Adjustment in SBA PPP Allows for Loans that Help Upper Peninsula's Seasonal Businesses

The Upper Peninsula of Michigan is a rural and rustic place that attracts snowmobilers, hikers, and general outdoor enthusiasts. According to Michigan Works sponsored report in 2017 the Upper Peninsula's third largest work demographic was Leisure and Hospitality. Its a tourist type place with vacation destinations like Mackinac Island, Escanaba and Munising (...and more). That also means many of the seasonal businesses were left out of the original PPP program because they were not Open a 12-week period beginning in February and/or March through June 2019.

The new loan criteria designed to help seasonal businesses allows businesses to select a 12 week period between May 2019, and mid-September 2019. That means such businesses can now use a payroll that would be active during a time when they are open so they can get the maximum amount. When the snow melts they open and unfortunately prior to this change they were left out so the adjustments are a positive one not only for the Upper Peninsula but also Escanaba and Gladstone.

"Many First District small businesses are seasonal in nature. I’ve been advocating for this new ruling to allow our seasonal businesses greater funding access that more appropriately reflects their business model and needs.‘One-size-fits-all’ regulations have never worked for Northern Michigan and the Upper Peninsula, and I will remain engaged with the Administration to ensure the PPP works for our communities’ true small businesses," says Congressional Rep. Bergman (1).

You may also want to read Small Business Administration Business Loan Program Temporary Changes; PaycheckProtection Program – Additional Criterion for Seasonal Employers by Michael Faulkender, Assistant Secretary for Economic Policy for the U.S. Department of Treasury. There is some additional details within the document that may be of interest to small seasonal businesses.

Governor Whitmer April 27 2020- Michigan Economic Recovery Council Takes Center Stage

The Michigan Economic Recover Council was introduced tonight to the general public. It is a group of business leaders, medical professionals, academics and others that are working to find a safe way to open the economy. They have a fairly complex system but for the most part it seems to make sense. It is likely going to be "scalable" with some modifications. It appears to fit within the general Federal guidelines.

The Governor indicated that outdoor, industry and construction may end up opening up soon. More information will be coming out over the next few days.

General Notes:
-Licensing for food service temporarily suspended.
-Grocery stores and pharmacy allocate 2 hours week vulnerable employees.
-Grocery stores and pharmacy employees must wear mask.
-New Executive Order 2020-63 Extension of PPO (See Below)
-PPP loans are still open to Michigan residents.
-Adults in Michigan can get health coverage from the  Healthy Michigan Plan
-Companies donated masks and other items.
-Small businesses can retool so they can manufacturing PPE.
-UVC light devices that treat air and surfaces.
-My Safe Start Plan seek to open slowly but surely.
-Instead of a 250K hospitalization we are at 3K.
-Will start opening up the economy.
-Businesses that pose the lowest risk will open.
-New sectors include outdoor sectors, construction sectors and industrial sectors.
-New practices of safety that includes masks, cleaning abilities and social distancing.
-Mental Health website https://www.michigan.gov/coronavirus/0,9753,7-406-98178_99557---,00.html

Michigan Economic Recovery Council
-Gary Anderson from the Michigan Economic Recovery Council with two 1. Path to Economic Recovery and 2. Stage Recovery for Safety. The council uses a wide variety of knowledge base such as academia, labor, business, etc... to make recommendations to the governor. It also uses business leaders that have businesses overseas and have a wider perspective. Small Business Association was added to balance issues.
-8 Regions (Natural Labor Sheds and Healthcare).
-Look at healthcare and the virus density.
-Michigan labor force by workplace types.
-Best practices for each work type.
-Phase openings in regions.
-Showed chart with X & Y Chart with Pandemic Risk and Workplace Risk.
-Urgent, Stabilizing and Recovery Stages.
-Over 20 facilities over the world have sent back information on companies that worked throughout the crisis. They have received 20+ information back.
-13 ABC has a lot more detail and information.

