year period the principal is due at the at the businesses request the finance authority can extend the loan for an additional three years and that that would then have monthly principal and interest repayments um and it's important to note that this is a loan program though with very beneficial and flexible terms but it is not a grant program there is an expectation that the loan will be repaid so some of the eligibility requirements contained in the small business recovery act is that the new mexico business needs to have demonstrated that it was closed or reduced operations due to the public health order had annual gross revenues of less than five million dollars as determined by the 2019 federal income tax filing and experienced a 30 decline in the monthly gross receipts or if you're a non-profit the monthly revenues in april and may of 2020 as compared to those same months in 2019. so a business means any for-profit sole proprietor partnership corporation limited liability company or for non-profit specifically a 501c3 which is a charitable organization or a 501c6 which is an association the other thing that the statute provides is that um the assets and the control of the business be with new mexico residents so if you're a sole proprietor that means we have to see a hundred percent of the assets of the business are owned or leased by a new mexico resident if you're another kind of business legal entity like a corporation or a partnership we need to see that at least eighty percent of the total voting power and eighty 80 of the total value is owned by one or more new mexico residents and there's a specific definition and statute which we can't find um another peer to anywhere else in the state statutes so we are requiring um that this um that new mexico residency be evidenced by uh personal income tax filings so if you are an equity owner so this wouldn't relate to whether or not you're on a non-profit if you're on a non-profit board that won't relate to you but if you are an equity owner in a business a for-profit business then we will need to see the personal tax returns for those entities to ensure that in fact they are new mexico residents um and if you have not filed your 2019 personal income tax then you can for this purpose only you can file you can submit your 2018 with evidence that you've had a an extension filed at the at the federal level the small business recovery act did partner the finance authority with two different kinds of entities we normally get partnered directly with economic development providers in this instance we are being partnered with both lenders and technical assistance providers across the state in helping to achieve the goals of the program um it allows us specifically to work with banks credit unions and community development financial institutions to act as loans so loan servicers who will help in assembling the loan documents for the finance authority's review and it also recognizes that technical assistance providers play a really important role in small businesses and in their success and creates what is called a service provider and that service provider is able to receive a fee from the fund not from the borrower but from the fund to provide ongoing technical assistance to very small businesses and those are the businesses with annual revenues of less than five hundred thousand um jumping into the application process which is the reason i think you all are here the application will be available on august 5th that's next wednesday you'll access the application from our new website which is www.nmfinance.com and we'll keep that open until december 31st or until the funds are gone whichever comes first but the process that we're going to use is that you will use an online application that has some built-in logic to it and it will then direct you to the next set of relevant questions based on the answer you just provided so that you're not being asked questions that aren't relevant to your organization once you complete the application and upload the required documents and we'll go through that in a minute the application will then go to a loan servicer again that's those participating banks and and uh credit unions as well as the alternative lenders they will then ensure that the application was filled out correctly that you attach the correct forms that you that you put in into the application form itself the correct line items from the tax documents um as as the statute provides um they'll then send the application to us once it's complete and then we'll process and make the loan determination send you the loan documents and fund the loan so everything happens at the finance authority level after the review is completed by the banks the applications will be processed on a first-come first-served basis so it's important to have the correct documentation at hand and to get that into the system as quickly as possible um the other thing that i would mention is that the system does not allow applicants to save their work so once you create the application and get started you need to complete it in that sitting and it shouldn't time out um for very long i mean you'll have some time in which to uh get it completed but if you don't have all the documents don't get started on your application it's very important that you make certain that you're able to do it all in one sitting because we don't want to frustrate you later on by having you recreate the application you just started so the documents you will need are your 2019 business federal tax tax returns um for a non-profit that will be your form 990. copies of the crs forms and those are the combined reporting system forms that you submit either monthly or quarterly to the new mexico taxation and revenue department and that shows the amount of gross receipts that you earned we need them for the months that cover april and may of both 2019 and 2020 and that's what's going to help us determine for a for-profit business whether you meet that required 30 decline in each of those months for non-profits because you don't file those kinds of tax forms with the state we'll be asking you to submit the monthly income statement or for profit and loss statement for the fiscal years that include april and may of 2019 and 2020 again so that we can have a month-over-month comparison um similar that to what we do for for-profit businesses we are required to take into consideration any cares act uh loan dollars you may have received so we are going to ask for the electronic versions of your um care act loan um if you've got a cares act grant we don't need to see that it's just any care act loan dollars that you received you are not um if you have a cares act loan either a ppp