U.S. Virgin Islands Economic Development Authority Webi ebina - - PowerPoint PPT Presentation
U.S. Virgin Islands Economic Development Authority Webi ebina nar: r: VI VIED EDA A Resour esources f ces for or Bus Busin inesse esses dur s durin ing g CO COVID VID-19 9 an and Be d Beyon ond Moderator: Shanell Petersen,
U.S. Virgin Islands Economic Development Authority
Webi ebina nar: r: VI VIED EDA A Resour esources f ces for
Busin inesse esses dur s durin ing g CO COVID VID-19 9 an and Be d Beyon
Moderator: Shanell Petersen, Managing Director, Marketing & Vision 2040
June 17, 2020 10:00am (Atlantic Standard Time)
Welcome
Wayne Biggs, Jr.
Acting Chief Executive Officer/ Chief Operating Officer
Agenda
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Credible Sources for COVID-19 Updates in the USVI Small Business Incubator Program Enterprise Zone Commission Economic Development Commission Economic Development Bank
Text COVID19USVI to 88877 or call 340-713-6200 or 340-776-1519
www.facebook.com/GovernmentHouseUSVI
Credible Sources for COVID-19 Resources
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626 Followers 280 Followers 476 Followers
Speakers
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Cusa Holloway Incubator Program Manager Nadine Marchena Kean Managing Director, Enterprise Zone Commission Margarita A. Greenidge-Benjamin Managing Director, Economic Development Monique Samuel Acting Director of Lending
THE LAUNCH PAD
Small Business Incubator
VIEDA Incubator Program Services
and networking opportunities
SUCCESS
residents since 2013
Mandate. To revitalize once vital vibrant communities that are now considered distressed as designated.
Zones. Frederiksted Christiansted Savanne-Downstreet Garden Street-Upstreet
Program Portfolio
Scrape & Paint Construction Streetscape Signage
Rejuvenation
Tax Credits Tax Exemptions Plan Implementation
Revitalization
Export Promotion Made in the USVI Business-to-Business
Acceleration Guidance
Acceleration
Abandon Property Elimination
Estate Planning Board up Training to Zero EntrepreNow
Resilience
Revitalization: Tax Benefit Program
25%
A Nonrefundable gross receipts or income tax credit equal to 25% of the actual value expended in revitalizing your building.
3%
A gross receipt tax rate of 3% for gross receipts derived from the EZ business.
$%
A property tax credit against taxes imposed equal to the increase in property taxes assessed due to renovation, rehabilitation or construction property within the zones.
Tax Credits
90%
An income tax exemption of 90%;
100%
An exemption from gross receipts of 100%;
100%
And an exemption from property taxes of 100%.
Tax Exemptions
Acceleration: Growing your company
Brazil Canada Denmark UK Italy Caribbean & tradeshow in the USA
Export Promotion
Branding Pop-up Shop
Made In the USVI
Retail stores in key locations Hotels and Bed & Breakfasts Government Agencies
Business-to-Business
Personalized assistance to existing businesses.
Acceleration Guidance
340-714-1700 ext1811 EZC@usvieda.org
ECONOMIC DEVELOPMENT COMMISSION
Margarita A. Greenidge-Benjamin Managing Director, Economic Development
TAX INCENTIVES
90% Exemption on corporate income tax 90% Reduction on personal income tax 100% Exemption on gross receipt taxes 100% Exemption on property taxes
100% Exemption on excise taxes 1% Due on custom duties
ELIGIBLE ACTIVITIES
Category I: Rum Production, Milk/Dairy Production, Watch & Jewelry Manufacturing & Assembly Category II: Product Assembly, Manufacturing, Repair and Maintenance and/or Export Operations, Marine Industry, etc. Category III: Facilities, Tourism and Communications Developments, etc. Category IV: Designated Service Business
Benefit Periods
15 Years
10 Years
5 Years
5 Years
2.5 Years
The term for a participant in the Small Business Program is fifty percent of the otherwise applicable term that would apply to a participant in the Economic Development Program.
