Message to our Customers

To Our Valued Customers:

We are providing this posting to ensure you are aware of the relief made available under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), which was passed into law at the end of March, and the additional actions taken by the Federal Reserve on April 9. At Aramsco, we remain deeply committed to each of you, especially during challenging times, such as the COVID-19 crisis. The challenges we face because of this crisis are vast and multifaceted. Aramsco is deploying our available resources as best we can to effectively respond to and combat the effects of the crisis, and we stand ready to navigate these challenges by your side.

While each business may have varying needs, we recommend you consider the options available to you under the government assistance and relief programs under the CARES Act, which are intended to mitigate the need for headcount reductions, cover certain costs and working capital needs (including rent, leases and utilities, as well as certain interest and scheduled payments under existing debt). For your reference, and with the help of our outside legal advisors at Morgan Lewis, we have enclosed a high-level overview of several assistance and relief programs made available under the CARES Act and by the Federal Reserve that may be relevant to your business. This information is supplemented with additional tax and financial resources provided by our outside tax and accounting advisors at Ernst & Young as well as KPMG.

The Aramsco team has also been working to provide meaningful educational reference guides and training materials. Below you will find information from our education team and links to helpful information and product guides.

If you have any questions, please do not hesitate to reach out to your Aramsco contact, our education department at education@aramsco.com or our legal department at legal@aramsco.com. We hope you find this information useful.

Aramsco & IICRC Contractor Education

Even during these challenging times, it is essential to learn new skills, acquire knowledge and gain the qualifications necessary to remain competitive in our industry.

We understand that the demand for skilled, certified professionals is increasingly important and for that reason, Aramsco is offering online training during this crisis.

We have a variety of classes for you to choose from, many offering IICRC certifications, and are adding to that list on a regular basis. We want to provide you with the opportunity to add value to your current skill set or, even better, add a new service offering for your clients.

Our mission is to arm you with the knowledge and tools necessary to remain competitive in the restoration and specialized cleaning industries.

Be prepared, be ready, and be responsive! We hope to see you online soon!

Poly Sheeting Quarantine Kit
Clean First! Then Disinfect!
Aramsco Cleaning and Disinfection Kit
Clean, Disinfect, And Maintain: Products For A Clean Environment
Aramsco Contractor Education
Aramsco Contractor Education Calendar
IICRC and RIA: Novel Coronavirus (COVID-19) and Our Essential Industry
EPA List N: Disinfectants for Use Against SARS-CoV-2. All products on this list meet EPA’s criteria for use against SARS-CoV-2, the virus that causes COVID-19.
EPA List N: Disinfectants available on Aramsco.com
Aramsco Professional Cleaning Product Guide for Carpet and Other Surfaces
Aramsco Disinfection Product Guide
Aramsco Airborne Contaminant Control Product Guide

Overview of Assistance and Relief Programs

Updated April 15, 2020

The information contained in this overview is intended to serve as a summary, and does not provide a complete description of the scope, requirements, limitations and exceptions of the assistance and relief programs available through the CARES Act and the Federal Reserve. We note that the new stimulus laws and related guidance are constantly evolving and you should consult with your advisors for more information and to determine your eligibility. To the extent desired, we would be happy to connect you with our external advisors who assisted in preparing the enclosed overview.

U.S. Treasury and Federal Reserve Main Street Lending Program

The Main Street Lending Program offers term loans to businesses which: (i) either are organized in the U.S. or have significant operations and a majority of employees in the U.S. (each, a "S. company"); and (ii) either have 10,000 or less employees or had ≤ $2.5 billion revenue in 2019.
Loans will have a 4-year maturity and interest rates will equal the Secured Overnight Financing Rate plus 250-400 basis points.
Principal and interest payments will be deferred for one year.
Prepayment of the loan is permitted without penalty.
Minimum term loan size is $1 million and the maximum loan size is dependent upon several factors including whether the loan is secured, the company’s outstanding and committed but undrawn debt and the company’s 2019 EBITDA.
More information about the Main Street Lending Program can be found HERE.

Economic Injury Disaster Loans (EIDLs), Emergency Economic Injury Grants & Express Bridge Loans for Small Businesses

The EIDL program can provide a "small business" as defined by the SBA with up to a $10,000 advance of emergency grant money as well as up to $2 million in loans to cover fixed debts, payroll, accounts payable and other working capital needed to cover substantial economic injuries. Note that recent press has indicated that, due to high demand, the amount of relief available under this program may be restricted at first.
As of April 9, 2020, the SBA began informing borrowers that, due to limited appropriations, it will limit the maximum size of EIDLs to $15,000, instead of the previously stated $2 million limit. This limit would be in addition to any initial advance provided.
The loans will have an interest rate of 3.75%.
The advance amount will be paid out in a matter of days and is not dependent on a completed application or an approval of a larger loan.
More information about the EIDL can be found HERE and the application can be started HERE.
Note that any recipient of an advance that transfers into, or is approved for, the PPP loan program (discussed below) will have their loan forgiveness amount for a PPP loan reduced by the amount of the advance.
Small businesses that currently have a business relationship with an SBA Express Lender may access up to $25,000 quickly through an Express Bridge Loan Pilot Program. These can be term loans or used to bridge the gap while applying for an EIDL, and will be repaid in full or in part by proceeds from the EIDL loan.
More information about the SBA Express Bridge Loans can be found HERE.

Paycheck Protection Program (PPP) for Small Businesses

The PPP is a new $349 billion lending program, modeled on the existing SBA 7(a) program, with a 100% government guarantee, intended to cover 8 weeks of payroll, rent, utilities and business mortgage interest following loan disbursement, as well as payment of mandatory payments on pre-existing debt. Proposals to expand the aggregate pool of funds available under this program are under consideration in Congress.
The maximum amount of each loan will equal the lesser of (i) $10 million and (ii) the average monthly payroll costs (excluding any amount of an individual’s cash compensation in excess of $100,000) over the last year multiplied by 2.5x.
To be eligible for a PPP loan, an applicant must be a "small business" as defined by the SBA or meet the following criteria: (i) 500 or fewer employees (combined with affiliates); (ii) fewer than the number of employee threshold or annual receipt threshold, as applicable, specified under the applicant’s NAICS code; or (iii) $15 million or less tangible net worth and $5 million or less average net income after federal income taxes for the two full fiscal years before the date of the application.
At least 75% of the funds from this loan must be used to cover payroll costs, and funds used for payroll and other permitted uses over the 8-week period after the loan is made will be 100% forgivable.
More information about the PPP loans can be found HERE and a factsheet can be found HERE.

You can learn more about the various programs discussed above by reading the following:

Employee Retention Tax Credit & Certain Employer Tax Deferrals

The CARES Act provides for a refundable tax credit for those employers that meet one of the following criteria: (i) the employer’s business is or has been fully or partially suspended by government order due to COVID-19 during the calendar quarter; or (ii) the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.
The amount of the credit is based on 50% of qualifying wages paid, up to $10,000 per employee, in each calendar quarter in which wages are paid between March 12, 2020, and January 1, 2021. A portion of the employer provided health care costs is included.
The CARES Act also defers payments of certain employer payroll taxes incurred from the date of the CARES Act passage until January 1, 2021. Payment on 50% of the deferred payroll taxes are due on December 31, 2021, with the remainder due by December 31, 2022.
This credit is not available if proceeds from a PPP loan are received.
More information on the tax credit is available HERE and on the tax deferrals HERE.

For a helpful central resource on the COVID-19 crisis and its general implications, including resources focused on the legal, business and other impacts in particular regions and industries, please refer to Morgan Lewis’s resource page: Coronavirus COVID-19: Addressing Today’s Crisis, Tomorrow’s Legal Challenges. Information and guidance is being provided by relevant authorities and government agencies frequently and new programs are continuing to be rolled out. Accordingly, please be sure to frequently check relevant resources for updates in order to stay up to date.

Additional Tax/Financial Resources

EY Webinars - These webinars provide an overview of the recently passed CARES Act. There are two webinars, based on a company’s size. View the one appropriate to the size of your company to learn more about how the CARES act applies to your situation.
- CARES Act for Privately owned companies – for privately-owned companies with more than 500 employees.
- CARES Act, What Entrepreneurs need to know – for privately-owned companies with less than 500 employees.
KPMG COVID-19 Digital Gateway - single platform solution that provides access to a full-suite of information on regulatory changes, relief packages, and filing extensions, and provides that for countries around the world.