Guest Colin Tague, Vice President of Commercial Services at Security National Bank in Sioux City, Iowa, and host Jeana Goosmann talk about how business owners have been impacted during COVID-19 and how their banker can help. They talk about various ways businesses can continue to operate post quarantine. During this episode you will learn:
Goosmann Law Firm: 0:01
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Jeana Goosmann: 0:29
Hello, welcome to Law Talk with the Flock. I'm your host, Jeana Goosmann, CEO and managing partner of the Goosmann Law Firm, author, and business leader here to help navigate you and your way through your life as a business owner and the law as well as your leadership. So with me today, I am very excited. I have a special guest for my episode. I have with me Banker, Colin Tague. Colin is the Vice President of Commercial Services at the Sioux City Security National Bank and today we're going to talk about COVID-19 and the impact it's had in the banking industry and in our business community. Welcome, Colin.
Colin Tague: 1:06
Thanks, Jeana. Thanks for having me.
Jeana Goosmann: 1:08
Absolutely. I'm super excited to have you here. I've worked with you for a long time. In fact, your wife and I were both involved in Rivercade.
Colin Tague: 1:16
Yes. You guys go back a while.
Jeana Goosmann: 1:19
That goes back a long time. We were just reminiscing about that. I think I was 21 when I was involved in that and there was a good time. So we've known each other for quite some time and been able to work together professionally as well in banking business. So I am excited to have some of your insight today and to hear what else you're hearing and seeing as far as all these changes that we've had. It's been a crazy time, hasn't it Colin?
Colin Tague: 1:46
It sure has been a crazy time. Unprecedented. So we're all just trying to do the best we can.
Jeana Goosmann: 1:51
That's right. And so calling, what are some of the client issues that you're seeing in the industry right now due to COVID-19?
Colin Tague: 1:57
So what I'm seeing from our chair is, you know, the PPP program kind of rolled out really quickly, which I had to, in order to get payroll funds out to these businesses who have been affected. But there's been, you know, it's a lack of clarity and lack of certainty of how to do this and make sure that the bank's protected from issuing out all the loan money and then also from the employer's perspective, make sure that they can qualify to get as much of this loan forgiven as possible.
Jeana Goosmann: 2:30
Absolutely. And it's frustrating isn't it? They're kind of writing some rules after the fact.
Colin Tague: 2:34
After the fact, as we go, you know, so communication is definitely key.
Jeana Goosmann: 2:40
And they're changing things up too, aren't they? I remember the first go round, it was like, here's the application. Oh wait, no, no. They've got a new application.
Colin Tague: 2:47
And then I love the interim final guidance that they rolled out the day before I went live. So yeah.
Jeana Goosmann: 2:53
And even now I know the IRS is putting out different guidance and basically if the loan forgiveness won't be taxed, but then they came out and said, well, expenses aren't going to be allowed to be deducted if you use PPP funds. Well that's kind of a curve ball too.
Colin Tague: 3:08
It is. Yeah. So I was encouraged. My customers rely on your team, you know, rely on your banker to help you with getting the loan proceeds, consult with your CPA. So they're giving you the best tax advice and also your attorney as well to make sure that you know all boxes are being checked.
Jeana Goosmann: 3:26
Well I think that's great advice Colin. And that's where we like to go with the team approach too. If the law firm, because not everybody can wear all hats and when you have a strong team around you, it really helps because when there's a lot of uncertainty you need different kinds of guidance. So what other industries or types of businesses in particular that you think are being impacted?
Colin Tague: 3:48
Sure. I think every, I'd say most businesses are impacted in some way or another. A lot of the service industries obviously are impacted more. Some are shut down completely. Some are reduced to like restaurants for example, carry out, maybe delivery only. And then a lot of the medical fields are also affected. A lot of their elective surgeries and procedures are put on hold and hopefully those can get back on board soon. So really across the board, a lot of people have been affected to one degree or another.
Jeana Goosmann: 4:20
And I do know that community banks have been championed throughout this process, even in the national media, and having those strong relationships. So what kind of things are you doing to try and reach out and communicate with your customers given we can't go to the chamber mixer? Right?
Colin Tague: 4:35
Right. Yeah. So that's the key is you want to take care of your current customers first. If they want to take advantage of this program to be able to get their applications in and get them approved and get their funds secured. Then also we got a lot of calls from non-customers as well that, you know, either the current bank was too busy, couldn't get their application in on time and the customers just want to assure you that they can get their loan proceeds. So we've helped non-customers as well knowing that this is a transaction. And just to be there for them in this time.
