Sign Nevada Banking Moving Checklist Online

Industry sign banking nevada moving checklist online

well good morning everybody this is michael thomas i'm the vice president of marketing at greater nevada credit union and greater commercial lending and we are so glad that you were able to join us this morning for this webinar regarding the payroll protection program uh just a bit of housekeeping we are going to have this webinar focused on answering your questions to use questions and answers within the zoom meeting you should see at the bottom of the interface a little control trade panel and in that tree panel has a question and answer function we're going to be going through roughly the first 15 minutes or so are going to be some common questions that greater commercial lending has been encountering during the payroll protection program and we're going to be going through those in rapid fire fashion but we do realize that there are individual questions that might be on your mind relating to this program so we're going to go ahead and open it up to general questions but we'll be using the function that exists in zoom so if you hit q a you're able to post a question and we have some folks that are helping in the background they're going to enable us to organize those questions and we'll bring it up to our steam panel so without further ado i'd like to go ahead and make an introduction to those that are going to be joining us today we are lucky to have a couple of representatives from the greater commercial lending team who specialize in commercial lending but particularly are very knowledgeable about the payroll protection program and what our efforts have been today to try to help small business owners navigate through what at times we know is a rather confusing and maybe at times daunting program so without further ado i'm going to go ahead and open it up and ask doreen and lisa to unmute their mics and we'll do a quick round of introductions so again i'm michael thomas i'm the vice president of marketing here at greater nevada credit union and greater nevada credit union is a wholly owned it's the function of the whole subsidy rate for greater commercial lending that focuses on our commercial lending so joining me today are a couple of very great panelists that are going to help you answer your questions dream lorenzi is the vice president excuse me the vice president of commercial production for greater commercial lending and she has more than 20 years experience working in a variety of backgrounds everything from the commercial lending side to also client-side roles as a controller so she does have a unique perspective representing businesses as well in this program dream good morning good morning great to have you here and i appreciate it uh also joining doreen today with me on the panel is lisa seissenov and lisa is the vice president of credit administration for greater commercial lending she's had more than a decade of lending experience and her background has included both roles within government institutions and organizations including the united states department of agriculture to specialize in usda lending and she also specializes uh within the payroll protection program setting up our production process and has a lot of great information to share with us today so good morning lisa morning great so um let's talk about a little bit of housekeeping as to what we want to make sure that we accomplish today in our our webinar so we're going to explain the mechanics of the payroll protection program we do realize that there might be a wide variety of folks that are attending today that are at various stages in fact we're going to throw up in just a few minutes a couple of polls that we're going to try to get a sense of what people are interested in today's topics and specifically where you might be in the application and funding process so we're going to walk you through how to build a successful application we're also going to provide an overview of the expected timeline and the processes that we're seeing as we are administering this program and i also do want to note there was a fairly significant announcement that came down today uh at the sba relating to the program we don't have a lot of details but we will touch briefly upon what our early indications are what this will mean um to those that are maybe not applying or in the middle of an application and then we're going to answer like i said your questions live so first poll that we wanted to throw up and we're going to have you answer these so these polls will pop up on your screen and they will enable you to give us a sense of where you are so if we could go ahead and share that first poll uh the first poll today uh related to have you started a ppp application um yes or no yet so um we're going to go ahead and take a few seconds to gather that information and see where things are and we appreciate this because it allows us to just make this webinar in the conference and the information that we focus on a little bit more on point okay great um doreen and lisa as you probably have seen the majority of those that are attending today have actually started a ppp application there are a few that have not so this topic will be useful for both audiences but it's good to know that we have a few more people that have started could we end that poll and could we throw up the the next um the next question that we wanted to uh we wanted to share with you or ask you is if we could share that now are you a first draw or are you a second draw applicant which means for those that are there is this the first time you're applying for a ppp application or is this the second and it seems like uh the overwhelming majority of those are doing a second draw so that will help us today um for both lisa and doreen and i to really make sure that we hone in on the most important aspects of this program so with that said what we're going to do is we're going to take you through some very high level requirements but knowing that many folks doreen and lisa have already applied we can really touch base on these i think fairly rapidly and get into more specific questions about some of the nuances of the second draft so why don't we go ahead and end that poll if we could and doreen and lisa you did you did see those results correct i didn't see any results okay no worries but i will let you know so we had a majority of people have already started the application and again they're on their second draw so let's go ahead and talk about first drain if you don't mind kicking this off about eligibility for the program what are what are the requirements to be eligible for a uh ppp loan sure um first of all thank you everybody who's joining us today um if you the the line share people are obviously in their second draw but the the eligibility did allow for people who didn't participate in their first draw last year to actually do a first draw application this year um to be eligible for that as long as you've got less than 500 full-time or part-time employees um and also if your business was operational before 20 uh february 15 of 2020. um the only trick with doing a first draw ppp loan i won't spend a lot of time on it is that you'd have to exhaust all of those proceeds before you could apply for a second draw since most of you are in the second draw um that one is uh they tightened it up just a little bit more to make sure