Southern Oregon Business Journal - April 2020 Edition

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April 2020

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The Journal for Business in Southern Oregon

COVID-19 SouthernOregonBusiness.com

A Few Words from Greg

The good thing about tomorrow is that we haven’t made a mess of it yet. Our high and mighty thinking of ourselves is too grand to realize how little we actually know, …about anything. A decade from now what we lecture today will be obsolete. All we really know is what we didn’t in the last generation.

Arrogance, impatience and human foibles are the cause of our disasters. We know how to stop a pandemic before it hardly begins, but we don’t. It happens, anyway.

It’s likely true that man has always been that way. But always can go back a long way, so who knows?

Over hundreds and thousands of years our human learning has been incredible, only what we’ve chosen to forget is more incredible.

Individual responsibility for learning and remembering (which is necessary for learning to truly occur) is handed quickly away to relieve ourselves of the responsibility knowledge might lay on us. Laying on of blame and finger pointing, “It’s not my fault” attitudes are our heirs fortunes to repair.

If you knew that the one person you spoke to on the street when you ignored the plea to stay home was the one to gift you with the virus you’ve now spread to ten others who’ve passed it on to others, like a game of “Pay It Forward” until now 200 people have died, would you have stayed home? It could happen.

The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.

A Few Words from Jim I'm usually a fan of disruption. I have been a disrupter in several industries myself and have had my own share of disruptions over the years that have forced my companies to reboot or die.

But this might have put me over the edge.

As I have been putting up news on the website on a daily basis, I could feel myself get overwhelmed a few times.

As I reported to my employees at each of my companies that we are all in this together and to stay calm, I could sense my own fear.

As I heard from client after client, small business after small business, tell me that they are shutting down, laying off and hopefully can come back when this is all over, I could feel the weight of this moment in our lifetimes bear down on me.

But as I stood back and witnessed the community leaders in Southern Oregon stand up and take charge of doing what they could do, my concerns started lifting.

As I saw people volunteer to 3D print medical PPE, it made me hopeful.

As I saw countless examples of students, friends, co-workers and families reconnect online with video chat it made me smile. Everything I have worked for my entire adult life is connecting people in powerful ways.

None of us know how long this will last or how many companies will make it through or if we will survive it ourselves, but what we do know is that "we" will.

Please be patient.

We will survive and once again thrive.

Greg Greg@SouthernOregonBusiness.com

Someday. Hopefully soon.

Until then, Stay Home and Stay Healthy.

We are all in this together.

Jim Jim@SouthernOregonBusiness.com

2 | Southern Oregon Business Journal April 2020

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April 2020 - Table of Contents

Inside This Issue Education: Oregon Tech’s Business Team wins National Competition while promoting Innovative Medical Technology - Page 4

Energy: App for 2,717 acre solar facility submitted - Page 6 Cheaper gas: Bad for climate and safety - Page 8 2020 Gas Outlook • Market Fundamentals - Page 27

People: Association of Oregon Counties Names Dr. Gina Firman Nikkel Executive Director - Page 28 Oregon Alliance of YMCAs announces new Executive Director - page 29

Economic Indicators: Linn County Labor Market Information - Page 30 Marion & Polk Counties Labor Market Information -

COVID-19 Fiscal Measures during the Coronavirus Outbreak - Page 10 Go Big or Go Home - Page 12 Positive News Bites - Page 16 The banking industry as a whole has entered this period of uncertainty in a position of great strength. - Page 18 Coronavirus (COVID-19): Small Business Guidance & Loan Resources - Page 20 The do’s and don’ts of video conferencing - Page 24 Breaking Down the Coronavirus Aid, Relief, and Economic Security (CARES) Act - Page 35

Page 31

Yamhill County Labor Market Information - Page 32 Southwestern Oregon Economic Indicators - Page 33

Strong Towns:

Cover photo by CDC on Unsplash

The tragic downside of efficiency - Page 36 Find the latest news on SouthernOregonBusiness.com

EDUCATION

BY OREGON TECH

Oregon Tech’s Business Team wins National Competition while promoting Innovative Medical Technology

Photo: Quinn Damitio, Jared McBride, Peter Simonsen, and Tanner Karp Photo courtesy of Oregon Tech

Oregon Tech business students, Quinn Damitio, Jared McBride, Peter Simonsen and Tanner Karp, won a national business case study competition, taking them to the worldwide stage in April. The team developed a marketing strategy to help a startup company reach people in wheelchairs who could benefit from the company’s hands-free motorized wheelchair.

4 | Southern Oregon Business Journal April 2020

A team of Oregon Institute of Technology, “Oregon Tech,” business students won a national business case study competition, taking them to the worldwide stage in April. The contest was designed for business students to work directly with a startup company to develop a solution addressing a real business challenge.

The contest featured a German MedTech company that developed the munevo DRIVE,

a Smartglass application for controlling a motorized wheelchair with hands-free technology using head movements. The startup company challenged the teams to create a market strategy for the company’s entrance into US market.

The Oregon Tech team was comprised of four students: Quinn Damitio (senior, Operations Management), Tanner Karp (senior, Marketing), Jared McBride (senior, Business

Management), and Peter Simonsen (junior, Marketing).

They worked together to learn about the industry and develop a marketing strategy that would help this company reach people in wheelchairs who could benefit from the technology.

Munevo’s founder, Claudiu Leverenz, stated, “The final results of the case have been exactly what we were looking for and will help us greatly in achieving our next steps of our market entry in the US. The students have raised the bar tremendously for future cases and projects.”

Team member McBride noted, “Our team had a great experience working with an innovative company that is bound to succeed in the United States. This case competition was an amazing real-world experience that allowed us to apply our business and technology education. Winning this competition gave us a boost of confidence and an understanding of what future employers will expect.”

The team will be going on to complete in a global case study conference in Dallas in April.

Jordan Levy, whose company CapSource designed the contest said, “The Oregon Tech team produced results that were extremely impressive. The students were well-researched, prepared, and professional. The

most rewarding aspect of coordinating these types of collaborations for students is watching them hit it out of the park. I can’t wait to see how this team builds on their initial success this Spring when they compete in the 'big leagues' at the IACBE Live Case Competition, where they’ll be working on an up-to-date challenge featuring CoinSource, the world’s leader in Bitcoin ATMs." “Working on this project was such a great fit for the ‘handson’ approach we take at Oregon Tech,” notes team advisor, Professor Sharon Beaudry.

“Business students at Oregon Tech often partner with engineers and health students to develop projects for our inventor contest and senior projects. This contest is another way for students to get a real-world experience.”

Oregon Tech Business degrees include nine programs: Accounting, Business Management, Cybersecurity, Information Technology, Health Care Management, Health Informatics, Marketing, Operations Management, and Technology & Management.

These programs are offered at the Klamath Falls campus, and many are also offered at the Portland-Metro campus as well as online. To learn more, visit www.oit.edu/academics/ degrees/business.

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Send your ad copy to: Greg@SouthernOregonBusiness.com Greg Henderson, Co-Publisher

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Southern Oregon Business Journal April 2020 | 5

ENERGY

Application for 2,717 acre solar facility submitted

Photo from Exhibit C of Complete Application for Site Certificate

Bakeoven Solar LLC, a subsidiary of Avangrid Renewables LLC, submitted an application for site certificate (ASC) to the Oregon Department of Energy to construct and operate the Bakeoven Solar Project. The proposed facility would be a solar photovoltaic energy generation facility with a peak 6 | Southern Oregon Business Journal April 2020

generating capacity of 303 megawatts that would occupy up to 2,717 acres of private land in Wasco County.

The Application reads, “Bakeoven Solar, LLC proposes to construct and operate a solar energy generation facility and related or supporting facilities in Wasco County, Oregon.

The Bakeoven Solar Project (Facility) will be a photovoltaic (PV) solar energy facility with a nominal and average generating capacity of 303 megawatts (MW), as defined in Oregon Revised Statute (ORS) 469.300(4)(c). The Facility will interconnect to the existing 230-kilovolt (kV) Bonneville Power Administration (BPA) Big

Eddy to Redmond transmission line at the existing BPA Maupin Interconnection Substation (Maupin Substation). Exhibit C, Figure C-2 provides an overview of the proposed Facility. This Facility will generate clean, renewable energy for local and regional energy markets and further Oregon’s response to climate change and transition to a clean energy future. As articulated in Governor Brown’s recent Climate Change Agenda, “climate change impacts every Oregonian, but our rural communities, our low-income communities, communities of color, and Tribes are especially vulnerable. Climate change

also poses serious risks for many of Oregon’s natural resource-based industries.

Meeting the challenge of climate change and growing our economy are not mutually exclusive goals: we must do both” (State of Oregon 2018).

The Facility can meet this challenge by reducing carbon emissions in the utility sector and by simulating local economic growth through temporary construction jobs and long-term tax payment to Wasco County.”

Avangrid Renewables, LLC (Avangrid), have previous experience in constructing and operating renewable generation facilities. Avangrid, headquartered in Portland,

Oregon, is one of the largest operators of wind energy projects in the United States. It owns and operates more than 6,000 megawatts (MW) of utility-scale renewable energy production. Avangrid has successfully operated renewable energy projects in Oregon since 2001, and now owns more than 1,483 MW of utility-scale wind and solar generation in the state.

Public Notice on the Proposed Order: https://www.oregon.gov/energy/ facilities-safety/facilities/ Facilities%20library/2020-03-20-BSPASC-PO-Public-Notice.pdf

Oregon Department of Energy, Energy Siting Division website for the Bakeoven Solar Project: https://www.oregon.gov/energy/ facilities-safety/facilities/Pages/BSP.aspx

Southern Oregon Business Journal April 2020 | 7

ENERGY

By Joe Cortright

Cheaper gas: Bad for climate and safety

Photo by Jon Sailer on Unsplash

Gasoline prices will drop 50 cents per gallon in the next week or so, and cheap gas will fuel more bad results: more air pollution, more greenhouse gases and more road deaths Now is the perfect time to put a carbon tax in place Lower gas prices mean more driving, more pollution, more road deaths While the Coronavirus has dominated the headlines, there’s been another major global development: the 8 | Southern Oregon Business Journal April 2020

collapse of oil prices. Saudi Arabia and Russia have stopped holding back their oil supplies to prop up the price of oil, and world oil prices have plummeted. A barrel of oil that cost a little bit more than $60 in early January now goes for about $32. That, in a very predictable way, will trigger a decline in gas prices. With a slight lag, gasoline prices (red) closely follow crude oil prices (blue).

The Energy Information Administration now predicts

that gas prices will drop about 50 cents per gallon, from about $2.60 last year to a little over $2.10 this summer.

Based on the lower crude oil price forecast, EIA expects U.S. retail prices for regular grade gasoline to average $2.14 per gallon (gal) in 2020, down from $2.60/gal in 2019. EIA expects retail gasoline prices to fall to a monthly average of $1.97/gal in April before rising to an average of $2.13/gal from June through August.

(EIA, March 11, 2020).

Lower gas prices stimulate more driving. As we’ve explored at City Observatory, the price elasticity of demand for gasoline means that a 10 percent decline in gas prices is associated with about a 3 percent increase in driving.

That means the roughly 20 percent decline in gas prices we can expect this year will, all other things equal, lead to about 6 percent more driving.

Cheaper gas translates in a straightforward way into more air pollution and greenhouse gases, and increased driving has been the principal cause of the increase in road deaths in the past five years.

Of course, especially in the short term, all things aren’t equal. For the next few months, we’ll be dealing with the social distancing required to limit the rapid spread of the Covid-19 virus. And it now seems likely that economic growth will slow, if not actually tip into a recession, in spite of the best efforts of policy makers to assure markets, add to liquidity, and stimulate economic activity. With luck, we manage a short, “Vshaped” downturn. Lower levels of economic activity will reduce driving, traffic and pollution, at least temporarily.

But cheaper gas seems likely to persist for some time. And as it does, its macroeconomic effects will be largely negative according to energy economist Jim Hamilton. To be sure, consumers will have more money to spend, but the evidence from previous gas price declines (like 2014) is that it provides relatively little stimulus. Part of the reason is that lower oil prices will devastate domestic oil

“Lower gas prices mean more driving, more pollution, more road deaths” production, especially the fracking industry, and the job losses and decline in investment there will more that offset the stimulus from cheaper gasoline.

Time for a carbon tax We, like most economists, have long advocated for pricing carbon as a way to reflect back to consumers the environmental costs of their decisions. The predictable political opposition to that idea arises from the fact that no one wants to pay more for energy, particularly a gallon of gas (which is perhaps the most visible price in the US economy). Implementing a

carbon tax as oil prices are falling would cushion the blow. A twenty-five center per gallon carbon tax would capture something like half of the value of the decline in oil prices–and could produce $35 billion in annual revenue to support projects to fight climate change. A carbon tax would also diminish somewhat the increase in vehicle miles traveled, air pollution, and greenhouse gases that would otherwise be triggered by cheaper gasoline. Similarly, it would serve as a valuable incentive to consumers not to purchase less fuel-efficient vehicles (which would likely happen if gas prices are consistently lower than $2 per gallon.

It’s never easy to implement a new tax. But there’ll never be a better opportunity to implement a carbon tax than when oil prices are dropping.

Joe Cortright is President and principal economist of Impresa, a consulting firm specializing in regional economic analysis, innovation and industry clusters. Over the past two decades he has specialized in urban economies developing the City Vitals framework with CEOs for Cities, and developing the city dividends concept.

Southern Oregon Business Journal April 2020 | 9

COVID-19

By Cristina Enache

Fiscal Measures during the Coronavirus Outbreak

Photo by Brian McGowan on Unsplash

Countries around the world are implementing emergency tax measures to support their debilitated economies under the coronavirus (COVID-19) threat. The following countries implemented or plan to implement tax relief for businesses and households affected by this health crisis: China has reduced its valueadded tax (VAT) from 3 percent to 1 percent for the cash accounting scheme for small businesses until the end of May. It also cut VAT on medical, 10 | Southern Oregon Business Journal April 2020

catering, accommodation, hairdressing, and laundry services as well as on masks and protective clothing.

