Changes to PPP loan program could offer new lifeline to small businesses

Jeff Newgard

Changes announced Monday to the Paycheck Protection Program could offer hope to small businesses that have felt shut out until now, Bank of Idaho President and CEO Jeff Newgard said.

The Biden administration's changes include a 14-day period, beginning Wednesday, during which only businesses with fewer than 20 employees can apply for PPP relief. Sole proprietors, independent contractors and self-employed individuals are now allowed to base their loan calculations on gross income rather than net income.

"These adjustments will be game-changers for so many of our smallest businesses," Newgard said. "Previously, these types of businesses felt locked out of PPP assistance. We hope these changes make them reconsider."

Businesses affected by the Coronavirus pandemic can learn more details at https://www.bankofidaho.com/cares. Depending on the specific rules of the program, PPP loans may be eligible for full or partial forgiveness if the money is used for qualifying costs.

Newgard said SBA programs have become so adept at helping small businesses that Bank of Idaho has
added a new department solely dedicated to SBA lending. "These programs can be real life lines for small businesses, so we're committed to getting as much of that help into our communities as we can," he said.

New PPP updates include:

• The 14-day period, starting Wednesday, limiting applications to businesses with fewer than 20
employees. During this period, however, applications already in the pipeline
or requiring error resolution will continue to be processed.

• Revising the loan calculation formula for sole proprietors, independent contractors, and self-
employed individuals to use gross income instead of net income, as advocated by ICBA. Additional details are expected on whether this will be limited by number of employees or otherwise. Further, $1 billion will be set aside for PPP loans to businesses in this category without employees located in low- and moderate-income (LMI) areas.

• Eliminating restrictions preventing small-business owners delinquent on their federal student loans or with prior non-fraud felony convictions from qualifying for the PPP.

• Ensuring access for non-citizen small-business owners who are lawful U.S. residents by
clarifying that they may use Individual Taxpayer Identification Numbers to apply for relief.

The administration also said it has revised the PPP loan applications to encourage self-
reporting of demographic data, and it will conduct stakeholder outreach on PPP challenges. The SBA also will launch an initiative to enhance lender engagement with opportunities for lenders to provide
recommendations and ask questions about the PPP and obtain resolution of open questions and concerns in a more streamlined way.

Additional PPP information and resources are available online at sba.gov.

Sale closed for Alturas International Academy to renovate old Sears space at Grand Teton Mall

Alturas Executive Director Michelle Ball, second from left, and three board members,  Christine Ogden, Callie Hatch and Anna Long, review plans for the remodel in the old Sears space. (Alturas International Academy photo)

Grand Teton Mall will have a new tenant this fall in the anchor space formerly occupied by Sears, but it will not be retail. TOK Commercial announced Tuesday that its brokerage team has successfully closed the sale with Building Hope, a non-profit organization that assists charter schools in the financing, procurement and renovation of educational facilities.

Building Hope plans to convert the 70,000 square feet to the new Alturas Preparatory Academy, a secondary school planned to open in Fall 2021. The space will undergo extensive renovations and will feature 30 classrooms, common areas, and flexible, naturally-lit collaborative spaces.

Brian Wilson, TOK Commercial’s lead agent on the transaction, assisted Building Hope with site selection, contract negotiations, and the eventual purchase. “It was such an honor to work with Building Hope as they bring additional educational opportunities to our community through an innovative repositioning of this high profile real estate asset,” he said.

Alturas first announced its plans for the space last August in an email reporting it had received approval from the Idaho Public Charter School Commission for a school to serve students in grades six through 12. The school had been awarded a grant from the J.A. and Kathryn Albertson Family Foundation to help fund the purchase and renovation of former Sears space.

Plan are for 30 classrooms, science labs, common areas, an art room, drama room, music room, gym, wide hallways and abundant natural light, according to a press release. Rooms will be set up to open into larger collaborative spaces. Overall, the cost of the remodel has been estimated at $6 million to $7 million, Alturas Executive Director Michelle Ball said.

They expect the first year of Alturas Preparatory Academy to have roughly 260 students. Each year they plan to add a new sixth-grade class until they reach their capacity at the high school, which will be 96 seats available per grade level.

Alturas International Academy Principal Brian Bingham said students who attend the high school can earn 30 college credits, plus they will seek authorization as an International Baccalaureate (IB) World School. The IB high school curriculum focuses on critical thinking and community and global stewardship, and it contains two tracks — a rigorous diploma program and a more traditional career-oriented program. Alturas International is currently the only authorized International Baccalaureate World School in eastern Idaho, a school news release said.

“That opportunity to obtain the diploma program and stand out on their college applications and receive a strong education will provide an opportunity for them to be successful at the university level,” Bingham said.

Enrollment will be determined by a lottery system, with priority given to current Alturas International students and their siblings.

Fall River Cooperative announces $1 million rebate to owner-customers for 2020

Fall River Electric Cooperative has announced payment of another $1 million in the form of a rebate to its owner-customers for 2020. The co-op’s board voted to return current profits, referred to as margins, to all owners knowing that many have been impacted by the on-going COVID-19 pandemic. This money will be recirculated into the local economies of eastern Idaho and southwestern Montana.