that smaller businesses got the help they need so instead of 500 full-time employees like 300 instead um and then having revenue reduction so just being able to evidence that uh the the restrictions for covid caused you a loss of revenues of 25 and this could be either done year over year or can be done quarter to quarter so like for example if you had revenues of a hundred thousand dollars in q2 of 2019 and had 75 000 in q2 of 2020 that's eligible for that shows a 25 revenue reduction um you have to have used all of your first round ppp proceeds and you have to have been in business before february 15th of 2020. um so that really kind of gives you the high level of what the program is obviously eligible businesses are sole proprietors independent contractors self-employed individuals some nonprofits seasonal employers faith-based organizations housing cooperatives and as long as the employment restriction is is met ineligible would be lobbying organizations organizations involved in political activities um cannabis household employers and then anybody has defaulted on sba or federal loans and any business that is at least 20 owned by someone who is currently um uh we'll say having some uh some legal issues let's say it that way okay so there's the list goes on and on but um one thing you'll find if you haven't already is that our website has a comprehensive list of the eligible and ineligible businesses so um for a complete list i would definitely steer you towards that website we spent a lot of time making sure that you could get the information you need as easily as possible and dorian you did a great job of setting up just real quickly i know that that 25 reduction you explained it really clearly but how are you recommending that that be documented best as you are going through the application process so what i've done with the borrowers that i've worked with um i i sort of um guided them to what would be the best for them so i just asked i just did a loan interview basically and just said are you is it easier for you to prove year-over-year decline with an annual profit loss or would it be easier to do a quarter to quarter comparison and that's where i i make sure i'm very specific that you have to do the same quarter comparison now most people have chosen to do q2 of 2019 and q2 of 2020 because that's when the lockdowns happened and that's when people had the the biggest interruption in business that makes sense that makes sense well lisa one of the myths that we've heard a lot of is that this program is already out of funding um is it too late to still apply right now based on what we're hearing from the sba it's not not at all so uh the current numbers right now is that there's um right around 135 billion has been obligated um there was there was 285 billion made available so there's plenty of money left in the program um that 135 billion just to give you scope that impacted 1.8 million small business members or small businesses nationwide but the message is there's plenty of money um to still available to apply so you may be hearing different things in the media but there's still plenty of money available okay great now let's talk about the use of the funds because obviously with the name payroll in the name there's a lot of focus for logical reasons about why this program was administered the way it was to keep people on the payroll to keep the most valuable asset that most small businesses have which is their their talent their team but that's not the only thing doreen that you can use funds for is that correct that's that is correct um last time around it was mainly a payroll it still is that way it's mainly for payroll support right um but the way you can use the proceeds now is a little bit more um it's not as restricted as it was last time around so basically it's about sixty percent uh needs to be allocated to payroll and 40 percent could be allocated to you know things like payroll uh rent uh mortgage and interest utilities and and other uses like uh some vendor payments such such like that it is intended to be payroll heavy though uh the preponderance of people even with the ability to use it sixty percent payroll forty percent um other costs they are still by and large using it for payroll it is a little bit easier to get through forgiveness if you have used it just for payroll because it's it's easier to document your payroll records than it is to collect all your receipts for all your other expenditures having said that as long as you can prove that you've spent it in an eligible way then it will make your forgiveness application go much better great and you you said it in your answer and this is for doreen or maybe you lisa that you know if you don't use all of the funds like at that 60 break off point for forgiveness that doesn't mean that you lose the ability to have portions of it forgive correct correct you can have the eligible portions forgiven um it's not a it's not an either or you can have eligible portions for given okay i think that's important to note because we do realize that for some small businesses uh depending upon the region you're in the lockdown has been at various stages where you've had to shudder or have very reduced operations so thank you both for clearing that up there are a lot of changes so this is ppp 2.0 payroll protection program the ppp what's different this time around lisa from your seat as far as like what what has made this program i won't say challenging but maybe just different because we do have a lot of second time applicants what's the biggest change you've seen this time around sure i think one of the one of the largest changes we've seen really has to do with the timing of getting the approvals through sba so if if you most people here are on their second draw first time through applicants were able to apply lenders were able to review and almost get those approvals from sba instantaneously we applied to sba we got those approvals same day this time around that's not the case best case scenario is we're getting sba approvals in about two days oftentimes um we're getting you may be hearing these terms error codes or hold codes from your lender what we're seeing is there's there were lessons learned first time around um there were various levels of fraud and misrepresentation from borrowers and so and maybe lenders too and so what we're seeing is sba has taken a little bit of a different approach on their review and it's just taking a little bit longer so that's just something to be aware of when you're applying um that it will take longer for lenders to actually get those sba approvals um and so what's happening is we're just having to reach out work with the borrowers a little bit more a lot of times there's discrepancy from the first round with your initial loan or there's data discrepancies but but there's um there's over 75 codes so it's pretty extensive of what could um what could be um slowing down the application so that's that's a huge difference from first time around okay and and then doreen i know specifically this this attempt was trying to also target many industries that were hard hit and while we blend all throughout the country we do realize uh we're headquartered in nevada and there's such a large focus of hospitality tourism restaurant all throughout the country that have been disproportionately impacted what's special if you are an owner in one of those categories to