Denmark announced three tax measures to boost business liquidity. Large companies will have 30 additional days to pay VAT, while all companies will be granted four additional months to pay their labor contributions.

The government is also lifting the ceiling on businesses’ tax accounts so that corporations won’t have to pay negative

interest rates when placing cash in the bank.

In France, the government is allowing companies to suspend payments of some social charges and taxes and is activating state-subsidized short-time work schemes.

Germany will make it easier for companies to claim subsidies to support workers on reduced working hours to counter the effects of the pandemic. This is the same measure which was used to help prevent largescale layoffs during the 2008

financial crisis. The government has also discussed having a reform to the solidarity tax (a 5.5 percent surcharge on high-income earners) apply in 2020 rather than in 2021 as previously planned.

Greece will suspend VAT payments due at the end of March for four months and companies’ social security contributions will be suspended until June 30.

until May 31, and tax credits will be granted to companies that suffer a 25 percent drop in revenues.

Japan has delayed income, consumption, and gift tax filing deadlines and payments by one month, until April. Further measures will be considered depending on how the situation evolves.

reduce the economic impact of the coronavirus.

The United States will likely propose a payroll tax cut and a short-term expansion of paid sick leave. The proposal might also delay tax payments without interest or penalties for certain individuals and businesses that are negatively impacted.

Spain approved tax relief for small and medium businesses

Proving targeted and temporary cash-flow relief to the people and companies Indonesia plans to waive “The only reason why countries that are most affected, income tax for individuals until the emergency should consider tax measures is for six months as it seeks abates, is welcome. Many because the health issue is to boost purchasing power. countries are relying A second stimulus package creating a substantial economic heavily on VAT as a way to will allow firms to delay ameliorate cash-flow shock.” payments of corporate and problems. Nevertheless, income tax on the sale of this won’t help businesses and self-employed persons. imported goods. These that are small enough to Those businesses will be able measures will be effective from operate below VAT registration to defer their tax obligations April 1st and last for six thresholds. VAT reductions are for six months without interest. months. also entirely untargeted.

The taxes included in this Also, to encourage tourism to The only reason why countries measure are income, certain destinations, a 10 should consider tax measures corporate, and VAT. percent hotel and restaurant is because the health issue is Thailand‘s cabinet approved local tax will be lifted for six creating a substantial cutting the income months, with the central economic shock. Taxes that withholding tax from 3 percent government compensating require regular payments will to 1.5 percent for six months, local governments for the impact the liquidity of from April to September. It expense. businesses and households. also doubled the tax benefit Therefore, governments In Italy, tax deadlines have for investment in long-term should consider targeted fiscal been extended for residents mutual funds to USD $12,570. relief as a way of minimizing and companies in the so-called the economic impact from the The UK government “red areas” of Italy. Also, all health crisis. announced reductions for tax payments due in the business property taxes for https://taxfoundation.org/coronavirusperiod between February 23 retail, leisure, and tourism to covid-19-outbreak-fiscal-tax-measures/ and April 30 were extended Southern Oregon Business Journal April 2020 | 11

COVID-19

By Tim Duy

Go Big or Go Home

Photo by Erik Mclean on Unsplash

MARCH 16, 2020 In an effort to keep financial markets from spiraling out of control, the Federal Reserve came out with the big guns Sunday afternoon.This

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will not prevent the economic downturn that is already upon us. It will, however, create more accommodative financial conditions that will help support the eventual recovery.

In the near term, however, the

Fed’s action will – hopefully – support smooth functioning in financial markets and ensure that the problems on Wall Street do not feed back onto Main Street. The Federal Reserve has now passed the

ball to fiscal policy makers, at least for the time being. This doesn’t mean the Fed is done; Powell & Co. have more ammunition if needed later.

Quick summary of the Fed’s actions today: Cut policy rates to 0%-0.25%. Back to the zero bound all at once. It was the Fed’s only choice.

Forward guidance. The Fed committed to holding rates near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

Quantitative easing. Federal Reserve Chair Powell didn’t call it quantitative easing, saying instead the label doesn’t matter as long as it gets the job done. Fed will be buying $500 billion of Treasuries (presumably across the curve as the New York Fed signaled last week) and $200 billion of mortgage backed securities.

Discount rate cut to 0.25%. This is kind of a big deal, basically drops the discount rate to the overnight rate to take the stigma out of using the discount window (they really want this stigma gone). Plus, banks can borrow

from the window for up to 90 days.

Powell said he expected the second quarter to be very weak but had little confidence Intraday Credit. Fed wants in forecasts beyond that. It banks to use its intraday credit depends on how the virus programs. evolves. He rightly noted that Loan guidance. Fed signals the rate cuts would not have that banks should use their an immediate impact on the liquidity and capital buffers to economy, but will support the lend to household and firms. rebound in activity on the The Fed is telling banks this is other side. He highlighted the the time to use those buffers. role of fiscal policy in moving targeted aid to individuals and Reserve requirements. Fed firms directly impacted by social distancing measures. To my ears, “The Fed shot a lot of he wasn’t yet convinced of the need bullets today, but they are for a bigger fiscal not yet out of ammunition.” stimulus, though I think this was because he wasn’t yet confident eliminates reserve the downturn would last more requirements, which were than a quarter. pretty much irrelevant in a system of ample reserves.

With regards to his own health, he has not been tested for the Powell made very clear in the virus, he feels healthy, and he press conference that the Fed’s is doing some teleworking. objective is to support the smooth functioning of financial They will not be meeting again markets. In particular, the Fed this week as originally is reacting to the liquidity planned. There will not be a problems that crept up in the Summary of Economic Treasury and MBS markets last Projections. Powell said the week. Powell explained that forecasts would be pretty the Treasury market is the useless right now. And foundation of the global thankfully we then aren’t faced economic financial system and with the prospect of any keeping it functioning was the “hawkish” dots in the 2021 Fed’s primary objective. The rate forecasts.

MBS market is critical to keep Inexplicably, Cleveland Federal credit flowing to households.

Reserve President Loretta Mester dissented against the Southern Oregon Business Journal April 2020 | 13

rate cut, preferring instead just a 50 basis point cut. I await her explanation; I hope it isn’t about “saving ammunition,” which would be pointless argument now. I don’t see much percentage in trying to emulate a Richard Fisher or Thomas Hoenig in this crisis.

The Fed shot a lot of bullets today, but they are not yet out of ammunition. Most of today’s policy moves were designed to support market functioning, not the economy directly. They can do more on both fronts.

For example, regarding market functioning, they can expand the size of asset purchases or, if needed, develop 13(3) emergency lending programs.

Note that the asset purchases were of a fixed amount. The Fed could switch back to an opened commitment and link it via forward guidance to explicit economic objectives.

They can follow up with yield curve control. Then there is the possibility of regime change toward average inflation targeting, etc. That said, in the near term we really need fiscal stimulus. The Fed has paved the way, but they can’t make Congress and President follow their lead.

Financial markets did not exactly cheer the Fed’s move; equity futures limited down, setting the stage for another difficult day on Wall Street.This

should not be unexpected. I don’t see the possibility of any near-term stabilization in financial markets until we get more clarity on the challenges we face. This week reality will be settling in as much of the economy is going to be shut down. Testing will expand and the confirmed cases will grow.

