Hartford Business Journal

www.HartfordBusiness.com • May 4, 2020 • Hartford Business Journal 11 FOCUS: BANKING & FINANCE Active SBA Lenders in Connecticut (cont'd.) FY April 2020 Notes: GP = general 7(a) lender, SBX = SBA Express Lender, CDC = 504 Lender, PLP = Preferred Lender, CA = Community Advantage, ML = Micro Lender, PPP = Paycheck Protection Program Source: Small Business Administration —Compiled by Timothy Doyle. Tips for managing capital and cash flow during times of crisis Q&A talks with Michael Sabol, co-founder of Glastonbury CPA firm MahoneySabol, about the Paycheck Protection Program and ways businesses should manage their capital amid the economic downturn caused by the coronavirus pandemic. Q. How successful has the Paycheck Protection Program been in terms of addressing the capital needs of small and midsize businesses dur- ing this time of crisis? How did your clients respond to the program? A. The Paycheck Protection Program has been successful in its purpose of 'protecting paychecks,' but has not necessarily addressed the 'capital crunch.' To maximize the forgiveness features, the funds need to be used predominantly for payroll, with re- maining amounts for rent, utilities, mortgages and interest expense. Therefore, a nonessential company, shut down and earning no revenues or profits, may keep and pay their em- ployees but will be no further ahead financially to shore up their capital. The response from our client base to the PPP program has been overwhelm- ing. I do not have an exact figure of how many clients have applied, but a rough estimate would be in excess of 80% of our corporate client base. Q. Is it wise, given the uncertainty, for companies to be taking on debt right now? A. Debt is an interesting tool. Used properly, it can propel a business through its leverage. However, if used to fund misman- agement and/or lack of profitability (excluding startup companies), it can be destructive. If you have been a profitable com- pany and need debt to get through this pandemic, then the low interest rates and availability of funds would warrant keeping the company afloat. Q. Beyond accessing new capital, what else are you advising clients to do in order to manage cash flow right now? A. As the saying goes, 'cash is king.' We are advising our clients to eliminate any waste, negotiate the abatement and/or deferral of rents with their land- lords, defer principal payments to their banks and other financing partners, and stretch out their accounts payable. If our nation is lucky and can re- sume some sort of 'normalcy' within the next three months, these tools can keep companies running until revenues and profits return. The longer-term advice, which has not changed but needs to be strong- ly emphasized, is for companies to shore up balance sheets going for- ward so they are on solid footing to endure future economic slowdowns that will continue to occur. Q. A lot of local, state and federal tax deadlines have been moved and some tax rules have been relaxed. What's the net impact on businesses and how should they plan tax liabilities and payments for the rest of 2020? A. There have been myriad chang- es intended to provide cash flow re- lief to individuals and employers via tax credits and payment deferrals in addition to grants and forgivable loans, all of which are welcome. However, they have added confusion to the market around which programs can be utilized or possibly combined. For example, if you participate in the PPP forgivable loan program you will not be able to utilize certain other credits and deferrals. As noted above, this is a slippery slope as a payment deferral is essentially another debt vehicle that, if not managed properly, can lead to bigger problems. This will require a strong discipline to plan for the eventual payment of sales, payroll and income taxes. Active SBA Lenders in Connecticut (FY April 2020) Company name Representative Phone PPP GP SBX CDC CA ML PLP 360 Federal Credit Union Windsor Locks, CT Duane Crisco 860-627-4260 Y Y N N N N N Bank of America Glastonbury, CT Miguel Diaz 860-421-9991 Y Y Y Y N N Y Bankwell Bank Hamden, CT Sarahi Jordan Vega 203-652-3106 Y Y Y N N N N BDC Capital Hartford, CT David Raccio 