The grant program aims to make restaurants whole for revenue losses incurred during the pandemic. The SBA has a series of calculations to determine how much each business should receive. 

The SBA began accepting applications on May 3. In the first week, the organization dispersed more than $2 billion in grants to 16,000 businesses. If you need assistance, it’s important to start the application process sooner rather than later to ensure you receive the funding. 

Note: The SBA will prioritize funding for women, veteran, and socially or economically disadvantaged business owners for the first 21 days the program is open. However, the organization encourages everyone to apply as soon as possible. After the first 21 days, eligible applicants will receive funding on a first-come, first-serve basis, regardless of when the SBA received the application.

Who is eligible to receive a Restaurant Revitalization Fund grant? 

Most independent restaurants in the US that experienced a loss in revenue in 2020 compared to their revenue in 2019 are eligible to apply for the grant program. The American Rescue Plan Act specifically lists the following types of food establishments that are considered eligible applicants: 

• Restaurants
• Food stands, trucks, and carts
• Catering companies
• Bars, lounges, taverns, inns, and saloons
• Breweries, wineries, and taprooms
• Any licensed alcohol producer where the public may taste or purchase products on location

Who is not eligible? 

Restaurants and bars that are either owned by a publicly-traded company or by the government are not eligible for the funding. If you are a restaurant owner with more than 20 locations, you are also not eligible.

However, if you own a franchise of a private restaurant group that has more than 20 locations, but you do not control them all, you are likely an eligible candidate. 

How do I apply for the Restaurant Revitalization Fund? 

You have two options to submit your application to the SBA. The first option is a new process that allows you to easily apply through your point-of-sale (POS) provider. Participating providers include Clover, NCR Corporation, Square, and Toast. If you use a POS partner to apply, you will receive assistance with documentation and an accelerated process. 

You can also apply directly to the SBA through their application portal. 

Regardless of the avenue you take to apply, you’ll need to collect information beforehand. If your establishment was open before 2020, you will need your: 

• Employer Identification Number, Social Security Number, or Individual Taxpayer Identification Number
• An address for yourself and anyone that owns more than 20% of your business

You will also need to submit: 

• PPP Loan amount you’ve received
• List of affiliated businesses, meaning any businesses you have an ownership interest of at least 50% 
• If you filed for bankruptcy: proof of your approved reorganization plan 
• Gross receipts documentation including business tax returns, IRS Forms 1040 Schedule C or F, partnership IRS Form 1065, financial statements like income or profit and loss statements, and IRS Form 1099-K, etc. 

How much can I receive from the Restaurant Revitalization Fund? 

The maximum grant size for businesses in operation for all of 2019 and 2020 is $5 million per business and $10 million per restaurant group. The minimum amount that will be dispersed is $1,000. 

The SBA will calculate grant amounts based on when you opened your business. Rough guidelines of what you can expect are:

If your business opened before 2019
(Dec. 31 2018 or earlier) 

Gather the following information if your establishment was in operation before 2019: 

• 2019 gross receipts
• 2020 gross receipts
• Any PPP loan amounts you received 

Subtract your 2020 gross receipts from your 2019 gross receipts. Then, subtract any PPP funding you received. Your expected grant should equal approximately that final amount.

If your business opened in 2019
(Jan. 1 2019-Dec. 31 2019) 

Gather the following information if you opened your business in 2019: 

• Total months of operation in 2019
• 2019 gross receipts
• 2020 gross receipts
• Any PPP loan amounts you received

Since you don’t have a full 12 months of 2019 gross receipts, you can calculate your average monthly gross receipts. Divide your 2019 gross receipts by the number of months you were open. Then, multiply that number by 12 to get your “annualized” gross receipts. 

Subtract your 2020 gross receipts from your 2019 annualized gross receipts, and subtract any PPP loan amounts from that number.  Your expected grant should equal approximately that final amount.

If your business opened after 2019
(Jan. 1 2020 or later)

If you opened after 2019, you have no prior year of gross receipts to compare your 2020 amount to. You’ll need to calculate your eligible expenses and gross receipts since you opened and prove that you operated at a loss to be eligible. 

If you need an idea of what the SBA considers eligible expenses, take a look at the list in the below section. 

To calculate your grant amount, subtract your gross receipts from the amount you spent on eligible expenses from February 15, 2020 and March 11, 2021. Then, subtract any PPP funds you received. Your expected grant should equal approximately that final amount.

What can I use the Restaurant Revitalization Fund grant for? 

You are only allowed to use the grant on specific expenses: 

• Payroll costs
• Mortgage and rent payments
• Utilities
• Maintenance, including outdoor dining modifications
• Supplies, including PPE and cleaning materials
• Food and beverage inventory
• Covered supplier costs
• Operational expenses
• Paid sick leave

You must incur the expenses paid for with the grant between February 15, 2020, to December 31, 2021.

It’s typical for government programs to change as time goes on, so keep an eye on the SBA’s Restaurant Revitalization Fund site for updates. We will also update you on our blog should any changes be made.

The post The SBA Restaurant Revitalization Fund: what to know appeared first on Homebase.

The $1.9 trillion relief plan from the federal government includes benefits for individuals in the form of increased unemployment compensation funds, $1,400 economic impact payments, increased child tax credits, earned income tax credits, and more. 

The bill also includes several provisions aimed at helping small businesses, with an emphasis on relief for restaurants and bars that have been severely impacted by the devastating effects of the COVID-19 pandemic. 

Note: The government has mentioned that there may be further negotiations and additions to what’s covered by the new legislation. We will update this article as more information becomes available. 

Restaurant Revitalization Fund 

One of the biggest small business resources in the American Rescue Act is the establishment of the $25 billion Restaurant Revitalization Fund, which provides grants to make up for a restaurant’s pandemic-related revenue losses of up to $10 million, limiting the grant per physical location to $5 million.  

Restaurants may use the funding for:

• Payroll costs 
• Mortgage and rent payments 
• Utilities and maintenance expenses
• Operational expenses 
• Paid sick leave 
• Supplies 

The fund, which will be administered by the SBA, allocates $5 billion to restaurants whose gross receipts in 2019 were less than $500,000. During the first 21 days of the program, the organization will prioritize women- and veteran-owned restaurants, as well as those that are owned by socially and economically disadvantaged individuals. Read the SBA’s clarification on which businesses fall under these categories. 

Public and government-managed businesses, entities, and affiliates with more than 20 locations are not qualified to receive the grant. Businesses also are not eligible to receive the grant if they applied for a shuttered venue operator grant. 

The SBA is planning on accepting applications in the next few weeks. We’ll update this article with a link to the application when it becomes available. 

Shuttered venue operator grants

Funding for shuttered venue operators grants, which are also administered by the SBA, was increased by $1.5 billion. The grants are meant to help the following businesses who had at least a 25% decrease in revenue during any quarter of 2020: 

• Live venue operators
• Theatrical producers
• Live performing arts organizations
• Motion picture theater (movie theater) operators
• Museum operators
• Talent representatives 

Under the Consolidated Appropriations Act, businesses that received a PPP loan after December 27, 2020 were not eligible to apply for the grant. However, the American Rescue Act removed that restriction.

Instead, the PPP loan amount a business received after December 27 will be deducted from the amount that can be received in shutter venue operators grant funding. 