Jeana Goosmann: 5:08
Sure. And I bet you're looking to try and build some more new long-term relationships as a result.
Colin Tague: 5:13
Yeah, we are, we're always looking to grow any way we can. If it's an opportunity there where they want to move over their relationship to us, great. If it's just hey, help us out to get this PPP program funding in place we're they're to do that too.
Jeana Goosmann: 5:30
You bet. And Colin, what markets do you serve at Security National Bank?
Colin Tague: 5:36
I serve the Sioux City market. My market area is typically within about a hundred miles of here. We have branches in Sioux Falls and throughout Northwest Iowa. I typically focus on Sioux City and the surrounding Metro.
Jeana Goosmann: 5:52
You bet. And any other advice for business leaders as they're looking to work on their banking needs at this time?
Colin Tague: 6:02
I would just say a lot of them did take the PPP loan proceeds. So what I would say is keep reading up on that to make sure that when it comes time to submit your records and stuff to get that forgiven, to do so, and to get as much as that forgiven as possible just so you're not taking on debt during this kind of challenging times for the for the economy. Even though it is at a low interest rate, the payback is over two years on any remaining balance. So just making sure you're capitalizing on that as much as possible. And another thing I would say is a lot of customers are, they're doing fine now, but they're possibly experiencing some slow pay from their customers. So just make sure they're collecting on those receivables as much as possible.
Jeana Goosmann: 6:49
Absolutely. And just because you have a receivable, it's not cash in the bank until it's actually collected, right?
Colin Tague: 6:54
That's right. That's right. Yep. And as you know, funds get lower and lower, you know, those receivable days could stretch out longer. So you want to just stay up on your collections.
Jeana Goosmann: 7:04
Absolutely. So watching those AR balances and making sure that you're communicating with your customers to make sure that you're getting paid for work that you're doing as well. That's great advice to Colin and I. Anything else as far as how we can help and at this point in time with business leaders and business owners?
Colin Tague: 7:23
I'd say just communication and keeping up to speed on these ever-changing rules of this program. I'm not an expert on it by any means, but I try to read up as much as I can and just stay aware that it could change. You know, this kind of the first half has done, people have their loans, now they're trying to figure out, okay, how do we get those forgiven on the backside? And those rules are gonna be rolling out here over the next several weeks.
Jeana Goosmann: 7:52
I'm sure your electronic deposit program is really kicking up into high gear too. A lot of people are using more technology these days, aren't they?
Colin Tague: 8:00
Yeah, I mean from working from home to sign documents electronically where we can. Yeah, we've definitely done more of that in the last three or four or five weeks than we have, you know, I'd say ever.
Jeana Goosmann: 8:15
It's changing the way people operate. Yeah. I know DocuSign is a great tool and people are able to do a lot more through their email, and if they want to talk using these great technologies like these video chats really helped too. But just staying in communication I think is so important at this point in time.
Colin Tague: 8:35
Yeah, it is. And I think banks and also other businesses too maybe become more efficient upcoming out of this, you know, maybe reducing some overhead as far as offices, brick and mortar buildings to go more remote. So there should be some positives that come out of this as well.
Jeana Goosmann: 8:52
Some of us with little kids at home struggled to work from home. No, don't wait. I really still appreciate having an office to go back to. I don't know about you, Colin.
Colin Tague: 9:01
Yeah. I told some coworkers that I'd rather be in the office. Like I am today than work from home. I didn't, I liked my kids and I let my teachers do it. Their teachers do a great job, but I didn't sign up to be a teacher so I'm probably not doing as good a job as they are obviously. But everybody's just making do with what they have, what hand that they're dealt, and I'm just trying to get through it as best as as we can.
Jeana Goosmann: 9:22
Absolutely. We'll have a positive outlook and a positive mindset always goes a long way. Well, thank you so much, Colin for joining me today, and I want to remind our listeners that we have our COVID-19 toolbox at goosmannlaw.com. We're trying to keep people current on what some of the changes are in these laws as they come out. And I just want to make sure to remind everybody to continue to social distance, be safe, be healthy, and go make it worth it. Thank you so much. Thank you.
Goosmann Law Firm: 9:49
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