SMA MALL LL BUSINESS USINESS PROGRAM OGRAM** **
Em Employm yment ent A mi mini nimu mum m of
ull-time time em employees ees; Hire one VI Resident for every $1M of net income prior to salaries 80% Residents of the Virgin Islands 20% Management / Supervisory / Technical Positions filled by V.I. residents In Investme estment nt A mi mini nimu mum m of
$20, 0,00 000 0 and Purchase or Build a home within 18 months of benefits
In Exchange for Incentives…
** **Sma mall ll Bu Busi sine ness ss ap applic ican ant m t mus ust t be cer e certi tified ied by y SBD BDA, n , now w kno nown wn as as EDB EDB, , as as me meeting ting sm smal all l bus usin iness ess cr crit iter eria ia
In Exchange for Incentives…
Ot Other her req requirements uirements:
Lo Loca cal Pr Proc
urem ement ent Purchase goods & services locally from VI businesses (VIC 708(h) Ed Educ ucat atio iona nal As Assi sista stanc nce Public School Assistance; Territorial Scholarship Fund (Monetary, Scholarship, Internship, Training, etc.) Man anag ageme ement nt Tra rain inin ing Pr Prog
ram Include training budget and trainees Em Employee ee Be Bene nefit it Pr Prog
am (Smal mall Bu Busi sine nes Ap Applic ican ants Ex ts Exem empted) ed) Char arit itab able le Con
trib ibution ution Local non-profits, and/or 501(c)3 entities, government programs Ot Other er Compliance with local and federal laws and rules
SMALL BUSINESS APPLICANT
is is cer certif tified ied by by the the Sma Small ll Busin Business ess De Development elopment Agency gency (SBD (SBDA) A) as as mee meetin ting the the statut statutor
criteri eria for
be bein ing awar arde ded a SB SBDA lo loan an. In order to receive the required certification, an applicant is required to submit to the SBDA evidence that they meet the residency requirements and demonstrate that such owner(s) are active in the management of the business on a full time basis and that the business is their principal means
SBDA ELIGIBILITY REQUIREMENTS
A per A person sha son shall be ll be eli eligi gibl ble if he or e if he or sh she: e:
Owns ns at at lea least st fif ifty ty per percen cent t (5 (50%) 0%) leg legal o al or r eq equi uitable table in inter erest est in in s sma mall ll bus busin iness ess co concern, ncern, ei eith ther er es establ tablis ished hed
be es establ tablishe ished d in in t the he US US Vi Virg rgin in Is Isla lands nds
Is ac activ tive e in in t the he ma mana nagemen gement t or
eration ation of
a smal mall l bus busin iness ess conce concern rn on
a ful ull-time time ba basis sis an and s d such uch sm smal all l bus busin iness ess conce concern rn is is or
will ll be be hi his s pr prin inci cipa pal mean l means s of
su suppor pport
SBDA ELIGIBILITY REQUIREMENTS
Appli lica cant nt was as born born in in th the Unit United ed St Stat ates es Vi Virg rgin in Is Isla land nds;
his mo mother ther or
ather was as born born in in the the US USVI VI and and he he has has been been a bo bona na fide ide continuo continuous us res resident ident of
the US USVI VI for
at lea least st fiv ive yea ears;
he has has bee been a bo bona na fide ide conti continuo nuous us resid resident ent of
the Unit United ed St Stat ates es Vi Virg rgin in Is Isla lands nds for
at lea least st 10 10 yea ears. A small small bu busi siness ness con concern, cern, includ including ing firms, irms, pa partner tnershi ships ps of
all kinds kinds and and cor corporat porations, ions, shall shall be be eli eligi gible ble if if at at least least 50 50% legal legal or
equitable uitable int interest erest therei therein is is owned wned by by a per person son or
persons sons eli eligibl gible under under th the ab above pr provisio visions ns.
