CARES Act Breakdown for Financial Relief, plus Alexia's How-To Guide for Sharing Video Classes

In our first email during this COVID-19 crisis, we announced our relief package to our clients. In this second installment, we want to provide some timely tips and crucial resources you can use right now for your business. This email includes:

1. Information on the government CARES Act and Paycheck Protection Program that can help you stay in business and cover your payroll during this crisis.
2. A step-by-step guide for posting class/training videos online & sharing them using ClassJuggler.

We also want to send out our sincerest THANK YOU to so many of you who have called and emailed to share your stories and support with us over the past week.

Posting & Sharing Video Training Classes

One thing so many of you are grappling with is how to keep some semblance of your regular class routine with your students when you cannot meet with them face to face. Our own Alexia Rodriguez has created a complete step-by-step guide on using YouTube to host and share your class videos. In the video training Alexia shows you how to sign up for a new YouTube account, upload your videos to YouTube, and finally how to share your videos with your customers/parents using ClassJuggler's email features.

Click this link to watch this informative YouTube video.

Accessing Debt Relief and Payroll Assistance During COVID-19 for US Businesses

Tuesday morning (March 30), I participated in a call with Senator Steve Glazer to discuss and learn about the two-trillion dollar Federal COVID-19 CARES Act relief package. Of highest importance to both ClassJuggler and all of our clients is the Payroll Protection Program (PPP) and to a lesser extent the SBA Debt Relief program. The full description of these programs can be found on the Coronavirus (COVID-19): Small Business Guidance & Loan Resources website.

Since this relief package is so new and can be so confusing, I wanted to share what I have personally learned from this call and my summary of the resources available.

The MOST IMPORTANT thing to keep in mind is that the PPP is a loan designed to help cover your employee payroll (and contractors), healthcare, insurance, rent/lease, and other expenses. For employers, you must maintain your current staff to be covered by the program. If the PPP loan is used for these approved business expenses, the amount spent over the 8 week period of coverage can be FORGIVEN. This essentially then acts as a "grant" for your small business. As quoted from the SBA website:

Any amounts of the PPP loan you don't spend on these essentials or amounts leftover will convert to a 2 year 1% [SBA changed on 4/2 from 0.5%] business loan that has very few limitations (such as no early pay-off).

I would recommend all of our clients, regardless of how big or small you are, apply for the PPP or SBA Debt Relief to get into the queue as soon as possible so you can continue to keep your employees paid and cover your basic business expenses like rent.

I also highly recommend talking to your bank, who will likely be handling the SBA and PPP programs, and talk to your local chamber of commerce, small business services, or other local business assistance organizations and non-profits in your county that are there to help you and talk to you about these programs.

The Paycheck Protection Program in a Nutshell

Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

All Small Businesses Eligible
Small businesses with 500 or fewer employees — including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors — are eligible. Businesses with more than 500 employees are eligible in certain industries.

When to Apply
Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.

How to Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender (e.g. call your bank) as to whether it is participating. Most banks over $2 billion in assets are participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.

Stay Safe everyone!

— Jon Koerber, ClassJuggler CEO