Tax credits

Paid family and medical leave

The American Rescue Plan Act extends and increases the paid leave tax credits that were made available to employers under the CARES Act and the Consolidated Appropriations Act. 

Between April 1, 2021, and September 30, 2021, employers who voluntarily offer paid leave to eligible team members will receive a tax credit. The limit on the credit was increased from $10,000 to $12,000 per employee. Providing leave is not required. 

The tax credits are available to employers who provide paid sick and family leave for employees who are:

• Getting the COVID-19 vaccine
• Recovering from any injury, disability, or condition related to the vaccine
• Awaiting the results of a COVID-19 test or diagnosis 

The new law added a non-discrimination clause, meaning employers who discriminate in favor of highly compensated employees, full-time employees, or employees with tenure when providing the leave will not receive the credit. 

Employee retention 

The Employee Retention Credit was originally set to expire on July 1, 2021 under the Consolidated Appropriations Act, but the American Rescue Act extended the provision availability to December 31, 2021. 

The Employee Retention Credit is meant to encourage employers to keep team members on their payroll even if they aren’t working due to COVID-19 during the covered period. If a business does keep employees on payroll, it can claim a credit for paying qualified wages to the team. 

Businesses that saw a 50% decrease in gross receipts are eligible for a 50% refundable payroll tax credit against the employer portion of Medicare tax on wages paid up to $10,000 during the pandemic period. 

Businesses with more than 100 employees can claim the credit for team members who are retained but not currently working. For businesses with 100 or fewer employees, the credit can be claimed for all employees. The new relief plan also extends eligibility to new startups that were established after February 15, 2020, and have annual gross receipts of up to $1 million. 

The new rules also include an added provision for “severely financially distressed employers.” If a business experienced a gross receipts reduction of more than 90% when compared to the same quarter in 2019, all wages that were paid to employees can be considered qualified wages, regardless of how many full-time employees there are. 

Visit the IRS’ page on the employee retention credit to learn more about how to claim it. 

Additional loan program funding

The American Rescue Act added resources to certain loan funds to provide further assistance to more business owners. 

Paycheck Protection Program

The new act added $7.25 billion to the Paycheck Protection Program (PPP), which provides loans to small businesses that can be fully refundable as long as they are used correctly. 

While the American Rescue Act did not extend the deadline to apply for the PPP from its current date of March 31, 2021, the legislation did decrease the eligibility standards from what was previously stipulated in the PPP guidelines for nonprofit organizations, digital media companies, sole proprietors, independent contractors, and people who are self-employed. 

Learn more about the program in our articles about how to apply for the PPP and what it takes to receive full forgiveness. 

Economic Injury Disaster Loan 

The government also increased funding for the Economic Injury Disaster Loan (EIDL) by $15 billion. The program is meant to provide aid to businesses that are experiencing loss of revenue due to COVID-19. 

The SBA administers the loan and provides enough funding for businesses to cover financial obligations and operating expenses that they otherwise would have been able to pay for under normal circumstances. 

The organization is targeting ⅓ of the funding to businesses that: 

• Have fewer than 10 employees
• Suffered a revenue loss of greater than 50% compared to the same quarter last year
• Are located in low-income areas

Learn more in our article about how to receive an EIDL.

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According to experts, employers will play a large role in ensuring enough people get the coronavirus vaccine.

“We have a long history of vaccine requirements in the workplace. It’s a health and safety rule, just like wearing gloves,” Dorit Reiss, law professor at the University of California Hastings, told NBC News. “Employers have a baseline duty to create a safe environment for their employees and patrons.”

However, many businesses are concerned that if they mandate vaccines, they could potentially be violating the Americans with Disabilities Act (ADA). Thankfully we now have guidance from the federal Equal Employment Opportunity Commission.

Can employers implement mandatory COVID-19 vaccine policies?

The simple answer is yes, according to guidelines released by the federal Equal Employment Opportunity Commission (EEOC). The organization updated its publication, “What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws,” to include a section on how requiring employees to get vaccinated interacts with the ADA and other laws. 

In the new guidance, the EEOC says that employers can make the vaccine a required condition of continued employment in the work environment, with a few exceptions. 

Employer-administered vaccines

If you plan to administer the vaccine yourself or through a third party, the government requires pre-vaccination medical screenings. Since these screening questions may reveal information about an employee’s disability, they trigger ADA protections. So if you plan on carrying out the required vaccines this way, you’ll have to prove that the questions are “job-related and consistent with business necessity.” 

To make sure you’re staying compliant with ADA rules, you’ll need to make sure you have “a reasonable belief, based on objective evidence, that an employee who does not answer the questions and, therefore, does not receive a vaccination, will pose a direct threat to the health or safety of her or himself or others.”

It’s best to use a public vaccine provider like a pharmacy or other type of third-party health care service that you do not have on contract to avoid any ADA risks. 

Employees with disabilities 

If you have an employee who can’t receive the vaccine due to a disability, the EEOC says you must determine if the unvaccinated employee would be a threat to the workplace through a  “significant risk of substantial harm” to the health of others that can’t be dealt with through “reasonable accommodation.” 

To determine the risk, consider these 4 factors: 

• Duration of the risk posed by the employee 
• Nature and severity of the potential harm caused 
• The likelihood that the potential harm will occur 
• The imminence of the potential harm

After you determine the risk of an unvaccinated employee in your workplace, you must then try to figure out a “reasonable accommodation” that allows the employee to be onsite. 

If you can’t come up with a reasonable accommodation that wouldn’t cause undue hardship, you can exclude the employee from the workplace. But this doesn’t mean that you can automatically terminate them. 

Can the employee work remotely? Do they have available leave they can take? Make sure to check all the options the employee has before deciding to terminate them if they pose a risk to the workplace. 

Employees with religious objections 

If an employee’s “sincerely held religious beliefs” prevent them from getting the COVID-19 vaccine, the same rules apply as with employees with disabilities. You must determine the risk, as well as if there are any reasonable accommodations that can be made before terminating the employee. 

According to the EEOC, you should “ordinarily assume” that if an employee requests an accommodation based on religion, it is based on a sincerely held belief. However, if you have an “objective basis” for questioning the sincerity, the organization says you “would be justified in requesting additional supporting information.”

Other COVID-19 vaccine policy considerations

While you are allowed to require employees to receive the COVID-19 vaccine, a recent survey showed that 13% of Americans do not plan on getting vaccinated. This means you could face pushback from employees who don’t want to follow your policy, with no religious or medical reason. 

This means you could risk losing employees over your required vaccine policy. If you’re not prepared to recruit and hire new team members, you might want to consider approaching the issue with a “wait and see” strategy. 

Communicate with your employees that you strongly encourage them to receive the vaccine as the government makes it more generally available. You might find that you won’t need a business-wide vaccine mandate. 

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Streamlining restaurant operations and implementing COVID-19 cleaning and safety guidelines  isn’t easy to manage—especially with a small staff. Since operational mistakes are stressful and costly, wouldn’t you like to avoid them? 

The best way forward is to create a plan of action. With a solid strategy in place, you’ll be able to communicate your expectations to your team easily and efficiently. From there your restaurant operations will become scalable, allowing your business to grow.

Take a look at our cheat sheet and tailor it to fit your and your restaurant’s needs. 

