We were joined by Mike Lousteau, General Counsel and a partner at 12BF Venture Capital, for a couple of webinars to breakdown the SBA loan offering and clarify how to apply. We have summarized the key insights he shared with us in the form of an FAQ below.

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*DISCLAIMER: Please be aware that this information is dynamic and may have changed since 4/6/2020.

‍- You can watch the recording here

‍- You can watch the follow-up Q&A session here

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‍There are two distinct loan programs from the Small Business Administration (SBA), discussed in the CARES Act:

‍1. Paycheck Protection Program (PPP)

2. Economic Injury Disaster Loans (EIDL)

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Payment Protection Program (PPP):

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‍1. What does the PPP loan cover?

The PPP loan is designed to cover payroll expenses for 2.5 months, up to $10m.

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2. What does ‘payroll expenses’ include?

- Actual compensation/salaries/wages/cash tips

- Vacation, family & parental leave- Dismissal or separation payments

- Group healthcare

- Retirement benefits

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3. Is the PPP loan forgivable?

Yes - If at least 75% of the loan is spent on payroll expenses and the money is used before June 30th, the loan is forgivable.

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4. Who will process my PPP loan?

The process and terms & conditions is designed by the SBA. However the loans are made available by banks (independent lenders).

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5. Is payroll for my 1099 employees covered by the PPP?

No - Independent contractors, vendors and subcontractors should file for their own PPPs. The treasury has specified that they are not ‘payroll costs’ and so do not qualify.

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6. Who can apply for the PPP?

You do not need to be officially running a W2 payroll - If you're a sole proprietor, where you don’t have technical employees, you can still apply for a PPP loan.

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All the businesses you own must not contain more than 500 employees collectively.

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7. When do I need to use the money by?

In order for the PPP loan to be forgiven, you have to use it by June 30th.

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8. Can I use my quarterly tax deposits as part of payroll expenses?

No tax costs should not be counted as payroll costs.

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9. Should I use one bank in favor of another?

The banks advise you to use your own bank - this is because they already have your information and so can process your application quickly. The banks will process their own clients first. If your own bank is not issuing PPP loans you can apply through Womply.

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‍Follow this link for more information.

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10. Should we expect to get taxed on any monies received through PPP?  

No - Loans  generally aren’t income, and forgiveness is explicitly tax free.

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‍Economic Injury Disaster Loan (EIDL):

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‍1. What can the EIDL be used for?

“Used for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.” They are to compensate for your economic losses, such as lost revenue (they do not cover payroll). In most cases they will cover up to $2m.

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2. Is the EIDL forgivable?

These loans are not forgivable. This means they do need to be paid back, though they have very low interest rates attached.

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3. Who will process my EIDL Loan?

They are directly funded and managed by the SBA - they do not go through your bank. You can apply for them today on sba.gov

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4. Can I get an advance on the loan?

The SBA is authorized to give you up to $10k within 3 business days, as an advance on the loan.If you end up not getting the loan, the advance becomes a grant - you won’t have to pay it back.

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5. If I get the $10,000 advance, and then get the EIDL loan approved later, will the $10,000 still count as a grant?

No, if you do get the loan, any advance becomes part of it.

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6. Am I eligible for an EIDL if I currently have a chase line of business credit?

Yes - the requirement that you cannot have other lines of credit has been waived for this particular circumstance.

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7. Should I file more than one application for the EIDL, if I have more than one business?

As long as all your businesses added together do not contain 500 employees, yes you should fill out applications for each individual company. Individual companies qualify.
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‍Both Loans:

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‍1. Do the banks have the right to change the interest rates?

They don’t have the right to change the interest rates. The rate for the PPP is 1% and the rate for the EIDL can be anything up to 4%.

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2. Do I need to reapply because the system has changed since I submitted my application?

No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these amendments.

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3. How do banks decide who gets funds, and how much each business gets?  

This varies bank to bank, but generally banks prioritize their current lending clients.

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4. Can I apply for both loans?

Yes you can - just don’t claim the same costs for both - make sure your loss is unrelated to payroll, it will most likely be lost revenue due to COVID-19

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5. Is there a cost for Peek & Womply?

No - absolutely no fee for using this service.

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6. How can I find more information or an update on my application with Womply?

- Read this blog about the Peek and Womply partnership

- Reach out to support@womply.com or call 855-929-9111

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‍Resources:

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‍2-page sample application has been published by the treasury

- You can download it here

‍- For further information they have also produced this FAQ

‍Blog about the Peek and Womply partnership that can help you fast track your loans

Learn insights into today's crucial questions, such as how to access capital, how to adapt tours or activities in today's extreme circumstances, how to best communicate with customers and more. Join our panelists in the discussion on April 17, at 11am PST.

Promote your ideas for the tour sector to move forward, and celebrate those of other industry players in regards to innovation, design, and guest experiences. Winners will be announced in September.

