Professional and Career Topics

It's been a very odd past few weeks regarding the current reality we all face.I hope everyone is adjusting well.

With COVID-19 inevitably affecting our projects in one way or another. I thought it would be helpful to start a thread with resources on navigating the business issues that we will face in the coming months or year.

What resources are you finding helpful towards navigating your business through these rough seas?

Here are a few resources that I've found helpful in these uncharted waters:

CARES act and payroll protection:
I've been diving in deep to the CARES act. If the SBA can handle the load and it plays out as planned,  this will be crucial to many of our colleagues firms.
I've Attached a very helpful document from the US chamber of Commerce that breaks down the math quite simply.
Rubio Releases Critical Provisions for Florida in the CARES Act
What the Cares Act Will Bring to Small Businesses

Force Majure, Excusable Delays, and Compensable delay
Is Coronavirus an Excusable or Compensable Delay?
https://news.bloomberglaw.com/corporate-governance/insight-how-federal-contractors-can-prepare-for-coronavirus-disruptions


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Jesse Kamm PhD, PMP, A.M.ASCE
Senior Vice President of Construction Management
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We've been talking with many of our banker friends. Here's what they are saying regarding the CARES Act payroll protection program:

• Banks are not fully aware of how it will play out
• Small Business administration will have about 30 days to get geared up
• It will likely not be first come first serve
  • 1st tier priority - those with existing loans with the bank - such as a line of credit (would be useful if you mention you would use the funds to pay off existing LOC as liquidity ratios are still key quarterly figures for the banks)
  • 2nd tier priority - those with depository relationships with the bank
  • 3rd tier - everyone else.

I suspect that the $350Billion allotted will go quickly and a second round of stimulus will be needed.

The loan amount you would qualify for has a specific calculation based on your payroll. If the bank/SBA deemed you used the funds for the appropriate line items (payroll, leases, mortgage, utilities, etc.) then all or a portion of the loan converts to a grant.

Finally, I've talked to a lot of smaller banks that have locked down their lending for 30 days and are not extending new credit at the moment. Capacity will be a challenge as the needs will be great.

​

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Jesse Kamm PhD, PMP, A.M.ASCE
Senior Vice President of Construction Management
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Paycheck Protection application is available online now. Any small business (less than 500 employees), independent contractor, sole proprietor, church, non-profit, etc. can apply. You can begin turning in your application to an SBA-approved lender this Friday.

Link below is the application.

Good luck to all. As I mentioned before we're hearing banks are allowed to prioritize recipients based on existing relationships.

Paycheck Protection Program application


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Jesse Kamm PhD, PMP, A.M.ASCE
Senior Vice President of Construction Management
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Original Message:
Sent: 03-31-2020 10:33
From: Jesse Kamm
Subject: Resources for Business Owners : CARES Act - SBA Payroll Protection Program

We've been talking with many of our banker friends. Here's what they are saying regarding the CARES Act payroll protection program:

• Banks are not fully aware of how it will play out
• Small Business administration will have about 30 days to get geared up
• It will likely not be first come first serve
  • 1st tier priority - those with existing loans with the bank - such as a line of credit (would be useful if you mention you would use the funds to pay off existing LOC as liquidity ratios are still key quarterly figures for the banks)
  • 2nd tier priority - those with depository relationships with the bank
  • 3rd tier - everyone else.

I suspect that the $350Billion allotted will go quickly and a second round of stimulus will be needed.

The loan amount you would qualify for has a specific calculation based on your payroll. If the bank/SBA deemed you used the funds for the appropriate line items (payroll, leases, mortgage, utilities, etc.) then all or a portion of the loan converts to a grant.

Finally, I've talked to a lot of smaller banks that have locked down their lending for 30 days and are not extending new credit at the moment. Capacity will be a challenge as the needs will be great.

​

------------------------------
Jesse Kamm PhD, PMP, A.M.ASCE
Senior Vice President of Construction Management
------------------------------