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The CARES Act, a third-round stimulus package that offers $2.2 trillion in emergency relief with a focus on individuals and small businesses, was passed unanimously by the Senate on 3/25, the House on 3/27, and signed into law by President Trump. Here are the details.
No industry-specific relief
On an American Bus Association (ABA) webinar on 3/25, President & CEO Peter Pantuso informed members that there was no specific relief for the motorcoach industry in this latest round of federal aid, although he has heard from Senator Pat Toomey’s office about including the industry in the next round. So far, there has been relief for airlines, public transit, and AMTRAK, although Pantuso noted that “motorcoaches move more people in two weeks than Amtrak does all year,” according to data from the ABA Foundation. The travel-related associations are working together and will be ramping up efforts to keep the industry top of mind to members of Congress, especially when the Senate goes on recess. The fight isn’t over; make sure you are continuing to contact your representatives! Click to find contact information for your Senator or Congressperson.
Small business relief
The package did put an emphasis on small businesses, especially regarding payroll and access to emergency funding. The NLA works with Cornerstone Government Affairs, which provided the following:
- $350 billion for new Paycheck Protection Program, which would provide small businesses eight weeks of cash-flow assistance. The portion of the loan used for payroll support (employee salaries, paid sick or medical leave, and other overhead like mortgage interest, rent, and utility payments) would be forgiven if employees and salaries are retained.
- Defines eligibility as businesses, nonprofits, veterans’ organizations, and Tribal businesses up to 500 employees and includes self-employed, independent contractors, and sole proprietors.
- Additionally, $17 billion for SBA to cover six months of payments for small businesses with existing SBA loans.
- SBA loans are expected to be processed through private lenders and the income threshold is expected to be relaxed, defining small business by employees rather than income, according to the ABA. Click here for an info guide and checklist.
- Maximum loan amount is $10,000,000 or four times the average total monthly payments by the applicant for payroll, mortgage or tent, and debt obligations incurred during the one-year period before the date of the loan, whichever is less, according to Matt Daus of Windels Marx.
- Delays payment of employer payroll taxes allowing employers and self-employed individuals to defer payment of the employer share of the social security tax they otherwise are responsible for paying to the federal government with respect to their employees. The provision requires that the deferred employment tax be paid over the following two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022, according to NPR.
Unemployment
An additional $600 per week in federal funds would go to workers collecting unemployment, which is on top of their state benefits, for four months. There is also language to extend the period a person can collect for an additional 13 weeks above their state benefits (currently ranges per state from 12 to 28 weeks), which will be paid with federal monies.
Housing
The package temporarily bans rental evictions and foreclosures of those with federally backed mortgages.
According to CNN:
- Those facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days, which can be extended for four periods of 30 days each. The legislation says that servicers of federally backed mortgage loans may not begin the foreclosure process for 60 days from March 18.
- The bill also does not allow fees, penalties or additional interest to be charged as a result of delayed payments.
- Those with federally backed mortgage loans who have tenants would also not be allowed to evict tenants solely for failure to pay rent for a 120-day period, and they may not charge fees or penalties to tenants for failing to pay rent.
Stimulus checks
Those with AGIs of $75,000 or less (based off of 2018 or 2019 tax returns) will receive a one-time payment of $1,200; couples filing jointly up to $150,000 AGI will receive $2,400. It’s tiered through individual AGIs and caps at $99,000 and $198,000 for couples. Tax credits for children and under is $500 per child, although there are income restrictions on this, too.
If you have time to kill, you can read all 880 glorious pages of the Senate bill here.
[03.26.20]
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The Minority Limousine Operators of America (MLOA) held a conference call on Wednesday, March 25, to discuss news, best practices, and friendly advice in dealing with the COVID-19 crisis among its membership. MLOA President Darrell Anderson of A-National Limousine opened the call by letting the members know that board has decided to host an open call each Wednesday at 1 pm EDT, which will offer continuous discussion during the current state of affairs.
After thanking everyone for taking the time to call in, Anderson started the dialogue by providing details of the $2 trillion CARES stimulus package that was passed by Congress in the wee hours of the morning. Each adult in the U.S. will be receiving a check for $1,200 and children will receive $500. Meanwhile, the unprecedented bill will create a $367B loan program for small businesses, and establish a $500B lending fund for large industries, cities, and states. Hospitals are expected to receive $130B, while unemployment beneficiaries will be receiving an additional $600 of federal monies each week for four months. Anderson acknowledged that these funds are very much needed as the ground transportation industry has been impacted even harder than 9/11.