loan or an idle loan that doesn't um disqualify you for a loan from the small business recovery loan fund it just is something we need to take into consideration um the personal income tax returns as we just discussed um to demonstrate that the equity owners are new mexico residents and then we're going to ask for an authorization form allowing nmfa to pull a business credit report and we are going to be doing that for purposes of determining creditworthiness which is a statutory requirement for purposes of our program we are going to be looking at a credit report for commercial entities so if you are a sole proprietor you'll still be getting a commercial credit report pulled on you all other businesses it's the only other kind of credit report we can pull and we're going to be looking at 2019 as the base year for your for the credit behavior to determine this credit worthiness and we'll look at any payment history you have with telecommunications utilities and your rent or mortgage payment so those three classes of creditors are what's going to help us determine your pattern of credit behavior and so if you have charge offs or collections with any of those three creditor types again telecommunications utilities and rent payments um if you had a charge offer collection that will disqualify you from the program um and that's so that's what that form will be used for and let's uh the other thing that we're going to need at the time of the application is for you to provide us with your checking account um we're going to need to verify that it's in fact a valid checking account that there wasn't an error in entry for the account information or the routing information we also want to make sure that it's not a fraudulent account that somebody hasn't taken account information from another borrower and submitted it so this is important to us for not only determining accuracies for when we fund the loan but for fraud mitigation because of course we are using state dollars we're investing state dollars we need to be good stewards of those funds the checking account will need to be held in the name of the applicant at a federally insured financial institution so the the money if you are a corporation the money has to go into a checking account in the name of the corporation so the only time it can go into the like a equity owner's account is if it's a sole proprietor we'll be using a secure financial application system called plaid that's going to help us verify that the account is valid and held in the name of the applicant this is a fairly well-known application system that sits behind other technologies you can see it venmo for instance uses it for bank to bank secure connection so that they can make certain that they have the right account information we will not however be asking you that information unless you meet all the other qualifications so if you have revenues in excess of five million dollars or maybe you didn't have an initial decline of 30 percent for the month of march you won't be asked then for your personal uh bank account information um because that's not because you don't qualify for the program so you will only get asked that question if in fact you've met all the other qualifications at face value and all of this information not only the checking account but the application itself is held on a s cure site and all of the documents that we receive with that are secure and protected so they're not only protected from inspection of public records but they are securely held so you are providing us with a great deal of confidential information and we want you to know that we understand that and it's being adequately protected with your security in mind um at the time that a loan is made only the borrower's name will be disclosed so we won't be disclosing the business name we won't be disclosing the amount of the loan the location we'll only be disclosing pursuant to statute the borrower's name and again it's a public loan program so for purposes of disclosure that's an important facet but the rest of the but the act protects the rest of the information that's held by the borrower just some small detail the fine print if you will we talked about average monthly expenses there are two ways in which we look at that the first is the average adjusted monthly business expense which is the taken from your tax returns and there's a couple of lines that get determined in that from your from your actual tax form less any deductions for and those are the deductions for business depreciation less any cares act funding and then we divide it by 12. so adam will go through this in a little bit he's going to take you actually through the application but we wanted to give you a sense as to why we need the tax forms for purposes of determining not only the qualification but the amount of the loan that you'll qualify for and why we needed the rest of that information that we just went through and then ultimately the loan proceeds may be used for expenses as daniel mentioned early on um if you need additional money to reconfigure your business space or your business activities to adjust for covid um for marketing you eighty percent of the funds must be used for any ordinary business expense so you may only pay equity owners with no more than twenty percent of the loan proceeds so if you're a sole proprietor and your primary expense is salaries for equity owners then you won't qualify for the program you might technically meet the qualifications but because the loan proceeds are intended to be spent on salaries for equity owners that will be a disqualifying event and i think at this point the application itself should take no more than 30 minutes if you have all of the documentation in front of you it will then go through that review process and the time it takes to review it will be largely dependent on how legible the document is that you supplied whether you picked up the right line items that sort of thing but the reviewer the whole system is intended to take 30 minutes or so on the applicant side about an hour's time from the lender's side and then it will come to the finance authority and we should be able to turn that application around within a day we will then generate documents from the application system and it will be sent to you directly through that and you'll do a version of docusign it'll come back to us and then we will fund the loan approximately within three days of closing depending on the day that we end up closing the loan and that money will go right into the bank account that you provided the information on at applications so once you've submitted the application the only other thing that we will ask you for during the loan process is