note differently from maybe the first round that they were a part of yeah and that's a great great point to bring up um the ppp protection um allows for uh hospitality uh restaurants anybody in the industry code that starts with uh seven twos that would be your north american industry classification um so that gives you an extra month in your eligibility so whereas most businesses can only do two and a half times their average payroll average monthly payroll the the companies that fall into this industry get three and a half times so that is definitely a benefit um because those industries certainly have suffered the longest and the most that's great and lisa you've seen probably now thousands of applications that have come in through both rounds of the program what is the best way to ensure that you have a successful application i know there's probably a lot but if you could maybe boil it down to one or two key points as people are looking through this to just make sure that they're going to be set up for success you know a a thorough well-organized application always helps it always helps on the review or on the underwriting side um just paying attention to what's being asked for and we're seeing things that that are um for instance we ask for a driver's license front and back and that's a pretty simple thing but time and time again we're only seeing the front or or it's a really blurry copy so things like that a full set of if we need financials a full set o very clean um financial statements or on the revenue reduction side very clear very clean set of financials that we can look at and easily establish that reduction so you know i think one of the largest delays we're seeing is just incomplete you know it's maybe 75 80 information we need and and that's okay we're here to work with you but it just adds time okay that makes sense well since we talked about the process i know ever you know there may be some of you going through an application with um another lender so um we understand that but what we wanted to provide were um kind of an overview of the process that um what someone can expect upon the timeline a dream maybe you could take us through what are the steps of the process and we can touch this on a high level but how long are we seeing applications typically taking um you know that we've seen in the second round of ppp and then what are the steps and i'll help guide you through it but maybe start with the total timeline sure sure um and it the timeline is is sort of it's it's volume based right um we've seen people come in right at the very beginning and we were able to get them funding within about 15 business days taking into consideration that the um approval time with sba is a little bit longer than expected um the issue that we will run into that will make the time go a lot longer that would stretch out the timeline a little bit is one if we have like a a volume of applications in it once where we've got to get through and get all of those verified that could add to the timeline just in and then it's just sheer luck of if you happen to apply when you know 200 people are also applying as we're getting them in now it seems to have slowed down i think it's a little bit easier to get your application in and then get it reviewed um the other thing that can also impact the timeline is the incomplete packages because what will happen is you'll gather everything that you need and we do have a checklist on our on our website i would really encourage people to get cozy with that before they apply because i really think it'll help them upload their documents faster so once the the borrower has um started their application they'll just click through the prompts it's very well done it will tell you when to enter um what you needed to enter the time you need to enter it will help you automatically calculate your average monthly payroll it will help you calculate whether or not you're meeting the revenue reduction once you've uploaded all your documents and you've submitted it to us it then goes into a verification and underwriting queue that's where we go through and we match up the documents you've submitted with your application and this is why we go back to the um the lisa's point of having really good financials because if we can see that you've entered a number and we can clearly see it on your financial statement it makes it really easy to get this uh moved forward so once we've gotten the verification underwriting complete assuming we don't have to send it back to the borrower we will then submit it for sba sba does take somewhere between 48 and 72 hours assuming there's no hold codes and once we've gotten our approval back from sba we'll do our own internal approval just for our to meet our our guidelines as a lender and then we will fund within 48 hours to 72 hours after that so all things going perfectly smoothly it's it's about a 15 business day process give or take a few days and i do know that anytime a new program rolls out with changes in place there is some concern is it working and maybe at the highest level why is it going slower i mean what what have you heard from our partners at the sba about why they're taking longer and doing some due diligence what are they trying to stop you know one of the things that i'm i'm experiencing with um the sba is the the hold codes and it's it it gets a little murky as to how and what they are asking for to release those codes sometimes it's something straightforward like uh the business name was slightly different in the first draw application than it was in the second draw because maybe they forgot to put a california corporation on the second time and they did it on the first time things like that those are pretty easy to to resolve but when you get into multiple hold codes sba has made it a little murky on how to get those resolved they have improved it a little bit by allowing lender to certify certain hold codes to get those removed uh but we still that that's probably the the hardest thing that that we've encountered on the sba approval side uh the stuff that we're in control of we've been able to get through that uh pretty efficiently um but and i do think that the program modifications that happen from the time we started this to where we're at now uh we had less hold codes now we have more so i i think that's really what has impacted the timeline the most and and lisa just to follow up on that how would a if i'm an applicant and i submit do i when i see a hold code directly or is it going to most likely be at the lender um like greater commercial lending that those those those codes will be sent to and they'll work with the borrower to resolve maybe just explain what that process would be like for an applicant so if you're applying through um greater nevada credit union on our online portal you're not going to necessarily see the whole code per se the technical classification of it but what you will be getting is requests through that system for additional documentation um whatever that may be to work through that discrepancy or if we need some type of updated information if it's something like doreen said if it's something we can fix on our end it's some information that we have we'll go ahead and do that but generally if it's if it's information we need you're just going to get the request for the information you're not necessarily going to get that flag for a technical hold code