Changes in the Paycheck Protection Program that benefit the smallest of small businesses

The Paycheck Protection Program has been one of the most visible programs inside the US Government’s response to the pandemic. The overall goal of the program was to get loans to small businesses to help them keep their staff employed as we entered the unknown waters of a pandemic economy. If these small businesses kept their staffs employed, these loans would be forgiven, and the loans would essentially convert into grants. There was recently a change to how much funding a small business would qualify for, and this change will have a dramatic impact on the smallest businesses who were previously either left out of the program or only qualified for a nominal amount of funds. 

These changes revolve around people who report their business income using a Schedule C on their tax return. Schedule Cs are typically used for sole proprietors (fancy way of saying people who do business in their personal name with no formal entity like a LLC or corporation), but some LLCs also use Schedule Cs. Up until this point, these businesses would determine the amount of a loan they qualified for by combining the annual payroll costs of any employees with the net profit of the business. These two figures formed the basis of the calculation, and the idea was that these figures would represent the combined compensation paid the employees and the owner.

The unintended consequence of how the program was initially setup is that many of the smallest businesses operate at essentially a breakeven where income is nearly entirely offset by expenses. Due to this, the “owners” portion (net profit) could be very low or $0 which caused their PPP loan amount to go down. With the new changes, the “owner” compensation portion of the calculation has been switched from using the net profit to the gross profit. This change will dramatically impact the amount of PPP funds a small business can qualify for as well as even allowing some businesses with a negative net profit to receive PPP funds when previously they did not qualify at all.

These changes became effective on March 5th, and they will be in place through the end of the program on March 31st. This can have a massive impact on some of the smallest businesses in our community.  Businesses that use Schedule Cs range from popup stands at the farmers market to businesses on Front Street. This group of businesses provide much of the vitality that makes Mankato special; so let’s get the word out so these businesses survive!

At Pioneer Bank, we have funded over 1,350 PPP loans for our community with a median loan size of $20,000. Most banks have access to this program, but anyone can feel free to send any questions to Clay Sharkey.

Announcing GMG’s 2020 Policy Priorities

FromTheDomeThe Minnesota Legislature gavels into session next week Tuesday. As always, Greater Mankato Growth will keep our members up to speed on key issues and provide the information you’ll need to be an advocate for your business. Be sure to stay tuned to this blog in the coming months as we post updates on key issues businesses should keep an eye on.

GMG’s board of directors has also approved a set of policy priorities that GMG will monitor and advocate on in the coming legislative session. The policy priorities were derived from a thorough vetting process, including surveying of members, consideration and discussion by the organization’s Public Affairs Steering Committee, and ultimately, approval by the Board. These priorities represent a series of policy issues (federal, state & local) that are of interest to our members and our regional marketplace.

Key issues that GMG will advocate on this year are Highway 14 expansion and support of enhancements at Caswell Park, including a new regional field house. In addition to our own organization’s priorities, GMG partners with organizations that help magnify our voice in advocating for key priorities. GMG is an affiliate member of the following organizations. Continue reading “Announcing GMG’s 2020 Policy Priorities”

GMG Q2 Report

GMG_TM_4C_300dpiOur entire team at Greater Mankato Growth, Inc. works each day to bring value to our members and drive increased vitality to the Greater Mankato region. To ensure that we’re effectively updating our partners and the community on our work, we revamped our annual report. Instead of a once-a-year 40+ page document, we’ve transitioned to a quarterly report in a new, condensed infographic layout. This has allowed us to streamline and considerably reduce staff time as well as printing costs all while making the content easier to digest, more immediate, and more impactful. I invite you to take a look at our Quarter 2 report.

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GMG Q1 Report

GMG_TM_4C_300dpiOur entire team at Greater Mankato Growth, Inc. works each day to bring value to our members and drive increased vitality to the Greater Mankato region. To ensure that we’re effectively updating our partners and the community on our work, we recently revamped our annual report. Instead of a once-a-year 40+ page document, we’ve transitioned to a quarterly report in a new, condensed infographic layout. This has allowed us to streamline and considerably reduce staff time as well as printing costs all while making the content easier to digest, more immediate, and more impactful. I invite you to take a look at our Quarter 1 report.

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Attend The U.S. Chamber Small Business Series For Free

Greater Mankato Growth members have the opportunity to attend an upcoming event put on by the U.S. Chamber of Commerce and the Minnesota Chamber of Commerce.  The U.S. Chamber Small Business Series will make a stop in the Twin Cities on Tuesday, July 24th in Minneapolis.   As an additional benefit of being a member of Greater Mankato Growth you can attend for free by using promo code: SBSMNChamberContinue reading “Attend The U.S. Chamber Small Business Series For Free”

Announcing GMG’s 2018 Policy Priorities

FromTheDomeThe Minnesota Legislature gavels into session today. As always, Greater Mankato Growth (GMG) will keep our members up to speed on key issues and provide the information you’ll need to be an advocate for your business. Be sure to stay tuned to this blog in the coming months as we post updates on key issues businesses should keep an eye on. Continue reading “Announcing GMG’s 2018 Policy Priorities”

Why You Need to Grow Your Personal Brand and It’s Not to Land a New Job

Business owners rarely see a reason to build on things like their LinkedIn profiles. “I’m not looking for a job.”, is a common response when asked why they don’t have one. But in today’s uber-competitive business climate, where even mom and pops are potentially competing on a global level, it’s more important than ever to be able to differentiate your business, and yourself, from the competition. This is done through personal branding. Continue reading “Why You Need to Grow Your Personal Brand and It’s Not to Land a New Job”

Grow Your Content Through Re-purposing

l1In order to rank your business highly, Google expects quality content; quality as judged by your audience through shares and interaction. But creating good content takes time, time many business owners simply don’t have. Here are a few ideas on how you can use existing content to increase your content offerings with a minimal amount of time. Continue reading “Grow Your Content Through Re-purposing”

Upcoming Public Affairs Forums

These events bring together compelling speakers and business leaders to discuss timely and relevant political and policy issues. Continue reading “Upcoming Public Affairs Forums”

Four Tips to Creating Viral Content for Your Business

Tips to Creating Viral ContentMaybe you’ve heard the old saying, in order to win the lottery you first have to play. That’s about the extent to any advice someone can give you on how to win. Yes, there are superstitions out there and number theories, but in the end, the only way to guarantee you could win the lottery is by playing.

The same can be said for viral content. There is not guarantee your content will go viral but if you do these things, it could go viral. While I can’t make any guarantees about lightning striking in the viral content lottery, I can tell you if you create content your audience finds valuable or entertaining, you’re more likely for it to happen.

Here are a few suggestions on how to create content people love:

Continue reading “Four Tips to Creating Viral Content for Your Business”