Sara Fraser is a millennial who has a love for life, travel, and connecting with other humans! She has over 15 years of retail management experience, the last 6 of them as an office manager for a used car sales and service center. To bring her customer service, marketing, and business knowledge to the automotive industry she has recently joined the team at Haas Performance Consulting.
Sara loves helping others grow and succeed and is excited to share her expertise on management and social media, her views on how and why the younger generations think and act, and how to work and manage a business within a multi-generational workforce. When she isn’t working Sara spends her time traveling, attending theatrical productions, music festivals, concerts, advocating for human and animal rights, celebrating life in general and connecting with other people from all over the world. Look for Sara’s previous episodes HERE.
Key Talking Points:
Why aren’t millennials applying to my shop? Millennials don’t buy products without looking at reviews- they won’t apply/accept offer without researching shop thoroughly first Have current employees leave google reviews- show off and share your business culture . Shop should look clean and inviting- millennials want walk through interviews to evaluate their potential work space Flexibility in work hours- millennials grew up with parents that were away from the home or working extended hours. Life after work is more important than work. Social media/linkedin/indeed- the more you advertise you’re hiring on different platforms, the bigger net you’re casting and the more feedback you’ll have Advertise your culture- be inviting into your team, millennials are looking for that workplace “home” “Ideal boss”- approachable, comfortable to talk to, honest, trustworthy, positive attitude, personable. Millennials like to share information about their life outside of work and want the same reflected back. You are more than a boss, you are a mentor/role model. Embrace change and adapt to your employees needs - create a space for employees to flourish and succeed Show millennials the auto industry is a viable career- they did not grow up with the knowledge they could be a technician as a career Resources:
Thanks to Sara Fraser for her contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Find every podcast episode HERE. Every episode segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch with the show:
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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever.
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Dave Hobbs automotive service experience spans 40 plus years in the industry, starting out as a technician and then as a service manager working in his family’s repair shop (Hobbs Auto Electric) in Kokomo, Indiana. After leaving Hobbs Auto Electric, Dave began working as a hotline advisor and field engineer at GM’s Delco Electronics. Those roles eventually led to becoming an electronics systems instructor for thousands of Delco Electronics / Delphi engineers throughout North American and Asia.
Dave is currently the lead technical trainer and course developer for Delphi Product and Service Solutions. In addition, he serves part-time as a contributor to Motor Age Magazine and as a field correspondent for MACS Worldwide (Mobile AC Society). Dave’s previous episodes HERE.
Key Talking Points:
New technologyFirst challenge- finding out how it works. Service information isn’t always the easiest to read and understand. Validate information and see what makes it work Field case studies Training- never quit learning Dave’s acronyms Data acronym FRED- frustrating ridiculous electronic device WRAP- we replace all parts EWFN - everything working fine now Automotive innovationsADAS and calibrating radar when doing repairs Technicians and shop owners have to be in the education business for customers- customers will think their car is a robotic autopilot vehicle Brainstorm ADAS class for customers- educate how ADAS systems work and respect the safety functions in place to avoid customer turning them off Automotive industry IS deemed an essential business Resources:
Thanks to Dave Hobbs for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page, highlighting all books discussed in the podcast library HERE. Leaders are readers. Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP's HERE Find every podcast episode HERE. Every episode is segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch with the show:
Facebook Twitter Linked In Email
Join the Ecosystem - Subscribe to the INSIDER NEWSLETTER HERE.
Buy me a coffee
NAPA Autotech Training helps your technicians keep their skills sharp and their NAPA Know How up to date. It’s the highest quality technical training that covers almost every vehicle system and every make and model. NAPA Autotech is presented by experienced instructors who are ASE master certified technicians. Even after a class is over, techs can access course information online with ClassPass. So when questions come up later they can get the answers. AutoCare Center owners who have taken advantage of Autotech Training say that well-trained technicians are helping to increase their shop’s repair capability and raise bay productivity. That results in fewer comebacks, more satisfied shop customers, and reduced technician turnover.
Learn more about NAPA AutoCare, NAPA Autotech Training, and the hundreds of other benefits the NAPA family has to offer by talking with your servicing NAPA store or Visit the NAPA Benefits Center, at www.napabenefitscenter.com or call the NAPA Benefits Center at 844-627-2123.
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We ended Part 3 of this blog series with “Second Draw PPP Loan Application and Documentation Requirements”. As this second draw is being distributed, the rules are changing. I encourage you to check out the SBA’s website www.sba.gov or go to your local SBA office for additional information.
You may also contact me if you would prefer to have a conversation with someone outside the government. My contact information is at the bottom of this post.
Beginning Part 4, we start with expanding on this rule from the New PPP Regulations:
For Second Draw PPP Loans of $150,000 or Less, Revenue Reduction Documentation is Not Required to be Submitted at the Time the Borrow Submits an Application for a Loan:
This section is self-explanatory, but just a bit of clarification for you.