Peek Partners With Womply to Streamline Access to Paycheck Protection Program Funds for Small Businesses

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• Millions of American small businesses are at imminent risk of collapse
• The $349 billion federal stimulus program is a crucial first step to stabilize at-risk businesses
• Peek has partnered with Womply to expedite the complexities of the PPP application and pre-approval document collection processes, and to secure a place in line with an SBA 7(a) approved lender

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April 9th, 2020 – Peek, a double-sided marketplace to discover and book unforgettable experiences, is announcing a partnership with Womply, a software and API company serving small businesses and app developers. The alliance provides tour and activity operators streamlined access to forgivable emergency loans through the federal Paycheck Protection Program.

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About the Partnership

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As a registered loan agent, Womply is working with banks and financial institutions approved by the U.S. Small Business Administration to streamline the complicated process. Womply has built a robust process and support system to help small businesses get a jumpstart on their PPP loan application, collect required documentation, and save their place in line with SBA-approved lenders.

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At this time, our main priority as a company is to help tour operators across the industry access the tools and capital they need to weather this unprecedented storm,” says Oskar Bruening, CTO and Co-Founder of Peek. “That’s why this partnership with Womply is great news for our partners. Womply has an amazing team that’s dedicated to helping small businesses access PPP loans as fast as possible, and any way Peek can help quickly connect our operators to this much-needed capital is a top priority.”

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Peek has been focusing its efforts on helping tour operators navigate these difficult times by assisting with SBA loan applications, hosting workshops, providing marketing materials and compiling useful information from across the tourism industry into a COVID-19 Resource Hub; as well as creating a dedicated team to help operators deal with an unprecedented amount of cancellations and refunds.

Together, Peek and Womply have over 100 representatives dedicated to helping millions of SMB merchants navigate the application process over the coming days.

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About the Paycheck Protection Program

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In late March, the federal government approved $349 billion in emergency funding for small businesses through the PPP provision of the $2 trillion CARES Act for economic relief from the COVID-19 outbreak. The program enables private lenders, approved by the SBA, to facilitate these forgivable loans to small businesses.

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Small businesses have faced outsized financial challenges as the COVID-19 pandemic has brought the U.S. economy to an unprecedented slowdown. According to Womply analysis, small business revenue has seen a steep and sustained decline since COVID-19 pressures came to a head in the U.S. in mid-March, with potentially millions of businesses effectively shutting down as transaction volume completely dries up amid stay-at-home orders to flatten the coronavirus curve.

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“We’ve never seen an economic situation like this before, and small businesses that make up half of the U.S. economy are exposed more than any other sector of the economy,” says Womply Founder and CEO Toby Scammell. “The PPP loan initiative is a vital first step to stabilizing these businesses, and our goal is to make the process as fast, efficient, and effective as possible. We are not a lender, but we can connect small businesses to lenders faster than anyone. Time is of the essence for millions of businesses at imminent risk of closing their doors.”

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Tour operators can find more info here and start their application right away. In partnership with Peek, Womply’s dedicated support team is standing by to help. Operators can contact the Womply team at support@womply.com or 855-929-9111 - or get in touch with Peek's support team at 415-361-5564.

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About Peek

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Peek’s mission is to connect the world through experiences. Peek is a two-sided marketplace: It helps consumers book the best experiences, while also empowering tour operators to automate their businesses and grow their revenues by an average of 30 percent. More than 110 million activities lasting over 1.4 billion hours have been booked on the Peek platform, and the company has won several awards for innovation, including the Tribeca Disruptive Innovation Award alongside Airbnb and Rent the Runway, and Fast Company’s Most Innovative Companies in Travel Award.

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About Womply

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Womply’s mission is to help small businesses thrive in a digital world. Founded in 2011, Womply is the leading provider of data and software to local businesses and the top software partner to the payments industry. Our AI-powered data platform powers our CRM and marketing software, which serves more than 450,000 small businesses in every corner of America. In addition, Womply’s data platform helps innovative developers create more powerful software for businesses and consumers alike. To learn more, visit www.womply.com or email info@womply.com.

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We’re all going through some tough times now. Closed borders, quarantines & self-isolations, and lost jobs are sadly the new normal (for now, not forever!). In the tourism industry, you’re going through that on your own, plus the added stress of knowing that you need things to get better for everyone else before you can expect to see an improvement in your own life and business.

There’s no way to sugarcoat it. Things are bad.

So what do we do now? Well, we get through it. We always do. This too shall pass, and when it does you need to be prepared. The businesses that are taking time to regroup and prepare are the businesses that will succeed. Take a cue from Lost: give yourself to the count of five to completely break down and feel sorry for yourself (count slowly). When you get to five, time’s up. It’s time to focus on what you do have control over and get things done.

These are unprecedented and unpredictable times. No one is really sure of what will ensure success when this is all over. It won’t hurt to try these things though.

Work on your marketing (international)

There have always been aspirational travelers out there. Those people who look at photos of the places that they want to go and think to themselves “someday…”. Coronavirus was a huge wake-up call to a lot of people that “someday” may never come. If your tour business is located in one of those ever-popular destinations (e.g. Rome), or even if you’re in a lesser-known-but-still-amazing place, use this time to reach those people.

