As the ice thaws, Texans are getting a better understanding of the damages caused by last week’s winter storms. The most common damages suffered were as a result of burst pipes, falling trees and power failures. As home and business owners begin to tackle the cleanup and repairs, they are looking for answers. Some of the questions we are getting in my office are can I be reimbursed for food spoilage? Is tree removal covered? Can I get my hotel stay reimbursed? The answer to these questions can be found in your insurance policy. As this can be a complicated document, it is important to consult your insurance agent to determine what your policy does and does not cover. When deciding whether or not to file a claim, there are some important things to consider: – Make sure you check what your deductible is. Many coverage’s are subject to your deductible. – If you stayed at hotels do to power outage or no water. Many insurance will not cover you hotel stay. If you or your family had to evacuate your home due to storm damage, your policy might cover your cost. – If you do have a claim keep in mind plumbers and restoration are two to four weeks out. Get your name on as many waiting list as possible. Also insurance companies are dealing with many claims, don’t wait until they call you to get your contractors or plumber. – Take pictures of everything, before, during and after getting work done…if you think you are taking too many picture take more! Keep every receipt, and itemized list of the damages. – Keep your family safe and try to mitigate the damage.
In some situations the damage may not be covered by insurance. In these instances, there may still be help available from the federal government. If you have loss that your insurance doesn’t cover consider filing a claim with FEMA. FEMA can’t duplicate benefits for losses covered by insurance however, if insurance does not cover all of your damage, you may be eligible for federal assistance. The fastest way to apply is online at www.disasterassistance.gov.
If you don’t have internet access you can register by calling 800-621-3362 or TTY: 800- 462-7585. The phone lines operate from 8 a.m. to 10 p.m. CDT each day. Here are some Q&A from Texas Department of Insurance https://www.tdi.texas.gov/consumer/storms/winter-storm-faq.html
Citizenship requirements: A member of the household must be a citizen, non-citizen national or qualified alien of the US, including a minor child who is a citizen, non-citizen national or qualified alien of the US with a parent or guardian in the house applying on their behalf.
FEMA assistance does not have to be repaid and is not taxable income. It has no effect on Social Security, Medicaid or other social safety net programs.
Temporary housing, lodging expenses, home repair, home replacement permanent housing construction AND child care expenses, medical and dental expenses, funeral and burial expenses, damage to household items, fuel for primary heat source, clean up items, damage to essential vehicles, moving, storage and other expenses or serious needs as determined by FEMA.
Multiple disaster loans can be given since multiple declarations were declared. (Covid and Winter Disaster) There cannot be any overlap(double dipping) as far as funds go, but two separate disaster loans can be active for the two declarations.
Credit history acceptable to SBA
Show repayment ability
Collateral needed for loans over $25K
$2 million ceiling; interest rate between 1.25 and 6%; terms from 7 – 30 years
Please refer to our directory if you are in need of any companies to assist with your cleaning needs. For a list of our clients with Cleaning Companies, click HERE. Please let us know if you have any questions.
Applications for the new
$900 billion COVID-19 small business relief package begin for new borrowers the
week of Jan 11, 2021 from community financial institutions like PeopleFund in
Austin. What this means for small business owners:
If
you did not apply for a SBA Paycheck Protection Program (PPP) loan in 2020, you
could be eligible for a First Draw PPP loan under this new legislation starting
Jan 11, 2021.
If
you received a PPP loan in 2020, you could be eligible for a Second Draw PPP
Loan under the new COVID-19 relief package starting Jan 13th.
If
you did not apply for an SBA Economic Injury Disaster Loan (EIDL loan) in 2020,
there is additional money in the legislation to fund new loans.
Major rules relevant to EGBI small
business clients
The following is a quick glance at the
Interim Rules for the PPP. Please refer to the SBA for the complete regulations
or talk to your lender about your specific situation.
Small businesses
apply for PPP loans from financial institutions. Talk to your lender. If you
don’t have a lender, the SBA will roll out funds to community financial
institutions like PeopleFund, LiftFund, BCL of Texas before banks and credit
unions. Use this link to get on PeopleFund’s waiting list for a PPP loan: https://peoplefund.org/covid-19-loan-programs/
The loan is
guaranteed by the SBA. No collateral is required. No personal guarantee is
required. The borrow will not pay any fees for the loan. Lender must make a
one-time disbursement of the loan within 10 days of approval.