This comes on top of the $1.015 million-plus paid out to owner-members in December through the co-op’s patronage capital program, meaning Fall River Electric has now distributed more than $2 million within the last two months. February’s disbursement is to those customers who purchased power last year while the December payments were to members of the co-op who purchased power back in 2000. The patronage capital program is where extra revenues over the cost of operations is then disbursed to its owner-members on an approximate twenty-year cycle. Unlike investor-owned utilities that pay profits to stockholders, Fall River Electric’s patronage capital is a customer’s investment in the cooperative.

“When the pandemic struck our area, Fall River Electric tightened its belt and reduced expenses,” said Bryan Case, Fall River’s general manager and CEO. “Although energy sales to businesses shrunk, residential energy sales increased as people self-quarantined or worked from home, which contributed to better-than-projected revenue in 2020. As a result of the Co-op’s strong financial position, our elected board approved this additional instant rebate to our 2020 owner-members.”

The amount of the rebate is based on how much each owner-member paid for electricity in 2020 and is being provided as a credit on their February statements.

Wingstop remodeling old Kiwi Loco space on Hitt Road

It looks like Wingstop will be moving into the Sagewood Plaza space that has been vacant since last fall when Kiwi Loco folded. A building permit with the city of Idaho Falls was filed Wednesday for a  $175,000 remodel at 3198 S. 25th East (Hitt Road).

Wingstop started in 1994 as a small buffalo-style chicken wing restaurant in Garland, Texas. It opened its first franchised location in 1997, and has grown since then into a chain with more than 1,000 locations in the United States and abroad. In 2003, the chain was acquired by Gemini Investors, which sold it to Roark Capital Group in 2010. Wingstop went public in 2015.

Wingstop locations are decorated following a 1930s and 1940s pre-jet aviation theme. The menu consists of wings, boneless wings, and chicken strips, with a variety of dips and sides. The flavors on the U.S, market that are still available include Hawaiian, garlic parmesan, lemon pepper, mild, original hot, Hickory Smoked BBQ, hot lemon, garlic, atomic, mango habanero, Cajun, Louisiana rub, and Spicy Korean.

Idaho Falls ranks first on list of Best-Performing Small Cities

Idaho Falls has topped this year’s list of Best-Performing Small Cities released by the Milken Institute Center for Regional Economics, which produces research, programs and events designed to inform and activate innovative economic and policy solutions to drive job creation and industry expansion.

The city moved up six spots to No. 1 based on the area’s job growth and high-tech industry presence, including Idaho National Laboratory and Battelle Energy Alliance.

“As we discovered through our rankings, cities perform best when they pursue innovative strategies that allow high-tech industries to grow while still providing affordable costs of living,” said Misael Galdamez, Milken’s senior policy analyst and a co-author of the report. “This alignment provides a foundation for metro areas to become more resilient to economic shocks.” 

"Being included in the Milken Institute’s Index among small cities comes as a high honor because these rankings are based on meaningful data,” said Idaho Falls Mayor Rebecca Casper. “Idaho Falls has been focused on connectivity and housing—two of the Milken Institute’s new categories for consideration. The pandemic caused everyone to realize how important connectivity is for the future. People need not be tethered to desirable jobs in large cities as they once were; instead, they’re relocating to places like Idaho Falls that give them a better quality of life and a lower cost of living.”

The index measures economic vitality in 200 large metropolitan areas and 201 small metropolitan areas using job creation, wage growth, and innovation industry metrics. The 2021 version of the index emphasizes jobs, wages, and high-tech growth, housing affordability, and household broadband access.

To view the full report and search the 400 metro areas evaluated, visit https://milkeninstitute.org/reports/best-performing-cities-2021, and follow coverage on Facebook, Twitter, Instagram, and LinkedIn using #BestPerformingCities.

2021 Milken Institute Best-Performing Cities Index

LARGE US CITIES – TIER I

1. Provo-Orem, Utah
2. Palm Bay-Melbourne-Titusville, Florida
3. Austin-Round Rock, Texas
4. Salt Lake City, Utah
5. Raleigh-Cary, North Carolina
6. Boise, Idaho
7. Phoenix-Mesa-Chandler, Arizona
8. Nashville-Davidson-Murfreesboro-Franklin, Tennessee
9. Ogden-Clearfield, Utah
10. Huntsville, Alabama
11. Denver, Aurora-Lakewood, Colorado
12. Fort Collins, Colorado
13. Seattle, Bellevue-Kent, Washington

SMALL US CITIES – TIER I

1. Idaho Falls, Idaho
2. Logan, Utah-Idaho
3. The Villages, Florida
4. St. George, Utah
5. Daphne-Fairhope-Foley, Alabama
6. Coeur d’Alene, Idaho
7. Sioux Falls, South Dakota
8. Sebastian-Vero Beach, Florida
9. Gainesville, Georgia
10. Charlottesville, Virginia
11. Punta Gorda, Florida
12. Bellingham, Washington
13. Bend, Oregon