860-218-2901 Y Y N N N N Y Berkshire Bank Glastonbury, CT Steven Taylor 860-428-7049 Y Y Y N N N Y Charter Oak Federal Credit Union Groton, CT Jane Moriarty 860-446-3381 N Y N N N N N Chelsea Groton Bank Groton, CT Carolyn Welch 860-448-4124 Y Y Y N N N Y Citibank Norwalk, CT Ronnie Ceballo 203-286-5595 Y Y N N N N N Collinsville Savings Society Canton, CT Donald Lorusso 860-693-5008 Y Y N N N N N Community Economic Development Fund (CEDF) Meriden, CT James Bzdyra 203-235-2333 Y N N N N Y N Community Investment Corp. Hamden, CT Mark Cousineau 203-776-6172 x 125 N N N Y Y Y N Connecticut Community Bank Greenwich, CT David Moore 203-863-9146 Y Y Y N N N Y Connex Credit Union North Haven, CT Susan Mink 203-603-5713 N Y N N N N N Dime Bank Norwich, CT John Estelle 860-859-4300 Y Y Y N N N N DR Bank Rowayton, CT Darren Piper 203-309-4498 Y Y N N N N N Eastern Federal Bank Norwich, CT Robert Miller 860-425-0131 Y Y Y N N N N Easthampton Savings Bank Putnam, CT Shawn McNerney 860-928-7921 Y Y Y N N N N Essex Savings Bank Essex, CT Aya Beckles Swanson 860-767-4414 x 237 Y Y Y N N N N Fairfield County Bank Ridgefield, CT Chuck Woerner 203-431-7455 Y Y Y N N N N Farm Credit East Enfield, CT Jason Hoagland 860-741-4380 Y Y N N N N N First Bank of Greenwich Cos Cob, CT Maureen Hanley 203-629-8400 Y Y N N N N N First County Bank Stamford, CT Michael Yao 203-462-4208 Y Y Y N N N N General Electric Employees Federal Credit Union Milford, CT Allan Abelson 203-882-3006 Y Y N N N N N Hartford Economic Development Corp. (HEDCo) Hartford, CT Fernando Rosa 860-727-9224 Y N N N N Y N Housatonic Industrial Development Corp. Danbury, CT Len Volpe 203-743-0306 Y N N Y N N N HSBC Bank USA Westport, CT Richard A Barnes 203-341-8609 Y Y Y N N N Y InsurBank, FSB Farmington, CT Robert Pettinicchi 860-674-2310 Y Y N N N N N ion Bank Naugatuck, CT Kevin J King 203-720-5338 Y Y Y N N N Y Jewett City Savings Bank Jewett City, CT Michael Alberts 860-376-4444 Y Y Y N N N N JP Morgan Chase & Co. Shelton, CT Laurie Hartman 914-281-6415 Y Y Y Y N N Y Key Bank NA New Haven, CT Terry Sullivan 203-789-2824 Y Y Y N N N Y Liberty Bank Middletown, CT Mark Vickery 860-344-7316 Y Y Y N N N Y Litchfield Bancorp Litchfield, CT Bob Tettinen 860-567-9401 Y Y Y N N N N M&T Bank Corp. Norwalk, CT Christopher Earle 203-915-1229 Y Y Y N/A N/A N/A Y Milford Bank Milford, CT John Darin 203-783-5701 Y Y N N N N N National Iron Bank Litchfield, CT David Oliver 860-435-2581 Y Y N N N N N Newtek Small Business Services Westport, CT Salvatore Mulia 203-454-9653 Y Y Y N N N Y Newtown Savings Bank Newtown, CT Whit Holden 203-364-2966 Y Y Y Y N N Y Northwest Community Bank Winsted, CT Stephen J Zarrella 860-379-7561 x 302 Y Y Y N N N N Nutmeg State Financial Credit Union Rocky Hill, CT Shane Dugan 860-513-5783 Y Y N N N N N Patriot Bank NA Stamford, CT Michael Keady 203-252-5906 Y Y Y N N N N People's United Bank Bridgeport, CT Patrick Lorent 203-338-7215 Y Y Y N N N Y Putnam Bank Putnam, CT Clara Angelos 860-823-0957 x 3067 Y Y Y N N N N Salisbury Bank & Trust Co. Lakeville, CT Clara Angelos 860-823-0957 x 3067 Y Y Y N N N N Santander Bank West Hartford, CT Dani Briggs 860-570-3287 Y Y Y N N N Y Savings Bank of Danbury Danbury, CT Nick Gazetos 203-731-5442 Y Y Y N N N Y Start Community Bank New Haven, CT Joseph Nuzzo 203-285-6487 Y Y N N N N N TD Bank Hartford, CT Jeffery Pierce 860-757-5226 Y Y Y Y N N N The Guilford Savings Bank Branford, CT Lyle Fulton 203-458-5473 Y Y N N N N N Thomaston Savings Bank Thomaston, CT Kimberly Lebron 860-283-6150 Y Y Y N N N N Torrington Savings Bank Torrington, CT Michael Sweeney 860-294-7230 Y Y Y N N N N Union Savings Bank Danbury, CT Geraldine Fusco 203-730-5018 Y Y Y N N N N Wells Fargo Bank, NA Shelton, CT Michelle A Orr 203-225-5888 Y Y Y N N N Y Windsor Federal Savings & Loan Windsor, CT Anthony Roncaioli 860-298-6159 Y Y N N N N N Notes: GP = general 7(a) lender, SBX = SBA Express Lender, CDC = 504 Lender, PLP = Preferred Lender, CA = Community Advantage, ML = Micro Lender, PPP = Paycheck Protection Program Source: Small Business Administration —Compiled by Timothy Doyle. Michael Sabol Co-founder, MahoneySabol Continued on page 12 >>

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