The next topic of discussion focused on the Small Business Administration (SBA) loans that are available to many in our industry. Anderson encouraged operators to not get discouraged by the online application, and to be diligent and patient while filling it out. When a member mentioned having difficulty with the SBA website, Bruno Teixeira of Limousine Expert suggested that everyone use Internet Explorer when logging in to the site as glitches have been reported with Chrome and other browsers.
MLOA Founder and Board Member Maurice Brewster of Mosaic Global Transportation said that he was able to finish the application in less than an hour, noting that it’s essential that applicants have their personal finances ready on their computer, along with their schedule of liability and personal/business tax returns for the past two years. Having these items handy make the loan process much easier to complete.
Brewster also raised awareness among MLOA of the Take Responsibility for Workers and Families Act included in the stimulus package. This provision guarantees that money will be allocated to minority-owned businesses. Brewster stated that he hopes to have Ruben Rodriguez, a lender involved with SBA loans, on next Wednesday’s call.
Anderson invited other board members to share advice or tips with the membership on the call. Secretary Tiffany Hinton of Motev suggested that operators be aware and mindful of local and state resources that are available to small businesses. She said that there are many loans currently available, even from Amazon and Facebook. Further, tech companies are offering free resources, citing CISCO’s free conference calling and app Headspace offering free meditation programs, which may help those suffering from anxiety. Hinton also encouraged everyone to download letter templates on the MLOA website, which operators can send to Washington representatives on behalf of the industry. Board Member Nikia Williams of Key Transportation recommended that chauffeurs and staff look into short-term unemployment benefits. Both 1st Vice President Travis Latham of Fellowship Fleet and Brewster directed the attendees to different Facebook groups.
Anderson was enthusiastic about the amount of useful material that the members offered on the call. He believes the weekly conferences will “continue to lift each other and share information.”
Visit mlooa.org for more information.
[03.25.20]
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- Category: Industry News
This list is ever-growing and FAR from exhaustive, so if we don't have your company listed, please let us know so we can add yours! And please share with your industry friends and peers. We commend every company that has stepped up, offered assistance, shared funny posts, or just pledged their optimism. Stay strong!
Operators Sharing Resources
A Goff Motorcoaches: Offering a free “corona cash flow” calculator https://bit.ly/3adB3tL
EmpireCLS/NLA: A thorough how-to cleaning video courtesy of David Seelinger https://www.limo.org/page/COVID-19
Finance/Processing
Access Commercial Capital: Offering case-by-case solutions for operators https://bit.ly/2QVMEq3
Ally: Offering deferments up to 90 days on a case-by-case basis (thanks to David Bastian of Towne Livery for sharing via Facebook). Call 888.925.2559 to discuss options
Auto One Capital: Publically offered deferments. Contact Mike Villani at mvillani@external.santander.us or call 516.551.6411
Century Business Solutions: Providing customer payment portal at no cost, waiving start-up fees on all solutions https://bit.ly/2Uyi6vg
Chosen Payments: No fee processing for three months and additional information is coming as of 3/23 (check Facebook for more info) https://bit.ly/2UwZko3
Ford Motor Credit: Offering deferments on a case-by-case basis up to 90 days; visit fordcreditsupport.com or call 800.723.4016
Grech Financial Services dba Edson Financial: Edson Financial has been working endlessly to meet all Grech Motors requests to defer payments with all loan underwriters. In an email from President Nicholas Rocco on 3/18: “In the event you would like to apply for a payment modification, contact your Edson Financial sales manager to let us know. To correct a misleading rumor, there will be no loan modification documentation fees; all such doc fees are waived. Through our extensive relationships, we will work hard to assist you in any way we can with our financing partners’ modification decision process.” Contact Jose Padilla at jpadilla@edsonfinancial.com or 951.688.8367
