24 March 2022
March 24, 2022
FOR IMMEDIATE RELEASE
NEHPBA warns that proposed bans on natural gas and propane would have a “profound impact” on life in the Northeast
Northeast Hearth, Patio and Barbecue Association: ‘Consumer choices are at risk’ Appliances, heating systems, fireplace usage, even how we grill on July 4th will be disrupted by gas fuel bans.
Sudbury, MA – The Northeast Hearth, Patio and Barbecue Association (NEHPBA) today warned that a gathering movement to ban natural gas and propane fuel in communities around the Northeast is placing fundamental consumer choices at serious risk - and threatens to disrupt household habits and traditions while imposing costly new rules on building construction.
“What does a ban on natural gas and propane in new housing development really mean? It means if you plan to build a new home that house will have: no gas stoves, no gas water heaters, no gas heating systems, no gas pool or spa heaters, no gas barbecues, no gas fireplaces, and no gas fire pits.” said Joel Etter, President of NEHPBA and Senior Wholesale Account Manager for Hearth & Home Technologies. “If you look deeper at these proposals around the Northeast, you immediately appreciate the profound impact this policy can have on your day-to-day life. These policies will affect how you heat your home, the appliances you use, what goes in your fireplace, and how you grill on your patio and deck over the Memorial Day weekend, Fourth of July and during other precious family times.”
The Northeast Hearth, Patio & Barbecue Association is a trade association representing more than 250 individual member retail and related companies throughout the Northeast. In just the states of New York and Massachusetts, NEHPBA has more than 140 members supporting over 900 families - the vast majority of which are independent “mom and pop” small businesses that are significant community contributors in the markets they serve across the region.
Proposed bans are also targeting new commercial and institutional buildings: most would prohibit new commercial buildings from using gas-fired boilers and halt restaurants from using gas stoves. Additionally: new health clubs, schools, and athletic facilities would not be able to heat commercial pools and spas with natural gas. Such restrictions would dramatically increase the cost of operations for all these types of facilities.
NEHPBA recognizes the changing landscape of the energy and fossil fuel industry. Its members are committed to working with government officials and regulators at all levels to increase access to more sustainable and climate-centric fuel sources throughout our homes and businesses. But a sensible long-term strategy to achieve responsible energy diversity must be the objective, as opposed to costly and damaging restrictions and bans that do little on their own to help reach our climate goals.
“Reducing dependence on natural gas will require an increase in electricity production because there will be a corresponding increase in demand for electricity. Unless that incremental electricity comes from specific sources, instead of reducing emissions gas bans can effectively just shift emissions from the building to electric generation sector,” said NEHPBA Executive Director Karen Arpino. “These changes would have a major impact on the most vulnerable among us. And unfortunately, this might be only the beginning. The next step will be for calls to retrofit existing homes and buildings to electricity at a potential cost of tens of thousands of dollars per household.”
More and more cities and towns around New England are considering proposed bans on natural gas or propane in new construction. The attorney general of Massachusetts has halted at least one local proposal because of doubts about its legality. Gas prohibition advocates, however, are also exploring ways to use state laws to accomplish a more broad-based ban.
“It’s likely that without expensive upgrades, the current electric grid may not be prepared to handle substantial electricity demand growth, which is exactly what would result from bans on gas and propane,” said Etter, the NEHPBA president. “Most importantly, these propane and gas bans take away consumer and business options and competitive pricing choices.”
About the Northeast Hearth, Patio & Barbecue Association
Since 1985, the Northeast Hearth, Patio & Barbecue Association (NEHPBA) has represented the interests of the hearth industry in the Northeast. NEHPBA was originally incorporated in January 1985 as the Northeast Solid Fuel Alliance (NESFA) in recognition of the unique demands of business in the Northeast. In June of 1992, NESFA members voted to become the first affiliated member of the national Hearth Products Association (HPA) and became the Northeast Hearth Products Association (NEHPA). In 2002, NEHPA became the Northeast Hearth, Patio & Barbecue Association (NEHPBA) in conjunction with the merger of the national HPA with the Barbecue Industry Association to become the Hearth, Patio & Barbecue Association (HPBA), thus recognizing the diversification of the modern industry. The NEHPBA name has remained since 2002.
1 March 2022
Massachusetts Chimney Sweep Guild presented NEHPBA with a $5000 check at their annual MCSG dinner on Saturday night. The donation will help support our lobbying efforts!
Thank you to Dave Bancroft, Owner of Sweepnman and President of MCSG, the MSCG Directors, and to the Members! What fun to get a huge check!!!!
21 December 2021
ALBANY - The council working on the beginning stages of a plan to dramatically reduce greenhouse gases in the state is looking into how reducing wood smoke could benefit the health of upstate New Yorkers.
The 22-member Climate Action Council is in the midst of a year-long study of how to achieve the goals of the Climate Leadership and Community Protection Act (CLCPA), an ambitious law passed in 2019 mandating the state reduce greenhouse gas emissions by 40 percent when compared to 1990 levels by 2030 and achieve net-zero greenhouse gas emissions by 2050.