So too will the number of deaths. I don’t see where the Fed can do much more than keep financial markets functioning in this environment. This is important to sustaining the free flow of credit; crippled credit markets would only make the downside worse. But until we get enough testing, mitigation, and containment to bend the curve, market action will retain that distinctly bearish mood.

Bottom Line: The Fed realized this was a “go big or go home” moment, and it rightly decided to “go big.” The Fed basically signaled as clear as it could that it was ready to backstop the financial markets.

I am thinking Powell is not going to let another Lehman Brothers happen on his watch.

The Fed can’t, however, keep the economy from diving into a hole in the second quarter.

Market sentiment now is probably going be driven by the prospects for fiscal stimulus.

Initial Unemployment Insurance Claims Filed in Oregon Rose from 800 on Sunday, March 15 to 18,500 on Tuesday, March 17, 2020 Economic Impacts The number of initial Unemployment Insurance claims filed in Oregon rose from approximately 800 on Sunday, March 15 to a total of 18,500 on Tuesday, March 17, 2020. Although we know the COVID-19 coronavirus is causing a reduction in economic activity both nationally and in Oregon, it’s too early for unemployment rate or payroll jobs numbers to show the impact of these employment disruptions. The Employment Department will provide more information online as updated data become available.

This is an unprecedented time for small business and we don’t know how long or how deep the impact from social distancing will go. However, we want to assure you that Oregon Small Business Development Center advisers are available to work with your business to answer questions and provide resources to help get through this period. Each of our Centers across the state are open for business and available virtually by phone or video conference only. Please contact your local Center for the best way to schedule an appointment. bizcenter.org

14 | Southern Oregon Business Journal April 2020

SICK TIME is PROTECTED by LAW As news of COVID-19/coronavirus grows, you should know that all Oregonians get protected time off from work. The law requires it.

■ You can use sick time for many reasons, including if you or a family member is sick, injured, experiencing mental illness, or need to visit the doctor.

Oregon law requires your employer to give you sick time. You get at least 1 hour of protected sick time for every 30 hours you work.

OREGON LAWS Protect You At Work

■ Your employer must pay you your regular wage when you take sick time if they have 10 or more employees (6 or more in Portland).

Otherwise, sick time is unpaid.

■ You can start taking sick time a!er you’ve worked for at least 90 days.

Your employer must regularly let you know how much sick time you have earned.

■ If you’ve used up all of your sick time, you may qualify for 12 weeks of protected OFLA/FMLA serious health condition or OFLA sick child leave.

CONTACT US

If your employer isn’t following the law or something feels wrong, give us a call. Oregon Labor and Industries is here to enforce these laws and protect you.

Call: 971-673-0761 or Email: mailb@boli.state.or.us Representantes que hablan español están disponibles.

Southern Oregon Business Journal April 2020 | 15

COVID-19

By News Bots

Positive News Bites

IBM launches Weather Channel map to track coronavirus As the coronavirus causes uncertainty in our daily lives, we are all looking for data to help us make more informed decisions and check on our family and friends in different areas. With that in mind, we feel it’s critical to provide the most trusted information currently available to help people stay informed on the reach of COVID-19. The Weather Channel is now providing COVID-19 data – so you can see why social distancing matters in your community and why it’s important to heed instructions from your local, state and national resources.

– Cameron Clayton, General Manager, The Weather Company Screenshot from weather.com/coronavirus

The US Food and Drug Administration has approved a coronavirus test that can deliver a diagnosis in 15 minutes.

The U.S. Food and Drug Administration (FDA) has issued Emergency Use Authorization for a new coronavirus test that takes just 15 minutes to complete.

The test's maker, Abbott, announced the news in a press release, saying it plans to start delivering 50,000 tests per day starting next week.

Photo courtesy of Abbott

Abbott will run the tests on its point-of-care ID NOW platform, a portable platform that weighs less than 7 pounds and can be deployed to coronavirus hotspots. The company said it expects to produce about 5 million tests per month.

It marks one of the fastest tests for COVID-19 available and comes just a week after the FDA approved another 45-minute rapid point-of-care test.

16 | Southern Oregon Business Journal April 2020

Volunteer group develops a COVID-19 testing location database for the U.S. The effort to combat the spread of the coronavirus pandemic globally relies on testing as a core component of the current strategy, which primarily focuses on isolating individuals to slow the transmission of COVID 19 and give researchers time to develop potential treatments and vaccines.

That said, this database, which was built by a team of around 15 developers working remotely one the course of just one week, should be viewed as a potential resource to inform those working on the country’s emergency response and COVID 19 mitigation strategy, or efforts to ensure that testing is available across the country in a way that accurately addresses population needs, and that can provide a full picture of the extent of the actual virus spread.

CDC launches coronavirus bot to help take strain off healthcare system The bot, known as Clara, utilizes Microsoft's Azure Healthcare Bot framework, which the government agency hopes will help allay the fears of people who believe they may have the virus.

"Microsoft’s Healthcare Bot service is one solution that uses artificial intelligence (AI) to help the CDC and other frontline organizations respond to these inquiries, freeing up doctors, nurses, administrators and other healthcare professionals to provide critical care to those who need it, "Microsoft wrote in a statement in conjunction with the CDC announcement.

Southern Oregon Public Schools and Maker Spaces using 3D printers to make N-95 masks The COVID Skunkworks team began their efforts on Sunday, March 22nd, in Southern Oregon, when an engineer reached out to the local hospital to offer help with manufacturing ventilator parts. The hospital approved of the effort, so by 4:30 pm Monday evening, 35 local experts and doctors were on a conference call learning straight from the hospital what the needs were.

The team is organized using the Slack messaging platform where separate channels focus conversations for each product that needs support.

The initial needs were face shields, n95 masks, iso masks, iso gowns, and ventilator manifolds.

The group chose team leads to begin each effort, and by the next morning, 3d printers around the valley were ramping up production of prototypes.

Parts were delivered to doctors that very day, and immediate approvals have allowed face shields to begin production right away.

Southern Oregon Business Journal April 2020 | 17

COVID-19

By Ken Trautman, President and CEO, People’s Bank of Commerce.

The banking industry as a whole has entered this period of uncertainty in a position of great strength.

People’s Bank Biddle Branch and Corporate Headquarters - Photo supplied by People’s Bank

We are all trying to learn how to adapt to the COVID-19 virus.

Most of us are overwhelmed with negative news and are being provided few solutions.

Events have unfolded quickly across the nation, but rest assured, this event is NOT similar to the “Great Recession” 18 | Southern Oregon Business Journal April 2020

of 2008.

When looking at the banking industry as a whole, we have entered this period of uncertainty in a position of great strength.

Banks’ capital levels are very high, which will allow us to

provide the funding businesses and individuals will need to carry them over until times improve. Banks also have more diversification to their lending, which provides a cushion to those industries that are feeling the immediate effects from the slow down. Additionally, banks

have invested significant amount of money over the last few years to enhance and grow our technology and electronic capabilities.

pay our bills and make purchases as needed.

