This might be some additional good news for small businesses (under 100 employees) across PA regarding business interruption insurance (loss of income). Pennsylvania legislators just introduced PA House Bill 2372; which would require insurance companies to provide business interruption insurance (loss of income) during the COVID down turn. The PA bill (linked below) is similar to those introduced in New Jersey, New York Massachusetts, Louisiana, and even federal discussion; however to date, no bills have been adopted. Not sure how it will play out in the end as the COVID activities are evolving every day. We will continue to monitor the progress and keep you informed. Please note, there is no deadline for filing an insurance claim for review and we continue to recommend that at this point, your business accurately document your situation for future reference, when appropriate, but not at this time.

“…Pennsylvania legislators, House Bill 2372 would require insurers providing coverage for “loss or damage to property, which includes the loss of use and occupancy and business interruption” to include “coverage for business interruption due to global virus transmission or pandemic. Insurers would be required to indemnify policyholders subject to “the broadest or greatest limit and lowest deductible afforded to business interruption coverage under the insurance policy.”

Further, you may have heard that a number of insurance companies are offering reduced rates due to lower driving activity during the COVID closures. Travelers, Progressive, and ERIE Insurance have all taken action with beneficial rate reductions or discount credits in response to COVID. ERIE Insurance is reducing all auto rates by $200 Million! You don’t have to take any action on your policy as once approved by the insurance commissioner, these ANNUAL PREMIUM reductions will automatically apply to your renewal policy. Stay tuned for more details.

Again, there is nothing that you need to do at this point to file any insurance claim request. As discussed prior, we can adjust annual sales and payroll projections on your policy to accurately reflect your 2020 exposure. Further, we will work with you on any requested premium payment options that might be beneficial to you or your business!

We appreciate your business and value our relationship. We will always strive to work hard for you to earn your trust and confidence in Team Rossbacher! Thank you!

House Bill PDF

CARES Act w/PPP vs EIDL Loans

The recent CARES Act Program was signed into effect Friday, but we recognize the volume of information may be a bit overwhelming to consume. Given the importance of the act to you as a business owner, we wanted to share a high level overview of the pertinent points; however we, at Rossbacher, are by no means experts on this matter and simply trying to pass along valuable information.

I. Background:

On Friday, the President signed the CARES Act, the $2 trillion stimulus package Congress passed to mitigate the economic impact of the COVID-19 pandemic. In addition to providing checks to most taxpayers, the CARES Act expands the availability of small business loans under Section 7(a) of the Small Business Act. This new Paycheck Protection Program permits loans to be used for payroll costs, mortgage interest, rent, utilities, and interest on certain other debt. Up to 100% of these loans may, subject to certain restrictions, be forgiven.

II. Frequently Asked Questions:

1. Who is Eligible? Generally, any business (including 501(c)(3)s) with fewer than 500 employees is eligible for a loan under the Paycheck Protection Program.
2. What is the Maximum Amount to be Borrowed? The lesser of (A) $10 million or (B) 2.5 times the average total monthly payroll costs of the business concern.
3. Are Borrowers Required to Provide Collateral or a Personal Guarantee? No. Collateral and personal guarantee requirements are waived for Paycheck Protection Program loans.
4. What is the Interest Rate? The interest rate cannot exceed 4%.
5. How Much is Eligible for Forgiveness? Up to 100% of the Paycheck Protection Program loans may be eligible for forgiveness; however, decreases in employee headcount or wages may reduce the amount eligible for forgiveness.

III. Additional Resources:

Additional information can be found at:

1. 7(a) Loan Application Checklist
2. SBA Lender Match – https://www.sba.gov/
3. https://justworks.com/blog/cares-act-understand-your-business-options-covid-19-relief
4. https://covid19relief.sba.gov/#/
5. https://www.uschamberfoundation.org/reports/coronavirus-emergency-loans-guide-and-checklist-small-businesses-and-nonprofits

If you have any questions related to your particular situation, please contact your banker, accountant, or lawyer. This overview is just one of the resources you have at your fingertips while trying to navigate today’s environment and the changes we’re all experiencing due to COVID-19.

Additional PDF Resources: