A Publication of the Independent Auto Repair Association, Inc., Houston, Texas Advancing professionalism and excellence in the automotive service industry Volume 35 No. 7 July 2020 Page 3 President’s Message Board Members ASA Houston Happenings Page 5 Associate Members Page 7 Upcoming Meetings ON THE INSIDE Thanks to our advertisers for helping to make Shop Talk possible The Independent Auto Repair Association (IARA) is an organization of automotive professionals who are engaged in the automotive repair industry. IARA does business in the Greater Houston Texas area as ASA-Houston. CHAPTER MEETING CHAPTER MEETING CHAPTER MEETING HOUSTON CHAPTER HOUSTON CHAPTER HOUSTON CHAPTER Although subject to cancellation, our July meeting is planned to happen on July 14 at Fratelli’s. Our speaker will be: Jerry Wilt speaking on the topic: “Critical Thinking in Problem Solving” We have a potential sponsor for this meeting on the condition we have an adequate number of reservations. The sponsor has also promised some great raffle prizes with a good attendance. With this in mind, please RSVP soon and be sure to show up for our “come-back” meeting. We have limited capacity due to distancing so reservations are required on a first-come, first-served basis. NOTE: The meeting is subject to cancellation because of state and county regulations. If meeting is cancelled, we will send out notices via Evite and MailChimp. July 14, 2020 “Come-Back” Meeting RSVP via your Evite or to [email protected]Some of the problems that come up in any business have been dealt with before, and you already know how to fix them. That's why you have troubleshooting procedures, diagnostic equipment and safety manuals. Then there's that troublesome, aggravating situation that rears its ugly head from time to time which never seems to resolve itself. It could involve customers, employees, regulations or even weather. Even worse, there's a solution you tried that not only failed to solve the problem but actually made things worse. And finally, there's that problem that neither you nor anyone else has ever seen before. The Center for Critical Thinking identifies 6 core skills for the critical thinker. We will concentrate on 3 of them for problem solving: Analysis, Evaluation and Self-Regulation. And I will introduce you to an easy-to-work template to visualize the problem and make it easier to solve. Bring with you an example of a recurring problem you'd like to solve. Unless of course you don't ever have any problems! $20 member $25 non-member Social: 6:00 p.m. Dinner: 6:30 p.m. Meeting: 7:00 p.m. Fratelli's Ristorante 1330 Wirt Road Houston, TX 77055
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July 2020 ST · A Publication of the Independent Auto Repair Association, Inc., Houston, T exas Advancing professionalism and excellence in the automotive service industry V olume
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Transcript
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July2020
Page 3 President’s Message
Board Members
ASA Houston Happenings
Page 5 Associate Members
Page 7 Upcoming Meetings
ON
THE
INSI
DE
Thanks to our advertisersfor helping to make Shop Talk possible
The Independent Auto Repair Association (IARA) is an organization of automotive
professionals who are engaged in the automotive repair industry. IARA does business in the
Greater Houston Texas area as ASA-Houston.
CHAPTER MEETINGCHAPTER MEETINGCHAPTER MEETING
HOUSTON CHAPTERHOUSTON CHAPTERHOUSTON CHAPTER
Although subject to cancellation, our July meeting is planned to happen on July 14 at Fratelli’s.
Our speaker will be:
Jerry Wilt speaking on the topic:
“Critical Thinking in Problem Solving”
We have a potential sponsor for this meeting on the condition we have an adequate number of reservations. The sponsor has also promised
some great raffle prizes with a good attendance. With this in mind, please RSVP soon and be sure to show up for our “come-back”
meeting. We have limited capacity due to distancing so reservations are required on a first-come, first-served basis. NOTE: The meeting is subject to cancellation because of state and county regulations. If
meeting is cancelled, we will send out notices via Evite and MailChimp.
Some of the problems that come up in any business have been dealt with before, and you already know how to fix them. That's why you have troubleshooting procedures, diagnostic equipment and safety manuals. Then there's that troublesome, aggravating situation that rears its ugly head from time to time which never seems to resolve itself. It could involve customers, employees, regulations or even weather. Even worse, there's a solution you tried that not only failed to solve the problem but actually made things worse. And finally, there's that problem that neither you nor anyone else has ever seen before.
The Center for Critical Thinking identifies 6 core skills for the critical thinker. We will concentrate on 3 of them for problem solving: Analysis, Evaluation and Self-Regulation. And I will introduce you to an easy-to-work template to visualize the problem and make it easier to solve.