Receipts from all sources
any year cannot reasonably be expected at the time of application for assistance to exceed $4,000,000 A. A. Rec ecei eipts ts up to $1,0
0,000 00, , who hose e investment estments s total tal $20,0 ,000 00 and d whi hich ch em emplo loys ys at lea t least st tw two per
sons; or
B. B. re receip ceipts ts exceed ceed $1,0 ,000,00 0,000 0 bu but t are re not not mo more re th than n $1,5 ,500,0 0,000, 0, who hose e investment estments s total tal at le t least st $30,0 ,000 0 and d whi hich ch em emplo loys ys at le t least st th three ree per ersons; sons; or
C. C. re rece ceip ipts ts are re more
than $1,5 ,500 00,00 ,000 0 but t le less ss th than $2,5 ,500,0 0,000 00, , who hose e investment estments s total tal at lea t least st $40,0 ,000 00 and d whi hich ch em emplo loys ys at le t least st fou
r per ersons; sons; or
D. D. re rece ceip ipts ts exce ceed ed $2,5 ,500,0 0,000 00 but t are re le less ss th than $3,0 ,000,0 0,000 00, , who hose e investments estments total tal at le t least st $50,0 ,000 0 and wh d which ch em emplo loys ys not t le less ss th than n five pe e persons; sons; or
E. E. re rece ceip ipts ts exce ceed ed $3,0 ,000,0 0,000 00 but t are re not t more
than $4,0 ,000,0 0,000 00, , who hose e investment estments s total tal at lea t least st $60,0 ,000 00 and d whi hich ch em emplo loys ys not t more
than 50 per persons. sons.
VIEDC PROGRAM MANDATE
The The Com Commiss mission ion sha shall ll end endea eavor
to to encourag encourage and and ass assist ist in in the the creation, creation, de developm elopment ent and and expa xpansion nsion
lo locally cally
wned businesses businesses and and industr industries ies
igina nati ting ng in in th the US US Vi Virg rgin in Is Isla lands nds.
29 V.I.C. Section 708(h)
Al All l VIEDC IEDC Ben enef efici iciaries aries are re re required uired to agr
ee in wri riting ting to to em emplo loy or
contra tract, ct, and to to re require uire all ll co contrac tractors
retai retained ned by by hi him to to em emplo loy or
bcontract, ntract, for
ervi vices ces and to to purch chase se go good
s, materials erials and supp pplies lies with th and fr from
thos
ersons, sons, firms rms or
corpo rporations rations who ho are re
licensed for one year or more prior to the initial date of any such employment, contract, subcontract,
purchase
PROCUREMENT POLICY
Provide for responsible United States Virgin Islands business enterprises to have the maximum practical
beneficiaries, as suppliers of goods or providers of services. Be Bene nefic icia iari ries es ar are re e requir uired ed to
do th thei eir r utmost utmost to
acili lita tate e th the e par parti ticip cipation ation of
USVI VI busin businesses esses pu pursuant suant to
the VIEDC e VIEDC ru rules les.
Eligible Virgin Islands Supplier
An in indiv dividu idual al – must be a resident of the US Virgin Islands
A firm irm or par
tnershi ship – each member must be a resident of the US Virgin Islands
A corporation poration – must be incorporated in the US Virgin Islands, be in good standing and over 50% of the voting stock must be owned by residents of the US Virgin Islands
Eligible Virgin Islands Supplier Criteria
“Eligible Virgin Islands Supplier” is a responsible US US Virg Virgin in Isl Islan ands sup ds suppl plier of go ier of goods
ser servi vices ces wh which ich meet meet th the e fol
lowing wing cr crit iteri eria: a:
1. As of the date of the certification, the supplier has been licensed to do business and has actually conducted business in the US Virgin Islands for at least one (1) year: 2. The supplier physically maintains its principal place of business in the US Virgin Islands; and
Eligible Virgin Islands Supplier Criteria
3. The supplier maintains an inventory in the US Virgin Islands appropriate to the size of its business; and 4. The supplier is in compliance with all US Virgin Islands laws and regulations; including all tax laws; and 5. The supplier is in good standing with all agencies and departments of the government of the US Virgin Islands to include the issuance of a current Certificate of Good Standing, Certificate of Existence or Certificate of Trade Name, as may be appropriate.