During the October council meeting, New York State Energy Research and Development Authority (NYSERDA) Director of Energy and Environmental Analysis Carl Mas made a presentation predicting reducing wood smoke by 40 percent upstate could reduce non-fatal heart attacks, asthma-related hospital visits and deaths significantly.
Wood smoke upstate comes from home heating methods, such as wood stoves, pellet stoves and fireplaces, as well as campfires and industrial production.
The council is looking at two scenarios for decreasing greenhouse gases, one of which includes the use of biofuels and green hydrogen. The second scenario envisions transitioning to renewables without biofuels. Both call for reducing wood consumption by 40 percent “relative to business as usual” by 2050, according to NYSERDA.
This reduction would have the greatest health benefits in upstate New York, according to Mas’ presentation, because more wood is burned here.
Reducing wood burning would have two health benefits, according to Mas, though only one of them has to do with climate change.
The first is reducing the small, inhalable particles produced by burning wood.
Cary Institute of Ecosystem Studies President Emeritus William H. Schlesinger, a biogeochemist and expert on wood smoke, said burning wood produces large amounts of tiny particles called aromatic compounds, carbon-based molecules that can cause cancer.
It is also “increasingly believed by the medical profession” that breathing particles from wood smoke can lead to increased rates of Alzheimer’s and Parkinson’s diseases, Schlesinger said.
Wood smoke produces far more of these inhalable particles – some of which are carcinogenic – than all other forms of combustion in the state combined, according to Mas’ presentation.
Reducing wood consumption by 40 percent in New York would have quantifiable benefits, according to Mas’ presentation, with per capita health benefits from 2020-2050 of between $3,000 and $4,000 for Albany County and much of the Catskills.
Reducing wood burning would also reduce the amount of nitrogen oxide released into the atmosphere. Though burning wood only produces a tiny silver of all the nitrogen oxide released into the state’s air, the chemical has a drastic effect on climate change. A pound of nitrogen oxide has as much of an effect on the atmosphere as 265–298 pounds of carbon dioxide, according to the EPA.
Burning wood produces more nitrogen oxide than burning oil or natural gas, according to NYSERDA.
The council has not released its recommendations on how to reduce wood smoke upstate, but the task appears challenging, as wood, unlike other fuels, can be gotten for free by just foraging for it.
Kyle Morrison, who took over Gem Stove and Fireplace Company in Greene County from his grandfather a year ago, said wood stoves and pellet stoves are attractive to people because their fuels are cheap.
“Recently, with times changing and fuel prices going up, a lot of people are getting into wood,” he said. “Our wood stove sales have been absolutely through the roof this year – pellet stoves as well were through the roof – we’re up about 230 percent in sales compared to last year.”
Morrison said his business has never recommended heating a home only with a wood or pellet stove, but that people requested it anyway. For many who aren't on municipal gas lines, choosing an alternative heat source like wood, oil or propane is a necessity.
A ton of wood chips costs $330, and most homes only need two to three tons to get through a winter, making it cheaper than propane, Morrison said, adding that those with access to firewood could essentially heat their homes for free.
New York isn’t the only state to set climate goals. Vermont released its draft Climate Action Plan in November, which has similar goals to New York’s but different methods. Notably, Vermont’s plan actually endorses burning wood as a way of cutting emissions.
“Efficient wood heat – whether with efficient stoves or automated boilers and furnaces – both reduce greenhouse gas emissions and can save consumers money compared to fossil heat,” according to the plan.
Vermont’s plan endorses switching “from fossil-fuel dependent heating systems to cleaner and more efficient systems” including efficient wood stoves and heat pumps.
Though New York’s Climate Action Council has not yet made its recommendations, it is considering models where all new heating systems installed after 2035 would be heat pumps – low-energy systems that pull air from the surrounding air or ground to heat and cool homes.
State Sen. Daphne Jordan, whose district includes Columbia County and part of Rensselaer, Saratoga and Washington counties, said her initial question was “if anyone at the council has reached out to, or even considered, the estimated hundreds of thousands of New Yorkers, the vast majority of whom live in upstate and rely on wood to heat their home, to gauge their thoughts and concerns about this potential proposal?”
“…Wood remains a reliable, affordable, accessible fuel source” Jordan's statement continued. “Before Albany rushes forward with potential new mandates on the use of wood for home heating – mandates that would appear to target upstate – the Council should carefully consider the potential negative impact of such a proposal on family budgets.”
The council’s recommendations are due at the end of the year.
Source: Albany Times-Union
3 December 2021
The Vermont Climate Council passed an Action Plan on Wednesday by a vote of 19-4. The 273-page plan is part of the Vermont Global Warming Solutions Act which requires greenhouse gas emissions drop 26% by 2025 and 40% by the end of the decade. These are not goals, these are mandates and failure to meet these mandates is a violation of the Global Warming Solutions Act.