Bring with you an example of a recurring problem you'd like to solve. Unless of course you don't ever have any problems!
We always need volunteers to step up to help lead ASA-Houston.
If you are interested in serving, contact Dan Tidwell or any of the
Board Members above.
IARA / ASA-Houston
by Dan Tidwell, Administrative Director
ASA-HOUSTON HAPPENINGS
PPP Loan Forgiveness Process ell, if you took advantage of the Paycheck Protection Program W(PPP) loan program as I did, eventually you will have to pay it back, and/or prove the money (or what portion of it) was used as
designated by the program. The original designated use was quite troublesome to some but now some changes have been made that might help businesses qualify for more dollar forgiveness of the loan and make it easier to obtain that forgiveness.
President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA) on June 5, 2020, addressing concerns expressed by the small business community around the PPP. Before sending it to President for signature, the act was surprisingly agreed upon by both House and Senate.
Continued on page 4
by Sybren van der Pol,President
PRESIDENT’S MESSAGE
We have taken a lot of time away from ASA-Houston business and fellowship and it is time to regroup and retake life among our
fellow members. OK, I admit that the press, city government, fear-mongers and the politically-correct are telling you that you need to stay indoors, close your business and adjust to the “new-norm.” In fact, we may be forced to cancel this meeting attempt. But nevertheless, we are planning to meet, subject of course to last minute cancellation.
Our base organization is called the “Independent” Auto Repair Association so it is time to live up to the term “independent” and get back to business. So we’re asking all our members (present and past) to come back to ASA-Houston and let’s work through problems together! In fact, the July meeting will address that very thing as we listen to Jerry Wilt discuss “Critical Thinking in Problem Solving.”
So in the spirit of coming back, join us at our July 14th “Come-Back” meeting at Fratelli’s. We have a potential sponsor for this meeting on the condition we have an adequate number of reservations. The sponsor has also promised some great raffle prizes with a good attendance. With this in mind, please RSVP soon and be sure to show up for our “come-back” meeting. We have limited capacity due to distancing so reservations are required on a first-come, first served basis. You can wear a face mask if you want to but you might find it hard to get food through it. We will have hand sanitizer available.
Will wonders ever cease…something was actually agreed upon in Washington!
You are encouraged to check with your bank that issued your PPP loan for their detailed payback requirements, but here is a quick look at some of the changes to the original PPP program created under the CARES Act:
PPPFA Changes Amount Of Loan Needed For Payroll To 60%
The PPPFA reduces the original amount of the loan needed to be spent on payroll from 75% to 60%, thus increasing the amount of funds available for other essential expenses from 25% to 40%. These essential expenses remain unchanged and include rent, mortgage payments, utilities, and interest on loans.
PPPFA Extends Time Period To Use Funds From 8 Weeks To 24 Weeks
Another major issue around PPP was that it required businesses to spend the funds in the eight-week period from the date funds were received. The PPPFA fixed this by extending the time period to spend the loans to 24 weeks. Businesses will still need to spend the money on payroll and authorized expenses, but they now have until the end of 2020 to use the loan proceeds.
This will help make loan forgiveness easier since the original loan amount was based on one month of 2019 payroll multiplied by 2.5, or about 10 weeks. This change provides more flexibility to spend the PPP funds when they like until the end of the year. Also, PPPFA does not require businesses to wait for 24 weeks to apply for forgiveness but can still apply after just eight weeks.
PPPFA Pushes Back A June 30 Deadline To Rehire Workers To December 31, 2020
A problem I heard some of the ASA-Houston members discuss was the time requirement that all workers had to be rehired by June 30, 2020, in order for their salaries to count towards forgiveness.
Under the new law, shops now have until December 31, 2020, to rehire workers in order for their salaries to count towards forgiveness. However, PPPFA did not change how salaries are calculated towards forgiveness. You should talk to your lending institute for details. But the law did address actual hiring requirements.
PPPFA Eases Rehire Requirements
The original loan requirements stated that a business was rehire the same number of full-time employees or full-time equivalents by June 30, 2020. An being exception was if an employer could document in writing an attempt to rehire an
After you sanitize your customer’s car, let them know that you are taking care of them. These 2” x 10” Labels are vinyl with removable adhesive. Stick on window or steering wheel.
I also have customized 6-foot distance labels for the floor.