you're going to get the request for information great well reminder to everyone tuning in we're about to wrap up in the next few minutes are kind of pre-staged for lack of a better term questions or or the main topics that we wanted to highlight that would be the most impactful to everybody but reminder if you have an individual question uh there's the functionality within the zoom webinar to be able to click on the bottom of your screen you should see question and answer go ahead and answer that question we're going to be organizing those and and bringing those live in just a just a few moments when we turn that portion over um two last points i wanted to hit on before we go into questions we've heard lots about potential sticking points but maybe we could talk about the the documentation um that that's needed and how sometimes um the system we use which is automated can generate for example a um qualification amount that might be different than the borrower has in mind so between i'll let you go first lisa with with documentation and how we calculate um the ability to qualify for a certain amount for the loan and then um doreen i'm going to save one question for you about the announcement that was made today um so lisa why don't you go and take us through maybe that documentation and the calculation process so i think the system is pretty user friendly it's going to prompt you for the the information to upload and again we we um and prep for applica for applying make sure to check out the checklist on the website for being prepared it's going to walk you through the information that's needed kind of prompt you for the numbers required to put in and make those calculations for you i think something to be something to be aware of is the calculation will be done within the system and most the time it's going to be 2.5 times the monthly payroll cost sometimes 3.5 based on the industry what could happen and what we're seeing sometimes is the um you'll get the the potentially eligible maximum loan amount that you're that you're eligible for calculated through the system then um as a lender our responsibility is to go in there and do that underwriting that qc and those amounts may there may be a discrepancy and so um just a clarification that the the amount that you're seeing that's being calculated in the system oftentimes that will be the amount that's approved but there may be a little bit of a discrepancy either higher or lower once we've actually gone through and substantiated that review and what you've and what you've submitted so that's a common thing we're coming up against and and that truly is we want to make sure that that amount that you're approved for is eligible to be forgiven um and at least i'm sharing what what it looks like uh actually within the system um itself which very much has like if you haven't gotten to this point maybe in the application process it very much feels like if you've ever done turbo tax or something else it's very wizard-like so this would be an example of where you would put that information and it would generate a qualification amount exactly and you can see that blue that blue box at the bottom and that's calculated through the system great well we are going to open it up to your question so again just a reminder to utilize the functionality that's in zoom and we'll do our best to try to get through as many of the questions that we have we have roughly about a half an hour left we do want to end punctually and we'll go as long as we can take questions in and organize so i did i did want to make note um which which happens in a program like this is things do change and an important you know qualification that i think um as i asked this last question is you know we are not trying to provide legal or accounting advice and a lot of the questions that we know come up can be around very specific nuances to a business and how they operate so this is really about us trying to answer questions about the program but we would strongly advise if you have access to um legal or or tax advice there are some nuances through it but doreem the biden administration through the sba program announced a fairly significant potential change coming up and i know we haven't received all the information but could you explain at least what was announced this morning in case someone that may be on the webinar or watch this later on might see the headline and think you know how does this change my ability to move forward with a ppp application sure the biden administration announced this morning late breaking news right before i was about to log in here um yeah so i'm going to apologize i'm going to cheat and read my notes a little bit so but basically what uh the administration is trying to do now is really target those low to moderate income businesses um the fewer than 20 employees uh people that didn't take advantage of the first draw request last time around because maybe they didn't feel they're eligible or too small that kind of thing so they are going to put in a 14-day window where only these businesses can apply they are going to allow they're going to keep allowing the sole proprietorships independent contractors self-employed individuals they're going to revise the funding formula so that you can get a little bit more financial support i think they did not clarify what those um what that criteria is going to be but they did suggest that they're going to uh make it a little bit easier for you to get a little bit more money that would be uh eligible they're going to eliminate the exclusive restriction on ppp access for small businesses where um the owners may have had some prior um non-fraud felony convictions so they're going to loosen up that restriction a little bit they're also going to eliminate the access restrictions on small business owners that have struggled to make their student loan payments so um typically in government lending if you've had any kind of a default on a government loan you it renders you ineligible so they're going to remove the student loan uh restriction so if you have been late or defaulted on your student loans that will no longer exclude you and they're also going to ensure access for non-citizen small businesses that are lawful u.s residents previously that was not allowed so they're going to allow that they just need to make sure they're using their identific their tax identification number on their ppp application so those are the highlights that have been coming out now i'm waiting for a little bit more program definition as to when where and how but but that is coming down the pike for for people that are smaller and didn't feel that they could get a loan last time okay well that thank you very much for summarizing that that is a lot i will i will give a compliment to all of the financial institutions that are dealing with these changes on the fly it is at times you know um i don't want to use the analogy of building the plane while it's flying but i think there has been a bit of that so i appreciate you doreen explaining and just for everybody that may be tuning in we'll summarize as we get more official guidance about what this might do to change some of our procedures or protocols we'll of course put those online just as soon as we can so i'm going to go ahead and stop my presentation now and just kind of pull us up full screen so you'll be able to see us a little more clearly and i do