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About The Observer. (La Grande, Or.) 1968-current | View Entire Issue (April 2, 2020)
2B — THE OBSERVER & BAKER CITY HERALD THuRSDAY, ApRIL 2, 2020 BUSINESS & AG Opinion: Economic stimulus information for small business owners ll small business owners to some degree (many severely) are being nega- tively affected by the over- night economic shutdown due to the COVID-19 virus. Fortunately, there are pro- grams to assist small busi- ness owners and their employees. Information regarding these programs has been changing frequently. The two main stimulus pro- grams are the Economic Injury Disaster Loan and the Paycheck Pro- tection Program, which is part of the $2 trillion CARES Act that Congress recently passed. The fol- lowing information came from the Small Business Administration. A Economic Injury Disaster Loan Information: •The EIDL now offers up to a $10,000 grant (loan advance), which does not need to be repaid if the money is spent on paid Greg leave, main- Smith taining payroll, increased costs due to supply chain dis- ruption, mortgage or lease payments or repaying obli- gations that cannot be met due to revenue losses. The website to directly apply is: covid19relief.sba.gov/#/ •Important: The grant is a new aspect of the EIDL loan, so if you applied prior to the grant being offered, you must reapply to request consideration for the grant at the website listed above. •Funds for the loan advance will be made within 3 days of a suc- cessful application and will not have to be repaid. •The interest rate for the remainder of the loan awarded is 3.75%. •Businesses can get both Sharing Chamber goals an EIDL loan and Paycheck Protection Program loan as long as they don’t pay the same expenses. Be sure to check with your finan- cial advisor or lender before taking both loans if you are not sure of the specifics. Paycheck Protection Program •How does the program work? The SBA guarantees small business loans for more than 800 lenders across the U.S. The Pay- check Protection Program creates a type of emer- gency loan that can be for- given when used to main- tain payroll through June and expands the network beyond SBA so that more banks, credit unions and lenders can issue those loans. The basic purpose is to incentivize small businesses to not lay off workers and to rehire laid-off workers that lost jobs due to COVID-19 disruptions. •What types of busi- nesses are eligible? The Paycheck Protec- tion Program offers loans for small businesses with fewer than 500 employees, select types of businesses with fewer than 1,500 employees, 501©(3) non- profits with fewer than 500 workers and some 501©(19) veteran organizations. Additionally, the self-em- ployed, sole proprietors and freelance and gig economy workers also are eligible to apply. Businesses, even without a personal guar- antee or collateral, can get a loan as long as they were operational on Feb. 15. •How big of a loan can I get and what are the terms? The maximum loan amount under the Pay- check Protection Act is $10 million, with an interest rate no higher than 4%. No personal guarantee or collateral is required for the loan. The lenders are expected to defer fees, principal and interest for no less than six months and no more than one year. •Can these loans be forgiven? Yes, small businesses that take out these loans can get some or all of their loans forgiven. Gener- ally speaking, as long as employers continue paying employees at normal levels during the eight weeks fol- lowing the origination of the loan, then the amount they spent on payroll costs (excluding costs for any compensation above $100,000 annually), mort- gage interest, rent pay- ments and utility payments can be combined and that portion of the loan will be forgiven. Small business owners can apply right now for the EIDL loan, but as of this date, the CARES Act is still being enacted and isn’t available right now—but will be soon. One-time $500 grant for restaurant workers: •This grant application opens April 2 and funds will be administered on a first-come, first-served basis. To apply and for more information visit: https://rerf.us/ Please reach out to us if we can assist you in any way. As men- tioned above, the CARES Act still is being enacted and both programs are evolving, but we will do our best to keep business owners informed of the latest information. We are working with our partners at Business Oregon, the SBA, lenders, chambers of commerce and other business organiza- tions. We can be reached by calling 541-962-1532 or emailing eousbdc@gmail. com. Greg Smith is the director of the Small Busi- ness Development Center at Eastern Oregon University, Looking Glass Books buys Kettle Corn N’ More By Sabrina Thompson EO Media Group Submitted photo Sandra Patterson, assistant director of the Union County Chamber of Commerce, speaks in February at a Union County Retired Educators gathering. Patterson outlined the chamber’s three main objectives: promoting tourism for the area, managing the Blue Mountain Con- ference Center and supporting the business members of the organization. She encouraged local businesses to take advantage of the variety of materials and activities available through the chamber. Also in the works are new classes on hospitality with an emphasis on tourism and ways to help new business owners. LA GRANDE — Looking Glass Books in downtown La Grande is downsizing and moving its stock down the street to the building that houses Kettle Corn N’ More. Looking Glass owners, hus- band and wife Michael and Chey- enne Maszk, will take over the pop- corn and gift store and combine it with their bookstore. Michael Maszk explained it is an industry trend that prompted the purchase and move. Most independent bookstores are not successful unless they offer some- thing else, he said, such as gifts or food. The couple already were con- sidering turning a portion of the bookstore into a gift shop when the opportunity to purchase the kettle corn business arose. John and Donna Karvonen owned and operated Kettle Corn N’ More. They were planning to liquidate, Donna Karvonen said, when they had to close due to family medical con- ditions. Though they didn’t want to Photo by Sabrina Thompson/EO Media Group Kettle Corn N’ More on Adams Avenue in downtown La Grande has new owners. Michael and Cheyenne Maszk, owners of Looking Glass Books, re- cently acquired the shop and plan to combine their bookstore with the kettle corn business there beginning in April. close at the time, they decided it was best. When the Maszks offered to buy the store, the Karvonens took the offer. The sale went through in March. “We had people in the community sad and upset when we announced we were closing our doors,” Donna Karvonen said. “We wanted to keep it open for the community. Looking Glass Books will be a nice addition.” The new version of Looking Glass Books will reopen in April at 1209 Adams Ave., under the name Kettle Corn N’ More.