for you to sign a loan document the loan agreement itself otherwise you've provided everything we need up front and you should be able to just wait for your positive answer at that point so with this i'm going to turn it over to adam johnson who is the finance authorities of chief of program operations and he has designed uh the application system he's going to walk you through adam hi great good morning thank you marquita thank you everybody for joining us today and we're happy to share this demonstration with you and and get you prepared to uh engage in this process next wednesday um what you're looking at here is a copy of the finance authority's small business recovery loan fund application what we have designed here is an application as marketa mentioned that is intended to be incredibly user friendly and walk you very specifically through the steps that are required to receive this funding under the statute and not send you down a direction of questions that do not apply to you based upon the type of organization being non-profit or for-profit and then the different types under the business entity legal type and so we start right in the beginning of the application by providing to you which documents are needed before you proceed and then the application has various built-in logic as you go through it so in this application example um the applicant is ready to proceed the question is whether or not you have 30 to 60 minutes to complete as marquee dimension it cannot be saved as long as you're active uh i do not anticipate that it will time out on you if you were to get pulled away from it i would think it maintain time out after a couple of hours um but if you're not ready for to proceed then the application actually does not allow you to proceed um and so this applicant this is uh megan styles uh she owns style salon she's a for-profit sole proprietor uh it asks her the question about whether or not she owns 100 of the assets um and again if she doesn't then the application does not proceed uh basic information about the applicant is asked to get the profile of the applicant and then it proceeds down to the call first qualification which is the 5 million or less in total revenue as reported on the 2019 tax return and so what we've done here is we've also made sure to provide the exact page and the line of that tax document that would need to be reviewed to get that accurately uh put into the application and so in this instance um we'll just say that she has a 500 000 revenue um as marquita mentioned the statute does provide for the ability to have a technical service provider assist you in various aspects of your business that's not to be confused with that they are assisting you with filling out the application or filling out the application for you um and in this case is should there be one then you'll be a lot you'll have an opportunity to provide to that individual or organization nonprofit or governmental entity is such as score that may be providing this type of service um if not know and proceed this is the revenue and decline calculation that's required per the statute with the 30 decline and so it also will go ahead and do the math for you provided you enter accurately the information from the crs reports or from the financial reports for a non-profit for the time periods uh and calculates the percent decline to show that you can go ahead and proceed as marquita mentioned i did want to demonstrate for folks that it was specifically um in mind that we did not want folks to submit their personal information to the finance authority if they did not meet the qualifications in statute and so the application does not uh proceed or have any questions uh beyond your name and address um until after the entity is qualified for the loan um this section is the section for calculating the average adjusted monthly expenses um as marquita mentioned this comes directly from the tax returns from 2019 in this case because she's a sole proprietor it's page 1 lines 28 and 30 of the 1040 schedule c and we'll just say she has a total expense amount of 250 000 and she's got 10 000 a year in depreciation due to her tenant improvements um let's say she's also received a twenty thousand dollar cares act loan uh that total number of 220 000 is then divided by 12 and multiplied by 200 or 2 to determine the loan calculation in the event that we have a larger business that applies for this the application will go ahead and take the lesser of the amount of 75 000 or this calculated here so if it's above then the um 75 000 amount will populate rather than the higher number that would populate with a larger business i saw some questions coming through about the partnership with a loan servicer um one of the questions was whether or not you can proceed if your your bank or credit union is not on the list and the answer is yes and in fact you'll have the ability to say i don't have one and the finance authority will go ahead and make that selection when it comes in through the pro process of the workflow the um further the further down in the application as marquita mentioned we will be integrating the self-verification secure financial system with plaid directly into the application and so we'll actually this will just be a question but will not be we will not be requesting you to type any bank inform information into the form it will be coming securely from plaid directly into the form and that process i can't demonstrate today but you'll you'll see that as soon as the application goes live on wednesday next the anticipated use of funds this is really so that we can get an understanding and also make sure that folks are aware of the limit on the owner's equity owner's salaries cannot be greater than 20 um but this is not to be confused with that these are requirements that if you say 30 for employees and 30 for rent and twenty percent for marketing um we're not holding you to that the only thing that is a requirement is not twenty percent or not greater than twenty percent for the equity owners of the business um and the rest of this portion of the application is helps us understand for reporting purposes how the loan proceeds will be spent as well as getting some information about the business the number of employees the statute requires the finance authority to report to the legislature both the information that we received in the application process and then an ongoing reporting regarding jobs for the businesses that do participate um and so we start here with this uh form of communication and then we'll be using um other outreach in order to contact the businesses that do receive funding and get updates as time progresses and we make our way through this uh unprecedented time uh the last reporting or i'm saying not the last but one of the reporting requests is the code that's reported all to both taxation and revenue and also on your federal tax return most folks can self-select what industry that they're in pretty easily but there's also there'll be information about where you can find that on various tax documents and then lastly we have for reporting purposes this number i'm sorry this selection here for diverse business class you can click as many as that apply and then take yourself down here to the bottom and the final request is just an amount of outstanding loans the required documents that were mentioned in the beginning have been put down here at the bottom for upload they are incredibly specific so that you can easily put in the various files and not have to compile a very large packet you can just do one by one and know exactly that you've checked off all the boxes as long as you've uploaded the correct document to this and these are the files that the loan servicers will use to compare the application input directly to determine that in fact the applicant was eligible um and and i did want to also reiterate the security behind this that all of these files as they're transferring are will be encrypted and they they won't go on the internet in an unencrypted fashion that they will be encrypted in their transit finally there's the certification statements that um will be i that are essentially identical to the certification statement that's made upon loan closing but this is in effect to let folks know really uh what they're agreeing to up front before they get those documents uh and these are all yes no questions and after that you submit the form um and unless i missed anything marquita that you need me to add i would turn this back over probably for questions from the audience no the um adam thank you for going through that the only thing that i would mention is you'll see some of the documents here signed authorization for ach payment so this is in beta mode and that document's actually been incorporated into your loan agreement so you don't actually need to sign that at the time of application that will happen as part of your loan agreement and because we do have plaid integrated we're not going to be asking for um account statements from your from your um bank so we were initially going to do that but the system that we integrated or are in the process of integrating from plaid allows us to um not require you to submit more paper to us so this is a much more secure way for us to get the information and make certain that fraud doesn't occur so that was the only other thing i wanted to mention adam um thank you for that pretty straightforward let me get the powerpoint yeah so with that joanna i think we are ready to answer questions okay thanks marquita thanks adam we are getting some really great questions lots of questions are coming in so i want to remind folks that now is the chance you have the opportunity to ask the expert so type in your questions on the right side of your screen and a lot of the questions are similar so i'm going to do my best to kind of summarize several of them in in some stand-alone questions so many people have asked what happens if they are filing a an extension on their 2019 taxes what do they do so if you are filing an extension on your business taxes then we unfortunately aren't going to be able to assist you until you complete that filing so we need to see because of the very specific um description and statute we need to actually see the tax form that you have filed so that is a necessary part of the application process okay let's move on and you all did a really great job at answering a lot of these we have a question that states how can i find a service provider and is there any help in spanish um so the application will be available in both english and spanish and there are frequently asked questions on our website that are posted in both english and spanish so um we do have some written guidelines on um how to uh apply for this program available in spanish technical assistance providers i know that a lot of small business development centers um are able to provide assistance to you score is another one that was mentioned your community college is frequently a really good place to find a technical assistance provider and then lastly many communities offer support through nonprofits that are like community development corporations or economic development corporations um community development financial institutions i think joanna you may have some of that information on one of your websites as well we do and i that's a good idea i'll send that out um when we send the email out to all the registrants i'll put a link to the list of all the service providers in the state in regard to sbdcs and uh score and west okay so um let's see um just going through these i could jump in on um it's okay that i'm inside i'm seeing a number of questions just about the specific uh forms and um the the the statute provides the language uh to the finance authority for the exact forms um that are needed um and so there's there's not um the ability to use different different ways of looking at it so when it's asking for the crs gross receipts reported on the crs that's what we need in order to verify those types of numbers and i but i did want to mention the caveat there because it is different for not for profits which don't report that and so that process which is very clearly articulated in the application but also in the frequently asked questions and on our website is that uh the financial statements uh for the months of may and april um will be tied to their form 990s and so i saw a question about what if your 990 sched your fiscal year ends in a different period the way you have to think about it is just ensure that the financial statements you're providing to us that the april and may time period is encompassed in one or even two of your form 990s so as long as you provide the supporting information to those months then you won't have any problem making it through the process and that that not not-for-profits will also be required to submit a certifying letter um from the executive director an independent accountant or member of their board certifying that the financial statements provided are true and correct so adam just to make certain in those instances nonprofits whose fiscal year ends on april 30th will have to submit to 990s is what i'm hearing you say that's correct and then otherwise it's 1990 and then the current financial information that's been certified yes got it okay thanks for that we have several questions that are asking about um what happens if the