When you apply for a loan in an amount that is less than $150,000, you may disregard the required documentation mentioned in the previous blog. There is a three-letter word that causes a pause here “BUT” “Must be submitted on or before the date the borrower applies for loan forgiveness, as required under the Economic Aid Act.”
A second piece is that IF you as a borrower do not apply for loan forgiveness, you must provide this documentation to the SBA when they request it from you. So, be prepared.
How to Request an Increase for a PPP First Draw Loan if the Borrower Returned All or Part of a Loan, or Did Not Accept the Full Amount Previously Approved:
Here are the categories of borrowers that may reapply or request an increase in the amount of the PPP loan:
If a borrower returned all of a PPP loan, the borrower may reapply for a PPP loan in an amount the borrower is eligible for under current PPP rules. If a borrower returned part of a PPP loan, the borrower may reapply for an amount equal to the difference between the amount retained and the amount previously approved. If a borrower did not accept the full amount of a PPP loan for which it was approved, the borrower may request an increase in the amount of the PPP loan up to the amount previously approved. You may use the SBA’s E-Tran Servicing website to request an increase in the PPP loan amount electronically. After the request, you are required to provide the lender with supporting documents for the increase.
As of this writing, the SBA’s process for collecting information from borrowers was under development. This may be available when you apply for an increase in the loan amount as described above.
Clarification on Borrowers that are Ineligible to Receive a Second Draw PPP Loan:
Here is some language from the Economic Aid Act that describes borrowers who are NOT eligible to receive a Second Draw PPP loan. Read carefully please?
A business concern or entity primarily engaged in political activities or lobbying activities, including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy, or that describes itself as a think tank in any public documents; Certain entities organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong, or with other specified ties to the People’s Republic of China or the Special Administrative Region of Hong Kong; Any person required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612); A person or entity that receives a grant for shuttered venue operators under section 324 of the Economic Aid Act; A publicly traded company, defined as an issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934
(15 U.S.C. 78f). Pay attention to the punctuation here. At the end of each bullet, there is a semicolon “;”. This means that if the first bullet does not apply to your situation, the next one or the next one, or the next one, OR the NEXT one may.
We’re getting close to the end, but this section has some additional clarification of borrowers that will not qualify for the second draw PPP loan. Check out these are examples:
You are engaged in any activity that is illegal under Federal, state, or local law; You are a household employer (individuals who employ household employees such as nannies or housekeepers); An owner of 20 percent or more of the equity of the applicant is presently incarcerated or, for any felony, presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for, a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year; You, or any business owned or controlled by you or any of your owners, has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government; Your business or organization was not in operation on February 15, 2020; • You or your business received or will receive a grant under the Shuttered Venue Operator Grant program under section 324 of the Economic Aid Act; The President, the Vice President, the head of an Executive Department, or a Member of Congress, or the spouse of such person as determined under applicable common law, directly or indirectly holds a controlling interest in your business; Your business is an issuer, the securities of which are listed on an exchange registered as a national securities exchange under
section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f); Your business has permanently closed.”
Again, same observation regarding the semicolons at the end of each bullet.
Thanks for sticking with me and welcome to the end of this blog series. Whew, that IS a TON of reading.
Again, I am keeping current of the changes as they happen, so if you want to talk, let’s schedule a time to meet soon.
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Hi, Natalie here.
We ended Part 1 of this blog with the SBA’s definition of gross receipts which is consistent with SBA’s size regulation 13C.F.R. 121.104. This is another great reason to check out the SBA’s website www.sba.gov or go to your local SBA office for additional information.
Beginning Part 2, we start with expanding on this rule from the New PPP Regulations:
“Any Forgiveness Amount” of a First Draw PPP Loan is Excluded from a Borrower’s Gross Receipts.”
Simply stated, you can breathe a sigh of relief. Forgiveness amounts from your first draw PPP loan are not included a gross income when adding up what your gross receipts were. Think of this as a tax deduction taken right off the top of your gross receipts.
Yes, I went there, taxes. As I write this, I’m preparing my client’s books for the tax pros who will be busy from February through April 15th. But, I digress, back to the SBA interim rules
If you want to dive into the SBA rule on forgiveness amounts, check out section 7A(i) of the Small Business Act. The takeaway from this section is that PPP forgiveness amounts are expressly excluded (they don’t count) from being taxed as income. This also makes sure you are not disqualified from receiving the second draw PPP loan because of forgiveness during the first draw PPP loan. Restated, you have a better opportunity to qualify for the second round of PPP loans.
The next line in the interim rules reads:
“Borrowers May Use any 365 Day Period Beginning on January 1, 2019 to Calculate Their Average Monthly Payroll Costs:”
The following is general in nature and not related to your specific situation, so stick with me, please?
The maximum amount any individual borrower my receive from the second draw PPP loan is the smaller amount of two and one half (2.5) months of the borrower’s average monthly payroll costs during that 365-calendar day period not to exceed $2 million. You have two options for calculating the time period.
