Archive for the ‘Business and Corporate Law’ Category

COVID-19 Update: Program Offers $18 Million to Rural Small Businesses

access_time Posted on: October 2nd, 2020

Local Initiatives Support Corporation (LISC) is encouraging small business owners in rural locations across America to apply for their Rural Relief Small Business Grants program. The grant opened on on Monday, September 28 and will close on October 5 just before midnight, so if you are eligible you will need to apply this weekend. Only small businesses with business addresses in rural communities are eligible for this grant. To be considered rural, a community must have a population of less than 50,000 people. All potential applicants should review the LISC’s FAQ and grant information before applying. The program is intended to support small businesses affected… read more »

COVID-19 Update: Deferral period for the Employee Portion of the Social Security Withholding Tax Begins Today

access_time Posted on: September 1st, 2020

Beginning today, employees within a certain pay threshold have the option to defer their Social Security witholding tax. The optional deferral period for the employee portion of the Social Security withholding tax (6.2%) is September 1st – December 31st. The deferral option is restricted to employees whose wages are less than $4,000 pre-tax during a bi-weekly pay period.  Guidance was issued late on Friday, August 28th by the Treasury and IRS (follow the link below). IRS and U.S. Treasury Guidance Employee payroll taxes include two separate taxes: Social Security and Medicare. These two taxes together are known as FICA (Federal Insurance Contributions Act) taxes… read more »

COVID-19 Update: Interim Final Rule Regarding Owners Compensation and Limitations on Forgiveness Eligibility

access_time Posted on: August 27th, 2020

The Treasury released a new Interim Final Rule (IFR) regarding owners compensation and limitations on forgiveness eligibility (see link below). PPP – Treatment of Owners and Forgiveness of Certain Nonpayroll Costs Owner Compensation. Owner-employees with less than a 5% ownership interest in a C or S-corp are not subject to the owner-employee compensation rules.   There are no exceptions to this rule, since the Treasury has determined that owners with less than 5% ownership have no “meaningful ability to influence decisions over how loan proceeds are allocated”. Compensation Limitations. The amount of loan forgiveness requested may not include business operations of… read more »

COVID-19 Update: Overview of SBA PPP Loan Forgiveness Platform for Lenders

access_time Posted on: August 27th, 2020

Small Business Administration (SBA) lenders have the opportunity to review the basics of PPP loan forgiveness and the SBA’s PPP Loan forgiveness platform on Thursday, August 27, 2020, at 11:00 a.m. On that day, the Federal Reserve System, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Conference of State Bank Supervisors (CSBS), and the National Credit Union Administration (NCUA) will host an interagency webinar for all SBA lenders who participated in the SBA PPP lending program.  During the webinar, interagency officials will give an overview of the SBA Paycheck Protection Program (PPP) Loan Forgiveness Platform. Provide… read more »

COVID-19 Update: SBA Released FAQs Today Regarding PPP Loan Forgiveness

access_time Posted on: August 4th, 2020

The SBA just released additional guidance on Paycheck Protection Program (PPP) Loan forgiveness in the form of Frequently Asked Questions and answers. The PPP resumed accepting applications July 6, 2020, and will continue until August 8, 2020. The SBA will forgive loans if the funds are used for employee retention and eligible expenses.  FAQs about PPP Loan Forgiveness (8/4/2020) Loans used for payroll costs, rent, interest on mortgages, and utilities will be fully forgiven. (At least 60% of the forgiven loan must have been spent on payroll.) Other important details include: –    PPP loans have a 1% interest rate and payments will be… read more »

COVID-19 Update: YoCo Strong Restart Fund for Small Business & Nonprofit Support

access_time Posted on: July 30th, 2020

The York County Commissioners voted to use a portion of the  Coronavirus Aid, Relief and Economic Security (CARES) Act funding to support YoCo Strong Restart Fund, a small business and nonprofit organization grant program. The County allocated $4 million for nonprofit organizations and $10 million for small businesses. Eligible organizations will receive grant funding between $10,000 to $35,000. Organizations are eligible if they have been negatively impacted by the COVID‐19 pandemic and meet any of the following criteria: Small business with less than 50 full‐time equivalent employees and gross revenues of $3 million or less for the 12‐month period.Restaurant with less… read more »

COVID-19 Update: $50 million to Reimburse Hazard Pay for Front Line Employees

access_time Posted on: July 22nd, 2020

$50 million in grant funding is available to assist employers in providing hazard pay to employees who are working in life-sustaining occupations during the pandemic. Hazard pay keeps essential employees working in vital Pennsylvania industry sectors. Hazard Pay Grant Funding Information on DCED Website This reimbursement-based grant is part of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and is available to employers who will be offering hazard pay during the eligible program period. The grants are administered by the Department of Community and Economic Development (DCED) and will not exceed $3 million per business. Applicants eligible to apply… read more »

COVID-19 Update: Pennsylvania Small Business Grants OPEN Until July 14!

access_time Posted on: July 7th, 2020

The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program has been established to provide grants ranging from $5,000 to $50,000 for small businesses impacted by COVID-19. There will be several rounds of funding. The first application window is open from June 30th to July 14th.   Visit the website below for details on the various Pennsylvania small business grants available. PA Business Grants Website be physically located, generating at least 51% of revenues, and certified to do business in Pennsylvania; have no more than 25 employees prior to February 15, 2020; andhave annual revenues below $1,000,000 prior to COVID impact. Operated and owned by… read more »

COVID-19 Updates: Guidance on PPP Issues

access_time Posted on: July 2nd, 2020

Guidance on PPP Issues The Small Business Administration (SBA) have provided guidance on PPP issues as they provide more information and answer questions. This article will cover the following topics: Calculating Maximum Loan Amount by Business TypeIFR regarding Calculation of Payroll Costs of Certain Fishing Boat OwnersIFR Additional Eligibility Revisions to First Interim Final Rule regarding Felony ConvictionsUpdated FAQ’s The Small Business Administration (SBA) have provided guidance to assist businesses in calculating payroll costs to determine the amount of a Paycheck Protection Program (PPP) loan for which they may apply. Follow the link below to learn more. Updated Loan Amount… read more »

COVID-19 Update: New Information Regarding SBA’s Two Biggest Stimulus Programs

access_time Posted on: June 22nd, 2020

The U.S. Small Business Administration (SBA) has posted a significant quantity of new information over the past several days. In this article we will provide a basic overview of this new information with links to primary sources with more details and applications. We will begin with a review of the purpose of the SBA followed by updates on their two biggest stimulus programs for small businesses: the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). Updates to these programs include reopening the EIDL and EIDL Advance portal, new PPP Interim Final Rules (IFRs), and the new EZ and revised full… read more »