Category: Newsletter

U.S. Secretary of Agriculture Sonny Perdue today unveiled a one-stop-shop of federal programs that can be used by rural communities, organizations and individuals impacted by the COVID-19 pandemic. The COVID-19 Federal Rural Resource Guide (PDF, 349 KB) is a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.

USDA has taken many immediate actions to assist farmers, ranchers, producers, rural communities, and rural-based businesses and organizations impacted by the COVID-19 pandemic. For more information on these actions, visit http://www.usda.gov/coronavirus.

No one can provide all the answers during the coronavirus pandemic, but there are things you can do to help. Watch this webinar from Inc. to find the steps.

Nearly 94% of Montana’s travel-related businesses said they have been impacted by COVID-19, and 83% of Montana residents and visitors to the state are concerned about their personal health.

This is according to surveys conducted March 11-27 by the Institute for Tourism and Recreation Research at the University of Montana.

The ITRR business survey found that cancellations happened to 83% of these businesses during the last two weeks of March. April cancellations hit 84% of these businesses, with accommodations and outfitter/guides receiving the highest number.

Spring is the time for bookings. Whether it is a hotel reservation, a guided trip or a campground, respondents to the survey report travelers are holding back for the near future.

In the last half of March, when COVID-19 was spreading across the country, of the businesses that said they had received future bookings, 63% reported zero bookings made for April. Sixty-one percent had zero bookings made for May, 49% had zero bookings made for June, and 21% said they had zero bookings made for July and beyond.

“The good news in this data is that at least the zero-booking numbers are going down as time goes forward,” ITRR Director Norma Nickerson said. “It appears travelers aren’t giving up just yet. Some are still booking for the summer.”

However, in the last two weeks of March, another sign of the concerned traveler is showing up in decreased inquiries to businesses in Montana. Ninety-one percent of the accommodation sector reported their inquiries were down, followed by 87% of outfitters and guides.

“Basically, by the middle of March, the phones just stopped ringing,” said one survey respondent.

Other data show that 66% of tourism-related businesses have temporarily reduced their workforce, and 57% have temporarily closed some or part of their business.

Respondents were asked if they would permanently close their business due to COVID19. Seventy-nine percent disagreed with that statement, 18% neither agreed nor disagreed and 3% reported that they would close. That included eight hotels, five outfitter/guides, eight tourism service businesses and two tourism support service businesses.

It’s a wait and see game for many, Nickerson said. One accommodation business owner wrote: “Ninety-nine percent of our guests come from locations requiring them to fly to Missoula or another airport and then drive out to our location. Much of our season is May through October. At this time all of our guests (except the ones in April) have chosen to wait and see how things unfold in the airline and travel industry.”

Another respondent, referring to the federal government assistance to small businesses, wrote, “All fly-fishing guides have been extremely hard hit by this crisis. As independent contractors, being able to apply for unemployment funds will literally change lives.”

Tourism service businesses such as restaurants, bars, distilleries and specialty retail shops have had to change their operations by offering take-out or delivery services, or have closed altogether. As one respondent in this category wrote, “This has hurt our business and our way of life for our own family, as well as our employees. Not sure how we will dig our way out with not having our doors open to survive.”

Finally, tourism support services, such as those that might not directly work with visitors (including chambers of commerce, convention and visitor bureaus, advertising firms and insurance companies) or feel their business is more residents than visitors, are feeling the pinch as well.

“I own a tiny one chair salon in Big Sky and have now been closed for 1.5 weeks going on three more,” a respondent wrote. “This is a very scary and trying time for small business owners.”

Businesses that many don’t think relate to tourism or travel are also concerned. “My schedule was booked for keynote speaking and workshop engagements across the state between April and October,” wrote a respondent. “All but one canceled or postponed, and the one shifted to an online/webinar format. Out-of-state companies had been reaching out about having retreats for remote employees in Montana, but none have booked and inquiries have completely stopped.”

There were 919 respondents to this survey, representing businesses in all but six Montana counties. Those six counties represent only 1.3% of Montana’s population. Twenty-six percent of respondents represented accommodations (236 respondents), 24% represented the outfitter/guide business (216 respondents), 26% represented tourism service businesses (239 respondents), and 25% represented tourism support services (228 respondents).

The ITRR traveler survey, conducted in a two-week interval of March 11-14 and March 25-27, shows changes in sentiment.

Fifty-eight percent of respondents representing Montana residents and previous visitors indicated they were at least somewhat concerned about their own health initially. That number jumped to 83% in the second survey.

Meanwhile, 71% initially indicated concern for the health of their community, and later 92% express such. Concern by these respondents is not limited to health. In early March, 42% of travelers and 36% of Montanans expressed extreme concern over the economy. Then at the end of March, those extremely concerned levels have risen to 68% and 61% respectively. They are small compared to the 87% who indicated concern over the economy.

