Dear Business Owners:

As I’m sure you are aware, the newly-enacted federal Coronavirus Aid, Relief, and Economic Security (CARES) Act aims to ease financial concerns for small businesses. We’re seeing much being published by Federal Agencies about it, particularly the Paycheck Protection Plan (PPP). Unfortunately, at present, the hyperbole about the $350 billion plan has not been equaled by the direction given by the Federal Agencies on how banks are required to either access the funds or process any applications of our clients. This has left all financial institutions, including Baker Boyer, without a process or outlet through which we can process any PPP applications. I want to emphasize, this is NOT just at Baker Boyer, but also throughout the nation, encompassing all financial institutions everywhere. This situation is changing hourly, and we are keeping abreast of all changes coming our way.

So what can you do today? Fortunately, the Department of the Treasury has made available two documents that provide some specifics that we will need to process any PPP application.

• The PPP Application
• A PPP Fact Sheet which explains the types of expenses are allowable under the PPP plan

You can greatly assist Baker Boyer by assembling the information in the FAQ document so that we can help prepare your application as quickly as possible. Please answer all the questions on the application that you can. If you currently have a commercial loan or line of credit with Baker Boyer, follow-up communication will be coming from your Business Advisor if you haven’t already received it.

If the PPP loan requirements do not fit your specific situation and you have suffered economic damage from COVID-19, there are other programs that may be available to you, such as the Emergency Injury Disaster Loan (EIDL) Program. The EIDL program is initiated by the borrower, without an intermediary of a bank. You can apply for the EIDL loan program through the Small Business Administration website. This program can work in tandem with the PPP plan and the two are not mutually exclusive. There are additional limitations to this program and you will need to evaluate the program based on your specific situation and needs.

I do want to caution all business owners: some relief provisions of the CARES Act exclude you from other benefits of the same Act. It is very important that you speak with your CPA to determine which provision is the most advantageous for your specific situation. For instance, a payroll tax credit may be more advantageous for you rather than a forgivable PPP loan. Only your CPA or tax advisor can help you make that decision.

Finally, if you need immediate assistance and can’t wait for the delays caused by Federal Agencies, please contact your Business Advisor, if applicable, and Baker Boyer will try to assist you with financing until we have clear direction from the US Government. I ask that if you can wait, please assist us and let those who really need immediate assistance to reach out to us first. Baker Boyer wants to assist everyone we can, especially those most in need at this time.

I know you may feel frustrated with the implementation of these very important loan programs. Believe me, we here at Baker Boyer are just as frustrated with the lack of instructions for how to assist our own clients. Nevertheless, rest assured we are on top of the situation and are determined to assist our clients with or without instructions from Washington DC.

Sincerely,

Mark H. Kajita, CPA
President and CEO
Baker Boyer Bank