If we want this crisis to end as soon as possible, it’s imperative that as Americans we maintain the status quo, spend as usual and make our mortgage, auto loan and credit card payments. To keep the economy moving, it’s our duty as citizens to use the cash we’re receiving from the government and continue to

We encourage people to a follow the State of Oregon Emergency Declaration and to stay at home. If you are able, support your local restaurant who is offering delivery or pickup service. For your safety, do not start consolidating cash at home, it is more secure at the bank. FDIC insurance limits are $250,000 per insured

account - safeguard your hardearned money.

If you’ve exhausted all other measures and are unable to fulfill financial commitments,

The US Small Business Administration is accepting direct applications for However, we did learn Economic Injury lessons from the last Disaster Loans. These Great Recession. loans are Working Financial institutions Capital Loans to help and the government small businesses, didn’t respond quickly small agricultural enough, which cooperatives, and resulted in consumers most private, nonfloundering without profit organizations of cash, unable to make all sizes to meet their regular payments on ordinary and mortgages, car loans necessary financial and credit cards. obligations that cannot be met as a During this crisis, our direct result of the federal and state Photo of Ken Trautman, President and CEO, People’s Bank of Commerce by Jim Teece disaster. More governments are information is available working on immediate on the SBA’s web site at: contact your landlord or lender actions that will provide https://disasterloan.sba.gov/ and bank to let them know financial support to those ela, or call 800-659-2955. your challenge – we all have a individuals and businesses strong interest in your financial impacted by the shutdown.

If we all work together, we can stability as our financial health Banks will be using these tools shorten the time of the is tied directly to yours. to provide the temporary financial impact from assistance our customers COVID-19 and return to In addition, the following items need. normalcy. are recommended, if needed: Please contact me directly at ken@peoplesbank.bank with other questions, or visit www.peoplesbank.bank. Be safe, be courteous, and be strong - together we can make a difference.

Ken Trautman, President and CEO, People’s Bank of Commerce.

Southern Oregon Business Journal April 2020 | 19

COVID-19

By Small Business Administration sba.gov

Coronavirus (COVID-19): Small Business Guidance & Loan Resources

The Three Step Process: Disaster Loans by the Small Business Administration

SBA Economic Injury Disaster Loan Program Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).

Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.

The SBA will work directly with state Governors to provide targeted, low-interest loans to 20 | Southern Oregon Business Journal April 2020

small businesses and nonprofits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

SBA Express Bridge Loans Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while

applying for a direct SBA Economic Injury Disaster loan.

If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms Up to $25,000

Facility Remediation/Cleanup Costs – Depending on the incident, there may be a need

Fast turnaround Will be repaid in full or in part by proceeds from the EIDL loan Common Issues Small Businesses May Encounter:

Inventory and Supply Chain Shortfalls – While the possibility could be remote, it is a prudent preparedness measure to ensure you have either adequate supplies of inventory for a sustained period and/or diversify your distributor sources in the event one supplier cannot meet an order request.

understand precisely what you are and are not covered for in the event of an extended incident.

Changing Market Demand – Depending on the incident, there may be access controls or movement restrictions established which can impede your customers from reaching your business. Additionally, there may be public concerns about public exposure to an incident and they may decide not to go to your business out of concern of exposing themselves to greater risk. SBA’s Resources Partners and District Offices have trained experts who can help you craft a plan specific to your situation to help navigate any rapid changes in demand.

Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19)

Capital Access – Incidents can strain a small business's financial capacity to make payroll, maintain inventory and respond to market fluctuations (both sudden drops and surges in demand). Businesses should prepare by exploring and testing their capital access options so they have what they need when they need it.

See SBA’s capital access resources.

Workforce Capacity – Incidents have just as much impact on your workers as they do your clientele. It’s critical to ensure they have the ability to fulfill their duties while protected.

to enhance the protection of customers and staff by increasing the frequency and intensity by which your business conducts cleaning of surfaces frequently touched by occupants and visitors. Check your maintenance contracts and supplies of cleaning materials to ensure they can meet increases in demand.

Insurance Coverage Issues – Many businesses have business interruption insurance; Now is the time to contact your insurance agent to review your policy to

Marketing – It’s critical to communicate openly with your customers about the status of your operations, what protective measures you’ve implemented, and how they (as customers) will be protected when they visit your business. Promotions may also help incentivize customers who may be reluctant to patronize your business.

Southern Oregon Business Journal April 2020 | 21

Small Business Guidance & Loan Resources continued

Plan – As a business, bring your staff together and prepare a plan for what you will do if the incident worsens or improves. It’s also helpful to conduct a tabletop exercise to simulate potential scenarios and how your business management and staff might respond to the hypothetical scenario in the exercise. For examples of tabletop exercises, visit FEMA’s website at: https://www.fema.gov/ emergency-planning-exercises SBA Products and Resources SBA is here to assist small businesses with accessing federal resources and navigating their own preparedness plans as described by the CDC’s Guidance for Businesses and Employers.

SBA works with a number of local partners to counsel, mentor and train small businesses. The SBA has 68 District Offices, as well as support provided by its Resource Partners, such as SCORE offices, Women’s Business Centers, Small Business Development Centers and Veterans Business Outreach Centers. When faced with a business need, use the SBA’s Local Assistance Directory to locate the office nearest you.

22 | Southern Oregon Business Journal April 2020

Access to Capital SBA provides a number of loan resources for small businesses to utilize when operating their business. For more information on loans or how to connect with a lender, visit: https:// www.sba.gov/fundingprograms/loans.

How to get access to lending partners? SBA has developed Lender Match, a free online referral tool that connects small businesses with participating SBA-approved lenders within 48 hours.

7(a) program offers loan amounts up to $5,000,000 and is an all-inclusive loan program deployed by lending partners for eligible small businesses within the U.S. States and its territories. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.

Express loan program provides loans up to $350,000 for no more than 7 years with an option to revolve. There is a turnaround time of 36 hours for approval or denial of a completed application. The

uses of proceeds are the same as the standard 7(a) loan.

Community Advantage loan pilot program allows missionbased lenders to assist small businesses in underserved markets with a maximum loan size of $250,000. The uses of proceeds are the same as the standard 7(a) loan.

504 loan program is designed to foster economic development and job creation and/or retention. The eligible use of proceeds is limited to the acquisition or eligible refinance of fixed assets.

Microloan program involves making loans through nonprofit lending organizations to underserved markets. Authorized use of loan proceeds includes working capital, supplies, machinery & equipment, and fixtures (does not include real estate). The maximum loan amount is $50,000 with the average loan size of $14,000.

Exporting Assistance SBA provides export loans to help small businesses achieve sales through exports and can help these businesses respond to opportunities and challenges associated with trade, such as COVID-19. The loans are available to U.S. small businesses that export directly overseas, or those that export indirectly by selling to a

customer that then exports their products.

Export Express loan program allows access to capital quickly for businesses that need financing up to $500,000.

Businesses can apply for a line of credit or term note prior to finalizing an export sale or while pursuing opportunities overseas, such as identifying a new overseas customer should an export sale be lost due to COVID-19.

Export Working Capital program enables small businesses to fulfill export orders and finance international sales by providing revolving lines of credit or transaction-based financing of up to $5 million.

Businesses could use a loan to obtain or retain overseas customers by offering attractive payment terms.

International Trade loan program helps small businesses engaged in international trade to retool or expand to better compete and react to changing business conditions. It can also help exporting firms to expand their sales to new markets or to reshore operations back to the U.S. Government Contracting SBA is focused on assisting with the continuity of operations for small business

contracting programs and small businesses with federal contracts. For more information on federal contracting, visit https:// www.sba.gov/federalcontracting/contracting-guide

Women-owned Small Business firms who have questions, please visit www.sba.gov/ wosbready or write to wosb@sba.gov.

More specifically:

If a situation occurs that will prevent small businesses with government contracts from successfully performing their contract, they should reach out to their contracting officer and seek to obtain extensions before they receive cure notices or threats of termination. The SBA’s Procurement Center Representatives can assist affected small businesses to engage with their contracting officer. Use the Procurement Center Representative Directory to connect with the representative nearest you.

8(a) Business Development program serves to help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, and the government limits competition for certain contracts to businesses that participate.

The 8(a) program offer and acceptance process is available nationwide, and the SBA continues to work with federal agencies to ensure maximum practicable opportunity to small businesses. 8(a) program participants should stay in touch with their Business Opportunity Specialist (BOS).

HUBZone program offers eligibility assistance every Thursday from 2:00-3:00 p.m.

ET at 1-202-765-1264; access code 63068189#. Members of the HUBZone team answer questions to help firms navigate the certification process. For specific questions regarding an application, please contact the HUBZone Help Desk at hubzone@sba.gov.

Local Assistance SBA works with a number of local partners to counsel, mentor, and train small businesses. The SBA has 68 District Offices, as well as support provided by its Resource Partners, such as SCORE offices, Women’s Business Centers, Small Business Development Centers and Veterans Business Outreach Centers. When faced with a business need, use the SBA’s Local Assistance Directory to locate the office nearest you. sba.gov Southern Oregon Business Journal April 2020 | 23

COVID-19

By Aliya Chaudhry

The do’s and don’ts of video conferencing

Photo by Becca Tapert on Unsplash

As more and more workplaces transition to being remote, we’re learning how to navigate all the aspects of working digitally. Meetings are moving entirely online, which means that we’re attending a lot of video conference calls. If you don’t have a lot of experience with video conferencing, it may take some getting used to — especially when your whole team’s now working remotely.

While it’s helpful to treat it like an in-person meeting, there are also a few more things you have to consider when you’re on a video call. Here’s a guide

24 | Southern Oregon Business Journal April 2020

to the do’s and don’ts of video conferencing.

SET UP YOUR SPACE If you can, find a private place to take the call. If not, use headphones to minimize background noise. If you have roommates, partners, or family members who are also working from home (or just stuck at home), let them know beforehand that you’ll be in a meeting to minimize interruptions.

Set up your device or camera so that it has a clear, unobstructed view of you.

Don’t sit too far from (or too

close to) the camera. If you’re using a separate camera, place it near your screen — it’s best to put the camera at eye level, so that when you’re looking at the screen, it appears as if you’re looking at the person you’re talking to.

Make sure your face is well lit.

Natural lighting and side lighting work best, but overhead lights will work well, too. Backlighting can often make it hard to see; if you can’t change the backlighting, try to put another light in front and to the side of your face.

Photo by bruce mars on Unsplash

Clean up the area around you.

Open up the camera on your laptop or switch on your external camera and see what’s visible in the background before the call, and check that you’re comfortable showing that on a video call (so put away your laundry and make sure whatever’s on your walls is work-appropriate). Oh, and you might also want to set up a virtual background, if you don’t have time to tidy up your space.

CHECK YOUR APPEARANCE One of the best parts about working from home is getting

to wear sweatshirts and sweatpants all day, but that may not be the right move for a video call. Dress how you would for an in-person meeting, and make sure to follow your workplace’s dress code. You don’t need to do anything extra, like put on makeup if you don’t wear it normally, but it’s a good idea to present a reasonably good appearance.

It’s best to avoid patterns or stripes which may be distracting on camera. Wearing a bright white or black shirt may cause your camera to

auto-adjust the brightness and make it hard to see your face, so wear a less extreme color. It also doesn’t hurt to have good posture.

STARTING THE CALL It’s a good idea to test your video conferencing software before the call, especially if you’ve never used it before.

Also, make sure you have a strong Wi-Fi connection and that your device is either plugged in or fully charged.

Give yourself a few extra minutes before the call to set up and if possible, log onto the Southern Oregon Business Journal April 2020 | 25

video conferencing continued

call a little early, especially if you’re unfamiliar with the software that your host is using. Once the call has started, check to see if everyone can hear and see each other. A good way to do this is by having everyone either check in or introduce themselves.

KNOW WHEN TO TURN OFF YOUR AUDIO AND VIDEO Mute your side of the call if you’re not speaking. Your microphone can pick up a lot of background noise, so muting allows others on the call to easily hear who’s speaking. Also, if you need to get up or move around or do something else during the call (or if your toddler suddenly makes an appearance), it’s a good idea to switch off your video to avoid causing any distractions.

questions, such as raising your hand or using chat to ask a question. If you’re running the meeting, it’s also helpful to call on people by name.

Speak clearly and watch how fast you speak (and don’t forget to unmute yourself!).

But speak at your normal volume — there’s no need to shout, and if you do, your coworkers may lower their volume and then miss something else.

KEEP IN MIND THAT YOU’RE MORE VISIBLE ON VIDEO CALLS THAN IN OFFLINE MEETINGS STAY FOCUSED

During in-person meetings, you can pick up on visual cues to help find the right time to speak. It’s a lot easier to accidentally interrupt on a video call. Wait for a few moments of silence before speaking up in case there’s a sound delay.

Be attentive and engaged during the call. As tempting as it is, try not to do any other work or read articles or send emails. (Don’t look at your phone and don’t eat!) Try to look into the camera when you talk. If you look at yourself or others on your screen, it may look like you’re looking at something else. When you’re not talking, make sure you’re paying attention to whoever’s speaking or sharing their screen and that you’re looking at any materials you may need to reference. (Again, others can see where you’re looking.)

If your company or team is going to have regular online meetings, it’s a good idea to decide on a system for asking

If there’s a pause in the conversation because, for instance, you need to pull up an email or reference a

SIGNAL WHEN YOU WANT TO TALK

26 | Southern Oregon Business Journal April 2020

document, make sure to communicate that. Delays or long stretches of silence might make it seem like you’ve lost connection, so this just keeps everyone on the same page.

Keep in mind that you’re more visible on video calls than in offline meetings, since you get to see close-ups of everyone’s face individually instead of a whole group of people at once. It’s often helpful to keep your own face visible onscreen, just as a reminder that you’re on camera, and so you can see what others are seeing.

SHARING YOUR SCREEN If you do need to share your screen during a video call, take a few seconds to prepare before you hit that share button. Clear your desktop of any extra tabs or programs you may have open and make sure any private or sensitive information is hidden.

Aliya Chaudhry is a journalist and fiction writer. She has covered music, politics and technology. She currently writes for Kerrang! and has written for The Verge , New Noise, Trumplandia Magazine, The Bronx Ink and 34th Street Magazine. She received her B.A. in English from the University of Pennsylvania in 2018 and a M.S. in Journalism from Columbia University in 2019

ENERGY

By Northwest Gas Association

The technological renaissance that unlocked gas and oil from shale has gifted North America with a vast energy resource.