business was started in may of 2019 or at some point after um you know during 2019 are they still eligible that's a very good question that's one we get a lot unfortunately no because we have to verify that you had a decline from april and may we need you needed to have been in business by april of 2019 so if you started in may or beyond that will disqualify you we don't have any room in statute for that to make any adjustments to that okay thanks um there's a question about the collection accounts will businesses have an opportunity to respond to any issues on their credit reports so yes so the the commercial credit report that we will be pulling provides for an opportunity to respond um so there is there is an opportunity for that businesses take a little longer than personal credit reports and we're not pulling personal credit reports just the business ones so it doesn't have the same timelines but there is a process we'll be using the experian credit reporting agency and there's a process set up in that to discuss any of those credit issues we have a question about what happens if the business is waiting on a decision from a cares loan program what information should be provided yeah until you have a loan document you're not required to submit a loan document so you know if you if you've applied and don't have any uh word back at the time of application then you will submit the application with the information you have at hand which is a none at that point okay and a similar question about what type of documents do you need to provide if you do have a cares act loan such as an idol or ppp where is just the amount needed we'll want to see the loan agreement so uh if the loan agreement will need to be provided or the note if depending on which loan you have some of them combine them okay another question states does the applicant have to own 100 of the business so in that regard if there's more than one owner um at least 80 of the ownership uh in terms of voting power and equity have to be with new mexico residents it can be more than one new mexico resident but it at least 80 percent of the voting power and equity has to reside with new mexico residents okay where can we find the statute on the act um i'm very bad at chapter law but it was a senate bill three um from the 2020 first special session um and we can we'll put up a link on our website so that people have an opportunity the act itself is very big it actually does three things this is one of the three things that it does the second is a loan program for municipalities and counties providing them with some revenue replacement loans that program is not yet operational and then there's some unemployment tax insurance tax calculation changes temporary provisions put in place to protect small business owners who had to lay off people as a result of covid that's in the third part of the statute so it's a very big statute this is one only one portion of it thank you um let's see just had one there's many coming in oh um can you use funds to refinance private loans you have taken out for the business the loans you took out of the business to sustain operations during um during the covet period so i think the the question i'm trying to get to is whether the monies were used for ordinary expenses from the point at which covid was in place so march 23rd on then i think the answer is yes if it was prior to that then i think the answer is no because it's intended to help businesses impacted by covid with their operations so many people might have had to float alone in order to keep business going outside of the cares act that i believe is eligible for that reimbursement um but if it was like a start-up loan from two years ago then that would not fit the definition okay thank you numerous questions are coming in about how to calculate the the decline in revenue for the 2019 period in april and may some are saying that they there might have been discrepancies or maybe they were very low in the first month and not as low in the second month and on average for example this company is saying they were down 46 for two months um so is there any additional clarification that you all can offer in helping people understand if there's um how how to calculate that or if there's any um additional information to add sure um you know in many ways the statute was helpful because it gave very clear direction from lawmakers about how to deliver the funds unfortunately it's also fairly intractable in terms of we don't have a lot of wiggle room in some areas so in this particular area we have to there has to be a demonstration of a 30 decline in the months of april and may so it's not the two-year period the two-month period we're looking at but that you met the test in each of those months um and so if you had a 32 percent decline in april and a 28 decline in may unfortunately that 28 decline would not would make you ineligible to proceed thank you what is the non-profit is there a non-profit equivalent for the business credit report so in that instance you don't report your monthly revenues the same way to taxation and revenue and that's why we're asking for your income statement or your profit and loss statement to be reported in months so instead of a fiscal year report we want the fiscal year broken up month over month because we're going to be pulling out of that financial statement the information to populate the decline calculation so it is simply the financial statements and as adam mentioned they will have to have a letter certifying them as um true and accurate but those are the those are the reports that we'll be relying on okay thank you can businesses still qualify if they are behind in their state taxes so again here the statute is very clear if you were current prior to march 23rd but you're no longer current then you're fine yes you would still qualify if you were behind on march 23rd then no you would not qualify so if the the determinant here is whether or not you were current on all your tax obligations prior to the public health order being issued so march 23rd is that bright line for us to determine qualifications if you were behind okay thank you here's a question about being registered with an i-t-i-n are companies eligible to qualify for the program if they they have an itin adam you've been dealing with the tax forms i'm going to throw this one over to you do you have i i don't have an answer to that question but i'll be happy to to find out and make sure that gets put into the frequently asked questions okay thanks and adam feel free to jump in i know you can see the questions just going through some of these but many of them have been answered and several people are asking if the presentation