1. Define your goals

Your team’s heath and safety is no doubt your biggest goal right now. Use OSHA’s guidelines on how to control and prevalent the spread of COVID-19 to create your goal plan. 

Operational goals that are well defined and communicated will help you plan in an effective way. You’ll also know when your objectives are reached. To get started, consider ways your team can help out individually to implement an efficient daily cleaning method and keep customers safe. 

2. Take notes

Once you have solid goals in place,  write them down and establish a written protocol. You’ll need objectives in mind to start identifying your processes. Here is where you want to note the operational process down step-by-step. 

The most important factor is to set up a clear plan for any suspected or confirmed cases of COVID-19. Create a written protocol and give it to your entire team to ensure they are up to speed on how they are expected to contribute to a safe workplace. 

Your plan should include: 

• Sick employees stay home 
• A notification procedure for symptomatic employees
• A point of contact for COVID-related issues
• Remedial sanitization measures for impacted employees
• Triggering event identifications for quarantine procedure
• Quarantine duration and conditions for return
• Social distancing requirements
• Required PPE for employees and customers 

3. Think ahead

Your goals are written down, and your plan is. But don’t stop there. Now you need to get proactive about your ideas and put them into play. 

Think through possible speed bumps, such as newly implemented local restrictions on customer count and social distancing, that may slow your new operational plans. An employee may begin to exhibit symptoms, leaving your assembly line down one person for quite some time. 

One efficient solution to combat this challenge would be to double up responsibilities among your healthy team. It’s emergency situations likee this that you need to anticipate and work flexible options into your operational strategy, especially in these rapidly changing times. 

Pro tip: Use a flow chart to visualize complex processes. Many of your new operational steps require constant communication, like whose cleaning what? Are your tables properly distanced?  Flowcharting your operational plan gives everyone a chance to see what’s expected and when they will need to communicated with different team members.  

4. Test Your new operations flow

Now it’s time to put your new operational flow to work. Pay attention to how your employees react and pick up their new cleaning, social distancing, and sanitizing routines. It’s very important to request feedback on your plans so they can point out the roadblocks you may have missed from the previous step. 

Asking for team feedback also shows that you value their opinions as a manager. And finally, getting others’ opinions ensures everyone is clear on what is expected of them moving forward. 

5. Make it official

With your new plan in place, you’ll have happy customers leaving safe, healthy, and satisfied with their experience. Make it official with an operational manual to ensure long-term success and give your team and customers peace of mind that you are staying in line with all necessary precautions and regulations. 

Insert the service objectives and flow chart from above as team member guidelines. It may feel a little unnecessary to build an operational manual for a small business, but with the plethora of new tactics to remember, it can be easy to forget one or two items. This could lead to unhappy—or even worse, unhealthy—customers. And that is a costly outcome you should want to avoid. 

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It can be difficult for small businesses to navigate the ins and outs of how to achieve total Paycheck Protection Program forgiveness, but the new bill aims to make the application process easier.

Note: This article does not cover how to apply for funding, but instead how to apply for PPP forgiveness. 

Changes & Updates to PPP Loan Forgiveness

2024

As of 2024, a significant portion of the Paycheck Protection Program (PPP) loans, specifically 96%, had been forgiven. This accounts for the bulk of the funds distributed under the PPP. Despite this high rate of forgiveness, a small number of companies, around 73,000 out of 11.5 million, chose to repay their loans, potentially to avoid government audits. The U.S. Small Business Administration (SBA) initiated a 60-day period starting January 1, 2024, primarily targeting PPP borrowers with loans under $100,000. The aim was to inform these businesses about their loan status and the opportunities for loan forgiveness.

2023

The PPP Loan Forgiveness Program continued to assist eligible borrowers. The program’s design was to forgive loans either partially or fully, contingent upon the borrower’s adherence to the criteria. These criteria included the utilization of funds for approved expenses such as payroll, specific protective gear, supplier costs, employer-provided group insurance premiums, property damage, and inventory. However, it’s essential to note that any forgiveness granted on the basis of inaccurate information was taxable by the IRS. The SBA retained the authority to review and audit PPP loan and forgiveness applications for a period of up to six years post-forgiveness for loans exceeding $150,000. Consequently, it was imperative for PPP borrowers to keep all relevant documentation for potential audits during this period.

2022

In 2022, the U.S. Small Business Administration (SBA) made it clear that new applications for the Paycheck Protection Program (PPP) were no longer being accepted. However, businesses that had received PPP loans in 2020 and 2021 were still eligible for loan forgiveness. To be considered for this forgiveness, borrowers needed to allocate a minimum of 60% of the loan amount to payroll expenses within a period ranging from 8 to 24 weeks following the disbursement of the loan.

The SBA implemented an automated review process for all PPP loans. Additionally, loans amounting to $2 million or more were subject to a manual review. As of October 2, 2022, a considerable number of PPP loans, totaling 10.5 million and amounting to $755 billion, had been forgiven.

It is important to note that not every business that obtained a PPP loan was able to meet these forgiveness criteria. Those businesses with a remaining loan balance were required to repay the amount owed by or on the loan’s maturity date. This repayment obligation applied to any part of the loan that did not qualify for forgiveness under the PPP guidelines.

2021

In 2021, the Paycheck Protection Program (PPP) introduced several updates to its loan forgiveness process. The PPP officially concluded on May 31, 2021, yet businesses that had previously received loans continued to be eligible for forgiveness. After August 4, 2021, borrowers whose lenders were part of the direct forgiveness scheme were able to submit their applications for loan forgiveness through the SBA’s online portal.

As of November 2021, data indicated that approximately 97% of the PPP loan funds were allocated to payroll expenses. Businesses that utilized at least 60% of their PPP loan for payroll expenses within a timeframe of 8 to 24 weeks from the loan’s receipt were eligible to apply for loan forgiveness. This provision was applicable to businesses that received PPP loans in both 2020 and 2021.

Furthermore, the program mandated a manual review for all PPP loans that amounted to $2 million or more. It’s important to note, however, that not all businesses that obtained PPP loans were able to meet the specified conditions for loan forgiveness. Those businesses were required to repay any portion of their PPP loan that did not qualify for forgiveness under the established guidelines.

2020

On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 into law. In the bill are guidelines for a second round of the Paycheck Protection Program Loan Forgiveness. This article has been updated with new PPP forgiveness rules. You can also learn everything you need to know about the PPP updates in our article.

A Brief Overview of PPP Loan Forgiveness Rules 

The amount of funding you either already received or are waiting to receive is equal to 2.5 times your average monthly payroll cost for 2019 or $10 million, whichever is lower. The funding you get from the loan can be used for:

• Payroll: Payroll costs include wages, salaries, PTO, and health benefits.
• Mortgage interest: You can use the PPP funds to pay for mortgage interest as long as you signed your mortgage before Feb. 15, 2020.
• Rent: As long as you signed your lease before Feb. 15, 2020, you can pay rent with the loan.
• Utilities: If your services began before Feb. 15, 2020, you can also pay utilities with the funding.

What does the “Utilities” category include? According to the CARES Act, you can spend the funding on electricity, gas, water, transportation, phone services, or internet access. If you use your PPP loan for one of the spending buckets mentioned above, that money becomes eligible for forgiveness.

Whose Eligible for PPP Forgiveness?

With the new bill comes a new rule stipulating that if you received a loan of $50,000 or less, you will be eligible for full forgiveness, even if you reduced your FTE (full-time equivalent) employee count or reduced employee wages or salaries.

In other words, as long as you meet the other forgiveness criteria, you can skip the complicated calculations around FTE employees and payroll expenses and still meet the eligibility criteria for full forgiveness.

Eligible Expenses Coverage Period

When you apply for your loan, you can choose a term of 8-24 week coverage period.

Your coverage period starts the day you received your first loan payment—not necessarily the day you signed your loan agreement. Don’t worry about adjusting your payroll schedule to fit this window. Any payroll incurred during the coverage period is an eligible expense.

PPP Forgiveness Payroll Percentage

You have to use at least 60% of the funding on payroll costs in order to get the most out of PPP loan forgiveness. You can still receive some forgiveness if you don’t follow this rule, but the amount will reduce in proportion to the percentage you did spend on payroll.

This new percentage is a result of the changes to PPP loan forgiveness laid out in the Paycheck Protection Program Flexibility Act. Initially, small business owners had to spend 75% of the funding on the payroll.

Note: You can’t include payments to independent contractors in this percentage.

How to Apply for PPP Loan Forgiveness

The first step to applying for PPP loan forgiveness is to download the application. If this is your first time going through the PPP forgiveness process, visit sba.gov to download this form. If you are taking a second PPP loan, you’ll need to download this form.

Fill out the form yourself after your coverage period is up and then submit it to your lender for processing.

Note: If you plan on restoring your staff or wage level, don’t apply for forgiveness until you’ve already done so.

You’ll need to collect all required documents to complete the PPP loan forgiveness application:

• Verification of the number of full-time employees on the payroll, as well as their wage rates for the period used to show you met the staff and wage level requirements. These can include payroll reports, payroll tax filings, or supporting documentation that verifies benefit contributions.
• Documents that verify your mortgage, utility, or rent payments. These can be in the form of payment receipts and account statements.

Your lender must respond with a forgiveness determination within 60 days of receiving your PPP forgiveness application form. After the SBA determines your loan forgiveness amount, your loan payments will begin. If you follow all the rules and regulations that come with your PPP loan, you won’t have to pay.

PPP Loan Forgiveness FAQs

Who Reviews my PPP Loan Application?

PPP loan review can be conducted by SBA at their discretion. It takes them 36 hours to review express applications and between 30-and 60 days for non-urgent applications.

What Can PPP Loan Proceeds be Used For?

Eligible borrowers can use SBA PPP loan proceeds to:

• Cover payroll for any number of employees
• Mortgage interest
• Business rent
• Utilities

Can I Apply for a PPP Loan Forgiveness Twice?

Yes, some businesses who have already received the first draw PPP are eligible for a second draw PPP loan. Be sure to double-check the requirements and check the Second Draw PPP Loan box on the SBA form 3508s.

When Can I Apply for PPP Loan Forgiveness?

The PPP loan forgiveness rule states that borrowers are required to either incur or pay the loan within a 24-week period (which begins on the first day of loan disbursement).

The post PPP Loan Forgiveness: Everything You Need to Know appeared first on Homebase.

While PPP funding was available to small businesses when it was first launched through the CARES Act, many businesses were left in the dark due to complications the first bill presented. 

The new legislation aims to make the process easier for businesses who wish to receive the funding for the first time, as well as those who already receive a PPP loan but are eligible to get more funding in this second round. 

Note: The deadline to apply for this round of PPP funding is March 31, 2021.

What is the Paycheck Protection Program? 

The PPP is a program that allows certain lenders to administer SBA loans to small businesses that have been impacted by COVID-19. Businesses can use the loan amount for a chosen covered period of 8 to 24 weeks after the loan request is fulfilled. 

The funding can be used for payroll costs and other operational expenses, and the new bill expanded its use to include group health insurance benefits. These include life insurance, disability benefits, vision, and dental insurance. 

First-draw loan limitations

If you did not receive PPP funding during the first round, the maximum amount you can receive is the lesser of: 

• 2.5 times the average monthly payroll costs and healthcare costs
• $10 million

Second-draw loan limitations

If you already received PPP funding, you’ll face several more limitations than businesses that are receiving a loan for the first time. 

Second-draw applicants can receive the lesser of: 

• 2.5 times your average monthly payroll costs and healthcare costs in the calendar year or the year before you receive your loan. 
• If your business is classified under Code 72 by the North American Industry Classification System, you can receive 3.5 times the average monthly payroll costs and healthcare costs in the calendar year or in the year before you receive your loan. You can find a full list of Code 72 businesses, which fall under the hospitality and entertainment industries, here. 

• $2 million

Who is eligible for PPP Second Draw? 

Eligibility requirements vary depending on whether or not you received funding in the first round. However, your business must fall into one of the following buckets to be eligible for first- or second-round draws: 

• Sole proprietorships
• Self-employed individuals
• Independent contractors 
• Seasonal employers who operate no more than 7 months within a year or do not have more than a third of gross receipts within a 6-month period
• Certain non-profit organizations
• Faith-based organizations with 150 or fewer employees
• Housing cooperatives with less than 300 people

You are not eligible if your business falls under one of the following categories: 

• Lobbying organizations or organizations involved in political activities
• Financial services
• Cannabis businesses 
• Businesses that employ household workers like housekeepers or nannies
• Businesses that have defaulted on SBA or federal loans
• Entities that have an owner with at least 20% ownership interest who is currently incarcerated, on probation or parole, or facing indictment. 
• Businesses that have an owner who has been convicted of a felony in the last 5 years

First-draw PPP loan eligibility requirements 

In order to be eligible for first-draw PPP funding—meaning you did not take any funding during the first round of the program, you must have less than 500 full-time, seasonal, and part-time employees. 

Your business must also have been in operation since February 15, 2020, and it must currently be operational. 

Second-draw PPP loan eligibility requirements

Eligibility requirements get a little more specific if you are trying to get a second PPP loan. Instead of 500, you must have less than 300 full-time, seasonal, and part-time employees. And if you have more than one location, there may not be more than 300 employees at each location. 

Your business must also have been operational since February 15, 2020, and is currently operational today. 

You’ll need to be able to prove that you lost at least 25% in revenue in the first, second, or third quarter of 2020 when you compare it to the same quarter in 2019. You’ll also need to show that your original PPP loan has run out, or that you plan to use the entire loan. 

What are the Paycheck Protection Program loan terms? 

Regardless of whether or not you already received a PPP loan or if this is your first time, all loans have a fixed interest rate of 1%. According to the new bill, the rate is non-compounding and non-adjustable for everyone. 

Your PPP lender may not: 

• Charge annual or guaranteed fee
• Charge a prepayment penalty
• Request some type of collateral or personal guarantee

The deferral period lasts until it is determined what your PPP loan forgiveness amount will be. In other words, you will not be required to make any payments until you know how much of your funding will be forgiven. However, if you fail to submit a loan forgiveness application form, you’ll need to begin making payments within 10 months of the last day of your covered period. 

The maturity of a PPP loan is five years.

What do I need to know about the covered period? 

You must use the funds during your covered period in order to be eligible for any type of forgiveness. It’s also important to note that if you have already received funding, your covered period remains the same for that loan. 