There was a question related to Emergency Powers and I found something HERE (No judgement on source or accuracy because its not in my scope of knowledge). There was also something on the Emergency Powers Act 302 1945 and a 2006 No. 6364 Amendment. I would suspect there will be some disagreement and further definition in the coming months/year. 😶

FOR IMMEDIATE RELEASE 

April 27, 2020 

Contact: press@michigan.gov 

Governor Gretchen Whitmer Signs Executive Order Extending Validity of Personal Protection Orders During COVID-19 Pandemic 

LANSING, Mich. — Today, Governor Gretchen Whitmer signed Executive Order 2020-63, which extends validity of existing personal protection orders that would otherwise expire during the continuing COVID-19 pandemic.  

Governor Whitmer’s order coincides with a Michigan Supreme Court administrative order extending the validity of personal protection orders until 90 days after Michigan’s emergency declaration is lifted. The orders takes immediate effect. 

“Michiganders who file for personal protection orders due to threats, stalking, and abuse should have peace of mind in their homes during the ongoing health crisis,” Governor Whitmer said. “By extending the expiration of existing personal protection orders, we are helping secure the safety of vulnerable residents as we continue to flatten the curve and plan for Michigan’s resurgence.” 

Governor Whitmer’s order requires law enforcement agencies to extend the validity of personal protection orders to July 21, 2020.   

“Unfortunately, these victims are particularly vulnerable to stalking and harassment — which is why they sought protection in the first place,” Michigan Attorney General Dana Nessel said. “Until today, victims were unable to effectively seek extensions of PPOs during this health care crisis – building upon the anxiety of an already fearful situation.” 

Information around this outbreak is changing rapidly. The latest information is available at Michigan.gov/Coronavirus and CDC.gov/Coronavirus. 

To view executive order 2020-63, click the link below: 

President Donald Trump April 27th, 2020- Private/Public Collaboration for Testing Adaptation

What we learn from today's meeting is that many American businesses are stepping up their capacity in public-private partnerships to solve this COVID-19 problem by rapidly expanding testing capacity. That is the importance of the American Spirit that leads to adaptation and mastery of novel threats. When this crisis is over, we may be able to hedge that spirit to build a new nation unsurpassed by any in the world's history. Perhaps, a new economic platform that other nations may take decades to copy.

With effort we can regenerate and rejuvenate our national mission and message. That requires people to clean their foggy glasses to take a renewed view of the American Legacy and our responsibility to pull ourselves up and over old world paradigms. To see the world and our responsibilities in it in a new way!

We are no longer learning to walk but are starting to run! Each new skill leads to an opening of doors to more sophisticated mastery. As a nation, when we begin to walk down new paths our understandings change as our strategic options change. Unbroken and uncharted paths (i.e. our exploration and adaptation to COVID) require new ways of thinking to master adversity. Sometimes we improve our skills and abilities to find ourselves further than any nation has been before.

Time and opportunity is the judge of our national performance.

A few notes:
-General Improvement in sickness.
-Moving toward opening up economy.
-Largest retailers like Walmart, CVS, Walgreens, Rite Aid, Kroger, etc... and medical providers are working together to expand testing.
-Information from Quest and others on testing capabilities and speeding up innovation.
-There has been an improvement in coordination and supply chain issues that are improving testing, swabs, costs, etc....
-Many pharmacies like CVS, Walgreens, Kroger, etc...will allow for drive-thru testing and speeding up testing.
-Science and technology to expanding and creating stronger and more mobile testing.
-Teams at White House meeting with state teams.
-There are more comprehensive notes w/ companies involved HERE.

Michigan Governor Whitmer Executive Order Focuses on Food Service and Pharmacies-Executive Order 2020-42

The State of Michigan is slowly opening and we are likely to see a number of executive orders rising to define aspects of that opening. The latest executive order (Executive Order 2020-42) seems to focus more on protecting food service and pharmacy workers. It also requires extra time (vulnerable populations) to shop.  It instills special workplace requirements to protect oneself and employees. There is also workplace screening criteria included in the order. Food service licensing will be delayed for some time due to limited health department resources.

I'm not sure where this executive order is leaning but seems to be oriented more around definitions of closing some "risk" spots. I wonder if there will be an opening of some additional food service establishments in the near future? Not sure.....