(See Figures S1-S4 for current North American shale plays, production growth since 2000 and projected long-term supply through 2040.)

2020 GAS OUTLOOK • MARKET FUNDAMENTALS

The Pacific Northwest is located adjacent to two prolific producing regions: The Western Canada Sedimentary Basin spanning British Columbia (BC) and Alberta, and the U.S. Rocky Mountain states (see Figure S5). More than twothirds of the natural gas

consumed in the region is sourced from Canada.

The supply optionality resulting from our connection to these basins is shown in Figure S6.

Southern Oregon Business Journal April 2020 | 27

PEOPLE

Association of Oregon Counties Names Dr. Gina Firman Nikkel Executive

BY MEGAN CHUINARD WWW.OREGONCOUNTIES.ORG

community mental health organization leader brings a wealth of knowledge in county issues to AOC. “Gina has a deep understanding of health and human services, while also possessing vast experience in the areas of leadership and public policy,” said George Murdock, AOC second vice president, AOC executive director search committee co-chair, and Umatilla County commissioner.

“In addition, Gina has experience working with county government as a former commissioner and consulting with local government on a variety of policies. I am confident she will carry out AOC’s work of promoting shared county interests and advocating for strong public policy that benefits every county in the state.”

Photo of Dr. Gina Firman Nikkel Ph.D. from Association of Oregon Counties (AOC)

The Association of Oregon Counties (AOC) board of directors named Gina Firman Nikkel Ph.D. executive director of the organization. Dr. Firman Nikkel, will serve as the fifth executive director, and first female executive director, beginning March 16, 2020.

Dr. Firman Nikkel comes to AOC from the Foundation for Excellence in Mental Health Care where she served as president and chief executive officer since 2011.

“We are delighted to share the news of this appointment,” said Jim Doherty, AOC president and Morrow County commissioner. Gina will be an asset to the organization and bring new leadership and fresh ideas to move us into the future.”

Dr. Firman Nikkel, a former county commissioner and

28 | Southern Oregon Business Journal April 2020

In her role, Dr. Firman Nikkel will be responsible leading the 36-county member organization, and partners in driving AOC’s mission to unite Oregon’s 36 counties by

advocating with a collective voice on statewide and national policy; exchanging ideas, building new leadership and exercising exemplary leadership in public service; and enriching the public’s understanding of county government. She will oversee a 21-member staff, and her work will be directed by the AOC board of directors.

Dr. Firman Nikkel holds a doctorate degree in education focusing on public policy and leadership from the University of Oregon, and a master’s degree in counseling and bachelor’s degree in theater and dance from Portland State University.

About AOC The Association of Oregon Counties (AOC) unites Oregon’s 36 county governments. Founded in 1906, AOC brings county officials together to advocate with a collective voice on statewide and national policy, exchange ideas, build new leadership skills, and exercise exemplary leadership in public service, while enriching the public’s understanding of county government.

PEOPLE

BY MARISA FINK EXECUTIVE@OREGONYMCAS.ORG

Oregon Alliance of YMCAs announces new Executive Director development, healthy living and social responsibility.

Fink has also served YMCAs in New York, Washington, DC, Massachusetts, Connecticut, and Indiana.

She is an active Rotarian, member of the Blue Zones Photo of Marisa Fink, Ed.D. from Oregon Alliance of YMCAs Project Umpqua Steering Marisa Fink, Ed.D., who served Committee, and the local as the CEO/Executive Director chapter of the American of the YMCA of Douglas Association of University County for 11 years, has been Women. hired as the first Executive Director of the Oregon Alliance Kaylan Sisco, Alliance Chair of YMCAs. and CEO of the Tillamook As the Executive Director of the Oregon Alliance of YMCAs, Fink will be responsible for connecting with all 11 YMCA Associations from across the State of Oregon to carry out the Y mission and cause, speak with a unified voice and establish a strong statewide presence. She will also serve as the principal advocate at the state level for Oregon YMCAs focused on youth

Family YMCA said, “We cannot think of a more ideal candidate to be the first Executive Director of the Oregon Alliance of YMCAs. The level of leadership, experience, and expertise Marisa brings to the table is a prime example of why she is the perfect person to represent the Y at a state and national level. Her passion for the Y coupled with her desire to inspire community building is exactly what is

needed for Oregon Ys to build a stronger connection and have a greater impact in communities across the state of Oregon.”

Dr. Bob Dannenhoffer, President of the YMCA of Douglas County added, “Marisa’s skills and experience are going to bring the same degree of success to all Oregon Ys that she has brought to ours. The Oregon Alliance of YMCAs is blessed to have her as their first Executive Director.”

Oregon YMCAs are located in Portland, Tillamook, Salem, Albany, Eugene, Roseburg, Grants Pass, Medford, Ashland, Klamath Falls, and Baker City.

The Y is the leading nonprofit committed to strengthening community by connecting all people to their potential, purpose and each other. We focus on empowering young people, improving health and well-being and inspiring action in and across communities. The YMCA is a charitable organization that focuses on youth development, healthy living, and social responsibility.

For more information about the YMCA, visit www.ymca.net.

Southern Oregon Business Journal April 2020 | 29

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Retail trade

90

In So h e e n O egon, 92 e cen of all job acancie e i e he job a lican o ha e ome o econda ed ca ion o le . Occ a ion i h no ed ca ion e i emen and ho e e i ing a high chool di loma each acco n ed fo abo one- hi d of 2019 acancie . One- a e e i ed o econda aining o o he ce ifica ion. Po econda ed ca ion incl de indi id al i h ed ca ion be ond high chool, ch a ome college/ ni e i co e o k, b al o incl de nondeg ee ce ifica e og am , and a ocia e deg ee . The a e age a ing age fo all job acancie ho e a o nd $16.41. The e i a ignifican diffe ence in age hen e a a ing ed ca ional e i emen . Read he f ll a icle he e.

Trade, transportation, and utilities

70

Phone

-200

Wood product manufacturing

-270

Manufacturing

Southern Oregon Business Journal April 2020 | 33

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COVID-19 As of 3/27/2020

ess usin Act B l l ES ma he S the CAR T r o f to Look ’s Guide ebsite at s.com r w es e Own on our onBusin eg rnOr e h t Sou

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now.

When implemented, there will be many new resources available for small businesses, as well as certain nonprofits and other employers.

Can these loans be forgiven?

Yes, small businesses that take out these loans can get some or all of their loans forgiven.

Generally speaking, as long as employers continue paying employees at normal levels during the eight weeks following the origination of the loan, then the amount they spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven.

How big of a loan can I get and what are the terms?

The maximum loan amount under the Paycheck Protection Act is $10 million, with an interest rate no higher than 4%. No personal guarantee or collateral is required for the loan. The lenders are expected to defer fees, principal and interest for no less than six months and no more than one year.

Breaking Down the Coronavirus Aid, Relief, and Economic Security (CARES) Act

What’s in CARES for small business?

Significant Expansion of SBA Lending – with banks as an important part of the delivery mechanism.