The thermal strategy is to ensure buildings use less energy while heating with more electricity. This means that 90,000 homes will need to be weatherized by the end of the decade-an increase of about 200%. The plan also requires a new “net zero” building code for new construction, efficiency standards for rental properties, and electric-only water heaters with modular demand response communication so the UTILITY companies can remotely control the water temperature. Also included in the plan is the creation of a Clean Heat Standard to incentivize heating companies to reduce their customer’s carbon emissions. Selling renewable liquid fuels, pellet stoves, and heat pumps would generate credits that fossil fuel wholesalers would be required to purchase.
As far as transportation goes, the plan uses incentives, taxes, and regulations to "persuade" Vermonters to buy and drive electric cars. By 2030, in order to meet the emission reduction mandates, 170,000 electric vehicles will need to replace gas-run vehicles. This is an increase of nearly 4000%. The plan allows for this by banning the sale of new combustion engine vehicles by 2035, giving cash incentives for electric vehicles and more fees to those who drive vehicles powered by gasoline and diesel. Additionally, even though MA, RI and CT have abandoned the Transportation Climate Initiative (TCI), VT has not. The plan calls on lawmakers to pass legislation that would allow the state to join the cap and trade program if it comes to fruition.
Governor Scott’s Administration released a signed statement disagreeing with many aspects of the plan. In the statement, Governor Scott said he “cannot support proposals which impose a fiscal commitment beyond the means of most Vermonters.” The electric stoves, cars, and heating systems that must be purchased in order to comply with the Global Warming Solution Act represent billions of dollars of new purchases. The Vermont legislature will pick up where the Climate Council left off in determining who pays the bill. The Legislature will start that process in January. NEHPBA will keep you updated!
8 October 2021
The lead story is once again about the pending Vermont Climate Action Plan. As the December 1 deadline in the Global Warming Solutions Act approaches, the planning work of the Climate Council is coming to an end and policy decisions are being made.
If the plan doesn’t produce results, anyone can sue the state for failing to comply with the Global Warming Solutions Act. Click here to enter your comments into the record.
Source: The Fuel Line - October 8, 2021
29 April 2021
FOR IMMEDIATE RELEASE
NEHPBA Calls for Greater Focus on Renewable Natural Gas (RNG)
Alternative fuel source is plentiful in decomposing food and animal waste More investment needed in RNG technology and research
Sudbury, MA – The Northeast Hearth, Patio and Barbecue Association (NEHPBA) today urged its industry members and their customers to join a call for more investment in Renewable Natural Gas (RNG) technology and focus on more research into RNG’s value as a renewable power source with multiple applications.
Renewable Natural Gas is a carbon-free fuel alternative derived by extracting methane from decomposing food scraps and animal manure. Waste material are processed through systems called anaerobic digesters that sustainably repurpose the waste into a renewable power source. RNG is also transported and distributed through existing infrastructure, so there is no need to build new pipelines.
“Massachusetts is a national leader in addressing food waste, and maintains strict guidelines on the management and disposal of commercial food waste in particular,” said Joel Etter, President of NEHPBA. “This has created natural incentives for high-waste producing organizations to participate in waste-to-energy partnerships.”
Reducing food waste in landfills while increasing the supply of clean energy and reducing greenhouse gasses represents an important opportunity for Massachusetts and other Northeast states. But the issue needs a stronger emphasis and priority placed on new technology, research and investment. NEHPBA represents more than 250 member retailers, service providers and other businesses in Connecticut, Maine, New Hampshire, New York, Rhode Island and New York in addition to Massachusetts.
Several recent Massachusetts policy developments may help encourage The Commonwealth to investigate supply and obstacles to RNG. They include:
Of the approximately 200 anaerobic digestion systems across the United States, 13 have been established and installed in Massachusetts. Each digester can produce roughly enough biogas to fuel about 2,000 homes.
“Massachusetts represents about two percent of the total U.S. population, and the state has about 6.5 percent of the nation’s processing infrastructure for waste-to-energy conversion,” said NEHPBA Executive Director Karen Arpino. “The Commonwealth is already out front as a leader in supporting this important method for creating more renewable fuel alternatives. It’s important to build on that by advocating for more widespread use and adoption of RNG.”
In New Hampshire, as a new waste-to-energy facility is underway in Bethlehem, the state projects RNG will represent about 8 percent of its energy mix until 2025. Three New York dairy farms have partnered with an energy provider on a new facility under development in Western New York and the Finger Lakes region. And one of Maine’s major natural gas concerns – Summit Utilities – is also developing a an RNG production facility in partnership with several local farms.
Data and projections show that sufficient RNG production could recycle enough organic waste to supply all current commercial gas demand nationwide. Alternatively, 75 percent of current residential demand or 45 percent of industrial demand could be met.
NEHPBA and the entire industry are working together with other businesses as well as consumers to ensure that a range of energy choices continue to be available in the Northeast – that includes natural gas, propane and oil heat systems as well as wood-burning appliances.
About the Northeast Hearth, Patio & Barbecue Association
Since 1985, the Northeast Hearth, Patio & Barbecue Association (NEHPBA) has represented the interests of the hearth industry in the Northeast. NEHPBA was originally incorporated in January 1985 as the Northeast Solid Fuel Alliance (NESFA) in recognition of the unique demands of business in the Northeast. In June of 1992, NESFA members voted to become the first affiliated member of the national Hearth Products Association (HPA) and became the Northeast Hearth Products Association (NEHPA). In 2002, NEHPA became the Northeast Hearth, Patio & Barbecue Association (NEHPBA) in conjunction with the merger of the national HPA with the Barbecue Industry Association to become the Hearth, Patio & Barbecue Association (HPBA), thus recognizing the diversification of the modern industry. The NEHPBA name has remained since 2002.
9 December 2020
You heard it here first! HPBA is the top resource for everything hearth and barbecue. By joining NEHPBA and HPBA, you can count on us for education and networking opportunities, business insights, and explore perks on cost savings. Become a part of the family! Renew or Join here.
22 September 2020
As you create your budget for 2021, the NEHPBA Board needs your support, once again, in continuing our very successful and effective campaign to fight on your behalf against gas and fossil fuels bans in the Northeast. We hope that you can once again assist in funding our regional lobbying efforts.
As you know, we have hired O’Neil & Associates, a prestigious lobbying firm with whom we have been very effective in fighting Energy Zero (Net-Zeo/Electrification/Gas Ban) Issues. This has been a valuable and worthy expense to forward our progress. We are asking all members as well as HPBA to help us fund this cause for continuing the fight into 2021. You may or may not know that several members, including dealers, manufacturers and distributors, have agreed to funding help. As you know, there is great concern with the relentless initiative to ban natural gas and fossil fuels in our region. With the help of our lobbying firm we have so far been very successful.
Here is some insight into a few of our winning campaigns:
We are also working on a "Save Our Natural Gas and Propane" campaign hopefully in combination with Propane Gas of New England (PGANE) and HPBA, we are publishing regular press releases on “energy diversity and security”, Joel Etter (NEHPBA President) and I will be participating in a podcast with O’Neil & Associates on this subject in October, and we are closely monitoring legislation in CT regarding greater accountability in the utility sector, natural gas legislation in NY, as well as licensing legislation in VT.
NEHPBA has joined the Mass Coalition for Sustainable Energy (MCSE) and The Empowerment Alliance. NEHPBA had a hand in writing and editing the MCSE letter to the conferees regarding the MA Climate Bill.
We will continue the fight for Clean and Affordable Energy. Please join us. We appreciate any donation either monthly or a one-time sponsorship. https://nehpba.org/donation#!form/Sponsorship
Thank you for your Support. Please let me know if you have any questions at all. I am available via phone and email anytime.
9 September 2020
While life is drastically different this year, one thing is sure—hearth, patio, and barbecue sales have been heating up all year. HPBExpo is your best opportunity to reconnect with the industry and access the latest trends, technology and training that will ensure your customers turn to you when they invest in their homes and businesses.
Held in the heartland of Nashville, HPBExpo’s vibrant location will attract top retailers coming to see suppliers showcase their latest products and innovations your customers will be demanding in upcoming seasons. With the barbecue market poised to grow by more than $3 billion by 2023 and the hearth market by almost $4 billion by 2023, consumers are investing heavily in their homes. Make sure you’re part of it by registering now for HPBExpo.
Join Us for Three Days of:
Registration begins tomorrow, September 10, 2020! Register now. For more information, contact NEHPBA.
6 August 2020
August 6, 2020
FOR IMMEDIATE RELEASE
NEHPBA: Preserving access to natural gas and other fuel sources is critical for emergency readiness in major weather events
Sudbury, MA – The Northeast Hearth, Patio and Barbecue Association today said that widespread power outages being experienced across New England highlight the critical nature of energy diversity and the risks of over-dependence on electric power for household and commercial heating, cooking and cooling.
More than 220,000 households were without power in Massachusetts following Tropical Storm Isaias late Tuesday night, while approximately 50,000 lost power in New Hampshire. Rhode Island reported over 100,000 households without power after the storm, and a staggering 700,000 homes were still without power Thursday morning across Connecticut, leaving work crews scrambling to restore service and state officials furious at utility response times.
“Tropical Storm Isaias is a summer weather event, but it’s a vivid illustration of how huge sections of the power grid can be knocked out in a matter of minutes at any time of the year,” said Joel Etter, President of NEHPBA and Senior Wholesale Account Manager for Hearth & Home Technologies. “Winter Nor’easters, blizzards and ice storms are something we are all too familiar with in New England. When the grid goes down in those conditions, over-reliance on electric power can be dangerous.”
NEHPBA is part of a cross-section of industry associations and advocates fighting to maintain energy diversity in the marketplace – as special interests support initiatives to ban natural gas, complicate regulations around propane and wood-burning fuel products and limit choices for home-heating systems. The industry is working together with other businesses as well as consumers to ensure natural gas continues to be available in New England and the Northeast as part of a complete range of energy choices.
Banning new natural gas connections or curbing existing use dramatically will hurt Americans when costs of living are already high. The over-reliance on electric power for heating and cooking exposes households to higher risks when major weather events knock out the grid.“New England households need diverse energy choices to maintain financial stability, and to protect families when the region’s electric power infrastructure sustains massive failure– as we are seeing today,” said Karen Luther, Executive Director of NEHPBA. “It happens in the summer and it happens in winter. It happened this week and it will happen again.”
About the Northeast Hearth, Patio & Barbecue Association
Since 1985, the Northeast Hearth, Patio & Barbecue Association (NEHPBA) has represented the interests of the hearth industry in the Northeast. NEHPBA was originally incorporated in January 1985 as the Northeast Solid Fuel Alliance (NESFA) in recognition of the unique demands of business in the Northeast. In June of 1992, NESFA members voted to become the first affiliated member of the national Hearth Products Association (HPA) and became the Northeast Hearth Products Association (NEHPA). In 2002, NEHPA became the Northeast Hearth, Patio & Barbecue Association (NEHPBA) in conjunction with the merger of the national HPA with the Barbecue Industry Association to become the Hearth, Patio & Barbecue Association (HPBA), thus recognizing the diversification of the modern industry. The NEHPBA name has remained since 2002.
29 July 2020
With hot and humid conditions enveloping New England, demand for electricity across the region hit its highest level so far this year at about 6:30 p.m. Monday.
This year’s peak experience in many ways highlights how the regional power grid is changing and how far it has to go to fully decarbonize.
ISO New England, the organization that oversees the regional power grid, had forecast this summer’s peak usage would hit 25,500 megawatts between 6 p.m. and 7 p.m. Actual usage came in at 24,736 megawatts, more than 300 megawatts higher than last year’s peak but nearly 1,600 megawatts lower than 2018.
The all-time peak usage in the region was 28,130 megawatts on August 2, 2006. Peak usage has been stagnant or dropping in recent years, primarily due to energy efficiency efforts that have helped curb overall electricity demand by 3,300 megawatts and small-scale solar and wind installations that reduce demand for power from the grid.
COVID-19 is also playing a role this year. Energy usage appears to be higher in residential homes as more people stay at home but lower in commercial and industrial facilities. Overall, ISO New England estimates, COVID-19 has cut energy demand by 3 to 5 percent.
Peaks have out-sized importance because the region needs enough power plants to meet demand when demand is at its highest point. Lowering the peak is beneficial since it means the region can get by with fewer power plants.
Peaks used to occur in the afternoon, when temperatures hit their highest levels and air conditioners are going full tilt. But the deployment of solar panels on roofs across the region has pushed the peak into the early evening. During the afternoon, the behind-the-meter solar installations produce the most power. As the sun begins to set, however, solar power production falls off and the region becomes more and more dependent on large-scale power generators.
There is lots of talk on Beacon Hill about going 100 percent renewable, but Monday’s peak experience illustrates how far the region has to go. The regional power grid handled Monday’s surge in electricity demand easily, but in doing so it relied primarily on power generated by natural gas (70 percent), nuclear (16 percent), hydro (8 percent), renewables (5 percent), and even a bit of oil and coal. The oil and coal plants tend to come online only when demand is at its highest.
Most energy analysts want to decarbonize the economy using electricity. Cars and trucks, for example, would shift from gasoline to electricity. Electricity would also be used for heat and hot water in homes and commercial buildings. Brookline took a step in this direction recently by approving a bylaw banning pipes carrying natural gas and oil in all new construction. Attorney General Maura Healey, while sympathetic to the bylaw’s intent, rejected the measure because it conflicted with three state laws.
If the region’s power grid doesn’t go green, the shift to electricity won’t pay many environmental dividends. That’s why the state is pursuing the purchase of offshore wind and hydro-electricity from Canada, to help reduce reliance on natural gas and other fossil fuels.
As of Tuesday morning, however, the power grid was relying most on natural gas. According to ISO New England’s real-time information, the grid’s power was coming primarily from natural gas (74 percent), with the balance from nuclear (19 percent), renewables (5 percent), and hydroelectricity (2 percent).
Commonwealth Daily Download, By Bruce Mohl
28 May 2020
Once again the Massachusetts Board of Building Regulations and Standards (BBRS) is holding a vote that could pass a State-Wide Net Zero stretch code (now called "EZ" stretch code for "Energy Zero"). Please sign and submit this letter to the chair of the BBRS and help stop this new building code from passing and having a dramatic effect across Massachusetts!