From State of Michigan Press Release https://www.michigan.gov/whitmer/0,9309,7-387-90499_90640-527058--,00.html

• Require checkout employees to wear some form of covering over their nose and mouth, such as a homemade mask, scarf, bandana, or handkerchief;  
• Ensure that both employees and customers remain at least six feet apart to the maximum extent possible; 
• Close self-serve prepared food stations such as salad bars and eliminate free samples and tasting stations; 
• Adopt procedures to meet the environmental cleaning guidelines set by the CDC, including by cleaning and disinfecting frequent touchpoints throughout the day such as point of sale terminals at registers, shopping carts, and shopping baskets; 

• Prohibit employees who are sick from reporting to work and send employees home if they display symptoms of COVID-19.  
• Accommodate employees who fall within a vulnerable population by providing lower-exposure work assignments or giving them the option to take an unpaid leave of absence with a return date coinciding with the end of the states of emergency and disaster. 
• Develop and implement a daily screening program, as described herein, for all staff upon or just prior to reporting to work sites. 
• And more. 

Due to the increased strain on Michigan’s food service industry, local health departments, and the Michigan Department of Agriculture and Rural Development, the governor has extended the deadline for certain forms of licensing and registration.   

Executive order 2020-60 is effective immediately. To view the order, click the link below:  

• EO 2020-60 Emerg order - food sellers.pdf

Delta County Michigan Residents Should Avoid Mortgage Default with 90-Day Mortgage Forbearance

The COVID-19 Crisis caught a lot of people off guard. Americans have not done well saving up money and paying down credit cards. Sometimes when tough times happen the entire system starts to move out of whack and people begin to default on their payments. This can have implications throughout the entire economic chain. Therefore, by putting in place a system that temporarily stops default actions can help shorten the default shock for homeowners and institutions. 

If you have a home and are at risk of defaulting on payment you will want to pay close attention. 

What is the Purpose:
The purpose is to stop the chain of default. When people are not working, using unemployment and not making much money they are not able to scrape together mortgage payments. This shortfall often leads to defaults which in turn causes cash runs and crashes. The defaults are artificially based in the crisis so ensuring people are working and/or temporarily don't have payments will help. A temporary hold/ban will stop further panic that more permanently damage the economy.

What Does It Do?
It provides 90 day forbearance on late mortgage payments, doesn't allow for reporting on your credit report (for a certain time) and temporarily stops foreclosures for 60 days.

Local Participants:
 Delta County has a number of providers that are part of the MiMortgage Relief Partnership Program. A couple of noteworthy credit unions and banks are include:

Delta County Credit Union
First Bank Upper Michigan
mBank
Peninsula Federal Credit Union
and more..... (See LIST). 

What Should You Do If You are Experiencing a Hardship?
Contact your lending institution right away and they will help you. 

Michigan Press Release April 23th, 2020 (Read from website):

Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) today announce the creation of the MiMortgage Relief Partnership with over 200 of Michigan’s financial institutions to recognize and expand upon the measures that these institutions have been taking to assist customers to ensure that no one experiencing financial hardship due to COVID-19 will lose their home during this public health crisis.

Michigan’s financial institutions have been working hard to assist their customers during these unprecedented times. This partnership will encourage uniformity in available options for consumers in need of assistance, regardless of financial institution.

“No one should have to worry about losing their home during the COVID-19 pandemic,” said Governor Gretchen Whitmer. “With the MiMortgage Relief Partnership, Michigan’s credit unions, banks, and lenders have stepped to the plate to help our residents who are suffering financial losses due to COVID-19 by providing a 90-day grace period for mortgage payments.”

By signing onto Governor Whitmer’s MiMortgage Relief Partnership, participating financial institutions have agreed that they will continue to work with their impacted residential mortgage loan borrowers in at least the following ways:

Providing affected borrowers with a 90-day grace period for all mortgage payments. Financial institutions will offer mortgage-payment forbearance for 90 days, allowing borrowers to reduce or delay their monthly mortgage payment. In addition, the financial institutions will:

• Provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation; 
• Confirm approval of and terms of their forbearance program (which should include reasonable solutions for resuming payments at the end of the forbearance term); and 
• Where appropriate, provide the opportunity for borrowers to extend a forbearance agreement if they continue to experience hardship due to COVID-19. 
• 
  

Providing relief from mortgage-related late fees and charges for 90 days. For affected borrowers who reach an agreement with their financial institution, financial institutions will waive or refund mortgage-related late fees for at least 90 days.