“The 1-year period before the date on which the loan is made.” “Calendar year 2019.” You have some flexibility here as you can choose any 365-day period starting on 1/1/19. It may be an exact calendar year or may be any period of 365 days between 1/1/19 and today. An example based on the federal government fiscal year is starting on 10/1/19 and ending 9/30/20.
Here’s quote from the Interim Financial Rules if you’d like to read the ‘official’ language:
“Subsection (f) of the IFR uses “calendar year 2020” to refer to “the twelve-month period prior to when the loan is made.” Calculating payroll costs based on calendar year 2020 rather than the twelve months preceding the date the loan is made will simplify the calculations and documentation requirements for borrowers because payroll records are more commonly created and retained on a calendar-year basis. Allowing borrowers to calculate payroll costs based on calendar year 2020 is also not expected to result in a significant difference in payroll costs compared to the twelve months preceding the date the loan is made because all Second Draw PPP Loans will be made in the first quarter of 2021.”
To wrap up this blog, we’re going to dive into another section of the Interim Financial Rules:
“Calculation of Average Monthly Payroll Costs for NAICS Code 72 Entities That Qualify as Seasonal Employers or as New Entities:”
If you are a seasonal employer or new entity that is not a NAICS Code 72 business this is for you, but wait. A NAICS Code 72 business is defined as “businesses in the accommodation and food services sector”. Here’s where it gets a bit deep and potentially confusing. A NAICS Code 72 business may also be considered as seasonal employer or a new entity.
I know, what appears to be typical government legalese and double speak. Hang in there as I do my best to translate this for you.
The Interim Final Rules clarify this by stating that when your NAICS Code 72 business fits into one of these separate categories… Here’s where the seasonal employer/new entity and NAICS Code 72 business are joined. These businesses MAY calculate their payroll costs used to determine their loan amount…
…based upon the formula that applies to the entity, OR the standard formula used to calculate payroll costs for every other type of borrower… while still being allowed to use the 3.5 times multiplier that is applied to NAICS Code 72 entities under the new Act.
Wading through government regulations can be challenging and this blog series will continue with Part 3. We’ll start with:
“Bankruptcy Prevents Borrowers from Receiving a Second Draw PPP Loan:”
I may be able to shed some additional light on these new rules, so contact me if you want to talk this over or do my best to answer specific questions about these new rules.
See you back here for Part 3.
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Hi, Natalie here. There is wealth of information to clear up confusion about the new regulations regarding PPP loans. There will probably be changes, so this is summary is based on the best information currently available. Before you take action, I encourage you to check for updated rules and make sure you are fully informed before signing any paperwork.
As with any government program, there are a lot of details that need to be understood. So this may be spread out over two-to-three blogs, as my goal is to deliver this information in bite-sized chunks. For additional information, I suggest you contact your local Small Business Association (SBA).
Here’s a headline of the first section from an article in Forbes magazine:
“Second Draw PPP Loan Eligibility Requires that Borrower will have spent the “Full Amount” of the First Loan Before Receiving the Disbursement of the Second Loan”
The title for this Act is a mouthful of legalese, but the short title is the “Economic Aid Act”. This Act states that “a Second Draw PPP Loan may only be made to an eligible borrower that (1) has received a First Draw PPP Loan, and (2) has used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.
Let’s break this down into simpler language.
You have to be eligible You have received the first PPP loan You will spend 100% of the first loan before collecting any of the funds from the second PPP loan Here is some clarification from the Interim Final Rules:
The borrower must have spent the full amount of its First Draw PPP Loan on eligible expenses under the PPP rules to be eligible for a Second Draw PPP Loan; and “The full amount” of the borrower’s First Draw PPP Loan includes the amount of any increase on such First Draw PPP Loan made pursuant to the Economic Aid Act. This next topic is what the definition of “Gross Receipts” is. “Gross Receipts” Defined for Purposes of Determining Whether There Has Been a 25% Drop in Revenues to Qualify for Second Draw
Unfortunately, the Economic Aid Act does not include a general definition of “gross receipts” for purposes of determining a borrower’s revenue reduction.
Here is what is included in gross receipts: ““All revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances.”
Here is what is not included in gross receipts:
“Taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); Proceeds from transactions between a concern and its domestic or foreign affiliates; and Amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker.” One additional statement regarding what may not be excluded from gross receipts has to do with contractor costs and other items under the category of “all other items”. These items include:
reimbursements for purchases a contractor makes at a customer's request investment income employee-based costs such as payroll taxes Lastly for part 1, this definition of gross receipts is consistent with SBA’s size regulation 13C.F.R. 121.104. This is another great reason to check out the SBA’s website www.sba.gov or go to your local SBA office for additional information.
I may be able to shed some additional light on these new rules, so contact me if you want to talk this over.
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