All loan applicants, regardless of first- or second-draw status, can choose a covered period of from 8 to 24 weeks after you receive your loan. 

During this time, it’s very important that you spend the funding only on covered expenses. Take a look at this breakdown of what’s covered for each category of borrower. 

You must spend at least 60% of the funds on: 

• Employee payroll costs
• Group health insurance payments
• Dental and vision plans
• Disability benefits
• Life insurance
• Owner compensation costs

Note: If you borrowed money during PPP Round 1 and your loan has been forgiven, you may not use the funds to cover disability benefits or life insurance. 

All loan recipients can spend 40% or less of the loan on: 

• Employee paid time off and leave 
• Pension and retirement plans 
• Federal income and FICA taxes
• State unemployment insurance
• Rent, utilities, and mortgage interest 

First-draw borrowers of round 2, second-draw, and first-draw recipients whose loans have not yet been forgiven may also spend 40% or less of the loan on: 

• Software or cloud services that are needed for business operations
• Repairs of property damage, vandalism, or looting due to unrest that occurred in 2020
• Supplier costs essential to the operations of the business 
• COVID-19 related PPE, business equipment, or other measures that help the business comply with federal and state guidelines. 

How do I apply? 

You can apply for the Paycheck Protection Program through any lender approved by the SBA beginning January 11. For many businesses, you’ll be able to work with your bank. For businesses whose banks are not processing PPP loans, you’ll need to find another lender.

The SBA provides a list of all approved lenders. Additionally, Homebase is working with a number of partners to help you access the PPP Second Draw funds. We will provide a link to allow you to start your PPP application as soon as it becomes available. We will also monitor the developments of the program and share it with you so that you’re always informed. 

What if I don’t qualify for the Paycheck Protection Program? 

You may have other options thanks to the new bill if you don’t qualify for PPP funding. The Consolidated Appropriations Act, 2021 provided more capital into the following funding programs: 

• Economic Injury Disaster Loan (EIDL)
• Community Development Financial Institutions (CDFI) and Minority Depository Institutions (MDI)
• Microloans
• Grants for venues and theaters
• SBA 7(a) loans

You can also check out our financial resource center to learn more about available loans and grants in your area.

Remember, this is not official legal advice. If you have questions or concerns about the guidelines of the PPP, consult an attorney. 

The post Paycheck Protection Program Second Draw: what to know appeared first on Homebase.

But what exactly will the 2020 holiday shopping season look like? And how should you tailor your strategies to fit the mold? 

According to a Google survey, half of US shoppers said the pandemic will affect their shopping behavior this year—and more than a third say they don’t plan to do any in-store Black Friday shopping at all. 

However, not all the percentages are disheartening. A whopping 66% of shoppers said they plan to shop more at local small businesses. Seventy-five percent said they would place more online orders than they normally would. And 70% said they will shop early this year to avoid large crowds. 

Clearly, holiday shopping sales are expected to be unique. So your strategy should be as well. We looked at what a few big box companies, as well as local businesses, are changing up this year to provide helpful tips on how to adapt and make the most of this unique holiday season. 

Start your holiday shopping season early 

Big businesses and department stores are listening to the numbers and ramping up the 2020 holiday shopping season earlier than normal. Amazon recently announced the early release of Black Friday deals—possibly even weeks ahead of Thanksgiving day.

But they aren’t alone in their early start date. Home Depot also announced that their holiday sales will begin on November 8, and Target, Walmart, and Best Buy started as early as October 13. 

Furthermore, the Centers for Disease Control issued guidance on holiday shopping and classified “shopping at crowded stores just before, on or after Thanksgiving” as a higher-risk activity to avoid during the season. 

Keep things safe and give customers more time to avoid crowds while taking part in your special sales by launching them sooner than other years. Let your existing customers know about the earlier start dates on social media, on your website, and with signage at your location. 

Keep providing alternative “shoptions”

You’ve likely spent this year trying to find new ways to keep your revenue stream flowing amidst business closures and social distancing regulations. If you’ve implemented alternative shopping options (or “shoptions”) like curbside pickup or online events, keep them going—they’ll likely pay off in the next few months.

Curbside pickup, online sales

According to the previously mentioned Google survey, 47% of shoppers said they plan to utilize curbside pickup options to procure their holiday goods this year. Michael Herrman owns New Hampshire’s oldest book shop, Gibson’s Bookstore. He’s planning a larger online presence this season, along with curbside pickup. 

“I think it keeps crowds from being in the store at the same time to mitigate the risk,” Gibson said. “We’re going to offer every opportunity to accommodate as many people as we can. Our main goal is to get to the other side with everybody healthy in the store and still in good shape financially.” 

Planning for an influx in online shopping means you need to make your e-commerce marketing effective and ready for the boost in sales. Here is a great e-commerce marketing guide to help you ensure you’ve got everything you need to reap the benefits of a larger online holiday season. 

Reservations, specialized bundles

Arkansas-based eatery/retail store/event space Mule Kick is encouraging crowds to stay safe this year by focusing on more reservations and offering bundles for customers to host small get-togethers at home for the holidays instead. 

 

View this post on Instagram

 

Our two favorite owners!⁣ We don’t know what we would do without them!⁣ (Literally because they sign our checks)⁣ ⁣ This was supposed to be their vacation week but they’re up at Mule Kick grinding it out with us.⁣ We love and appreciate you two!

A post shared by MuleKick (@mulekickmag) on Jul 15, 2020 at 5:09pm PDT

“We will be moving more to reservations and keeping up the sanitization ritual that we have begun. We are going to do a bigger Facebook push to encourage our customers to pick up their orders, host any friends in their homes and minimize their time out,” owner Christy Ouei said. “My plan is to offer bundles of food: maybe 2 pizzas, an app, a dessert and craft beer.” 

Solutions like this are a great way to keep your revenue flowing while also encouraging consumers to quite literally stay “home for the holidays.” 

Virtual retail shopping 

A reported 53% of shoppers said they have tried out new types of shopping formats since the pandemic, and retail industry storefronts like the Brooks Collection in Tennessee are capitalizing on this new, safe trend for the holidays by posting photos of their offerings on their social media pages and conducting virtual FaceTime shopping sessions with owner Watty Brooks Hall.

Hall said connecting with her customers virtually and texting them any items they see in the store during the appointment has kept her store alive during the pandemic—even without selling any items online.

“We deliver, we ship, we do curbside,” she told USA Today. “It’s just trying to keep a small business alive is what it boils down to.”

In-store shopping appointments

You don’t have to run a restaurant to take advantage of a  reservation-style strategy. Target recently announced they’ll continue to limit the number of guests in stores, but are now allowing customers to reserve a spot if there is a line. Customers can visit this site to check their location and “save their spot” if there’s a wait at the store. 

While your store may not be as gigantic as Target and require reservations for spots in line, it’s not a bad idea to set up a shopping appointment system online so customers can rest assured that there won’t be too many people crowding around them while they peruse your goods. 

Gibson’s Bookstore takes shopping appointments a step further by offering them exclusively to customers who are over 60 or have underlying medical conditions. 

“If you are over 60 or have an underlying medical condition, we encourage you to shop from home and let us ship to you, or have us hold items for curbside pickup,” their website reads. “But you are also welcome to schedule a private shopping experience in our bookstore.  Call or email the store to set something up outside of regular hours.”