The full amount
of both First Draw and Second Draw PPP loans may be forgiven if used according
to law. The interest rate is 1% for 5
years for any part not forgiven.
Small businesses
are eligible if you were in operation by February 15, 2020 and have less than
500 employees. Documents that can establish your eligibility: payroll records,
payroll tax filings, Form 1099-MISC, Schedule C or F, income and expenses from
a sole proprietorship, or bank records.
Second Draw Loans
have special eligibility criteria:
Borrower for a Second Draw Loan must prove a revenue reduction of 25% or greater in any one quarter in 2020 compared to the same quarter in 2019. This provision appears to make start-up businesses ineligible for a Second Draw Loan if they did not have significant revenue in 2019.
Business has 300 or fewer employees.
Borrower must use the full amount of the First Draw Loan on eligible expenses before the second loan is disbursed.
You don’t have to
apply for forgiveness for your First Draw loan before you apply for a Second
Draw Loan. The forgiveness process for the First Draw Loan should be clarified
and simplified by the end of January 2021. You have 10 months from the end of
your loan forgiveness period (typically 24 weeks after disbursement of the
loan) to apply for forgiveness. Contact your lender to apply for forgiveness.
The FORMULA for
PPP loans is the same as last time, 2.5 times your monthly payroll costs and
may include owner’s net profit in lieu of payroll as calculated on the Schedule
C for 2019 or 2020.
Payroll costs
consist of compensation to employees (whose principal place of residence is the
United States) in the form of salary, wages, commissions, or similar
compensation; cash tips or the equivalent (based on employer records of past
tips or, in the absence of such records, a reasonable, good-faith employer
estimate of such tips); payment for vacation, parental, family, medical, or
sick leave; allowance for separation or dismissal; payment for the provision of
employee benefits consisting of group health care or group life, disability,
vision, or dental insurance, 62 including insurance premiums, and retirement;
payment of state and local taxes assessed on compensation of employees; and for
an independent contractor or sole proprietor, wages, commissions, income, or
net earnings from self-employment, or similar compensation.
USES of the loan:
At least 60% of the loan must be used for payroll costs; the remaining 40% may
be used” to support the ongoing operations” such as:
Mortgage interest payments
Rent
Utility
Interest on debts prior to Feb.15, 2020
Refinancing an SBA EIDL locan made between Jan 31, 2020 and April 3, 2020
Covered operations expenditures such as business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses
Property damange related to vandalism and looting due to public disturbances that occurred in 2020 that were not covered by insurance
As background, the Relief
legislation will be administered by the US Small Business Administration (SBA)
and included:
$284 billion for a second round of the
Paycheck Protection Program (PPP). The new relief package includes:
additional funding for new PPP loans
the ability to obtain a second PPP loan for small businesses facing significant revenue declines in any 2020 quarter compared to the same quarter in 2019
clarifications providing for the deductibility of business expenses paid with forgiven PPP loans (a material change from existing IRS guidance)
loan eligibility for Section 501(c)(6) not-for-profit organizations for the first time
$15 billion for live venues, independent movie theaters and cultural institutions
$20 million for the Economic Injury Disaster Loan Program
For
more information about the Interim Rules:
Business Loan Program
Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act
Todos Junto learning Center is a bilingual, 2Gen nonprofit that works with children and parents simultaneously, building them up together to create meaningful opportunities for both.
We were proud to have a conversation with Christina Collazo, Founder & Executive Director at Todos Juntos Learning Center her journey, challenges during COVID-19, how EGBI has assisted them through coaching and bookkeeping services, and the impact of her programming in the community. We were also joined by EGBI’s board member and supporter Yolanda Davila, Community Relations Executive at BBVA.
Interview with Christina Collazo, Founder & Executive Director at Todos Juntos Learning Center below.