Foregoing new foreclosures for 60 days. Financial institutions will not initiate any foreclosure sales or evictions for 60 days for affected borrowers who reach an agreement with their financial institution.

Refraining from reporting adverse credit scoring information based upon the borrower’s accessing relief. Financial institutions will not report adverse credit scoring information for affected borrowers who reach an agreement with their financial institution. Financial institutions will report other credit information consistent with Consumer Financial Protection Bureau (CFPB) or other federal agency guidance.

Working with borrowers on their specific needs or concerns. If a financial institution varies from these provisions to the benefit of the borrower or to address specific borrower requests, concerns, or individual financial health, this would be deemed in the spirit of the partnership. In particular, issues surrounding escrow and tax and insurance payments may require more individualized assistance.

As of April 22, 2020, over 200 financial institutions have signed onto the partnership. Participating financial institutions are listed on the MiMortgage Relief Partnership Financial Institutions page.

“The strength of our financial system will be an important factor in how Michigan recovers economically from COVID-19,” DIFS Director Anita G. Fox said. “Through the MiMortgage Relief Partnership, financial institutions will continue to help customers find the solutions that best fit their needs, and to focus relief efforts on those most impacted by the crisis. Michigan residents who can meet their financial obligations can continue to do so, while those who need assistance will be able to work with their financial institutions to access relief.”

Michigan borrowers experiencing a financial hardship due to COVID-19 are encouraged to reach out directly to their financial institution to learn the details of the relief options available to them, and to work out with the institution an agreement applicable to their loan. Borrowers are encouraged to reach out before their loan becomes delinquent. DIFS never advises borrowers to stop paying their loan payments.

Please note that financial institutions and their servicers are experiencing high volumes of inquiries and may recommend using online services when available for the quickest service. Loans held by a financial institution may be serviced by another company.

Lenders who service federally-backed mortgages are subject to federal rules. Borrowers with these loans may wish to visit the CFPB guide to coronavirus mortgage relief options.

For more information on COVID-19 related mortgage relief, see: www.michigan.gov/MiMortgageRelief or call DIFS toll-free at 877-999-6442.

150 Businesses Sign Letter Requesting a Safe Reopening of the State

I'm a little late seeing this but it appears to be a letter intended to encourage re-opening of parts of the economy. This was sent a few days before the last executive order.

Michigan's Joint Select Committee on COVID-19 Pandemic (Res.No.20)-Learning Organization?

While Michigan's COVID-19 crisis isn't quite over but seems to be moving toward the end of a rampage and with hope it will dissipate into a moment in history. Resolution No.20 creates a committee to review what the state has done thus far and provide information and advise the legislative body of potential improvements. It is a little like reviewing a company's policies and procedures after a major change to see what worked and how it can be improved for next time. Learning organizations require feedback loops that lead to better policy making.

Concurrent Resolution No.20 is a way of improving our handling of the situation next time. Here is how...

During a crisis special powers are giving to people of authority to quickly handle those issues without having to go through a slower legislative process. One example is the Emergency Management Act in 1976. Such acts help to encourage quick coordination of resources and actions that may not have been possible in other situations. When we need quick action we can take it!

These powers are designed only for a certain amount of time while the crisis is in full swing and then powers will eventually move back to legislature. There were two Executives Orders given by Governor Whitmer (EO 2020-04 and EO 2020-33). Because these were of limited time on April 7th the Legislature extended these powers until April 30, 2020. That allowed for increased flexibility in dealing with a fluid and novel situation.

On April 24th, 2020 Concurrent Resolution No.20 created a bi-partisan Joint Select Committee that "shall examine the status and efficacy of governmental actions in response to the COVID-19 pandemic in Michigan." It will research and review actions within the State of Michigan that will provide further direction on how to deal with the current COVID-19 crisis and provide recommendations on how to improve responses should similar problems rear their ugly head in the future.

