Member Update
April 3, 2020
What's Inside:
Paycheck Protection Program
Upcoming Webinars
Economic Impact Survey
State Launches More Robust Portal
In the News
Paycheck Protection Program  
Today, as the application process began for Paycheck Protection Program (“PPP”) loans under the CARES Act, the federal government issued a new form as well as an interim final rule . 

Questions continue to swirl , as banks, businesses and the federal government try to figure out exactly how this program is supposed to work. Unfortunately, the new information provided today does not answer many questions about the forgiveness provisions in the bill and how they are supposed to work for our industry. The American Hotel and Lodging Association, the Asian American Hotel Owners Association, the National Restaurant Association and others have submitted letters to the federal government asking for significant clarifications: 


Today’s rule specifically says additional guidance will still be forthcoming from the federal Small Business Administration. Meanwhile, business owners are feeling pressure to get their applications in quickly, lest the $349 million fund become exhausted. 

What We Know from the Interim Rule:  

  1. The Administrator determined that at least 75% of forgivable loan proceeds must be used for payroll 
  2. The Administrator raised the interest rate from 0.5% to 1.0%
  3. The Administrator shortened the time period the first payment would be due of any unforgiven portion to six months (the law allowed for one year)
  4. The Administrator shortened the maturity date to two years (the law allowed for 10 years)
  5. If you took out an SBA Economic Injury Disaster Loan prior to today, you may apply for PPP but there are specific provisions about the interaction of these programs
  6. Businesses that receive the PPP may not be eligible for payroll tax deferral or the employee retention tax credit

More information on provisions of the Interim Final Rule can be found in this  PDF .
Upcoming Webinars
Business Loans and Grants for Resorts and Campgrounds
On  Monday, April 6, at 10:30 AM , Donna Bordeaux, CPA, of Campground Accounting invites Hospitality Minnesota members to join her on a webinar where she will discuss the differences in the two new loan programs and how they can be used in your campground or resort, the Economic Impact Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). Learn how to take advantage of grants and loan forgiveness before the funding runs out. There will also be a Q&A with their experts.
NEW! Understanding the CARES Act with Nick Swedburg, CPA, and Chris Wittich, CPA, MBT  
Join Hospitality Minnesota and Allied Members Boyum Barenscheer on Monday, April 6, at 1:00 PM for a 90-minute webinar discussing the CARES Act. Boyum Barencheer’s Nick Swedburg, CPA, QuickBooks Advanced ProAdvisor, and Chris Wittich, CPA, MBT, will discuss Practical Advice and SBA Loans, EIDL and PPL Loans, Unemployment, and Income Tax Provisions. Nick and Chris will also take Q&A.
Economic Impact Survey  
As the industry was facing the closure order, we asked you to share what you were anticipating it would mean for your business. We're now two weeks out, and we’d like to understand the real impact it is having. Your feedback is invaluable as we work to advocate for what you need most, right now. Please take a few minutes to complete this  short survey  by Tuesday, April 7.
State Launches More Robust Portal
Governor Walz urges Minnesotans to “hang tough” in the effort to slow the spread of COVID-19. He also unveiled an updated  COVID-19 portal  and gave an indication that he is weighing an extension of the stay-at-home order past April 10. Additional information may become clear when the Governor delivers his State of the State on YouTube Live on Sunday, April 5 at 7pm. 
In the News
As we moved into this next month of known closure, it's important to stay informed and look for clues about what may be ahead. Our best counsel is to consider a number of various scenarios on how these decisions will impact your business and what actions you can take now to be prepared for whatever occurs. Rest assured, we will be continuing to work with the Governor to provide input to shape his decisions and will communicate them to you as quickly as we learn them.
Sincerely,
Liz Rammer
President and CEO
Our Member Updates are generally sent to members only. In the interest of public health and the health of our industry, we encourage you to share this update widely. Additional resources can be found on our  website  and through our social media posts on   Facebook , LinkedIn  and  Twitter .