Wells Fargo: A representative on a UMA call announced that they are offering 30-, 60-, and 90-day deferments https://bit.ly/39ddxvG
Insurance
Falls Lake Insurance: Policyholder email: “Effective 03/18/2020, Falls Lake will allow vehicles on policies to be either deleted from the policy or allow vehicle coverage to be modified to include ‘specified causes of loss’ or ‘comprehensive’ physical damage coverage only, without requiring a proof of sale or lease termination agreement.” Falls Lake is allowing policies to remain in force with one vehicle and no longer requiring tags to be turned in in many cases (thanks to Joseph Madiedo of Professional Insurance Center for info). Contact your agent for more info
Most industry insurers: Set up programs for reduced premiums on parking vehicles (contact your broker for specifics); Lancer Insurance’s announcement https://bit.ly/2y4VtHl
Northland Insurance: May amend the policies for limited use/vehicle types based on the insured’s written request. One unit must have at least limited use liability coverage to keep the policy in force. All endorsements should be effective the date the request was received. Accounts with these limited use rates must be moved back to full use rates at the end of the Impacted Period (March 20-May 31); subject to a written statement from the insured that attests that certain units are not in use and identifies the specific vehicles (year, make, VIN) that are not being used, you may delete these vehicles from the policy for liability, comprehensive, and collision coverages. The insured must report to you and add any vehicle back to the policy if it is put in use again or must be added back at the end of the Impacted Period, whichever is first. “Limited use” is defined as parked vehicles not being driven. If the insured is using the vehicles to transport passengers, they should be on the policy at full usage (thanks to Joseph Madiedo of Professional Insurance Center for info)
RLI Insurance: According to an email from President Dan Meyer: “Effective immediately, RLI Transportation is offering you the ability to temporarily suspend your insurance coverage without charge, as an alternative to deleting vehicles and coverages or canceling your policies. This coverage suspension can be applied to all or a portion of the fleet, and if needed, physical damage only coverage can be maintained on specified vehicles. There will be no premium charged for suspended coverage during the time of suspension just as though these vehicles and or coverages were deleted from the policy. To suspend coverage, we require you to send a signed request to your agent, attaching a schedule of vehicles currently insured with each marked ‘suspend,’ ‘full coverage,’ or ‘physical damage only.’ The policies will be endorsed and installment payments adjusted based on the change in coverage. If you want to put a suspended vehicle back in service, we can reactivate coverage upon request from you through your agent, at the pro-rated annual rate. No coverage will apply while suspended, and vehicles cannot be driven until re-activated.” Contact your agent for more info
Manufacturers
ABC Companies: As of 3/19, facilities are open and maintaining critical services, including parts, mobile service teams, and technical call center https://bit.ly/33IfeAo; released a video in support of the industry on 4/3 to send to representatives https://bit.ly/2JzU2TB
Grech Motors: In an email from VP of Sales & Marketing AJ Thurber: “The entire Grech Motors team is here to serve you during this difficult time. Our sales, service, warranty, and parts teams are on standby to meet all of your needs.” Contact Grech at 855.994.7324
MCI: Service centers are open for parts and service support; technical and roadside assistance is still available by calling 800.241.2947
Prevost: In an 4/16 email from Prevost: "Our Service Centers remain open with contact-free drop-off as well as contact-free parts pickup. Our Customer Support team is a phone call away and our Warranty team is also available. Call our PASS line at 800.463.7738 for assistance 24 hrs a day/7 days a week."