have some questions going um the first one lisa i'd like to direct towards you if possible um and that one deals with um sole proprietorships uh is there a specific limit that sole proprietors can actually qualify for as part of the ppp program there is um so sole sole proprietors are eligible i think most people know that but just to clarify they are there is a cap on annual salary at a hundred thousand so um and that that would then be broken down um divided by 12 and then times by 2.5 so it roughly ends up to be about twenty thousand eight hundred um but yes salaries would be capped at a hundred thousand so sometimes that's a little confusing if you submit you've got a hundred and thirty thousand or a hundred and fifty thousand salary is capped at a hundred thousand okay great thank you very much um the next question did come in uh just a few minutes ago and i'll try to expand upon this but the question was um can you please clarify again which periods can be used and the follow-up to that is specifically if q4 is not a permitted period um so just to clarify i think this relates to the the the period over period or an annual um calculation um and i'll go ahead and direct that one towards doreen um if possible for you to answer take the first crack at yeah sure um is it like we previously had said you you do have the choice of if you want to do a year over year annual revenue reduction or if you want to do a quarter over quarter annual revenue reduction if fourth quarter was not an eligible quarter for you for whatever reason then i would look to using q2 q3 or q q1 but q1 i i would suggest looking to q2 or q3 um i or just looking at it on an annual basis so i wouldn't try and use an ineligible quarter if it doesn't if you can't mirror it to a at the quarter if you can't mirror the two quarters together i wouldn't recommend using that um i don't know if that answers the question but it's it's just you just want to have your apples or your oranges you don't want to try and mix and match yeah that makes sense and i think the question may be to spread spot q4 is a permitted period right q4 is not is an option to show a loss q4 over q4 correct yeah yeah okay the only thing i could think of is is if they you know don't operate in q4 for some reason it's a seasonal business or something like that that would be the only thing i would think of if they're operational then it it's absolutely eligible okay lisa we had this question i'll direct it towards you um how do i check or how would i know that my application needs review and maybe it's a good time to to remind um everybody that we can speak to specifically how our system works but in generality how would someone know that they they have a problem or they need to address something within their application and maybe start with what the process is like at greater commercial l nding so the the system at greater commercial lending you should be notified uh via email that there's um an action item for you to complete in the system and so you would typically get a message that the underwriter would include is you know we need a copy of your front and back of your driver's license but these would come through your email so it's um it's important to make sure to check for those notifications but also if any time if you log into the portal the application portal you should be able to see the status of your application and what that is so that's important to to to make sure you're logging in but also to be aware of emails that may come through asking for different additional information that's great um here's a here's a really particular question but maybe one sorry lisa i had a little bit of a leg there can you can you hear me i can hear you okay sorry about that yeah i didn't mean to step on you there here's one very particular dream but it goes back to you called it your housekeeping items what happens and this actually happened to me um some dmvs are not operating uh in normal capacity or may not you know you've had an expired license can you submit a driver's license that has an expiration date on it that isn't current um that's one of the questions we have that's a great question um i would suggest um having evidence that the state has extended the expiration date and submit that as another document um and to that that point in the housekeeping i would say if you have to submit something that's unusual or not quite on the document list i recommend submitting an addendum explaining what you're doing and why you do it and that's probably going to answer a lot of questions later on down the line so i might be jumping ahead but you know if you have an unusual circumstance like this and you can provide evidence that your state has extended the the expiration date and simply upload the document with it with an explanation of what's going on and we can it's it's stuff that we can easily validate right we can go out to you know nevada and see that they've extended driver's licenses so i hope that helps yeah no that's great yeah i it happened to me as well i finally got in and had my appointment but uh it was it was not as long as it was so that's a great suggestion and just to help with that too i think doreen said it a lot of if you go to your official dmv website for your state it requires you to find it's usually a derivative dmv the acronym or the shortening of your state they'll have something on the front page that you can include like if you were to get stopped during an infraction or just to verify something so i think that should be there not that anybody would would have an infraction but if you did have that that would be something that you might have to pull up um we did have a question i know um lisa you talked about what doreen kind of showed the timeline and there are delays i know there can be maybe some frustration or concern that if you're in the greater nevada credit union and greater crucial lending system it hasn't moved it's stuck it's staying on it on a status for a while what do you recommend in that case um for someone to to make sure that they feel confident that their application is still moving ahead even though their status or their their their current state hasn't moved if if you are concerned and it's been in a certain status for a while and you feel like it's not moving we do have a central email box that we're monitoring and that's the best way to probably reach out outside of the system if you can't get a response and you feel like it's stuck and you're not quite sure what it's going on so i feel like that's probably it's monitored by a couple of people um if you reach out to that then um that's probably the best way to get maybe a second pair of eyes to see what what exactly if if it's stuck for some reason for for uh an anomaly something happened and you just want to make sure it doesn't get looked over i would recommend reaching out to our centralized email box which um maybe we can share that i don't know it i can't remember it off the top of my head and i don't want to give you the wrong email no it's okay i have it lisa i have lisa and i'll put it in for if anybody who's monitoring this kayla it's in if we could drop that into the chat for um i'll tell you what we'll include that afterwards but the the email address is sba paycheck protection at greater lending greater commercial lending.greaterlending.com sorry so we'll put that in as a follow-up also if you just go to the