There is a lot of support for this from environmental advocates and this type of policy has already passed at the city level in Brookline, MA. This means it's even more important for our industry to stand up and make our opposition heard.
Click the link and fill out the form to send an email opposing this effort.
30 April 2020
Congratulations. You did it. You not only found a bank to accept your Paycheck Protection Program application, but the bank managed to get it to the U.S. Small Business Administration before the program ran out of funding. Lots of your peers are still scrambling to secure PPP financing. Not you. That money’s already in your bank account.
Now comes the hard part.
Out of necessity, the federal government created and opened up PPP in a hurry, before it had figured out exactly how the program would work. For that reason, you applied for PPP loans in a hurry. Many of your peers — maybe you — were ordered closed because of the Covid-19 pandemic. Getting that loan was a matter of survival. Now that you have the financing, you need to stick to the SBA’s rules, to ensure as much of the loan is forgiven as possible. But that’s not easy: The SBA is still clarifying the terms of forgiveness, even as you’re planning to comply with terms you signed weeks ago.
Experts say you might be in for a shock.
“I think many borrowers thought this was going to be fully forgivable, and I dare say, many of them are going to be surprised,” said Jim Browne, a Boston-based partner with the professional services firm Withum.
Just because the application process was a little fast and loose at the start doesn’t mean banks and the government won’t be bigger sticklers going forward.
“On the back end, there’s going to be more diligence than on the front end, in terms of how this money was expended,” Browne said.
The Business Journal spoke with bankers, accountants, lawyers and entrepreneurs about what business owners should do to ensure they avoid run-ins with lenders and bureaucrats and keep the amount of the loan they need to pay back as small as possible. Here’s the advice they shared.
Don’t be afraid to hire back employees, even if the work’s not there
Many Massachusetts business owners are in a quandary. Their businesses are closed entirely, because they’re considered nonessential, or they’re operating in a much-diminished capacity because customers are stuck at home. They’ve laid off most (or all) of their employees, because the business just isn’t there.
But under PPP rules, they must spend now 75% of the loan on payroll costs in the eight weeks after they receive the loan, if they want it to be forgiven. (The clock starts ticking as soon as the money hits their bank account.)
To reach the 75% threshold, they can hire back their one-time employees, but those workers may make more under the stimulus program’s enhanced unemployment benefits than they would on the job. And at the moment, there might be little to no work for employees to actually do.
Or they can forget about forgiveness, and treat the financing as a true loan rather than a grant. While the interest rate is only 1%, that may still be a big risk, given how much uncertainty there is around how long businesses will stay closed, and what revenue will look like once they reopen. The loan must be paid back in two years.
To avoid that risk, experts urge business owners to consider staffing back up, even if under normal circumstances they wouldn’t add to payroll.
“I’m advising them to bring them back as soon as they can, because obviously, the whole purpose of the program is to get people off unemployment,” said Thomas Petrocelli, a Wakefield accountant.
Employers should think creatively about how to use staffers. ThinkLite LLC, a Natick-based lighting company that received a PPP loan through Needham Bank, has employees taking online courses during work hours to learn new skills, or working on new research projects, Chief Operating Officer Danny Wadhwani said.
If most or all of the loan is not forgiven, it’s not necessarily the end of the world, given the low interest rate, accountants said. But owners should make that decision knowing the risks.
“If I have to pay that back at 1% over two years, I’m going to do that if it means we can stay alive,” said Joe Caligiuri, owner of Dedham training facility Stadium Performance, who plans to bring back all of his employees by July 1.
Keep careful track of everything
It’s essential that businesses document every penny they spend of the PPP money. The loan is supposed to be reserved for payroll expenses, as well as mortgage interest, rent and utility costs. If they send a rent check to their landlord, they should copy the check ahead of time and file it away. The same goes for electronic invoices.
Business owners might consider setting up a separate bank account for the loan to make the divide between the PPP money and other funds even clearer, though accountants say that’s not strictly necessary.
A good audit trail is important not just for accuracy’s sake, but for speed. Banks faced a glut of applications at the PPP’s kickoff. In a few weeks, they’ll face a glut of borrowers seeking sign-off that their loans are forgiven. Given how busy lenders will be, a misstep could mean significantly more time to achieve that sign-off.
“If you can put yourself in a position where everything is organized and they can easily see what you’ve done, it’s going to make the process so much smoother,” Nutter attorney Joshua French said.
Keep your counselors on speed dial
Even nearly a month after the PPP launched, there’s still a lot of uncertainty around how loan forgiveness will work. More guidance is expected, but the SBA’s previous attempts at clarification have left a lot of questions, according to experts.
With so much still up in the air, business owners should be in regular contact with their bankers, accountants and lawyers for any updates on the SBA’s thinking. Withum’s Browne recommends reaching out to them daily, or every other day.
At a minimum, businesses should check in with their bank a week or two before the PPP’s eight-week run time is up, according to Salem Five CEO Ping Yin Chai.