Share videos on your social media. Start a YouTube channel talking about what you cover on your walking tours. Write blogs about the architecture in your area. Share interesting articles or videos about the history of your area. Get people excited about where you are!

When we’re all out of quarantine and able to travel again, those “someday…” people will be at the front of the line. We all know (all too well, unfortunately) that anything can happen and tomorrow isn’t promised. Market to them now, using a very soft-sell approach that gains trust and builds relationships, and it’ll pay off when things open back up.

Work on your marketing (domestic/local)

We’re going to come out of this slowly. While people will be itching to do their bucket list trips, the sad reality is that those trips will be unattainable for a long time. Local travel and attractions are going to be the first to bounce back.

Use this time to court locals. Prepare school outreach and talk about how great your local tours or activity centers are for field trips. Post interesting local history facts to Facebook groups in your city and get people interested in their own area. Make videos of your escape rooms and get people guessing and working out solutions from their own home that they’ll want to try out later.

Update everything

We always say that we don’t have time to do a lot of administrative tasks. Now we do. If you do those things now, you’ll have the perfect business when things pick back up. Or at least your version of the perfect business.

There are the obvious behind the scenes tasks that you can do. Check your budgets, make sure that you’re spending money wisely. Revise any guide manuals that you have. Get all of that done so that things can run smoothly when we return to normality.

More visible updates you can do include: updating your photos. You should have a lot of photos available. Make a schedule to get new ones posted to your social media and think about if you want to change them on your website. Same thing with text on your website. Are there any pages that weren’t performing well? Compare the text there to content on the pages that work and make adjustments. If you get your website optimized for sales now, you’ll see the benefit when travel starts back up.

It can be hard to spend money now, but if you have some capital and you’re looking to get the best bang for your buck, it’s hard to beat a new website. Tourism Tiger websites are designed to sell tours and we’d be happy to look at yours and offer suggestions or to show you how a new build can help.

Reach out to former guests

Your guests were happy to spend their vacation time with you. They like you and want you to succeed. They also know that everyone is struggling right now and that every little bit helps. Don’t be afraid to ask them for help!

Former customers can do a lot for you right now. Reach out to them and ask them to review your business if they haven’t already. Get them to follow you on social media (maybe even ask them to share a post or two). Ask them to send you their photos (or post them so you can share). Use their content to show how happy guests are with you.

We can get through this together. Hugs to you all.

Who is Stephanie Fiero?

Stephanie Fiero is originally from Michigan, USA. She currently works as the Marketing Manager for Tourism Tiger, a web design company specializing in tour and activity operators. Stephanie has lived on four continents in her continuing pursuit of learning a useful second language. Her favorite vacation was Myanmar in 2016 and her favorite tour was Chernobyl in 2013.

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As you may know, the government is offering forgivable loans of up to $10m per business entity under the Paycheck Protection Program (PPP).

But did you know that you need a private lender to access these loans and that they will be processed on a first come, first serve basis? Every Small Business Administration (SBA) lender has to give you the same terms, and most banks will start lending in the coming days.

To make this process as easy as possible, we’ve teamed up with our friends at Womply, an agent of federally approved SBA lenders. They can help you start your application right now and fast track your Paycheck Protection Loan.

Analysts expect demand for these loans to be over one trillion dollars, but with only $350 billion currently allocated for this program, time is of the essence and if you are eligible you should apply immediately.

More information below:

Who is Womply?

Womply is a SaaS company that serves over 450 thousand small businesses. They’re now working hard to connect businesses to SBA-approved lenders amid COVID-19, and have allocated over a hundred agents ready to help you navigate this process.

Is there a cost to apply for these loans through Womply?

It’s completely free to apply. Their aim is simply to help you find a lender faster.

What is the Paycheck Protection Program?

This program falls under the CARES Act recently passed by the Senate, providing forgivable emergency loans to small businesses. The program is designed for “Paycheck Protection” so that businesses can keep and/or rehire employees (if you’ve already reduced staff or wages, you’ll have until June 30 to reverse those changes to be eligible for loan forgiveness). If you spend your loan on payroll, rent, mortgage interest, or utilities during the first 8 weeks, the government will forgive your loan so you don’t have to pay it back. More info here.

Why is applying through Womply beneficial for me?

Most banks will start lending in the coming days, and demand is likely to be extremely high. Approval could take weeks, even after finding an approved lender to assist you. Womply’s dedicated agents can help connect you with a lender as quickly as possible and thus fast track your application.

Do I need to be a Peek partner to benefit from this partnership?

No! Our aim is to help all operators access a PPP loan faster so they can get the help they need. We’re all in this together.

How do I apply?

You can apply using this link.

Other useful links:

Womply Loan FAQsRequired Document Checklist

If you need assistance, feel free to reach out to the Peek team at 855-733-5776 - we will be happy to assist you. You can also reach out to the Womply team to check on the status of your application by reaching out to support@womply.com or calling 855-929-9111.