greater commercial lending website there is a support page and on that page you can fill out a form and we respond to the same thing so whatever is easiest for you but we want to make sure that we do uh respond in a timely manner uh here's here's an interesting one uh doreen for you if you don't mind um i think this is interesting if you just now got a first round or first draw ppp loan can you actually apply for a second draw within the same application window if you just now are receiving your ppp loan um lisa correct me if i'm wrong but i believe if you are doing your first draw now you have to use all of your funds before you can apply for your second draw that's correct yeah okay so if you did technically it could give people the option of being able to get their first round funds and then if the windows open later to be able to get their second round but uh it's you know it's a risk but you know it can be done okay uh here's a common question the gig economy uh we do know that for smaller business owners they may be independent contractors or notably maybe working for a company like uber or lyft um do they qualify do do gig workers or independent contractors qualify lisa under the ppp they do and sba tried to make it a little more friendly for the gig economy this time around sole proprietors and independent contractors are eligible um what you're going to need to what you're going to need to apply would be your you're going to want your schedule c copies of your 1099s um that that's going to be critical so um but yes the message is yes you're you're eligible to apply so you should definitely um if you're interested in that you should you should apply i was just doing just just an aside i just was looking around the other day um and and actually uber and lyft and a couple other companies have um have set up on their site some some tips and some pointers um about if if you are if you are you know involved in those and working for those companies of how to apply and and stuff like that so so there is some support out there but yes um you are eligible so um you should pursue if you're interested and and keep in mind though you're still subject to the hundred thousand dollar cap so yes good point okay great doreen um here's one for you uh some things that are common probably for lenders but maybe not as common for small business owners a couple of things that are called for within the application could you briefly explain uh what a duns number might be and what a makes code might be and why those are important in the process um well as you know they the the two numbers actually well the duns numbers are done in bradstreet number and then the next code is their north american industrial classification system code so those really drive whether or not you're in an eligible industry or not i believe that duns also speaks to identifying properly identifying the business as well yeah and i do know we did we do have a link on our website there is a there is a organization it's a trade association around uh nakes if you haven't established an xcode in your in your history it goes out and it provides like a really simple tool to type in what your business is and it will recommend for you um so i know that that is something that uh has been important um lisa we touched on it briefly but um the non-profit side of qualification there was an expansion in round two right certain types of non-profits now are eligible i know particularly within the tourism industry like destination marketing organizations could be qualified you touched on it i just want to clarify there is some expansion of what kind of nonprofits are available this round correct correct just one thing back on the duns number because we hear this a lot dunn's numbers are free so there's a lot of companies out there that will try to charge you for getting a duns number so you they're free they're free to obtain so that's just if you're if you're in the process of getting one or you're asked to get one just know that they're that's free you do not need to pay for them you can if you want but you do not have to um sorry that's just a really common question that comes through so oh that's great great yeah thanks um yeah um okay yeah so um nonprofits they did expand the eligibility um so it's they expanded the kind of the technical qualifications around it with the definitions of 501 3 um 501c3 501c36 so it's i believe tourism housing cooperatives you know religious organizations they were the first time that they are again and so it's um they try to make it more uh a little more flexible for non-profits and open it up a wider scope for more non-profits to be eligible so if you're non-profit traditionally sba has not those are not eligible but they are under ppp so you should pursue if you're interested um the ppp program that's great and doreen you touched upon this but um i know that there's been clarification around what's considered taxable non-taxable income and maybe you could talk about for some of the smaller business owners or independent contractors would you be disqualified if you received pandemic unemployment assistance or pua to apply for a ppp application if you were if you were involved in that program i believe at least correct me if i'm wrong but i believe those are not eligible so um so they're so the if you're it's kind of a little bit of a complex question i guess or it's it's a because they're all new programs in a sense so if you're currently receiving pandemic unemployment assistance you could still apply for ppp it's just you cannot factor that dollar amount into your monthly payroll costs if you were applying as a sole proprietor so yes correct you should the safe rule would be to stick with your operating revenues yes eligible okay great that clears it up and and i want to go back we've had this question before but we had it again and so i think it's just a good reminder we use the fruit analogy but the question that we had was um can you show a 25 reduction between the first quarter of 2020 and any other quarter of 2020. could you just explain again that the whole apples the oranges and apples to apples analogy that you gave during the system we can be really clear with those folks that are in the application process or considering an application sure um the point of the revenue reduction is to show year over year so you want to show the change between when you're fully operational in 2019 versus restricted uh business activities in 2020 so even though the year itself may have had some positive quarters and some bad quarters the the program is designed to show a year over year impact so you don't want to use two quarters in the same year you'd want to pick one from 2020 and then use the same quarter in 2019 because the purpose is the year over year so if we think about it that way that might simplify what periods to use and how okay that's great and then we had one other question um uh and maybe uh lisa you could take the first crack at this but um you know common common language in business is not always there uh gross receipts um can you just define what we mean by gross receipts in the confines of this ppp program what is the sba looking for when they're asking for gross receipts sure um yes and i also want to make a note that since we're going through a lot of these kind of specific technical questions um that we will reach out after the webinar for any questions that