Remember, it’s about more than maintaining payroll
One thing that is certain: There’s more to achieving forgiveness than keeping the same headcount. If you cut pay for employees making less than $100,000 a year by more than 25%, that will hurt the amount of the loan that you can recover.
It’s important to note that, when calculating change in headcount, a firm can compare its current staffing level to either its full-time equivalent headcount in the first two months in 2020, or the same metric for Feb. 15, 2019, to June 30, 2019. If a business had been in growth mode prior to the pandemic, and its headcount was low last year, that will help it out now.
Given the changes caused by the pandemic, employers might also consider whether it makes sense to hire employees with new skill sets, rather than re-hire only laid-off workers. ThinkLite, for instance, plans to hire web developers to bolster its ecommerce platform, since remote work will be more popular in a post-pandemic world, Wadhwani said.
It’s a weird time. But don’t get too weird.
The federal government got blowback when larger, publicly traded companies secured PPP loans before many small businesses did. Officials have indicated that going forward, they will be scrutinizing loan recipients more closely. So no, you shouldn’t go investing the loan money in the stock market, or paying dividends to shareholders.
French has a simple test for deciding whether an expenditure will draw “the quadruple P — the PPP police,” as he calls them. Ask yourself, would I be doing this right now if it wasn’t for the PPP? For instance, if you’re thinking about giving employees big bonuses just to hit that 75% payroll threshold — would you be handing out big bonuses this spring if not for the loan?
“If it’s not something you would have done normally, then I’d be nervous about doing it now,” French said.
bizjournals.com
27 April 2020
Plan to join the CVC Success Group April 27 through May 1, 2020 as we continue our free virtual training presentations with CEUs for the coming week. Read on for the details of each class we will present live in the coming week. Our webinars are presented for the training of the industry workforces.
Sales Training Monday, April 27, 2 PM EST
Join the Retail Guys Training with instructor Tim Reed presenting his program entitled “Win More Showroom Sales” a perfect class for anyone in sales or sales management, with a showroom or for those who operate without a showroom. So even if you don’t have a showroom the tactics Tim will share will be a benefit for you.
To register for the free class, click the link https://attendee.gotowebinar.com/register/3389727684660026640. Once you submit, you will receive your private link to attend the session.
Gas Training Wednesday, April 29, 2 PM Eastern Time
This will be another gas training with industry veteran Bob Wise teaching live. You can ask your questions of Bob during the interactive presentation. This class will be one that will provide you answers on how to address field issues you may encounter during installations, service calls, and callbacks.
To join the class, simply click the link https://attendee.gotowebinar.com/register/2732416543831406096. Once you submit, you will receive your private link to join the class as it goes live at 2 PM Wednesday, April 29.
Chimney Training Thursday, April 30, 2 PM Eastern Time
This will be a course for anyone in the chimney industry. This will be presented by Jerry Isenhour & Tom Urban. In this class we will be sharing methods of how service technicians will communicate and do their jobs in the new next of the changes the market will require.
To attend this class, simply click the link https://attendee.gotowebinar.com/register/1757912791063879184.
Office Training Friday, May 1, 2 PM Eastern Time
This will be a presentation of The History of Chimney Service In America. This class is a documentary of the chimney service industry and can relate how technology has changed the industry. An excellent class for any member of the chimney and hearth industries to increase their understanding of where we have been and where we are going.
To join the class, click the link https://attendee.gotowebinar.com/register/5923380707056150544. You will receive a private link to join the class will be emailed directly to you.
All CVC Success Group live training is conducted using GoToWebinar, attendance at classes is tracked electronically, and CEUs are provided utilizing a code word system. Upon completion of a class, once you have submitted your code words and request for CEUs, CVC will prepare an attendance certificate that is sent to you and filed with the certifying agency you are certified by.
CAN’T MAKE THE CLASS?
The CVC live classes are recorded and then stored in the CVC Base Camp library of courses joining the over 600 courses that are in the CVC Library. Want more information, simply click on www.cvcbasecamp.com or contact us at info@cvcsuccessgroup.com and we will forward your information on how to subscribe, with learner seats starting at $39.00 a month for 60 days, it is the most cost-effective online learning platform available.
We are CVC Success Group, and we are here to assist industry members through these challenging times. If you have ideas on how we can provide this assistance, please reach out to us at info@cvcsuccessgroup.com
We are all in this together!
16 April 2020
I found this article and thought I would share it in light of the Webinar Series by Tim Reed, Creating a Digital Sales System, that Northeast HPBA is offering to our members. This excerpt is very insightful and talks about how retailers and small businesses must Adapt to Shifts in Digital Consumption.
The part of the article that I found most valuable begins below:
COVID “has changed the way we internet” showing a significant shift in behavior from mobile to desktop. It's essential to ensure that all marketing messages are consistent between channels and optimized for both mobile and desktop.
More desktop time also means higher email open rates. It's a good time to continue emailing your customers as long as the messaging is considerate, provides real value, and is in touch with the current situation. Now is not the time to drive a sense of urgency around nonessential items.
Take a “crisis approach” to measurement. Create new, more frequent reporting based on the most up-to-date results you can derive. Comparing year-over-year or month-over-month results won't provide an accurate picture of digital marketing performance. Instead, build a day-over-day report beginning March 9. Watch higher-funnel metrics (e.g., engagement rates, click-through rates, brand search volume) at a channel and campaign level so that you can quickly evaluate what’s working and what's not.
Adjust your messaging to show care and respect for the customer’s constantly changing situation. More than ever, we need to be customer-first, and this means understanding what customers are going through right now. Retailers should be aware of the torrent of troubling headlines and support messaging that emphasizes an understanding of the customer’s current needs or mind-set. Review every piece of creative to ensure that it reflects that understanding.
It’s not just a matter of being careful in how you message around COVID — there's also an opportunity to extend a welcome hand by finding creative ways to bring your customer service experience to digital platforms. For example, many home décor brands are offering online interior design consultation as a way to stay connected to customers. Consider ways to shift in-person customer interactions and services online with a focus on providing value to best customers.
Take the Reigns
Above all, know that now is not the time to cut back arbitrarily. Never walk away from communicating with your best customers and best prospects. The retailers that act nimbly and decisively today can uncover unique opportunities to maintain those critical relationships in a time of rapid change and upheaval.
You can RSVP to our webinar series with Tim Reed here. Contact Karen@NEHPBA.org for access to the first webinar in the series.
mytotalretail.com
Read the full article here
2 April 2020
There have been quite a few employee/employer questions. Some finally have some answers. For more click here.
Q. If my employer is open, but furloughs me on or after April 1, 2020 (the effective date of the FFCRA), can I receive paid sick leave or expanded family and medical leave?
No. If your employer furloughs you because it does not have enough work or business for you, you are not entitled to then take paid sick leave or expanded family and medical leave. However, you may be eligible for unemployment insurance benefits. You should contact your State workforce agency or State unemployment insurance office for specific questions about your eligibility. For additional information, please refer to https://www.careeronestop.org/LocalHelp/service-locator.aspx.
Q. If my employer closes my work-site on or after April 1, 2020 (the effective date of the FFCRA), but tells me that it will reopen at some time in the future, can I receive paid sick leave or expanded family and medical leave?
No, not while your work-site is closed. If your employer closes your work-site, even for a short period of time, you are not entitled to take paid sick leave or expanded family and medical leave. However, you may be eligible for unemployment insurance benefits. This is true whether your employer closes your work-site for lack of business or because it was required to close pursuant to a Federal, State, or local directive. You should contact your State workforce agency or State unemployment insurance office for specific questions about your eligibility. For additional information, please refer to https://www.careeronestop.org/LocalHelp/service-locator.aspx. If your employer reopens and you resume work, you would then be eligible for paid sick leave or expanded family and medical leave as warranted.
For more information, contact NEHPBA, see our COVID-19 Updates page or see the HPBA site.
27 March 2020
Many businesses have been asking what they can do to get the necessary funds they need to keep their businesses in operation. Many have also asked if they should "lay off" all of their employees, or if they have other potential options.
The purpose of this post is to provide you with a few potential options in dealing with the above issues:
SBA Economic Injury Disaster Loans
As the coronavirus pandemic prompts disaster declarations at the state and county level, small businesses and not-for-profits in those areas can apply online for low-interest loans through the U.S. Small Business Administration (SBA).
An SBA Section 7(b) Economic Injury Disaster Loan provides up to $2 million to help business with fewer than 500 employees pay fixed debts, payroll, accounts payable, and other bills that can’t be paid due to the loss of revenue caused by a declared disaster. The loans cannot be used to cover lost profits.
The interest rates for the loans are 3.75% for small businesses and 2.75% for not-for-profits. The SBA determines terms on a case-by-case basis, based on each borrower’s capacity for making monthly loan repayments. The maximum loan term is 30 years.
The loans also offer a one-year deferment on payments. This means that the first payment isn’t due until a year after the official date of the loan. However, interest starts accruing on the loan the moment the funds are disbursed.
Please click this link to learn more and apply SBA Loan Application
Employee Related Issues
Many clients have also asked what their options are with employees besides laying them off. The IRS is coming our with various tax credits to assist with the payment of workers impacted by the Corona Virus.
The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. We have been told that this page will be updated as new information is available. Please click this link to learn about these programs IRS Employee Wage Programs
Looming Tax Return Deadlines
At this point in time the IRS has also extended the due date of all income tax returns, and tax payments due on April 15, 2020 until July 15, 2020.
We hope that you follow the recommendations of health officials and stay safe through this unsettling time.
Questions? Contact NEHPBA.
Info from Napoleon/Christopher R. Lambert & Associates
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