Navigating governmentrelief programs

for US Tour Operators

By Kate Presto | www.kisallc.com

HI, I'M KATEKate Presto, CPA

President & Founder of KIS AccountingVirtual  CFO  services - accounting, consulting,taxBasically the right-hand finance partner forbusiness ownersSpecialize  in service businesses, in particulartour operators

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

YOU'RE HERE TODAY BECAUSE...

NEED TO MAKE PAYROLL

KNOW THERE'S GOVERNMENT STIMULUSAVAILABLE

DON'T KNOW HOW TO APPLY

N A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S K I S A L L C . C O M

IN THIS SESSION...Economic Injury Disaster Loan

(EIDL)

Paycheck Protection Program (PPP)

How to decide what to apply for?

Challenges

Application process

Expected next steps

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

Normal loan - will have to pay backCan receive up to a $10k advance "grant" (free money)3.75% interest rate and up to 30 year termsCapped at $2 millionEligibility: US business & less than 500 employeesWill have to prove economic injury

APPLY AT SBA.GOV

EIDL

SBA loan program available during declared disasters

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

Loan - but designed to be forgiven (more free money)if  you spend 75% on payroll, no more than 25% onrent & utilitiesMaintain or rehire staff (Feb 15th is the baseline)

1.0% interest rate, 6 months deferred, 2 year termMax  $: 2.5 * (1 month of normal payroll expenses) or$10 millionEligibility: US business & less than 500 employeesAPPLY AT A SBA-APPROVED BANK

PPPNew program designed to help employers keep

employees

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

There is no harmin applying for

both!!K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

The number of days roughly half of all small businesses cansurvive with zero revenue.

Courtesy of JP Morgan Chase

27

CHALLENGES

K I S A L L C . C O M

Money is slowly trickling out

Meager guidance from theTreasury

Banks are confused

Not sure how to calculatePPP

Application backlog

Unknowns on underwriting

Limited funds available

Not all banks are offeringPPP and most only do tocurrent customers

01 05

02 06

03 07

04 08

N A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

Go to your bank (PPP) or SBA.gov (EIDL) to apply online ASAP

Short applications asking about ownership,legal structure, tax or payroll numbers, & "goodfaith" questions and certifications

Hurry up and wait... watch your inbox.

Start gathering your documents (be on the lookout for more guidance)

Reply fast! There will be deadlines.

ApplicationProcess

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

EXPECTED NEXT STEPS

We don't really know. The PPP will probably be less burdensome because it's specifically cappedby payroll and for that purpose. We expect they'll need your payroll records. For the EIDL, it's a likea normal loan application process so you'll need financial projections, a statement on the economicinjury incurred, letters of good standing, tax returns, and probably more.

WHAT DOCUMENTS WILL THEY REQUEST?

Per the challenges referenced above, I cannot honestly say. It depends on how complex yoursituation is and numerous back-end structural problems. The goal is to get these funds into touroperators hands as fast as possible so I believe the Treasury, banks, and SBA are working very hard.

HOW LONG WILL IT TAKE TO GET THE FUNDS?

We have no guidance on this. Make sure you keep good records on how you use the funds,especially if you receive the PPP and EIDL. Within the six-month automatic deferall, we expectthat's when they'll start the forgiveness process.

HOW WILL THE PPP FORGIVENESS PROCESS WORK?

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

How can I help?TYPE YOUR QUESTIONS INTO THE CHAT BOX OR ASK ME DIRECTLY AT

KATE@KISALLC.COM

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S

Thanks forcoming!

THANKS TO ARIVAL FORHOSTING THIS WEBINAR!

K I S A L L C . C O MN A V I G A T I N G G O V E R N M E N T R E L I E F P R O G R A M S