Such resolutions are important because they allow us to review and reflect on the actions taken to find better ways to deal with crisis in the future. When people are in frenzy they are doing everything they can to find a solution. Its hard to judge a crisis from hindsight but we can say there are always ways to improve. Thus, finding a legal mechanism for government to create policy improvements is helpful. Legislature will then take the information from that committee to enhance future decision making.

With such a learning system, and hopefully bipartisan opportunities for improvement, the State can learn and teach other states what they did for further adaptation in a way that improves the functioning of the entire country. Michigan was a state that was hard hit and has something to add to the national dialogue! According to Learning Organization Theory by Dr. Peter Senge from MIT  learning organizations with feedback mechanisms have five major components (Senge, 1990):

Systems Thinking: Method of thinking about measuring an organization and all of its components (bounded).

Personal Mastery: Helping people learn and develop in government and within the state for improved performance.

Mental Models: Challenging what people think so they can see new possibilities/opportunities and detect new threats.

Shared Vision: Creating a new vision that allows Democrats, Republicans, Independents and others to think about a new path forward.

Teamwork: Creating a culture of working together to solve problems.

What the main point is here is that we have an opportunity to learn, grow and adapt as a state, people and nation. If the goal is improvement of the entire state and then application to the rest of the country where it makes sense then such a committee will be very helpful. It can offer opportunities to adapt the entire system so that the next time this happens we are better prepared. I guess this depends on how people use and view the committee.

You can also read more about Organizational Learning Theory it HERE.


ADOPTED BY THE SENATE, APRIL 24, 2020

Link http://legislature.mi.gov/doc.aspx?2020-HCR-0020

Speaker Chatfield offered the following concurrent resolution:

A concurrent resolution to create the Joint Select Committee on the COVID-19 Pandemic.

Whereas, It is the inherent responsibility of the Legislature to oversee the operations of the executive branch and ensure the effective implementation and operation of state government programs. The Michigan Legislature passed the Emergency Management Act in 1976 and other related laws to grant the Governor certain responsibilities for coping with dangers to this state and the people of this state presented by a disaster or emergency; and

Whereas, On March 10, 2020, Governor Whitmer issued Executive Order 2020-04 declaring a state of emergency across the state of Michigan to address the COVID-19 pandemic; and

Whereas, On April 1, 2020, Governor Whitmer issued Executive Order 2020-33 to replace Executive Order 2020-04 and expand that initial March 10, 2020, declaration to include a state of disaster related to the COVID-19 pandemic; and

Whereas, On April 7, 2020, the Legislature extended the declared states of emergency and disaster until April 30, 2020; now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That there be created the Joint Select Committee on the COVID-19 Pandemic. The joint select committee shall consist of five members of the House of Representatives appointed by the Speaker of the House, two from the House Democratic Caucus recommended by the House Minority Leader and three from the House Republican Caucus, and five members of the Senate appointed by the Senate Majority Leader, two from the Senate Democratic Caucus recommended by the Senate Minority Leader and three from the Senate Republican Caucus. The Speaker of the House shall designate the chairperson of the joint select committee, and the Senate Majority leader shall designate the vice chairperson; and be it further

Resolved, That, pursuant to MCL 4.541, the joint select committee may subpoena and have produced before it the records and files of any state department, board, institution or agency, and it shall be the duty of any state department, board, institution or agency to produce before the joint select committee as required by the subpoena, or permit the members of the committee to inspect its records and files; and be it further

Resolved, That the joint select committee shall examine the status and efficacy of governmental actions in response to the COVID-19 pandemic in Michigan. The joint select committee shall report to the Legislature a summary of its findings and conclusions, as well as any recommendations on further appropriate actions the Legislature may take to address the COVID-19 pandemic and to prevent or prepare for similar emergencies in the state.


Senge, Peter M. The Fifth Discipline : the Art and Practice of the Learning Organization. New York :Doubleday/Currency, 1990. Retrieved https://books.google.com/books...