Urgent Message Regarding Federal Loans and Grants - Time Sensitive

Dear Colleagues,

Today, I am going to keep this message short and to the point since time is of the essence. This week is your only window of opportunity to apply for the new PPP2 program. The applications are processed on a first-come, first served basis and when the money is gone, it’s gone.
In the spirit of time, I’ve researched the best tutorials for you to watch and came up with the one below that will take you through the entire application for sole proprietors, independent contractors and partnerships. Review this as soon as possible and get going on the application if you haven’t already:

https://www.youtube.com/watch?v=MRNKKSpPDaw

Also, hidden way down on the SBA website regarding the EIDL, there is a $10,000 grant program (free money). Some caveats to receiving this money apply so watch this video to find out if you are eligible. The amount of money in this grant program is $40 million and will pay out mid-February which is double that of the grant program from last June so don’t shirk this off! This link is extremely helpful to know exactly what’s entailed so watch:

https://www.youtube.com/watch?v=4xbjas5xwUI

For Greater California Livery Association members only – our office hours are 9am - 5pm, PST. My team and I have actually applied for relief on behalf of the GCLA and know the ins and outs too. If you need personal assistance, you should call our offices immediately or email us at www.sara@gcla.org and set up an appointment for one of us to help you. Our office number is (213) 349-0190.

If you are not a GCLA member, you need to join now. Our annual dues are $75 – that is $6.25 per month, or the cost of a Starbucks coffee and donut! The benefits to belonging to the GCLA extend out to offerings like this, a personal help desk, and go far deeper. Just go to our website and see what’s cook’n. www.gcla.org

We encourage members from all states and all countries to become members to connect with us. The state of California represents the 6th largest economy in the world with over than 165 Billionaires and more than 1 million Millionaires. The state is the Mecca of tech and entertainment. It also attracts more than 300 million visitors a year who vacation here. This is where the major networking opportunities abound. Come one, come all – you are welcomed here. We are enjoying an explosion of growth in our community and we’re only in month ONE of the New Year.

Our motto is real: We are in this to win this and so we shall!

Sara Eastwood-Richardson
Executive Director, GCLA

PPP – Part 2: Applications Should Be Filled Out NOW!

Just in case the crazy news cycle has distracted you from getting new information about another round of funding (PPP 2) which was approved December 27th I am highlighting the details for you. Applications opened this week and small businesses ONLY may apply so that, this time around, money goes to those who need it the most, first. Remember, this is a LOAN that must be paid back. This is not free money. Read the loan terms so you are clear on this point.

The Home Stretch Is “Finally” Here…

This week I attended the International Association of Transportation Regulators virtual conference. I learned a great deal – especially about what the GCLA is doing well. Our association is on the right side of the VOTE NO on Prop 22 campaign. I sat through a session facilitated by Edward Escobar, head of the Alliance for Independent Workers and truly appreciated hearing the different perspectives and why Ubers business model is truly so damaging. I realize it’s odd to be sitting at the table with regulators and unions, but hey, we’re on the same page with this issue and I am proud that we’ve been able to come together in the fight for fair business practices. They may come from the labor side, while we come from the owner’s perspective but we are working together for the common good and that is forward motion.

Prop 22 is in a dead heat right now. Uber, Lyft and Instacart have spent $200 million against our Alliances’ $10 million ad spend. It’s the David and Goliath story to be sure. And, just 5 days in front of the election we are tied. It is anyone’s win. So, what does that mean? It is ALL about voter turnout. If you want a better tomorrow, to reclaim lost market share to the TNCs, and if your care about fair pricing than you MUST GET OUT THE VOTE. Let me repeat, if you want a better tomorrow, you have less than 5 days to become an activist. It does not matter your party; it only matters in the state of California that you vote NO on Prop 22. If you are not spreading the word, if you are not bringing along your friends and family and their friends and family then guess what? We may lose. Do your part and sound off! No regrets!