Reporting Requirements
El Elig igibl ible e Vir Virgi gin Is n Isla lands nds Su Supp ppli lier ers s mu must su st subm bmit it an annu nual ally ly to the
VIE VIEDC DC:
Commission, especially relating to goods and/or services provided to the Beneficiary.
PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020
Presented by The Economic Development Bank for the United States Virgin Islands a subsidiary entity of the Virgin Islands Economic Development Authority
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Economic Development Bank (EDB) Overview
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The Government ernment Develop elopment ment Bank Bank (G (GDB) B) an and Sma mall ll Bu Busine iness ss Developmen elopment t Agency ncy (S (SBD BDA) A) provide vides s tec echnical hnical suppor upport, t, bu busines iness s co counsel unseling ing an and guidan dance ce to sma mall ll bu businesses sinesses in USVI VI. . In Ma May 2014, 4, The Ec Economi nomic c Develop elopment ment Ba Bank k for r th the Un United ed Sta tates es Vi Virgin in Islands lands (E (EDB) B) was as enac acted ed by la law w to as assume sume th the functi ctions
these se tw two entiti tities es. .
The e ED EDB p B provid ides es loa
ns to
xisti sting ng an and st d star art-up up bus usin iness esses es th ther ereb eby y cr crea eati ting ng an and ma d main inta tain inin ing g jo jobs in th s in the e ter errit itor
y an and i d is r s resp esponsi
ble for
the cr e cred edit it ad admi mini nistr strati ation
its l s loa
n por
tfolio.
Micro-Credit up to $50,000 Farmers and Fishers up to $50,000 Development up to $500,000 Frederiksted up to $20,000 Small Business Development up to $100,000 Economic Development Administration up to $75,000 Intermediary Relending up to $100,000 State Small Business Credit Initiative – Guarantee Program
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On June 5, 2020, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law, which made several enhancements to the
Program (PPP). The new law amends provisions of the CARES Act specifically related to forgiveness of the loans under the PPP.
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Background
Available at financial institutions currently extending SBA loans. Eligible businesses include eligible nonprofits, veterans’ organizations, eligible self-employed individuals, sole proprietors, partnership, corporations, limited liability companies, and independent contractors. A provision of the CARES Act is designed to provide quick access to SBA loans for companies with 500 or fewer employees whose principal place of residence is in the United States, to assist with payroll and certain costs during short-term business disruption caused by COVID-19 pandemic.
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amount was reduced to 60%. 60% of the funds may be used for eligible payroll cost to include eligible employee benefits.
amount was increased to 40%. 40% may be used for non-payroll cost such as interest on mortgage, rent or utilities.
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Terms
1% interest erest rate e on un unforgiv rgiven en po portio tion Matu turity rity of all PPP P loans ns app pproved ed on or after er Ju June e 5, 2020 wi will be 5 y e 5 yea ears s inst stead ead of 2 yea ears Cover ers s pa payroll
st including luding ben enef efits its for up up to 24 wee eeks ks No No collat lateral eral No fee ees No pe personal sonal gu guarant antees ees De Defer erred red pa payment ment for up up to 10 mo months ths from m th the e date e of closing sing (or as s sp spec ecif ified ied in PPP gu guidelines) elines)
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Thank you to our team and our clients for participating in this webinar! We Support Small Business, Entrepreneurship, & Startups!
Q&A
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@usvieda @usvi_eda For more information contact: info@usvieda.org
The recording & slide deck will be available at: www.usvieda.org/webinars