We understand your fear and concern regarding the current COVID-19 crisis. Our organization feels the first-hand economic and social impacts that this crisis places on our community, given how vulnerable this has left us. Please read our recent newsletters on how to thrive during this crisis. Please click here for information regarding our Economic Relief Application Assistance Program, or click here for status on the Federal Small Business Loan programs.
 
An Update from us on COVID-19

 
At HABNET, we are well aware of the impact that COVID-19 has had on our communities in Brooklyn and beyond here in New York City. Thus, we wanted to update you on the resources that we are still providing despite the difficulties that this crisis is imposing on everyone.
 
  • Our outreach is only a phone call away. While our Flatbush Avenue location is closed for safety precautions of all who work with us, we are all working remotely to ensure that you can reach us through email, telephone, or video conference at our standard business hours. Our contact information will be listed below.
 
  • We'll connect you to needed resources. As we write this message, we are coordinating with city agencies that are focused on getting small business owners and individuals the relief that they need to get past this crisis. We will be following up this message with a list of city resources that you can utilize.
 
  • Follow posted recommendations from the State. While conflicting and false information aims to sow panic and chaos within communities such as New York, we must not propagate this information while taking note of all of precautions we can take when dealing with this crisis. If you are running a business that is still open during the crisis, please make sure you are doing everything in your power to protect yourself and your customers.
 
  • Follow our social media for updates. In the past few years, we at HABNET have more than ever been adapting to the changing social landscape that technology has afforded us. We have found that people are more and more reliant on social media for information, which is why we are now promoting our social media handles for you to follow, which you can find below.
 
  • As always, we will come out stronger than before. Before the statewide "pause" that shuttered many business around the city, we remarked on how the bustling streets have grown quiet as this crisis has grown. Nevertheless, trust in that we can come out on top if we stay strong and be responsible on how we handle this crisis.
 
At HABNET, we connect current and aspiring professionals and entrepreneurs with needed resources to succeed!
 
Jackson Rockingster
President & CEO
Ext. 6
 
Daniel Heredia
Office Manager
Ext. 5
 
Telephone: (718) 360-5971
 
 
Hangouts Video Conferencing & Chat:
habnetchamberofcommerce@gmail.com
 
Small Business Guidance & Loan Resources for Success During COVID-19
 
At HABNET, we know firsthand how the COVID-19 crisis is impacting our community. Many of our members are facing unprecedented difficulty in running their businesses; whether that is through mandatory shutdowns across the city, staying out of the red with maintenance and utilities costs, or even supporting workers through this period of economic recession.
 
Thankfully, doing business in New York City affords ALL business owners and individuals the opportunity to thrive in times like these, despite the difficulties facing us. To all of our businesses, we are indebted to you for providing the services and goods all New Yorkers need.
 
The NYC Department of Small Business Services deserves a special thanks for being a longtime partner with HABNET and for the opportunities they afford to us and our members. Please see below for the services offered that may be beneficial your business during this time.
 
 
 
Employee Retention Grant Program
 
ELIGIBILITY & REQUIREMENTS
  • For businesses *including non-profits with fewer than 5 employees in total across all locations.
  • Have been in operation for at least 6 months
  • Businesses must be located within the five boroughs of New York City with one to four employees that can demonstrate at least a 25% decrease in revenue as a result of COVID-19.
  • Businesses must have no outstanding tax liens or legal judgements
  • Businesses must demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue
  • Eligible businesses will receive a grant covering up to 40% of their payroll for two months. Businesses can access up to $27,000.
 


 
 
NYC Small Business Continuity Loan Fund
 
ELIGIBILITY & REQUIREMENTS
  • For businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible to apply for zero interest loans of up to $75,000 to help ensure business continuity.
  • Businesses must be located within the five boroughs of New York City Businesses must demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue
  • Employ 99 employees or fewer in total across all locations
  • Demonstrate ability to repay the loan
  • Have no outstanding tax liens or legal judgements
 


 
 
Economic Injury Disaster Loan Program
 
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). Click here to apply.
 
Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.
 
The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
 


 
 
SBA Express Bridge Loans
 
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
 
Terms
  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan
 
Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.
 


 
 
Temporary Employment Information
 
All Workforce1 Career Centers are closed until further notice, and will be delivering services remotely. All Workforce1 Career Center events (e.g, workshops, recruitment screenings) are cancelled until further notice.
 
You can find information and answers to questions you have including access to Workforce 1 remotely, your work hours, discrimination, sick leave, training programs, and more.
 
Employers are currently hiring, however, there are guidelines and safety tips on if you should go or not and why. Always check your local resources for future updates.
 


 
Stay tuned for more emails regarding the COVID‑19 crisis!

 
 
A Thanks to Our Community
 
We'd like to take this opportunity to thank our community in Brooklyn for their involvement in our activities and events. While more than ever we are disconnected from our family, friends, and peers, we must stay strong and find new ways to connect.
As always, thank you to our elected officials to making these opportunities accessible to the public.
 
Greetings,
 
As you might have expected from our previous emails, we are taking the COVID-19 crisis extremely seriously within our community and beyond.
 
To help prevent the spread of COVID-19, we will practice social distancing. Our physical office location is closed and our event that was scheduled for April 24 of this year is postponed until further notice.
 
We will miss seeing you at our event, but we're still open online 24/7, where our outreach activities remains uninterrupted. You can also find us on our social channels to keep updated, which you can find below.
 
We are all in this together. We will continue to monitor the COVID-19 situation and will follow guidance from public health officials and government agencies, so we can continue to support our members and communities as needed.
 