“Concerns about both one’s own health, broad mandates to stay at home and the future health of the economy are likely to impact travel decisions,” said ITRR Associate Director Jeremy Sage. “To measure the current sentiment and changes to booked and planned travel, ITRR asked respondents to indicate changes to their upcoming plans.”

Before reports of the outbreak in the U.S., two-thirds of both Montanans and nonMontana residents surveyed had already booked trips – including flights, hotels or special events more than 50 miles from home.

In the first round of surveys, only 3% of booked trips to Montana were being canceled. This has risen starkly in two and a half weeks, where later 37% of booked trips that were scheduled in the spring and summer have been canceled and another 36% are actively being considered to be canceled.

“As high as these values are, they do paint a better picture than the rest of the U.S.,” Sage said. “To all other domestic locations, 54% of booked trips are getting canceled by this group, and they are considering cancelation of another 32%.”

In an effort to track the growing impacts of the coronavirus, ITRR will continue surveying Montanans and previous Montana visitors, and Montana travel-related businesses about their perceptions of the virus outbreak and how it has impacted their travel plans.

For a review of the business survey visit https://bit.ly/39zEFVT. For a review of the traveler survey visit https://bit.ly/2JEbbMe. All information and reports published by ITRR are available online at http://www.itrr.umt.edu

NorthWestern Energy remains committed to keeping the lights during this unprecedented time. Our crews continue providing essential services including ongoing maintenance so that our system stays strong and reliable. We announced earlier today $300,000 in aid to assist the communities we serve that are struggling with the impacts of the COVID-19 pandemic. This is in addition to NorthWestern Energy’s annual charitable donations, economic development and local sponsorships and employee match programs, which were more than $2 million in 2019.

More than half of NorthWestern Energy’s aid will provide grants in the form of energy bill credits for our small business customers. This will help free up resources for small businesses, many of which are severely impacted by the COVID-19 crisis, as they continue their critical role in our economy and provide employment for members of our communities. This aid is available immediately as a bill credit and can be accessed through our website at https://contactus.northwesternenergy.com/CharitableGrantApp/applicationsb, so if you have a small business that is locally owned/standalone business that has been impacted please fill out the application above.

In addition, NorthWestern Energy will match donations from our employees, dollar for dollar, to organizations that provide emergency assistance for members of our communities experiencing difficulty paying their residential energy bill. One of NorthWestern Energy’s first actions in early March was to temporarily suspend most disconnections and late fees for households and small businesses facing hardship because of the pandemic.

NorthWestern Energy customers who have questions about their service or bills can call 888-467-2669 or 800-245-6977.

In summary:

• NorthWestern Energy walk-in Customer Service Centers are temporarily closed and personnel who serve walk-in customers have been assigned other duties. All NorthWestern Energy facilities are closed to the public.
• Our Customer Contact Center remains open 24/7 and can be reached at 888-467-2669 in Montana or 800-245-6977 in South Dakota and Nebraska. In order to keep our Customer Care employees safe, we have Customer Service Representatives operating from five locations and some home-based employees.
• NorthWestern Energy voluntarily suspended service disconnections for non-payment, effective immediately, to help customers who may be financially impacted as the result of this outbreak. This suspension will apply primarily to residential customers and will remain in effect until further notice. You are encouraged to contact us if you are having trouble paying your bill.
• NorthWestern Energy employees have been asked to not travel, and those who elect to travel are going into an mandatory 14-day self-quarantine. Strict travel restrictions have been implemented.
• Access to all NorthWestern Energy critical facilities is restricted to essential employees only. Employees in these facilities have been split into segregated work groups to avoid physical contact.
• NorthWestern Energy is using technology for meetings and cancelling assemblies.
• NorthWestern Energy has split work groups, instituted work-from-home for a large portion of its workforce and assigned separate shifts.
• Field personnel are still performing operations and maintenance work, but extra social distancing protocol has been implemented. NorthWestern field personnel will not enter a customer home or business except in very limited circumstances. In an instance where an employee does need to enter a home or business, extra precautions have been implemented.
• We are temporarily suspending Home Energy Audits.
• Our number one goal during this uncertain time is to provide reliable service while keeping the public and our customers safe.
• Thank you for your understanding and patience.
• Stay well and safe. If you have questions or concerns please email or call me. Please feel free to pass this on as you see fit.

Thank you,

Heidi Hockett
Manager – Community Relations
heidi.hockett@northwestern.com
Cell 406-590-1803
1501 N River RD
Great Falls, MT 59414

Via Sweetgrass Development:

Here is the SBA information that businesses may utilize.  You may apply for both.  Please let me know if you have any questions and pass the information on to everyone in your communities.  If you are having issues logging into any of the programs, off peak hours are the best.  As always, contact me if you have any further issues, there are many people willing to assist with navigating the waters and answering questions!