we haven't or that we don't get to just a note there since there's a lot of them coming through but generally gross receipts you want to we're going to look at all revenue in whatever form those are received from whatever source so we're going to look at sales of products or services you know whether that's interest dividends rents commissions so you're thinking total income um so just gross receipts includes all revenues and whatever form they're received um so that's yeah i hope that's helpful yes like if i could add on to that um just to our earlier point about having clean financial statements we did have a situation come up where the bookkeeper she categorized her the the company's idol loan their economic injury disaster loan as revenues instead of loan proceeds so you know the controller me comes out and the journal entry should have been an increase to cash and increase to loans payable but she increased revenues and it nearly excluded them from their um showing their 25 reduction so they had to go back call her in clean it up do some letters of explanation so just to go back to that it's it's operating revenues gross receipts whatever you want to call it it's whatever in your income you you've used to operate your business or generated in in the course of operating your business so if you have anything that's an outlier or non-recurring or whatever um that's not that wouldn't be the operating revenue but it should be explained great uh this is a question that we've had come up a few times and i know it's not always an easy one to navigate but maybe um just as as succinctly as possible lisa we do know that there has been varying degrees of response based on some organizations to the ability to take applications and not i know greater commercial lending has made it clear we're trying to help get access to as many lenders as possible for this program but if you started an application with one institution and you did for whatever reason want to make a change um is is that advised or or what would you recommend the steps be that if you started someplace else that's not going the way you wanted to to try to maybe open up an application anywhere else you might want to choose so i'll say first off you can you absolutely can um the thing you need to be aware of is that you can get yourself in a situation where you know you've you've got an application now in the queue maybe that lender system is communicated with sba there's an application on hand and you know sba considers you've got an application on hand and so then if you do apply with someone else that contribute can contribute can trigger a duplication of application within sba so so the answer is yes you can and we've seen it happen but you need to be very cognizant and very diligent about making sure that that lender that you're working with now withdraws and cancels that application before you start working with with the new lender and just know that that's probably going to add a little bit of time and a little bit of extra effort and so um you can it's going to be up to you as an individual to make that decision but just know it adds a little extra effort great i will say this i would also if you decide to do that advise your lender that you're switching to that you're doing it so they're aware of it i would also add to that that if you're if you're unhappy because um the applications at sba and it's a hold code situation it's going to happen here too so if if you're stuck with sba not getting your approval whatever those reasons are probably going to happen here too and all you've done is taken your place out of line so i just caution people okay we have about five minutes left so we're going to try to get through as many of them as we can i'll try to keep these these last few brief um contractors if you if you employ contractors or you use contractors in your business are there salaries eligible in the factoring lisa or dream i'll take this one um so because contract so no um if you're an employer and you're issuing 1099s or you're you're employing contractors they're not eligible um because those contractors can apply on their own so that's kind of how that line is drawn there so know those aren't eligible as you as n employer and your calculation because those contractors can then come and apply as individuals on their own and they don't want to sba didn't want to double essentially double dip double pay okay here's a here's a follow-up to the question that you you earlier got and i know it's not perfect but just to clarify um if you were for whatever reason denied by one lender for a ppp application using that analogy of moving elsewhere could you try and go again or would you maybe recommend following back up with the original lender just to really understand why the application was denied before you maybe start a whole new application yeah i i would recommend finding what the the denial was because again you know we we all talk to sba so if sba denied you at one lender they're going to deny you another lender unless unless you know what it is that you need to resolve and you can resolve it in such a way that would get you an approval but if if they're denying you because you're ineligible there's not much you can do so it'd be really understanding what the denial reason was if it can be corrected or not um yeah okay great um so i think we received um this question earlier but it's a slightly nuanced question but i'll ask it again it's the um i haven't received the confirmation or approval um on forgiveness for my first draw ppp loan can i still apply for a second draw and i imagine that's a that's not a simple answer but maybe you could explain what we're seeing so just to restate again maybe you haven't gone through the forgiveness process or you've formally received the forgiveness process can you still apply for a second draw uh ppp loan what are we seeing lisa you can um and so it's the the second draw loan is not contingent upon the status of your um forgiveness of the first draw and so you have to have expended all of the loan dollars on your first loan but you do not have to have that forgiveness process completed um so if you're in the middle of it and you haven't seen received approval that's okay if you haven't started it that's okay um you can go ahead and apply for your second round your second draw great and do you know though if you haven't applied for it and it's still or if you're in the process um they will use your second draw application to correct any errors with the first draw application so just be aware of that so if you had any discrepancies in your first draw application they will make sure those are resolved before they will approve you on your second draw oh that's that's great that's great that's that's great clarification um this one is very specific so i'm going to try to generalize it a little bit but i think it's a it's a good question it relates to uh payroll costs so maybe a company that doesn't have employees they filed um documentation showing income but it was not accepted going in there so it's uh it's an llc type of business is there any question so i think the question would be verifying payroll costs when you don't have formal employees but you can still show that you have payroll maybe it's the owners of the business or it's a it's a limited liability uh have you seen that is there any advice you could give for how that could be documented