Take it outdoors this holiday shopping season

Many shoppers are staying home this year. But others will still crave the holiday shopping experience and will be looking for safe ways to partake. 

Outdoor shopping

Moving even just a few feet outside your doors will make customers feel safer knowing they have more room. Host a popup event near your location, or better yet, check to see if there are any outdoor shopping events hosted by your city that you can participate in to attract customers who might not otherwise be familiar with your business. 

Enhanced window shopping 

Holiday window shopping has always been a popular pastime, but the forced ingenuity brought on by COVID-19 regulations evolved the leisurely activity into an actionable, actual form of shopping: “phygital” purchases. 

 

View this post on Instagram

 

A post shared by LDC, Lone Design Club® (@lonedesignclub) on Sep 3, 2020 at 9:23am PDT

Lone Design Club in London launched a “shoppable window” that showcases popular items like normal window displays, but this one has a twist. It’s equipped with a QR code that allows the shopper to actually purchase the item. They’re also led to a website where they can sign up for 1-on-1 shopping appointments and other activities. 

Don’t be intimidated by venturing into the world of QR codes this holiday shopping season. They’re simple and quick to set up. Get started with one of these easy-to-use generators: 

• QR Code Generator
• GoQR
• WebQR

Drive-thru events 

Add a bit of excitement in these not-so-exciting quarantine times. Provide a safe event that customers (and potential customers) can enjoy from the safety of their vehicles. 

Gibson’s Bookstore, whose COVID strategy is seemingly diverse and efficient, is hosting events throughout the month of November. Many of their events are virtual readings. But one involves a drive-thru event promoting the latest “Diary of a Wimpy Kid” book. 

The description of the event on their website reads:

“Drive your carload of fans through several pool party themed activity tents! End with Jeff Kinney himself handing you a signed copy of The Deep End and posing with your car for a photo!”

Drive-thru events are a unique way to bring traffic to your business and maintain relevancy through the holiday season. Create a holiday-themed event, or even one tailored to your audience, to add a little more joy to the season. 

Outdoor experiences 

If you have space outside of your brick-and-mortar establishment for those spending the day shopping, make the most of it! Consider implementing a few outdoor heaters and creating a “cafe” experience during November and December that allows them to maintain their distance in a less risky environment. 

Note: Outdoor heaters are the new toilet paper. They’re difficult to procure right now due to high demand brought on by the coronavirus pandemic. Here are a few sites that currently have different types of commercial heaters in stock: 

• Webstaurant Store
• BBQ Guys
• Amazon

If you have even more space, go bigger by turning your open area into a festive holiday market! Take a little inspiration from the many awe-inspiring holiday markets in Europe that create a memorable experience for visitors with food, decor, and maybe even a visit from Santa. 

 

View this post on Instagram

 

A post shared by E M M I (@emmirroosa) on Dec 15, 2019 at 11:06pm PST

Providing a uniquely wonderful, holiday-focused activity will create a buzz around your business. It will also prompt eager members of your community to participate, no matter how cold it is outside. You can even start an annual tradition and cement your business—and other businesses that want to participate—as local staples. 

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Regardless of how you shake things up this holiday shopping season, keep a pulse on consumer behavior in your area. You don’t have to do anything extravagant or expensive. But giving your loyal customers and potential patrons peace of mind that you’re doing your best to support their safety will give you the best opportunity for a successful holiday season.

If you’re looking for more resources to support your small business during this holiday shopping season, visit our resources for small businesses. 

The post COVID-19 is changing holiday shopping—here’s how to adapt appeared first on Homebase.

It’s difficult for working parents to manage personal and professional responsibilities at the same time—especially for hourly workers with sometimes unpredictable schedules. That’s where you, as the manager or business owner, come in. 

Taking the time to lay out a plan for your employees with kids will not only make the lives of your team members easier, but could also help prevent future lawsuits. Plus, prioritizing the personal lives of your team (and their children!) will strengthen your bond with them and increase chances of employee retention. 

Here are a few things to consider, as well as some creative tactics for supporting working parents. 

Know what’s going on in your state

The first step to laying out a solid accommodation plan is knowing if you need to at all. Most states have at least some form of remote learning in place. Currently, six locations have a state-ordered closures or opening delays in effect, including: 

• Arkansas
• West Virginia
• New Mexico
• Vermont
• Rhode Island 
• District of Columbia

Check out this update, interactive guide from Education Week to stay on top of when schools in your area are opening and what remote learning looks like for your employees’ children. 

Know the new laws 

Before creating your plan for working parents, know what’s required of you under the new legislation stipulated in the Families First Coronavirus Response Act. 

Under the act, covered employers must provide 12 weeks of partially paid leave to workers whose children are at home due to daycare or school closures because of COVID-19. There are also state and local laws in some areas that cover more employers and require more paid time off due to the pandemic. 

“Other state and local jurisdictions have passed their own COVID-19-specific leave laws that may apply to employers not covered by the FFCRA, or mandated additional leave on top of FFCRA leave,” labor and employment attorney Katie Erno told SHRM. “The FFCRA allows this leave to be taken intermittently, so employers and employees can agree to a flexible schedule.”

Stay up to date with your local laws and regulations behind time off for your employees and make sure you’re adhering to them, or you could potentially have a lawsuit on your hands. 

Ask first, then plan 

You may think you’ve created the perfect solution for your employees, but you won’t actually know until you’ve asked them directly. It’s best to go straight to the source. Talk to your team and ask what it really is that they need.

Even better, crowdsource the ideas from your team as a whole and build a space for your team members to support each other. According to an article from Inc, digital freight company Transfix created a chat channel specifically for the working parents in the business to share ideas, resources, and needs for parents taking on their new hybrid lifestyles.  

Setting up a group in Homebase messaging is an easy way to do this. Your team can share messages, advice, and links to helpful tools right in their Homebase app, for free. 

Set a predictable schedule, be flexible

In order for your employees to plan for their own childcare strategy while working, they need to have a solid, steady work schedule in place. Which means that now is the perfect time to set up that predictive scheduling plan you’ve been meaning to get around to starting. 

Predictive scheduling is simply the practice of setting your work schedule in advance. This way your staff can better plan things such as hiring a sitter or organizing a family member to watch their children during their shifts. 

Homebase offers an easy way to set your predictive schedule building in motion. Our free scheduling app lets you build work schedules in minutes and immediately share them with your team. You can even copy the same schedule from week to week so you can maintain a level of steady shifts, adding more stability to your employees’ lives. 

Once you’ve got your schedule in place, be more flexible during this time when it comes to shift swapping. Employees without children might be willing to trade shifts with coworkers who have to deal with child-related issues last minute. Allowing this to happen when possible is important for creating a workplace that works for everyone. 

Consider child care benefits

Although child care facilities across the nation are on shaky ground when it comes to staying open, some parents in areas where they are open may not have other options. However, daycare prices are astronomical these days. The average monthly cost is over $1,000 in most areas—check out your state’s average cost with this helpful guide. 

Still, offering childcare benefits to your team doesn’t have to be as expensive as you might think. Some businesses offer subsidized child care to their employees, or negotiate discounts with local daycare providers. 

Consider working with home daycare owners in your city. Since they aren’t larger centers, they typically charge 30% to 40% less. This means you may be able to subsidize your team’s child care charges and make it affordable. 