1. If your business has incurred economic injury tied to the COVID-19/coronavirus crisis, apply right away for an SBA Economic Injury Disaster Loan (EIDL). Here is a link directly to the application.
   EIDL loans are designed for economic recovery. You do not need to put a dollar amount in when you complete your online application, but down the road, you will need to document your economic loss caused by the COVID-19 crisis. You will be contacted by an SBA loan officer to discuss your application, hopefully within 2-3 weeks. Applications are processed first come first served. The maximum loan amount is $2million; 30-year term with no prepayment penalty. Rate is 3.75% (2.75% for non-profits).
   The SBA has streamlined the process and upgraded its web site. You will need your gross revenue, cost of goods sold and operating expenses for the 12 months ending January 31, 2020. Be sure to write down the password you set as there is no way to reset it.
   Applying for an EIDL loan qualifies your business for a loan advance of up to $10,000. The SBA hopes to fund the advance to a business’ bank account within three days of application. You will need to provide your bank routing information (Bank name, account number and routing number). You must provide this for direct deposit. If you receive any emails from the SBA, FIRST verifies the email sending address (click on it) to be sure it actually is from the SBA. Scammers are prevalent right now.
   If you submitted an EIDL application prior to March 31, 2020, you will need to go back into your application and select the loan advance up to $10,000 to be eligible for the advance. Businesses qualify for the $10,000 loan advance even if they are denied for an EIDL or even if you decide to not take the EIDL loan. It appears that the legislation made the $10,000 tax-exempt. 
   Essentially there is nothing to lose by applying for an EIDL. Nonprofit 501 c 3 entities are also eligible. Even if you are approved for the EIDL, you will not be required to accept it. Read the specifics on EIDL loans on the SBA website above. That is the most definitive information. The website is changing dynamically so check back often. 
2. Congress created a new program in the CARES Act design to enable businesses to cover operating costs so that you can keep more employees on your payroll. The maximum of the loan will be 2.5 times your average monthly payroll for a twelve-month period. SBA is working to roll out the Payroll Protection Program (PPP) loan product through bank partners as soon as possible. You will be able to apply for this through any SBA 7a loan guaranty lender. Talk with your bank to see if they are an eligible lender. Other banks and credit unions, even groups like GFDA may become eligible (GFDA is a certified Community Development Financial Institution).
   The Montana SBA District Office advised lenders today to encourage applicants to begin gathering documents for the PPP. Those documents may include: verification of employees, including full-time and part-time hours, worked; pay rates; payroll tax filings reported to IRS; unemployment; documentation for any other expenses sought to be included in the loan amount, including rent, utilities, or other bills; transcripts of accounts; and, any other sort of document for payment they want to be included. With those documents, lenders may then start to calculate a loan amount. A borrower certification will likely also be required to be submitted. Montana SBA District Office staff also stated additional documentation not noted above may be required as official SBA guidance is released.
   The SBA posted a sample loan application (see here) for the PPP program. This can be useful for you to gather the information you need, but keep in mind your bank may use different forms and that the form can change once the SBA issues all of its guidance to lenders. This is not an actual application form.  
3. Once the official PPP guidance is issued from SBA, talk with your banker to evaluate whether the EIDL or PPP would be a better route for you. Our business advisers will also be able to assist you. You cannot apply for multiple financing to cover the same things — no double dipping — but you may be eligible to receive loans from both programs to cover different things. 
4. The PPP loan has a forgiveness component if certain criteria are met. Criteria will be announced within the official SBA guidance. If you receive the loan advance of up to $10,000 from the EIDL program, that may be deducted from the PPP loan forgiveness. Applying for an EIDL now does not affect your eligibility for the PPP, so long as the only funds you take is the $10,000 advance. Once the guidance for PPP loans is issued, you may decide to go back in to EIDL and withdraw your request. 5) If you previously applied for an EIDL and were denied, you can go back in and apply now for the $10,000 loan advance.  Due to relaxed guidelines for the EIDL passed through the CARES Act, businesses that have applied for the EIDL and were denied are being encouraged to reapply. 6) As always, the devil is in the fine print. Read the details (from SBA) and talk with your banker and other professional advisers before making any decisions. Now more than ever, do business with those you trust. With all the funding Congress has approved, every scam scum around the world has risen out of the gutter.

SBA – Economic Injury Disaster Loans and Loan Advance – https://www.sba.gov/page/disaster-loan-applications

Two SBA emergency capital programs are available today and more will be coming soon:

1. Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster .

2. Economic Injury Disaster Loan Advance for up to $10,000: The form to apply is part of the economic injury disaster loan application. If approved, these funds can be used for payroll and other operating expenses and will be forgiven.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.

SBA – Paycheck Protection Program – https://www.sba.gov/funding-programs/loans/paycheck-protection-program 

The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities.