By Cheryl Dowden, April 26, 2020
Previously on April 15, 2020, at the Annual Board Meeting, CEO Lesley Nalley mentioned that HSVPOA staff applied for the Paycheck Protection Program Loan/Grant. This program, administered by the Small Business Administration, was put in place to assist small businesses because of the economic impact caused by COVID-19 mandatory shutdowns.
According to their website, “The Paycheck Protection Program [PPP] is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.”
“SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.”
Podawiltz Asks for an Update on PPP Status
At the April 20, 2020, Special Board Meeting, Chairperson Podawiltz asked CEO Lesley Nalley to give us an update on the Paycheck Protection Grant. Podawiltz stated, “I’m going to ask our CEO, Lesley Nalley, to explain to us what has transpired today in our applications for assistance from the Federal Government in regards to the pandemic- financial assistance.”
Nalley said, “So, as you all know, some weeks back, CFO Mathis applied for money. I mentioned that in my Annual Meeting comments that we had made application. We’d applied for 3 million dollars of money under the Payroll Protection Program Grant.”
The CEO continued, “We received word today [April 20, 2020] that we needed to sign the documents that we had been authorized for that. We don’t know at this time whether or not it is a forgivable loan. The loan that we do have is at a 1% rate. Obviously, if it is forgivable, we won’t pay some of that back. We don’t have those full details, yet. But we did receive the full amount of what we requested. So, that’s great news.”
“And subsequently the Board, by email, they saw the loan documents and took an email vote and approved us to go ahead and make that, finalize that application- sign those loan documents,” explained Nalley.
Chairperson Podawiltz responded, “That is wonderful news because if you’ve been following this in the media, there wasn’t enough money to go around by any means and as a nonprofit, I believe we were very fortunate to get in on this.”
More Information about the PPP Loan
Application for this loan can be done through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.” Other lenders may also be approved to participate in this program. To determine participation, you should consult with your local lender.
“Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.”
“This loan has a maturity of 2 years and an interest rate of 1%.”
“The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.”
By Cheryl Dowden, April 26, 2020
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Sorry to say, but...
04/27/2020 — 1:21 am
That seems like more money than necessary since it will only apply to a few months. It would be unethical for us to deprive other desperately needy small businesses of these funds. We have to pay the funds back some day, anyway.
Walter C.
04/27/2020 — 4:28 pm
Diana: I highly recommend that you request to see hard evidence of that $3 million dollar deposit. I would also recommend that you demand a full accounting of how that money is spent to ensure that it complies with the government loan forgiveness criteria. To miss that goal would be nothing short of gross incompetence.
Be smart. Don’t trust Lesley to do what is right.
Anonymous
04/28/2020 — 10:26 am
I watched that Board meeting video and Diana didn’t ask Lesley to tell them about the news off the PPA program. It was Tucker who asked Lesley if she wanted to tell them about the e-mail she sent to the Board meeting that morning. She said “sure” and proceeded to give the details. You are right this should have been brought up by the Chair, but it wasn’t. She didn’t even thank Lesley and Liz for their efforts in trying to take care of the Village.
HSVP C
04/28/2020 — 12:20 pm
You are nitpicking as you always do. What happened is CEO Lesley Nalley mentioned the PPP and then a few minutes later Director Tucker Omohundro mentioned to the chair that Lesley mentioned the PPP and made the suggestion that this should be explained to the community. Chairperson Diana Podawiltz then asked the CEO to give the subject the attention it deserved.
Podawiltz: Let’s give that the attention that it really, really deserves and I’m going to ask our CEO, Lesley Nalley, to explain to us what has transpired today in our applications for assistance from the Federal Government in regards to the pandemic, financial assistance.
Nalley: Yep. So, as you all know, some weeks back, CFO Mathis applied for money. I mentioned that in my Annual…I mentioned that in my Annual Meeting comments that we had made application. We’d applied for 3 million dollars of money under the Payroll Protection Program Grant. We received word today that we needed to sign the documents that we had been authorized for that. We don’t know at this time whether or not it is a forgivable loan. The loan that we do have is at a 1% rate. Obviously, if it is forgivable, we don’t, you know, won’t pay some of that back. We don’t have those full details, yet. But we did receive the full amount of what we requested. So, that’s great news. And subsequently the Board, by email, they saw the loan documents and took an email vote and approved us to go ahead and make that, finalize that application. Sign those loan documents. Does that cover…?
Podawiltz: That is wonderful news because if you’ve been following this in the media, there wasn’t enough money to go around by any means and as a non profit, I believe we were very fortunate to get in on this.
Minn Daly
04/28/2020 — 11:50 am
HSV BOD & NEW financial officer should see all information on this loan & be aware of all issues involved with the process. Knowing these NEW members I am certain that the request has been made. Process of all things POA should be under the BOD discretion. Minn Daly
Tom Blakeman
04/28/2020 — 11:59 am
Whether we ultimately need the money or not; whether we may ultimately have to repay some due to technicalities or not; whether it may ultimately actually be an outright grant or a loan. . . It was the right thing to apply and get it.
We currently have no idea how this virus thing will play out or its long term effect on our operations.
Minn and Walter are totally correct. This whole thing needs careful Board Scrutiny and Management all the way along. It is not a job to be taken lightly.
Anonymous
04/28/2020 — 12:19 pm
Why try to make something nefarious out of this. Lesley and Liz have done a good job trying to do what is right for the Village. Let’s let them do their job and see what happens. Diana had an opportunity at the Special Board meeting when Tucker asked Lesley if she wanted to discuss it to be professional and thank Lesley for the effort. She didn’t show that professionalism and this report was inaccurate in their reporting of how Lesley was asked to explain it.
HSVP C
04/28/2020 — 12:26 pm
Who is making something nefarious out of this? Someone in this thread asked that there was oversight on this money. In no way was that a suggestion that there was anything nefarious, but merely a request that there is accountability. There always should be accountability in any organization.
No, this report was not inaccurate and you are nitpicking once again as you always do. You are the person posting misinformation. Please have the courage to use your name when you post and stop hiding behind your keyboard.
Also, Diana did thank the staff. Is the CEO not part of the staff?
Podawiltz: At this time I would like to thank each and every Officer, Board Member, our POA staff that are behind the scenes doing things on our behalf so that we can meet…
Thank you. – Cheryl
Vicki Husted
04/28/2020 — 12:52 pm
Anonymous04/28/2020 — 12:19 pm
There is nothing nefarious about this except for your inaccurate description of what took place. Those who don’t have the courage of their convictions often feel the need to remain anonymous. Here’s a little common sense about cowards and trolls. Next time, sign your name.
https://www.youtube.com/watch?v=PotzxBnp0-8
Anonymous
04/28/2020 — 1:02 pm
What’s the difference between. “Anonymous” and someone posting as “Sorry to say, but” except you agree with what that post says and Don’t agree with mine. I don’t see where you chastised that person for their post. Heck, I’ve even seen posts on this site by “Chipmunk”. I think it’s unfortunate that you discredit only posts with opinions you don’t like. Calling anyone who posts on this site as a “coward” or “troll” definitely shows a lack of being able to handle debate from the opposing view. But, of course, this is what is happening in the Village to all of our detriment.
Chipmunk
04/28/2020 — 1:31 pm
Nuts to you!
Vicki Husted
04/28/2020 — 9:05 pm
Anonymous 04/28/2020 — 1:02 pm
I am glad you understand that you are, indeed, discredited.
I usually only post to put forth my opinion on a subject, to request clarification of a comment, or to refute false or inflammatory information, innuendos, or ad hominem attacks.
In your reply to me, you’re discredited again…I did NOT say ANYONE who posted anonymously was a coward or troll. My exact statement was: “Those who don’t have the courage of their convictions often feel the need to remain anonymous.” I’m glad you recognized yourself.
You also claim to me that “Calling anyone who posts on this site as a “coward” or “troll” definitely shows a lack of being able to handle debate from the opposing view.”
Au contraire!! On a site where you MUST use your name to post, I am sure you have personally experienced my ability to handle debate on opposing views quite handily. I don’t suffer trolls lightly, and on that particular site, you had the ability to remove posts that didn’t suit you after you were countered, so you would often remove them or close the thread if it was one you started. Adieu….
Minn Daly
04/28/2020 — 12:58 pm
Anonymous, we have a NEW BOD who has made it their mission to take control of all things HSVPOA! You need to get a grip on yourself & understand there is change upon our community! Nothing netharious in any of this. This community should have been run by the BOD at all times, unfortunately it was not ! NOW it will be. HSV staff should not be responsible for takeing charge of the village financial entities, should be the BOD! CEO is staff reporting to the BOD! Understanding that linkage may help you adjust to NEW CHANGE. Minn Daly!
Elizabeth Berry
04/28/2020 — 1:52 pm
Question: who takes out a loan and accepts the money and does not know the terms of that loan.
Does it have to be paid back?
Will interest be charged?
Length of loan for repayment?
I am grateful for the new board. I pray for a clean sweep, eventually, of the corrupt board and CEO.
Jmo
Tom Blakeman
04/28/2020 — 2:32 pm
Elizabeth: Good questions. The answer is, in the case of these programs, a lot of people. Our government is continuing to define some of the terms even after the first traunch of funds ran out. We are now in the second traunch. There are some public companies that applied for the funds, got them and then decided they really weren’t supposed to have done so. A company called Shake Shack is one. Mostly we are talking about large public companies that have relatively easy access to equity and capital markets. There are many others. HSV is not in that group.
The main feature of the program is that many of the “loans” are not loans but are/will be “grants” given certain conditions. So, essentially this may turn out to be “free money” for HSV, all or part.
I fully believe that our new Board of Directors is going to be totally on top of this and do what is right for our Village.
Helen Sanders
04/28/2020 — 3:34 pm
I may be misinformed, but it was my understanding that the payroll protection plan was for small businesses with 500 or less employees. In 2019 we exceeded that number according to printed matter furnished by POA staff.
Lorri Street
04/28/2020 — 4:02 pm
I recall vividly that the word nefarious was the previous BOD Chairperson’s favorite word to toss around. She even used it way back when she was running for a BOD position during the HSV Voice forum at the Coronado Center as she was attempting to explain away some unfavorable actions taken by Nalley at that point in time. Just say’n.
Tom Blakeman
04/28/2020 — 4:14 pm
Good call Lorri!
Tom Blakeman
04/28/2020 — 4:11 pm
No doubt there is a differentiation between full and part time employees. We are far below 500 full time. Total has bounced around that number. Exactly the details, as I stated previously, are not totally clear and may well continue to be a moving target.
The funds are intended to help small companies, not those with tens of thousands. And, the basic principle they were based on was preventing layoffs. We are not a “small” company but we are definitely not what you could call “large” in the grand scheme of things.
We also definitely were not rolling in dough before the pandemic and reduced usage of almost everything here for any period of time won’t help. Would we have had layoffs without the money? I don’t know but to need it and not have taken it or not have tried would have been extremely foolish.
Elizabeth Berry
04/28/2020 — 6:54 pm
Just to make what I wrote clear. I am totally behind our people of the board. As I like to say……
The new board member, and Diana, will
Make The Village Great Again.
Henry Ewersmann
04/28/2020 — 9:39 pm
New Board,
Please, be careful. If you sign a document, you are liable for what is in that document. Leslie would love to entrap you. I would not trust anything from Leslie.
There are more questions than answers. Leslie does not even know if it is a grant or a loan.
1% of a $3,000,000 for 2 years is $60,000 in interest. Does our village need the money? Today, Secretary Mnuchin said that anything over $2,000,000 will be audited and penalties will be assessed for any improper applications. Earlier, he stated that May 7 is the drop dead date for withdraw of application.
Our board is going to rely on getting information from Leslie? I can’t think of 1 thing that she has done to positively affect HSV. I would not trust her with $50. Why would we trust her with $3,000,000?
Thanks,
Butch