Coronavirus (COVID-19) Impact


 In our previous letter, we outlined 2 options for obtaining money from the government as a result of the recent acts passed by Congress. Here is what we recommend:


1.     Apply for the Economic Injury Disaster Loan and Loan Advance (EIDL)

a.     Owners of small businesses are eligible to apply for an advance of up to $10,000. We are told that these funds will be directly deposited into your business bank account within 3 days of a successful application, and this loan advance will NOT have to be repaid.

b.     The application process has been streamlined, so it shouldn’t take more than 30 minutes for the initial application.

c.      From there, the SBA will determine what amount of loan you qualify for. We assume you will need to provide more detailed information about your business and your financial needs at a later time.  

d.     Here is what you need to apply for this streamlined process:

                                                    i.     Information about the business:

1.     Gross Receipts from 2/1/19-1/31/20

2.     Cost of Goods Sold from 2/1/19-1/31/20 if you separately state this on your tax return as such. Otherwise, enter $0

3.     Business Legal Name

4.     Trade Name (this is your DBA name if applicable. Otherwise, enter your business name here as well)

5.     EIN/SSN for Sole Proprietorship

6.     Organization Type (C Corp, S Corp, Partnership, LLC, etc.)

7.     Business Address

8.     Business Phone Number

9.     Business E-mail

10.  Date Business Established/Incorporated

11.  Current Ownership Dates

12.  Business Activity

13.  # of Employees as of January 31, 2020

                                                   ii.     Basic information about the owner(s) with greater than 20% ownership.

e.     Here is where you go to apply:

                                                    i.     You can apply by going to

2.     Apply for the Paycheck Protection Program

a.     The first thing you need to do is call your bank to see if they will be participating in this. A lot of banks are turning away applications for this if you are not currently banking with them.

b.     Banks can start accepting applications on April 3, 2020.

c.      The maximum loan amount is 2.5 times your monthly payroll, up to $10 million, with an interest rate of 4%

d.     A portion of the loan CAN BE FORGIVEN.   Subject to certain restrictions, the portion of the loan eligible for forgiveness can include payments made during an 8 week period following your loan origination (which we interpret to mean funding) for the following:

                                                    i.     Payroll

                                                   ii.     Benefits (i.e. health and dental premiums)

                                                 iii.     Interest payments on mortgages

                                                 iv.     Rent payments

                                                   v.     Utility payments

e.     You will need to submit a request to the lender that is servicing the loan for forgiveness. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as payments for the above- mentioned items.

f.       These loans will be unsecured loans that DO NOT require personal guarantees

g.     You may be able to defer payments up to 6 months

h.     Gather the documents below. Please keep in mind that the items listed are not meant to be a complete list, but a good jumping off point. The required documents that will be needed are constantly changing. PLEASE CONSULT WITH YOUR BANKER WITH WHAT ITEMS THEY ARE REQUESTING.

                                                    i.     2019 payroll information including:

1.     IRS Form 941 for all four quarters of your 2019 payroll

2.     Health insurance premium information for 2019

3.     Retirement Plan contributions made in 2019

4.     A copy of a payroll summary showing total pay, taxes, etc. for all of 2019 and year to date for 2020

                                                   ii.     Copies of business property lease and/or mortgage statements

                                                 iii.     SBA Paycheck Protection Application Form. This can be found here:

                                                 iv.     2019 Utility bill statements

                                                   v.     General liability insurance certificate

                                                 vi.     Business Financial Statements-interim 2020 Financial Statements as well as a full year 2019 Financial Statement

                                                vii.     Business Tax Returns-Last 3 years

                                              viii.     Current organizational documents-Bylaws, articles, and operating agreements

                                                 ix.     COVID-19 impact statement

                                                   x.     8-week forecast of payroll, rent or mortgage interest and utilities

i.       BE PATIENT. The banks are being bombarded with loan requests, so this will take some time to sort out. As we mentioned in our previous communications, please continue to preserve your cash as much as possible. We estimate that the loan proceeds will not be available for at least 2, if not 4 weeks.

j.       We at PBM can assist with SOME of the items being requested. Please be patient with us as well as we are trying our hardest to help put you in the best position to take advantage of these loans as quickly as possible. We are more than happy to assist in doing this.


We estimate this will take PBM 2-3 hours to pull together the information that will be requested. Please contact your banker to determine what is needed before we start assembling our package of information, so time isn’t wasted. PBM will be billing at our regular hourly rate for any work assembling this information. If you have any questions, please contact your consultant at PBM.


To request our assistance with this, please respond to this e-mail or e-mail us directly at This email address is being protected from spambots. You need JavaScript enabled to view it.. We will be working in the order in which requests are received. Thank you for your understanding.


Here are some reference materials about the loans available:

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