On top of subsidies, there are also things you can do when an employee’s child care solution falls through. Many businesses offer backup care for these emergency situations for a set number of days out of the year. 

Here are a few backup care companies that work with businesses to help their employees: 

• Care.com
• eNannySource.com
• Babysitters4Hire.com
• Bright Horizons
• KinderCare

You can also offer Dependent Care Flexible Spending Accounts to help employees cut costs. Parents can spend 30% less of their own money on average to pay for daycare and other qualified expenses. 

There’s more in it for you than making your employees’ lives easier. Cutting your team’s child care costs could also earn you a tax break. You can often deduct how much you subsidize for each employee.

Share helpful resources 

Even when your team is at home taking on remote learning, they need as much help as they can get. Support them even when they’re off the clock by sharing helpful tools and resources—maybe in your new parent chat channel! 

Here are a few great tools to kick off your resource contribution: 

• Scholastic: Scholastic’s Learn at Home hub offers active learning journeys to help reinforce education for students from ages pre-K to 9th grade who can’t attend school. 
• Khan Academy: Parents can download sample schedules, free online courses, and test prep materials. Students can even view livestreams with teachers.
• National Education Association: The teachers union provides advice to parents teaching at home. 
• Smithsonian virtual field trips: Kids may not be able to go on real field trips yet, but virtual tours for many of the Smithsonian museums are available online. 
• Barbara Bush Foundation: The Barbara Bush Foundation has an Online Literacy Toolkit for parents teaching children at home, including digital classrooms, reading programs, and more. 

You can also check out our article on free, virtual resources for even more great tools to share. 

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The bottom line when it comes to supporting your working parent employees is that flexibility, communication, and understanding are crucial. Showing your team you’re on their side creates a bonded, trusting work environment. And as with any other employee appreciation tactics, building that trust will decrease turnover and increase workplace happiness. 

The post A few meaningful ways to support your employees who are parents appeared first on Homebase.

Problem was, there weren’t a lot of people passing through the middle of nowhere on the Palms to Pines Highway—until COVID-19. 

“COVID did something incredible for this restaurant.” Gabbi said. “Trying to get people to drive 20 minutes up the highway was a chore, and we were barely breaking even. But as soon as COVID hit everyone wanted to be in the middle of nowhere.” 

Success stories like Gabbi’s are a rarity in the world of coping with COVID as a restaurateur. She saw an opportunity and went after it with a bit of ingenuity and a few clever tricks to make the most of what could have been a devastating occurrence. 

But what kind of clever tricks are necessary to expand during the coronavirus pandemic? Can other industries do the same? Let’s take a look at what you can learn from Gabbi and entrepreneurs from 3 other industries who have made lemonade out of a pandemic. 

1. Create a COVID-friendly space

As soon as the pandemic hit, Gabbi went into full health and safety mode, making up her own strict—yet creative—regulations for her restaurant and staff. 

“Right before we closed down the state I was on top of it,” she said. “I formulated my own rules for my staff. I reconstructed the inside of the restaurant with partitions to keep my kitchen safe, I don’t allow employees to bring keys inside, I even installed a shower for employees to use before and after their shifts.” 

But not only did she make the Sugarloaf Cafe as germ-free as possible, she took full advantage of the 17 acres that the restaurant sits on to create a destination for weary quarantiners looking to get out of the house in a safe, socially distant, way. 

“I took all of the tables from inside and just moved them into the landscape,” Gabbi said, adding that the inside of the restaurant is no longer open to the public. “So we have picnic tables that are 400 feet from one another.”

Gabbi added that getting “pushed outside” changed the Sugarloaf Cafe forever. Even after regulations are lifted and social distancing is over, their concept will not only continue to be an outdoor experience, but will also improve and evolve with endless opportunities. 

For example, they recently turned the extra space into campgrounds for customers to stay the night and “wake up to biscuits and gravy.” They also are planning on delivering food to customers in those far-out tables via ATV, talk about an experience! 

You may not have 17 acres to play with—but you don’t need it. Make the most out of the outdoor area you do have. Take out the extra, unnecessary items in the space you’re using already to create an open, socially distant concept. 

Use that giant wall behind your building for drive-in movies (or even drive-in concerts). If you create an activity the community can use to escape our crazy, confined world, they will both appreciate and remember your creativity. 

2. Capitalize on a new need 

Kitsbow Cycling Apparel has been in business for the past 8 years, but things look a lot different now than they did a few months ago for one great reason: CEO David Billstrom found a way to use what he had to create a product the world desperately needed. 

“We were so fragile at the time,” David said. “We had just moved our business across the country, the last thing we wanted to do is let go the people we just hired. So, we had a board meeting on Tuesday, March 21, decided to wait a week, and on Thursday, decided to start making face shields. On Saturday, we hit our production stride. By Saturday night we had ordered 625,000 units.” 

From there, business skyrocketed, thanks in part to the fact that David had connections to the public safety community which gave him insight into just how large the demand was. 

“By Sunday, we were at 40,000 orders—I’ve never seen that happen,” he said. “People aren’t even asking what it costs. By that following Tuesday when we were supposed to have the board meeting to talk about layoffs, I called another meeting and said, ‘I think we’re just going to do this 100% and turn off the apparel line.’” 

Not only did David quickly fulfill a demand, but he relied on his connections with the community to learn exactly what that the demand was and how much was needed. 

You don’t have to necessarily make masks. There are plenty of other essential goods you can pivot to, it depends on what your community needs. Listen to your existing customers, the news, and your neighbors to find a way to use what you have to meet their needs. 

3. Get the word out

Once Gabbi realized the magnitude of the oasis she had created, she worked hard—and is still working just as diligently—to let everyone know about it. She reached out to the press and keeps an active Instagram account to lure travelers in. 

“What I’ve noticed is that the press is starved for a feel good story right now,” she said. “It’s a pretty easy story to pitch. And the power of the local press is insane. Every small business should be reaching out to their local channels and papers. We did one two-and-a-half-minute piece in the local evening news, and our business quadrupled within a week.” 

Whatever you’ve changed about your business, get the buzz going! Attract new Instagram followers with an active account. Continue to engage your existing customers. Let them know about the exciting changes you implemented through social media posts and emails. This way you can stay top of mind for them even if they aren’t seeing you in person. 

Then, jazz your story up a bit and the reporters will gladly share it to your community on an even wider scale. 

4. Find new sales channels or service models

Think about what you’ve done to stay afloat and build on it to grow even further and take your business to the next level. 

In March, Decks and Spas in Redmond, Washington had to close during the initial COVID shut-down. So how did a hot tub company carry on with their store closed? According to co-owner Dan Barghelame, a little creativity went a long way. 

“We started selling and shipping spa chemicals—something we had never done before. We even offered it as a subscription service,” Dan said. “It helped sustain us while we had to keep our doors shut for several weeks. But we also gained an entirely new revenue model that has driven additional growth for us since then.”

If you haven’t set up an e-commerce site for your new channels or models, do it. Launching your business on the internet will open up a much wider opportunity base (think national!). Here’s a great guide to help you get started. 

Set up e-commerce (link to starting e-comm guide — businesses moving online) > much larger customer base you can serve

And don’t forget: Pay attention to your team

No matter how solid of an expansion strategy you have, your team’s execution will determine if it works. Because of this, you need to focus on two things: having the right amount of employees, and ensuring those employees are just as dedicated as you are. 