without knowing the specifics because without seeing the source document that they're referring to if it's a single member llc they can file as a schedule c so then the rules that follow the schedule c would apply if they have payroll in their schedule c they can use the 941s to validate that number they can also use the net profit of the um schedule c uh up to a cap of a hundred thousand um so typically what i see in that situation is that they didn't show any net profits to use and they don't pay payroll so that that is a conundrum that people might get into but if they don't pay payroll and they don't show net profits then we don't have a good source document to use great and here's maybe our last question before i let you both wrap up and i'll go and talk about some of the resources that we did but uh question came in lisa about how does someone get a copy of their previous loan documentation or maybe their loan application who would typically have that so i would reach out to the the lender that has your first straw loan they should have a full copy of your loan application yeah great and i do know there's some some information that we put out but that's typically where your sba loan number is included is in that loan um documentation and application so i know that's something else that we get a lot of but that is necessary to start the application process to make sure that we're tying up the accounts i know on our site well well lisa and doreen um i know for on behalf of everybody that attended today this has been um fast rapid fire uh opportunities to get something out i thought i would just let both of you maybe have the last few words and then we are going to wrap up with resources that we have available um but i'll let you go first doreen you know just any um final advice or thoughts um for for business owners i i know you speak passionately you've been on the business side it's a stressful time um you know is it is this really worth it and maybe what what can they do to try to get through this with um the least amount of stress and frustration in your seat sure um i i would say preparedness is the best thing you can do go out to the website get the checklist look at everything that's needed get everything you need to to have it so that because the application itself is it literally is maybe 10 20 minute process if you have everything lined up it can go really fast now again during the former controller tick and tie everything if you know you're gonna enter a hundred thousand dollars in payroll make sure your financial statement says a hundred thousand dollars in payroll or your 941 say a hundred thousand dollars in payroll so just pick and tie everything because if what you've input into the application matches the documents that you've uploaded it's going to go so much faster having your organizing documents making sure that the name on your organizing document is exactly how you've applied for it even to go so far as to look at your first draw application if you have it and make sure what you submitted on your first draw matches what you submitted on your second draw so it's just it's really preparedness i i couldn't emphasize it enough those of you that have cpas and payroll companies they usually are very well versed in how best to help you with this stuff um and if you don't have that just chicken time if you if you input something just make sure you've got a supporting document that says what you've uploaded and why and if you depart from anything for any reason because you have a unique situation um you just send in a letter of explanation to show how you write arrived at the at the numbers that you arrived at and then we'll verify it we don't want to put you in a position where you might get proceeds that you can't get forgiven so we do want to work with you to make sure you get as much as you can that that will be difficult so that's what i'd say prepare for prepare and lisa maybe last question for you would just be you know we've seen all sides of loans um but there may be is a misperception that you know i'm too small i'm not going to get attention can you just explain you know the variety of the sizes we've seen and that there isn't a bias in in the process for us at least i know as a lender to try to prioritize larger over smaller everybody is trying to be equal within this program is that correct that's correct i think that's um you know working with multiple lending institutions that's one of the really great things about greater nevada there's no we're taking applicants you don't have to be a member and there's no size requirements we're looking you know we'll do the maximum we'll do the minimum and so um no loan is too small i think i saw one the other day go through for twelve hundred dollars and so you know that matters um so there's no priority we take them first come first serve we do an underwriting on each one of them so there's no preference on our side so don't i would say don't let that be don't think that because you have a smaller loan you shouldn't apply or it's not going to get the attention that's that's not true we look at everyone the same so yeah that's great well lisa and doreen i can't thank you both enough for the time and the rapid fire ability to do uh the questions and answer i know you've made a lot of business owners process a little smoother throughout this entire application side i do want to remind everybody that was registered for today's webinar from greater commercial lending in greater nevada credit union will receive um it was mentioned a few times and it's on our website right now the ppp checklist that lists all the documentation that we went over it's something you can print out and have alongside you as you're doing your application we'll include a link as well to uh where you can apply if you've not already done so even though most of you have already done that and we will try our best it'll probably take us a little while but we're going to try to summarize the questions and the answers that we got from this webinar and get that out and also put those up on our website and we'll include other links to additional resources that are available um you heard it from doreen and lisa but the reason why we are doing this program overall is that you know we are committed to small businesses um we realize that for every one of these applications they represent thousands of jobs all throughout the country and and these jobs are going to help the the economy rebound from this health crisis that we're all going through so we are here to help and we will as we talked about respond to as many of the questions that came in both through the webinar and through the application process privately and again we will follow up with the email address if you do have an application going right now with um greater commercial lending and greater nevada credit union that we will try to follow up in a timely manner but best of luck to all the business owners that we go through here i hope you've enjoyed this uh again i'm michael thomas from greater nevada credit union it's been great to have doreen and lisa here and again best of luck stay healthy and stay safe and we will hopefully allow many of you to uh to continue ask questions of us and we will follow up in a timely manner have a great rest of your afternoon or morning depending on the time zone you're at and again we'll talk to you soon thanks thank you