Operations/Education
Create-A-Card: Offering free eblasts (new blasts added on 4/8) https://bit.ly/3bmd1Nm
J.J. Keller & Associates: Free whitepaper on how to handle coronavirus-related employee issues https://bit.ly/2QGLNsT
Limo U: Offering his CSR and other training for free; also, frequent helpful podcasts and videos with industry people https://soundcloud.com/limouniversity. Contact Bill Faeth at bill@limogrowth.com or visit the Limo Growth Facebook page
The LMC Groups: Actionable business plans for all areas of operations; also, frequent helpful blog posts and videos https://bit.ly/2xYSxfb
Limo & Bus Compliance: A guide to furloughs/layoffs for DOT drivers https://bit.ly/2QDbTNG
PAX Training: Free safety training videos for office staff and chauffeurs https://bit.ly/3bnSs36
Strategy Leaders: Pledged support to clients on Facebook: “To our clients, we want to reassure you that we're here for you regardless of compensation and will keep working with you.” Hosted a Q&A webinar on 4/1 with Andy Hernandez of CTA and Dave Uziel of UrbanBCN on setting up a remote workforce https://bit.ly/3azN25j
Software/Technology
FASTTRAK: On March 23, FASTTRAK Technologies supplied a list of cost-saving recommendations to all of its clients. FASTTRAK’s technology ecosystem already provides decreasing fees for services based on lower volumes that are baked into its platform but users were reminded that certain fixed ADD-ON services such as Flight-Tracking, SMS, possibly DEEM, GroundSpan, etc., need to be evaluated to see if turning them off is in the best interest of clients. FASTTRAK is waiving all cancellation and re-activation fees during this pandemic event. CEO and Founder Eddie McCoy also advised clients on how to use the built-in customizable system statuses to identify those reservation cancellations associated with the pandemic for future reporting. FASTTRAK’s founder is CPA and a 33-year veteran of the industry and stands willing to advise any of its clients, informally and without charge, of what he thinks is a wise direction during these trying times. Contact Eddie McCoy at support@fasttrakcloud.com
GroundWidgets/GroundSpan: A 3/18 email message from the executive management team to clients offered several cost-saving options, depending upon the platforms used (contact 201.693.4150 if you are a customer and did not receive the email, need to discuss options, or have special circumstances); emergency support continues to operate as normal
Hudson Software: Pledged support to industry on Facebook; if you need immediate assistance, call 978.531.1115 and ask for Technical Support, Cliff, Maren, or Gustavo https://bit.ly/2JeAzYF
Limo Anywhere: Effective 3/25, Limo Anywhere has released a new cancellation status which operators who have coronavirus-related cancellations can use to exclude these trips from their net booking volume. Starting in early April, payment tiers will be based on March volume; follow link here for instructions (must be done before 3/31). Also adding a custom status to indicate if cancellation is due to coronavirus (which can aid in loan applications and loss reports). For smaller operators already in Starter tier, monthly fees are temporarily reduced to $69. Also, offering last year's LA Academy training free of charge https://bit.ly/2wGmKiP
Livery Coach: In a series of emails starting on 3/13, Livery Coach took a proactive approach to the developing crisis and presented a multi-pronged approach to its clients including: Cost cutting: Livery Coach offered multiple expense reduction options, including discounts, deferments, and system reconfigurations so that each client could custom tailor the solution that worked best for their situation. Reporting: Livery Coach also distributed a variety of reporting ideas and tips to assist its clients in gathering supporting information that could be used for potential government assistance (such as payroll data, cancellation data, etc.). “We are closely monitoring the situation and are committed to helping our customers get through this difficult time,” said President David Hirsch. “While we don’t think it’s a quick fix, we are continuing full-steam ahead with product development and enhancements so that our customers will be better equipped than ever once recovery begins.” Contact caralyn@liverycoach.com to make adjustments
Translogic Tech: From Partner Ray Gavino: "Hi everyone, we are all on the edge due to the pandemic situation. One thing we can do to help our partners at Translogic Tech is that we can turn off/suspend connectivity and connectivity fees for parked vehicles. Every penny counts, right? Call us at 866.959.3226 or email info@translogictech.com anytime if you want to take advantage of this."
Zipwhip: Hosted a webinar on March 31 on how to communicate with customers during the crisis via text https://bit.ly/2J9wCV2
Miscellaneous
Alternative Claims Management: In an email to customers: "The ACM damage recovery team is working diligently during this time to drive “hidden” income to fleet owners in today’s environment, while seeking the right balance between compassion and continued business operations. Our 50+ team members are working remotely to ensure the same quality of service we have provided for the last 22 years. As damage recovery experts, we actively fight insurance companies to recover Loss of Revenue, Diminution of Value, and other losses you may be entitled to from not-at-fault accidents. ACM is strictly a performance-based service, and we are offering a free claims analysis/loss run review (up to 6 years, depending on the state) to reveal insurance funds that historically go uncollected." Contact results@altclaim.com or call 407.554.4000
Did we miss you? Know of a company that’s helping the industry? Please contact Managing Editor Susan Rose at susan@chauffeurdriven.com so we can share it with our readers.
Updated as of 4/22/20
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