Gabbi said it’s very important to her that her crew works together to keep each other safe and healthy. 

“My crew is the reason why we’re in business. If I lose my crew, we have nothing,” Gabbi said. “I keep a small staff, we connect every week. We’re all homebodies, parents, we go to work, we come home. We go to the grocery store, we come home. None of us are going to speakeasies in the middle of the night.” 

Pellicano’s Marketplace, an Italian supermarket in New York, is one business that has seen success during COVID-19 for obvious reasons: It’s a grocery store, which is an essential business. Still, owner Chris Pellicano echoed the fact that the staff plays a big part in handling an influx of customers. 

“We do everything differently, it’s why we stand out. And that requires a lot of training,” Chris said. He added that he currently has 52 employees, all of whom can jump from different departments and jobs to another thanks to hands-on, dedicated training. 

Still, 52 isn’t enough for the amount of business they are receiving. Especially because they just recently moved into a new building twice the size of what they were originally using. He said it can be challenging to get the word out that he needs employees. 

“We have a great staff, but I need more. To get to the point we’re at was not easy. I could probably hire 10 more people tomorrow—and that’s not an exaggeration.” 

Clearly, your team matters. If you need to hire more people, take the time to find quality candidates who can be trained well. Make sure they have everyone’s health in mind when it comes to their off-duty activities. 

The post 4 ways to expand in COVID-19—from people who did it appeared first on Homebase.

You may live in one of the more than 20 states that require residents to wear a mask in public. (You can view a list of the state requirements here.) Or you may be enforcing your own mask requirements, just as  some of the biggest store chains in the country—Walmart, Best Buy, and Target—are doing. 

Either way, you and your employees will likely run into a few customers who refuse to follow mask requirements upon entry. 

Unfortunately, these incidents can turn aggressive and sometimes violent. In an effort to keep everyone involved safe, we’ve compiled a few ways to enforce your rules and to empower your employees to handle situations sparked when customers refuse to wear masks.  

Ways to encourage in-store mask usage

The first step in enforcing your policy is to do your best to prevent any type of escalated incident as a result of an anti-mask customer. Here are a few tips for doing so: 

Clear signage 

Get aggressive with your signs. Make sure your rules are easy to understand and easily visible even before the customer steps in the door. In fact, go even further than in-store signs and stipulate your policy in marketing materials, social media, and on your website. 

Does your city or county have any requirements? If so, be sure to include these rules on your signage so the customer knows it’s not just you, but the entire area that requires residents to wear masks. 

If you need some inspiration on what exactly to say on your signs, here’s what is posted on Walmart’s signage: 

“Walmart requires face coverings for all customers, associates, and others while visiting our stores. Nose and mouth must be covered with a mask or cloth (e.g. bandana, scarf, homemade mask). Exceptions apply for infants and young children, and those with certain health issues.” 

Provide masks for free

Many businesses are taking one of the biggest excuses out of the equation by giving anyone who didn’t bring a mask with them a free one upon entering. If you can afford to do it, take a page out of Whole Foods and Lowe’s and offer a free face covering to anyone who enters and does not have one. This makes it easy for customers to follow the rules. 

Place a trained employee by the door 

To help customers further understand your policy, consider having an employee near the entrance who can help educate customers who have questions about the rules. This employee can also enforce appropriate behavior and hand out those free masks we just discussed. 

Although prevention tactics are necessary, situations may still arise despite your efforts. Let’s walk through a few ways to train your employees on how to de-escalate incidents with angry customers who may have an issue with your policy. 

How to empower employees to handle when customers refuse to wear masks

Your employees may feel uneasy about handling a disgruntled customer who not only isn’t wearing a mask but is vocalizing their anger to your team. It’s extremely important to hold a training session on what to do. Here are a few things to include in that training. 

Ensure your entire team is informed on the policy 

Every employee should be properly educated on your new rules and policies in order to properly answer any questions customers may have. Make sure your team is using the same messaging and enforcing the rules the same way to avoid any further confusion. 

Use empathetic communication 

Our country is facing a tense time, and that tension is showing itself in the form of stressed customers. Make sure your employees know to avoid getting frustrated and respond to complaints with a respectful and empathetic tone. 

Train them to first listen to the customer’s complaints, without assuming they already know how they’re going to respond. The very first interaction with that person can determine the entirety of the conversation. So if your employee first approaches the customer from an inquiry standpoint, rather than presumption, the situation could be de-escalated before it even gets bad. 

Be transparent 

Your employee should lay out the rules, but also accommodate any circumstances that may apply to them (like if they have a disability). However, if the customer simply doesn’t want to acknowledge your policy, first reiterate what the rules are in the establishment, and then try to understand what the actual reasoning is behind their refusal. 

For example, if their reasoning is that they feel the requirements are taking away their liberty, respond by highlighting that it’s the business’s liberty to decide who can be in the building. 

Karen Tibbals, founder of Ethical Frames and author of Persuade, Don’t Preach, Restoring Civility Across the Political Divide, posted a video on YouTube about how the mask debate. 

“If the person focuses on liberty, the business can say, ‘We are having a conflict about liberty – your liberty to wear a mask and my liberty to decide who can enter my premises,” Tibbals says in the video. “Because I know you respect my liberty as well as yours, I am sure that you will support my decision to require a mask from people who choose to enter my premises.” 

Calmly de-escalate

Train your employees not to point fingers or get involved in an argument that will further escalate the situation. Stay calm, take their complaints seriously, be personal, and even be friendly—most people will respond well to someone they like. 

Gabbi Rose, owner of Sugarloaf Cafe in Mountain Center, California, takes her kindness strategy a step further by de-escalating incidents with an offering most of us can agree on: dessert. 

“My solution is always pie,” Gabbi said. “We had two customers in an argument, so my host grabbed a megaphone and said, ‘Guys! What is your favorite slice of pie? I’ll give you each a piece if you can take five steps away from each other. We can all agree that pie’s delicious right?’” 

Gabbi explained further and said it’s important to have an element of humor during this time. 

“The whole situation is awkward. It’s awkward for people to walk up to our window, it’s awkward that they’re sitting at a table in between plexiglass, it’s awkward for servers. You have to reinvent the whole process of doing it.” 

Suggest alternatives 

Arm your employees with alternative solutions to help resolve the conflict. If your customer doesn’t want to follow the rules for no valid reason, offer another way for them to shop. 

If you have curbside pickup, or an e-commerce site, inform the customer that the policy keeps everyone safe. Let them know they can utilize your alternative business models to obtain service. 

Know when to ask for help 

Even if your employee is equipped with the best training on how to handle disgruntled customers, they must know their limits and know when they need backup. 

There should be an established hierarchy for when a team member needs help with a complaining customer. Set up a list. Plan who the employee should turn to and when. This could be a manager for the particularly unhappy customers, or in the worst situations, law enforcement. 

Use professional training 

You can also turn to the professionals to ensure your team is thoroughly prepared to handle any potentially aggressive situation. Here are a few online workshops you can use: 

• Calm Every Storm De-escalation training course
• ColumbiaCare Services training
• Violence Prevention/De-Escalation webinar
• Dale Carnegie customer service training

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