• Authorizes $350 billion for three months of 100% guaranteed 7(a) loans to cover payroll costs, interest on mortgage payments, rent obligations, and utilities.

• Applies to businesses with fewer than 500 employees or those that meet SBA’s current size standards for 7(a) loans.

• Applies to self-employed or individual contractors.

• Applies to certain nonprofits including 501(c)(3) organizations and 501(c)(19) veterans organizations, and tribal business concerns with fewer than 500 employees.

• Vastly expands universe of lenders authorized to get paycheck loans processed and into the hands of business owners as quickly as possible. This includes banks that previously have not participated in the SBA 7(a) program.

• Authorizes $17 billion to cover six months of payments for payroll and interest for existing SBA 7(a) borrowers. This provision provides relief on existing obligations.

• Establishes a Paycheck Protection Program (PPP): o Provides 100% guaranteed loans to cover specific operating costs. o The maximum loan size for borrowers is capped at the lesser of 250% of the average monthly payroll costs (with a lookback of one year or relevant period for seasonal businesses), or $10 million.

o Includes a processing fee payable to lender within 5 days of loan disbursement, based on the loan’s size.

▪ < $350,000 = 5% ▪ $350,000 to $2,000,000 = 3% ▪ > $2,000,000 = 1%

o Interest rate capped at 4%. o A portion of any loan issued as part of the PPP, up to or equal to 8 weeks of covered expenses, will be forgiven by SBA and paid to the lender, plus interest. o The remaining balance after forgiveness is maintained at the 100% guarantee for the duration of the loan.

• The limit for Express Loans is raised from $350,000 to $1 million through December 31, 2020.

• The existing Interim Final Rule titled: Express Loans, Affiliation Standards is rescinded on date of enactment. This rule detrimentally impacted rural, agricultural focused members as well as members that relied on agents.

• Authorizes $265 million for SBA’s Entrepreneurial Development Programs.

• Authorizes $10 billion for additional Emergency Injury Disaster Loans (EIDLs) to be disbursed directly by SBA to those businesses that do not currently qualify for EIDLs. If a borrower applies for EIDL, they cannot apply for PPP due to concerns about double-dipping. o These new EIDLs also include an option for a $10,000 cash advance within three days of application that does not have to be paid back even if the borrower’s application is subsequently rejected.

Southern Oregon Business Journal April 2020 | 35

STRONG TOWNS

By Charles Marohn

The tragic downside of efficiency

Photo supplied by The Author - Charles Marohn

There are a handful of mainstream economic values that are part of the consensus of America public policy discourse. The value of growth, for example, is not seriously questioned by anyone wanting to maintain their credibility. I’ve been in countless city council meetings where some ridiculous notion was being pursued merely because it offered the potential for growth. Being perceived as “anti-growth” will get most public officials voted out of office, particularly the higher up

36 | Southern Oregon Business Journal April 2020

the government food chain you travel.

times, it’s difficult to argue that these are bad outcomes.

Efficiency is another one of those values. In general, if something is more efficient, it is better. And all kinds of great things seem to happen when we make our systems increasingly efficient.

Unfortunately, these are not normal times.

While tragically incomplete, valuing efficiency is not without merit. Fuel efficient automobiles use less energy per mile traveled. Energy efficient homes use less energy per square foot. In normal

If we ask what the opposite of efficient is, the first word that comes to mind is likely “inefficient.” In our efficient-isgood value set, the opposite of efficient is essentially “bad.”

Efficient = Good ~ Inefficient = Bad I’d like to unpack that relationship a little bit because there are words other than “inefficient” that provide more

meaning to what is going on.

For example: redundancy.

Instead of inefficient, we could also say “spare parts” or “slack in the system.”

If we’re making efficient use of our farm field, we’re planting every square inch. If we’re making efficient use of our highway, we’re getting the most vehicles through in the shortest amount of time. If we’re making efficient use of our capital, we’re creating just-in-time delivery of goods.

One of the lessons to take away from the 2020 is this: Efficient is the same as fragile. The more efficient a system becomes, the more fragile it becomes.

Let me give an urgent example: prescription drugs. I take Levothyroxine (Synthroid) daily for a thyroid condition. It’s manufactured in Puerto Rico, or was the last time I checked. This has been enough of a concern for me that, over the years, I’ve saved a pill here and there to build up my own reserve stockpile.

were trade wars and currency devaluations (last August), NBC News did a report on how we’ve “outsourced our entire [drug supply] industry to China.”

didn’t have to worry about global supply chains for essential medications? If all the people who are now going to be affected didn’t have to suffer? Absolutely we would.

"If China shut the door on exports of medicines and their key ingredients and raw material, U.S. hospitals and military hospitals and clinics would cease to function within months, if not days," said

Most of us can do very little at this point to address that problem, but all of us can learn the lesson. The very first insight of the Strong Towns Approach is to “stop valuing efficiency and start valuing resilience.” We can prepare to do this today, “If China shut the door on right now, as we ponder how we will sustain and exports of medicines and ultimately rebuild our their key ingredients and communities after this crisis has abated.

raw material, U.S. hospitals and military hospitals and clinics would cease to function within months, if not days”

Hypothyroid is a forgiving medical condition where skipping a pill a week is manageable, but there are many other ailments that are not. Back in the good old days when all we worried about

Rosemary Gibson, author of a book on the subject, "China Rx." Offshoring to China was very efficient, no doubt saving us quite a bit on our essential prescription drugs, allowing us to provide more medication to more people in the near term.

Yet, with the country at the literal epicenter of this pandemic, would we give back that efficiency today if we

The top/down Suburban Experiment—build all at once, to a finished state— is engineered to be efficient, to generate economic growth by replicating a pattern of development over and over and over again.

The bottom/up Traditional Development Pattern—build the next increment on a continual path of improvement —was evolved to be strong and resilient, providing an adaptable framework proven to withstand (and even thrive) during times of distress.

All the anxiety we are feeling— and it’s going to increase as the economic implications Southern Oregon Business Journal April 2020 | 37

Continued from Page 19

spread beyond Wall Street— is magnified by the fragility of our cities, towns, and neighborhoods. For example, we’ve had multiple reports of big box stores with bare shelves while the neighborhood stores are well-provisioned.

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That may not continue, but it’s hard for me to not suspect that the dozen small grocers, butchers, and other food-providers my neighborhood once had (we have zero today, just a big box in the adjacent neighborhood) would have had shorter supply chains, more redundancies, and been better positioned to serve the neighborhood in the coming weeks.

We’re going to have to do without that now. This is where we are, and we need to help each other through this. Yet, as a Strong Towns advocate, let’s keep our eyes on what comes next. Let’s insist that, as we rebuild, we’re going to do it on a model of resiliency, not efficiency.

Charles Marohn Charles Marohn - known as "Chuck" to friends and colleagues - is the Founder and President of Strong Towns and the author of Strong Towns: A Bottom-Up Revolution to Rebuild American Prosperity. He is a Professional Engineer (PE) licensed in the State of Minnesota and a land use planner with two decades of experience. He holds a bachelor's degree in Civil Engineering and a Master of Urban and Regional Planning, both from the University of Minnesota.

38 | Southern Oregon Business Journal April 2020

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