Hartford Business Journal

www.HartfordBusiness.com • June 15, 2020 • Hartford Business Journal 15 staggered over the rest of the year; previously, PPP funds were expected to be mostly gone before fall. Paul S. Young, chief financial of- ficer at Middletown-based Liberty Bank, which processed more than 3,000 PPP loans worth a combined $300 million, said it's been more common than not to see companies sitting on their funds, though he expects the new loan forgiveness guidelines, as well as the con- tinued reopen- ing of the state's economy, to spur spending. "Word was out there that there could be extensions and things like that," Young said. "By the end of June, I think we will see a lot more money starting to flow out." Regardless, Young said he suspects some businesses are going to need additional financing or other assis- tance when their money runs out. "Whether it's eight weeks or 24 weeks, it's still only two months of payroll-related expenses," he said. "That's fine, but they've got to be up and running and generating revenues again. That may take some time." Drew Andrews, CEO and manag- ing partner of Hartford-based CPA firm Whittlesey, agrees PPP recipi- ents should base their financial pro- jections on normal business levels not returning right away. "There are a lot of unknowns out there with what is going to happen," Andrews said during a late May PPP webinar hosted by Hartford Business Journal and New Haven Biz. "Where's it going to be in a few months? I think we have some encourage- ment as things start opening up, but until we get some more activity, I think businesses are going to have to look at their operations," and control costs. Martial arts studio preps for reopening Zoom has been a lifesaver for Integrity Martial Arts during the pandemic, enabling Metcalf to keep about 70% of his 200 students en- rolled, but it isn't exactly ideal. "There's a lot of stuff we can't do, obviously," Metcalf said. "There's real- ly no substitute for practicing throw- ing without throwing a person." With students unable to pair off with a partner to practice tech- niques, they have made do by mak- ing mannequins out of pool noodles, t-shirts, pillows and other materials. For the younger students, it can sometimes be hard to keep their at- tention over Zoom, Metcalf said. The state will allow gyms to begin reopening on June 17, with limited ca- pacity and increased safety protocols. Metcalf said he's in no rush to bring group classes back indoors. He and his staff will continue to con- duct remote lessons, and soon, they will add outdoor practice to the mix. In late July or early August, the studio will offer private or semi-pri- vate indoor instruction, and Metcalf is targeting several weeks after that to bring full groups back inside. Masks will not be required, under the state's guidance, as long as the studio can keep students 12 feet apart. Metcalf has mapped out his space and determined he can host a class of 13 under those restrictions. FOCUS: SMALL BUSINESS Key changes to PPP loan forgiveness rules Congress recently passed changes to the federal Paycheck Protection Program that will give borrowers more flexibility in how and when they spend their money in order to qualify for loan forgiveness. The changes: Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks. Lower the requirement that 75% of a borrower's loan must be used for pay- roll costs to 60%. If a borrower uses less than 60% of the loan for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness. Increase to five years the maturity of PPP loans that are approved by SBA on or after June 5, 2020. Paul S. Young, CFO, Liberty Bank Drew Andrews, CEO and Managing Partner, Whittlesey Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students, workforce centers, manufacturers, business leaders, and company owners. Join us now and be part of the solution! HELP RECRUIT TOMORROW'S MANUFACTURING WORKFORCE IN CT! THANK YOU TO OUR GOLD SPONSORS: COMPANIES THAT HAVE ALREADY JOINED THE MOVEMENT: Follow Cool Stuff Made in Connecticut Stuff Made in CT stuffmadeinct stuffmadein www.stuffmadeinct.com Please contact Sue Lavin for early bird discounts at slavin@hartfordbusiness.com or call 860-236-9998 ext. 128. Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students, Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students,

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