The other take away from the IATR conference is that www.SafeCleanRidecert.com is ahead of its time and right on the money. This is a hygiene safety certification for frontline employees that will absolutely save your butt in case of legal action taken against your company should you have to defend yourself in a liability suit. I attended session after session with experts who reinforced the importance of training and moreover having proof that your company is taking all the right precautions. The GCLA was quick to endorse SCR and for all the right reasons. California is a state with 40 million residents. Governor Newsome is hyper-focused on Covid 19 and its impact. SafeCleanRidecert.com is enthusiastically lauded in all transportation verticals. Moving people is what we do and there can be no chances taken – now or into the future. Join the smartest companies in the business and get your drivers certified.

We are doing what we can to get through these tough days and praying that the election changes the protectory for 2021. GCLA has been working extremely hard for California livery companies in an effort to ease your burdens. There are a few stand out people that need to take a bow…Mark Stewart (CLI), GCLA legislative chair, is your guy when it comes to Prop 22. He volunteers around the clock and handles all the Vote No marketing. I’m afraid to ask him how many FREE hours he’s accumulated but its in the hundreds, just in the last few months. He is flanked by David Kinney (API) also on the legislative committee. Mo Garkani (C.O.T.S.), the GCLA president also must be recognized. He is on the phone day in and day out fighting for California. When he’s not on a virtual call, he is at the airports working on behalf of all of you or serving literally every committee we have!

This next week is so important. We need everyone to push the Vote NO on Prop 22. Get loud and proud. Let’s GO GCLA!


—Sara Eastwood Richardson

GCLA - Year in Review

"Never Doubt That A Small Group of Thoughtful, Committed Citizens Can Change the World; Indeed, It's the Only Thing That Ever Has.”
—Margaret Mead

This was a very busy and very exciting week here at the Greater California Livery Association. The board of directors met Tuesday for nearly three hours to hammer out strategies ranging from Prop 22 to ending the year with a face-to-face meeting for our entire membership.

Here’s an update that I know you’ll find enlightening:

On Government Assistance: The HEROS Act was revised to $2.2 trillion. Democratic lawmakers introduced the measure on Monday with Treasury Secretary Steven Mnuchin. It is unlikely to pass before the November 3 election. Operators wanting information on the PPP loan forgiveness program must first apply for that at https://www.sba.gov/document/sba-form-paycheck-protection-program-loan-forgiveness-application.

On the Financial Fitness of the GCLA: The association hit a yearly low in reserves this past July only to rebound thanks to new members, a surge in sponsorships and a $8,500 grant from the National Limousine Association.

On Industry Recover Efforts: The GCLA endorsed the SafeCleanRide sanitation training, testing and certification program. This project was 5 months in the making and we feel strongly that it will play a vital role in business recovery for the state of California and beyond. Go to the www.GCLA.org for more information.

On Board Seats: Our association election efforts for board seats kicks off next week. If you are interested in running for the board and/or participating on committees please reach out to me at sara@gcla.org. I have applications ready to email you right away. The deadline for board applications is closed of business on Monday, October 26th.

On Legislative Work: Vote NO on Prop 22 is our #1 focus. We have retained the Marketing/PR firm of Curtis Gabriel to handle social media strategies. We are part of the www.NOonCAPROP22.com coalition. As of now, the No’s are essentially tied with the Yes’s with 25% of likely voters’ undecided. We set up a GoFundMe campaign to raise money to support the Coalition, who’s set to raise $10 million. Our industry is expected to do our part to support the NO efforts so if you haven’t given yet, please do so! The Coalition is not expecting a huge check from us, they know we are suffering. Our goal is to raise $10,000 for the cause. https://charity.gofundme.com/o/en/campaign/gcla-campaign-vote-no-on-prop-221.

Watch your inbox! Coming this weekend in a GCLA – TV exclusive interview with Assembly person Lorena Gonzalez, the author of AB 5 and champion of the Vote No initiative. This program is facilitated by Mo Garkani, GCLA president along with Mark Stewart, GCLA Legislative Chair. Assembly Member Lorena Gonzalez unpacks the details of this landmark legislation. It is a must see!

On Uniting Our Membership in a Face-to-Face Event: The discussion with the board on whether or not to plan for a 1-2 event that includes business strategy meetings, a state of the industry, awards event and a holiday dinner was met with mixed feelings. Many of us are craving the comradery and human interaction that live events afford us. Some directors are concerned about the optics in light of so much pain and suffering this year. We have dates on hold at the Portofino Hotel and Conference Center, Redondo Beach on December 14-15 just in case but we need a consensus. Directors are reaching out to members by email to get feedback. Feel free to contact me as well and let us know if this is something you want to see happen this year.

In close, I must say how proud I am to be a part of such a fighting and spirited group. This industry represents the best of the true American Entrepreneur. These are extremely difficult times for the travel and hospitality industry but still we forge ahead. We are constantly thinking about ways to get mobility “unstuck” and our efforts are paying off…slowly BUT surely. It is an awesome thing to see backyard competitors who are coming together to support one another in the most unselfish of ways. Together we are better and remember, we are In this to WIN this!

Stay strong!

—Sara Eastwood-Richardson

Unpacking Prop. 22

Unpacking Prop 22

The Uber, Lyft and Instacart $180 million ad campaign launched this month. You’d have to be living under a rock somewhere in the California wilderness to have missed their ads. So compelling was their advertising “story” that many of our GCLA members became disheartened and figured the fight was over. The GCLA had just set up a GoFundMe account to raise money to contribute to the Coalition we joined when pushback from operators ramped up. Transportation owners got spooked about spending good money on bad, and worse, retaliation if Prop 22 should pass. All of a sudden, we felt people starting to pivot on something we’ve worked on for 6 years.

If you re-read my letter to you from last week, I said we had to see this through; we are in this to win this. I want to thank the brave hearts that listened to me and sent money our way so we could continue to fight. We are on the right side of this argument because our business model will never pass the smell test to employ IOs the way the TNCs have been able to do. If anyone thinks they can remake their businesses if Prop 22 passes, you are in for a rude awakening. Uber and their counterparts are suggesting a hybrid version of the labor law and asking the voters in California to bless it. But those voters are now hearing our side of things and feeling queasy about saying YES to something that underserves the drivers they’ve come to care about – especially during a pandemic when so many people are in financial straight jackets. The sob story, followed by veiled threats to stop serving the residents of California created panic at first. But, as reality – and our messaging - is sinking in, people are turning on Uber, Lyft et al.

Yesterday, the LA Times endorsed a NO on Prop 22. The article is critical about the 3rd tier employee model the TNCs created. It boils down to paying 20% less than minimum wage and only half of the mileage standard of the IRS. They receive no sick or family leave. The newspaper sites a myriad of reasons that Prop 22 fails to be worthy of a YES, and we’ve included that story in this week’s e-news so I encourage you to review it. In the end, the voters will decide but as of this week it looks to be an uphill battle for Uber and friends. A new statewide poll conducted by UC Berkeley Institute of Governmental Studies poll shows “that 39% of the 5,900 likely voters surveyed from Sept. 9-15 would side with the companies and vote yes on Proposition 22, compared with 36% who said they would vote no and 25% still undecided. The poll's margin of error is plus or minus two points.”

As for our industry’s support, the ball is squarely on the 50-yard line with momentum swinging our way. You’re our team and now is NOT the time to walk off the field. We need everyone suited up and ready to play – that means whether it’s a $10 or $1,000 or anything in between, you must contribute to the win.

I believe in you and I think we’ve got this!

—Sara Eastwood-Richardson

Why You Should Vote "NO" on Prop. 22

Why Voting No on Prop 22 Is Better for Chauffeured Transportation

The short answer is that we all just want a more fair and equitable playing field. I am a business traveler. Until 2014 I routinely used livery services when traveling. Ten years ago, the price to go from LAX to my headquarters in Torrance (12 miles) was $250 – one way, including fees/gratuities. My company paid the bills as if that was the norm. Why? Because it was. We enjoyed a corporate account with a chauffeured service for years until one day, Uber knocked on our door with a “sweetheart deal” and just like that, our longstanding relationship with the limousine company ended. Fast forward to now, those rates of old seem surreal. Uber charges $50 for that same ride.

Ride Hail businesses crushed us with price because they circumvented our labor laws from the beginning. It was only a matter of time that they’d go public at which point their financials would be on full display (including the $46 million package for their CEO…hem hem). Cast their outrageous spending against the backdrop of a blue-collar driver, who truly clears about $5 an hour, and it really begins to smell like a sweatshop.

If Uber loses this argument because VOTE NO wins, we ALL get to reset the consumer’s expectation on pricing. In other words, we get a very much needed bounce. Uber has vowed to downsize their business model and focus on intercity transportation allowing us to expand our turf - or in some cases reclaim - the suburbs (there’s good money there).

If Uber wins with a VOTE YES they will get a special carve out that we may or may not be entitled to. You can bet that the GCLA is looking at this from both sides and we will be prepared to pivot.

Which is the better path for us in California? Winning the VOTE NO campaign offers more surety that we will be able to increase market share. Further, the demand will be greater than the supply and you know what that means to pricing, right? It goes up. That is better in the long run than if Uber wins. If the YES has it, chauffeured transportation will make the argument that we should get the same deal as Ride Hail businesses but it’s easy to imagine a lot of pushback from the state of California. There are other worries in a YES scenario. Our pricing will likely be pushed down while quality control and liability issues will rise.

The GCLA has worked long and hard to get AB 5 passed and made into law this year. We must see this through with all the muscle we have as an industry. This is our one shot and if we win, rest assured, you are gong to be the beneficiaries of a rebound of business the likes we have not seen.

Every vote counts; yours, your relatives, your friends, your customers. And, with time on our hands there’s no excuse for you to stay on the sidelines. Take action in your community with all you’ve got and use the GCLA VOTE NO slicks on all your emails and social media marketing.

We’re in It to Win It.

—Sara Eastwood-Richardson

A Second Stimulus Package - What's in it for You

Senate Comes Back Next Week:
What You Need to Know About the Bill That's on The Table

On September 8th, the Senate returns from recess and will take up the matter of finalizing another economic stimulus package.

Steve Mnuchin and House Speaker Nancy Pelosi met by phone yesterday to try and find a compromise. President Trump is considering more executive orders to sidestep Congress if the bottle neck is not fixed.

This excerpt is from CNET. These are actions underway that are specifically important for you to understand:

1. The new eviction moratorium

What it is: On Sept. 1, the Trump administration under the CDC banner issued a nationwide order temporarily halting millions of US renters from being evicted, in hopes of reducing the spread of COVID-19. The order will cover all 43 million US residential renters so long as they meet certain requirements, and will last through Dec. 31, 2020.

How it could help you: To be eligible for the CDC's eviction moratorium, you must not expect to earn more than $99,000 this year (or $198,000 for joint filers). You're also eligible if you did not report income in 2019, or if you received a stimulus check earlier this year. You must also demonstrate that you've sought government assistance to pay rent, declare that you are unable to pay rent because of COVID-19 hardships, and affirm that you are likely to become homeless if you are evicted.

However, it's important to note that the order does not set aside any new federal funding for renters -- even if renters can't be evicted, they will eventually owe that rent, along with any late fees, penalties or interest. And in the meantime, landlords might struggle without that income from renters. Renters can also still be evicted for reasons other than not paying their rent.

2. A second stimulus payment to spur spending

What it is: A payment sent to qualifying individuals and families, based on annual income, age, number of dependents and other factors. The first stimulus payment authorized under the CARES Act has been sent to over 160 million Americans -- as a check, as a prepaid credit card or via direct deposit. But there have been problems, and after three months some are still waiting for their stimulus payment.

How it could help you: The payment isn't taxable and you can use it however you want -- to pay for food, housing, clothing and so on. The idea is that spending the checks will help the economy recover faster.

Why we think a second payment will pass: The CARES Act authorized payments of up to $1,200 per eligible adult and so does the $1 trillion HEALS Act. The House of Representatives' $3 trillion Heroes Act also called for $1,200 stimulus payments, but for more people. The White House supports another round of checks, which makes it likely that sending out payments will be part of the final bill.

3. Payroll Protection Program designed to help small businesses retain employees

What it is: Intended to help you retain your job, the Paycheck Protection Program provides forgivable loans to small businesses as an incentive to keep employees on the payroll.

How it could help you: The PPP is intended to encourage businesses to keep employing workers who would otherwise have lost their jobs during the pandemic.
Why we think it could get extended: The Republican proposal will target the hardest-hit small businesses, Sen. Susan Collins of Maine said during the rollout of the bill. That includes those with revenue losses of 50% or more over last year.

4. Employee retention tax credit could help companies cover worker pay

What it is: Under the program, an employer can receive refundable tax credits for wages paid to an employee during the pandemic. The employer can then use the credits to subtract from -- and even receive a refund for -- taxes they owe.

How it could help you: Again, it's not a direct payment to workers, but the program encourages businesses to keep workers on the payroll.

Why we think it could happen: The HEALS Act includes further tax relief for businesses that hire and rehire workers, and the Democratic-backed Heroes Act also builds on the tax credits that were part of the initial CARES Act. And there's additional bipartisan support besides.

5. What's happening with Trump's payroll tax cut?

What it is: The president has for months pushed the idea of including temporary payroll tax cuts in the next stimulus package. Another directive he signed earlier this month includes deferring certain taxes retroactively from Aug. 1, through December for people earning less than $100,000.

How it could help you: If you have a job, a payroll tax cut would let you keep more of your earnings from each paycheck for now. The plan would not help those who are unemployed and don't receive a paycheck. Workers and employers would still need to pay those taxes the following year.

Will it stick? Trump signed a memorandum Aug. 8 to enact the payroll tax cut, but it isn't clear if he has the legal right to do so. Typically, financial decisions like tax cuts are authorized by congressional vote, not a presidential order. We'll have to wait and see if legal action is brought against the order. Neither the proposed Heroes Act nor the Senate plan includes a payroll tax cut. US Industry trade groups say the tax cuts may be "unworkable."

Stay Safe,
Sara Eastwood-Richardson

Will Uber Suspend California Operations?

Uber Is THIS CLOSE to Suspending Operations in California.
Will that Open Any Doors for Us?

If you think you’re having a tough go at it, be glad you’re not at the helm of the big TNC’s of Silicon Valley these days.

Uber and Lyft, who are suffering a very bad 4 months in the state of California just can’t seem to catch a break. Assembly Bill 5, a new law which went into effect early this year prevents Uber and Lyft from classifying their drivers as independent contractors or freelancers. For several months thereafter, no enforcement happened as the state heard carve-out appeals for other “gigs” such as musicians, who got entangled in the Bill. Uber and Lyft also presented their case for exemption but were denied. This all went on last spring during the Covid-19 shut down that caused the mobility industry to completely stop. By May the lawsuits against the TNC titans were filed, first by Attorney General Xavier Becerra, along with city attorneys of Los Angeles, San Francisco and San Diego and another by California Labor Commissioner Lilia García-Brower.

The drama has ensued. This past Monday, California Superior Court Judge Ethan Schulman issued an injunction on Uber and its contemporaries, compelling them to change IO drivers into employees immediately – well actually they have 10 days. With no time to spare, Uber is heading back to court on an emergency appeal. At the same time, the TNCs in California have vowed to take AB 5 to the people and get it voted down at the polls this November in the form of Prop 22 (they want people to vote YES).

CEO Dara Khosrowshahi stated yesterday that, "We think the ruling was unfortunate. We respect, obviously, the law and the court and the judge," Khosrowshahi said. "If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly, so I think Uber will shut down for a while."

Stephanie Ruhle of MSNBC Live, asked Mr. Khosrowshahi how this this law would ultimately affect Uber’s business model. He replied, "You would get a much smaller service, much higher prices, and probably a service that's focused in the center of cities versus a bunch of the smaller cities or the suburbs that we operate in right now." Lyft stated they too would shut down operations if they were ordered to make the switch to the employee-based business model. Certify states that Uber’s market share within the business travel community is 12% of business expenses (by volume, not value) compared to a 3.5% Lyft market share. Their strongest revenue bases are here in California with San Francisco Bay Area at the top.

So, if the Rideshare companies of California suspend their operations, likely until the election in November, can chauffeured transportation pick up any of that business? Can we start a dialogue (finally) with the leadership of the TNC community and brainstorm on how we can help each other rather than kill each other assuming we’re moving to a more even playing field? If their numbers are to be believed, they generate 2.5 million trips per month in California so if Uber work is currently 75% off, that still means there is 25% that isn’t – or 625,000 monthly rides. If 15% of that is business travel related (our bread and butter) luxury transportation providers in California could reasonably pick up almost 100,000 trips per month. I contend that in a decimated mobility marketplace everything has to be put on the table. We may be catching a big break.

Stay Safe,
Sara Eastwood-Richardson