ASA-Houston members receive a 10% discount for all my products and services. For more information contact Dan Tidwell: [email protected]
With the changes of the law through PPPFA, a business can still receive forgiveness on payroll amounts if it:
C Has tried but is unable to rehire an individual who was an employee of the eligible recipient on or before February 15, 2020;
C Is able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020. With the shortage of qualified techs in our industry, this might be an important exception.
C Is able to demonstrate an inability to return to the same level of business activity as such business was operating at prior to February 15, 2020.
There remains some confusion about exactly how to “demonstrate the inability to rehire similarly qualified employees” or what the standard “to demonstrate the inability to return to previous levels of business activity” would be, but perhaps some more clarification will come soon.
It is especially important that a shop needs to keep clear written records of attempts to rehire employees (want-ads, interviews, work performance records, etc.) at least through the end of the year.
PPPFA Extends The Repayment Term From 2 Years To 5 Years
Something that is especially important to me is that PPPFA eases repayment terms in the PPP loan and/or portions not forgiven. A shop or business now has five years at 1% interest to repay the loan. The forgiveness application can be submitted as soon as the monies are spent. The first payment will be deferred for six months after the SBA determines your amount of forgiveness. This means you may not have to make a payment until May 2021.
Your payroll taxes are also affected with this portion of PPPFA so check with your bank.
You can download the Forgiveness Application at https://www.sba.gov/sites/default/files/2020-06/PPP%20Loan%20Forgiveness%20Application%20%28Revised%206.16.2020%29-fillable_0-508.pdf
PPPFA Bottom Line
In the bottom line, this seems good for our ASA-Houston shops that took advantage of the PPP to keep their business afloat. The current PPP program ends June 30 (after this Shop Talk is published) but there is talk about taking remaining fund balance and rolling it into a new program.
Page 7
IARA / ASA-Houston
Continued from page 6ASA-HOUSTON HAPPENINGSIf this happens then perhaps with these changes to payback, loan terms are a bit easier to swallow and you are interested. If you are and you do not have a banker that will work with you, I suggest you connect with Brenda Edwards, our ASA-Houston Associate Member with Allegiance Bank. She was most helpful to me and others with ASA-Houston. You can connect with her at brenda.edwards @ allegiancebank.com. Keep in mind that this whole government program seems to be in constant sway. This article might be out-of-date by the time it is published and read! For additional information go to https://www.sba.gov/document/support--ppp-interim-final-rule-requirements-loan-forgiveness.
TRAINING AND SUPPORTBG PRODUCTSFrom Dan B.: “We have a NEW BG Product that I'm sure everyone will want to learn more about… the BG Vehicle Sanitizing Service. I have attached a PDF that you should be able to use in your newsletter. Regarding training, our next All Day Bootcamp classes will be in August”
And from Konrad D.: “We are also planning another class series of Scott Russeau “High Performance Selling” in September 22-24. Both a basic and advanced classes.”
2020 MEETING SCHEDULEPlease see the schedule below, for the rest of the year. Of course, this is totally dependent on pandemic regulations and limitations. But it also depends on member willingness to show up!
We have some great speakers lined-up but the October meeting where we do not have a sponsor or a speaker. Especially now, we need sponsors. Income to organization is down due to lack of meeting income and paid dues so 2020 cash flow is way behind. If you are able to sponsor the October meeting, please connect with me (Dan) at and let me know how [email protected] can help.
Our October meeting will also be a business meeting with updates and elections.
We also need sponsors for the Christmas Gathering in December. Last year we could offer the Christmas Gathering free to member and guests because 1) we had a good year and 2) we had four sponsors. This year, with income down and lack of sponsors, we will payment and/or additional sponsors to cover costs.
SURVEYI will soon be sending out a survey with questions about recent months of business and how shops are faring. It will also contain some questions about future plans. Please be looking for a Survey Monkey questionnaire and respond. Your answers will let us know how we can help and possibly pave-the-way for ASA-Houston’s future.
DATE SPONSOR SPEAKER TOPIC
August 11 RO Writer Mike Chaney “Shop management software, and Glen Guile Apps and Security”
September 13 Merchant Businesses Mallika Reuben “Credit Card Processing An integral Part of Payment Acceptance for All Business Owners”
October 13 Need sponsor and speaker
November 10 O'Reilly Auto Parts To Be Determined at O'Reilly Offices
December 8 Christmas Gathering Three more sponsors at $250 each needed
All meetings at Fratelli's unless otherwise noted.
UPCOMING ASA-HOUSTON MEETING SCHEDULE AND SPONSOR NEEDS