For more information about COVID-19 and what you can do to keep healthy and safe, visit the New York City Department of Health or your local health practitioner's office.
 
Sincerely,
HABNET Chamber of Commerce
 
COVID-19 Update: New legislation to assist New Yorkers

 
Dear Employers and Business Owners:
 
Governor Cuomo has signed legislation to provide immediate assistance to New Yorkers affected by COVID-19. This will assist New Yorkers who have been subject to a mandatory or precautionary quarantine order and minimize the hardship they are experiencing through no fault of their own.
 
Under the new law, workers are guaranteed job protection and financial compensation while they, or their minor dependent child, are under an order of mandatory or precautionary quarantine or isolation due to COVID-19. The provisions of the quarantine legislation take effect immediately.
 
To help you understand the scope of your responsibilities, and assist you with this transition, guidance materials are available at paidfamilyleave.ny.gov/covid19.
 
There you will find:
 
  • A detailed overview of the benefits, including guidance for employers
  • Downloadable fact sheets for both employers and employees
  • COVID-19 Paid Family Leave/disability benefits request forms for your employees
  • Guidance for obtaining the precautionary or mandatory quarantine or isolation order that employees are required to submit to the insurance carrier as part of their request
  • Frequently asked questions
 
If you have questions, we are here to help. Call the Novel Coronavirus (COVID-19) Paid Leave Hotline: (844) 337-6303, or our office at (718) 360-5971 for more information.
 
Paycheck Protection Program Loans vs. Economic Injury Disaster Loans: Which is Better for Your Business?
At HABNET, we know that the news, advice of the government, and all conflicting sources of information can be confusing to navigate. In this newsletter, we break down the two main sources of economic relief offered to small business by the U.S. government, and why it is beneficial to apply for either one.
You can visit the site for the Paycheck Protection program here, or visit the site for the Economic Injury Disaster Loan here.
 
Paycheck Protection Program Loans vs. Economic Injury Disaster Loans; Which is Better for Your Business?
The Small Business Administration (SBA) is providing two major loan programs for small businesses to borrow money during the COVID-19 pandemic. They are:
  • The Paycheck Protection Program (PPP)
  • The Economic Injury Disaster Loan (EIDL)
Both the PPP and EIDL are designed to provide small businesses with relief and to help them survive the current economy.
 
What is the difference between the PPP and EIDL?
Small business borrowers can receive both a PPP loan and an EIDL, but the borrower should be aware that the two loans cannot be used for the same purpose.
If a borrower has already received an EIDL for a COVID-19 reason, but is interested in applying for a PPP loan, the borrower can also refinance the EIDL into the PPP loan.
Take note of the differences between these two loans.
PPP loan key features:
  • Up to $10 million (based on 250% of the previous year’s average monthly payroll costs)
  • Can be fully forgiven (if used to cover payroll, mortgage interest, rent, and utilities)
  • Payments deferred for 6 months (interest does accrue during deferral period)
  • 2-year term for any unforgiven amount
  • Interest rate of 1.0%
  • No personal guarantee
  • No collateral
EIDL program key features:
  • Up to $2 million (based on actual economic injury)
  • $10,000 advance that does not have to be repaid
  • Term up to 30 years (determined on a case-by-case basis)
  • Interest rate of 3.75%
  • Personal guarantee for loans greater than $200,000
  • Collateral for loans greater than $25,000
How does a business owner choose the right loan?
The first thing a business owner needs to do is to determine is how much money the borrower can receive under the PPP loan.
If the borrower is eligible to receive more than $2 million, then the PPP loan is likely the better option.
An EIDL would not cover enough payroll costs to justify choosing the EIDL over the PPP loan.
What if the borrower is only eligible to receive $2 million or less? The PPP loan is still more attractive because it can be entirely forgiven, whereas only $10,000 of the EIDL is forgiven.
Keep in mind that the SBA has released guidance that at least 75% of the PPP loan should be spent on payroll to ensure full forgiveness. Also, the PPP loan does not require a guarantee or collateral, whereas an EIDL does require a guarantee and collateral in some situations.
Moreover, in making the determination on which loan to apply for, a borrower should consider the fact that, through the PPP loan, it is effectively receiving 2.5 months’ (roughly 10-11 weeks) worth of payroll costs, but need to spend that in a period of 8 weeks to get the loan fully forgiven.
So even if its monthly payroll costs (as determined by the PPP loan) are less than its actual monthly payroll costs, the reduced period in which the borrower must spend the money could result in the PPP loan fully covering their actual payroll costs for that 8-week period.
 
What should businesses be doing right now?
Borrowers of either loan should be doing the following:
  • Determine current actual payroll costs (and projected actual payroll costs) for the next 8 weeks.
  • Determine the amount for which the borrower is eligible through the PPP loan.
  • Determine what the borrower will spend the loan money on. Options are:
  • payroll
  • rent
  • mortgage interest
  • utilities
  • something else
  • If the borrower is going to spend the money on a, b, c, and d (above) -- and mostly on payroll (a) -- then the PPP loan is probably the best choice no matter what amount it could receive under either loan program.
When is the EIDL a better choice for the borrower?
The EIDL could be the appropriate choice if a borrower only needs $10,000, because the first $10,000 does not need to be repaid.
Or perhaps the borrower needs a loan to continue a project (e.g. building/expanding a facility) that isn’t covered under the PPP’s loan forgiveness. In that case, the EIDL terms of the loan make it more attractive than the PPP loan.
If you have any remaining questions, feel free to contact us at (718) 360-5971 for more information.
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