will be sent out and just want to re-state that we will send the presentation and the recording out there's a few questions about when it will be available it will be available on our website on next wednesday and we we also will include a list of the at that point the loan servicers um that have chosen to participate in the program and so that will also be available that's another question that i'm seeing coming through a question about the personal income tax for equity owners the years needed it would be 2019 unless that has not been filed we can accept a 2018 with an extension but this is specific to the equity owner's evidence of residency not to be confused with the the 2019 tax return that's required to evidence the total revenue amount here's an interesting question that is stating that the business is entering their third year of business but has not yet had a profit are they still able to qualify yes none of the qualifications are based upon the profit calculation and several questions are around being a sole proprietor or only having the owner the owner's only employee can you repeat if there's any differences in what those businesses need to supply for the application there's um there there's the only difference is um the exact forms that they would be using to supply the information but uh and and also as marquita mentioned that if the majority of if greater than 20 of the general expenses the ordinary expenses go to the owner um the the uh in this case the total amount of proceeds available for the owner to pay themselves cannot exceed twenty percent but the rest of the revenue requirements uh the five million dollars or less remains the same the a thirty percent decline in april and may remains the same and then the calculation for the loan amount still remains the same it just comes from a different different tax document here's a question asking about what is required of the business after they get the loan is there a reporting requirement so yes in addition to being required to make your annual interest payment on the first anniversary and second anniversary and your full payment on the third anniversary of the loan we're going to be asking uh for annual job information so one of the reasons we asked the the kinds of questions we did at the beginning in the application about the number of jobs is so that we have some comparison uh for additional job information as the years go on and hopefully everything has stabilized but we are required to report back some demographic information to the policyholders to the lawmakers that passed this law and very specifically they want to know about jobs so we'll be asking for follow-up reports at least annually okay thank you a few questions are about owners that have purchased a business and they're stating that there is revenue information or tax information for 2019 however it might not necessarily be the applicant that was filing the taxes as the business shifted ownership so would they be able to apply and use that 2019 information that is a very good and technical question and i will have to have another look at the statute because that was not something that we um really focused on in developing it but the statute's very clear we'll have to include that in our faqs as well i apologize i don't have that answer no problem thank you and then another question around the application if there is additional information or needed clarification will folks have the opportunity to provide or fix their application can they will it will they be able to go back and and fix it or is it or do they only get one attempt no that's a great that's a great question uh we we've built into the process the ability uh for any reviewer along the step of the way uh to be able to communicate back with the applicant in a secure manner the way that it will work is you'll receive an email that's not secure uh coming from the reviewer but they will be providing a link to a secure form where you can resolve any any issues that weren't clear in the first upload and then it will come back to us in a secure and encrypted way here's a technical question about where the owners reside this is saying that the owners of the business live um outside of the state but the business is located in the state will that qualify so the i think the short answer is no the owners need to be living they need to be physically present in the state for 185 days or more during the taxable year so if they live outside the state then the that would not qualify okay and i'm getting down to the end of the questions list so adam if you see any that you all would like to address jump in sure thank you um let's see okay um there were a few questions about what time the application will be available next week well i'm not sure that we've contemplated the exact time that it will go live um i would i would uh assume by the start of a normal business day yes we will be sending out a link to the application uh to individuals that have asked us to do so so if you email recovery at nmfa.net you'll be given the information as it is available including that the application is open and a link to the to the page so i would recommend highly that if people would like some additional follow-up information or to be kept in the loop that recovery r-e-c-o-v at n-m-f-a-dot-net would be a place to go and if you have questions during the application process you may also email that place because we are working remotely as a as an organization it's hard to necessarily understand who's available to talk on the phone so we have several different people um tending to that email making certain that the questions are being timely responded to and so that is a really good way to get our attention quickly okay great i think that's a good ending statement marquita um unless adam you see any other questions that were not addressed oh because i'm going through these i think we addressed there's one final one here about sending the link to everybody in this workshop and i think the answer to that is also yes okay all right well um i suppose we will wrap up so i do want to thank marquita and adam for all the fantastic information this is the the third part of this webinar series um discussing this program and each one has been exceptional and really informative so we will send out the link to the presentation we will send out the the slides as well as the contact information for the program so if if you did not get your question answered that will be the place to pose it to so um thank you all for tuning in and thanks again marquita and adam on all your phenomenal work on this thank you joanna we really appreciate your help and uh people's time today yes thank you everybody okay bye you