Centrally located in the vibrant Saltillo Lofts, Method.Hair has assembled a team of some of Austin’s most eclectic, seasoned stylists in an effort to offer every client a fashion-forward and high quality experience. Known for its award-winning team of cut and color specialists, Method.Hair has become one of the most sought-after salons since its inception in July of 2006.
We were proud to have a conversation with Sarah Statham of Method.Hair about their entrepreneur journey, challenges during COVID-19, how EGBI has assisted them through coaching, and how she has beenfited from EGBI’s bookkeeping services. We were joined by Christopher Rios of Texas Capital Bank. With the help of Texas Capital Bank, we were able to start our bookkeeping services.
Interview with Sarah Statham of Method.Hair below.
Royal Arms Cleaning services specializes in cleaning commercial spaces for various industries, including, but not limited to offices, schools, retail, medical, industrial/manufacturing, restaurants, dealerships, religious facilities, event venues, etc. The company offers full cleaning services in the general night clean: vacuum, sweep and mop, garbage/recycling removal, kitchen/breakroom, restroom, etc. Additional services provided: day porter, deep clean; make-ready (move in/move out) service, post-construction clean up, window cleaning, carpet cleaning, water extraction, floor maintenance (strip and wax, machine scrub and recoat, and spray buff), power washing, and disinfecting (fogger). They use hospital grade disinfectant products that help to eliminate viruses, germs, and more.
We were proud to have a conversation with Anne Hardin, coowner of Royal Arms Cleaning, LLC about their entrepreneur journey, challenges during COVID-19, how EGBI has assisted them through coaching, and much more. We were also joined with our supporter Cristina Valdés, local realtor with Realty Austin.
Lucero was born and raise in North Mexico and now happily living and raising my little family in Austin, Texas. She created Lucero Photography due to her passion of digital photography. She does professional headshots, family photos, and product photography.
We were proud to have a conversation with Lucero Valle-Archuleta about her entrepreneur journey, challenges during COVID-19, how she has pivoted her business, how EGBI has assisted her through coaching, and more. We were joined by Allison Lujan with Moody Bank as moderator. Thank you ladies for the great conversation.
Interview with Lucero Valle-Archuleta of Lucero Photography below.
Maria’s Taco Xpress is a must-visit Austin icon. It’s been called eclectic and eccentric, and truly captures the best of Austin and what helps Keep Austin Weird. Deemed “South Austin’s Taco Queen” by the Austin Chronicle, owner Maria Corbalan has been satisfying taco lovers all over Austin for the past 23 years. You can often find Maria at the Taco Xpress giving out hugs, laughing, and greeting everyone warmly.
We were proud to have a conversation with Maria Corbalan about her entrepreneur journey, challenges during COVID-19, how EGBI has assisted her through coaching & bookkeeping servicces, and the delicious food served at her location. We were joined by our community supporter Felicai Peña, Public Affairs Manager with H-E-B.
Interview with Maria Corbalan of Maria’s taco Express below.
Alegria Catering & Fiestas is a company that offers a highly professional catering service in the planning, organization and preparation of corporate, social and family events. They distinguish themselves because each of their products and services are carried out with extreme dedication and professionalism. Lourdes Kaman says their goal is for you to obtain a culinary experience, in every way with an exquisite gastronomic tasting of different dishes, drinks, desserts, cafeteria and an impeccable catering service where she highlights the decoration, design and good taste, which will make it unforgettable in any event you do. The company has a great relationship with the Sustainable Food Center and local farmers so that they provide fresh food made of local and organic ingredients.
We were proud to have a conversation with Lourdes, owner of Alegria Catering & Fiestas about her entrepreneur journey, challenges during COVID-19, how EGBI has assisted during the crisis, and the delicious food they serve. Alegria Catering & Fiestas will be the provider of the Homemade Potato Salad (potato, celery, bell peppers, peas, scallions, spices) and Mexican Street Corn off the cob (Queso Fresco, goat cheese, sour cream, lime juice and spices) for our annual fundraiser, Celebrating Success. All are invited to join us on September 9th, 2020 from 12:00 PM to 1:00 PM for our virtual fundraiser.
Interview with Lourdes of Alegria Catering & Fiestas is below.
