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COVID-19 Legal Update: Amendments to PPP Loans

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Thanks to our good friend, Michael Futterman, Partner at McCusker, Anselmi, Rosen & Carvelli, P.C.* for the below helpful information for our clients and friends regarding the amendments to the PPP loans!

On Friday, June 5th, the President signed into law H.R. 7010 which amends several provisions of the CARES Act and the Paycheck Protection Program. In particular, the following changes are effective immediately:

Loan Forgiveness

  • The “covered period” for forgiveness is extended to 24 weeks or December 31, 2020, whichever is earlier. This additional time is critical for those businesses which are just now beginning to re-open.
  • The percentage of loan proceeds that must be used for payroll costs was changed from 75% to 60%. Keep in mind, the legislation adds a new wrinkle requiring you to meet this 60% threshold to obtain any forgiveness, as opposed to previously where it was proportional. In other words, you now need to make sure you hit 60%; otherwise there is no forgiveness.
  • The period to restore the number of employees and amount of payroll to qualify for full forgiveness has been extended to December 31, 2020.
  • The reduction penalty no longer applies if the borrower, in good faith, is able to document that:
    • The borrower was unable to rehire a terminated employee and unable to hire a similarly qualified employee to replace the terminated employee;  and
    • The borrower was unable to return to the same level of business activity as before February 15, 2020, due to compliance with guidance issued by Secretary of Health and Human Services, the Director of Center for Disease Control and Prevention or the Occupational Safety and Health Administration, during the period from March 1, 2020 until December 31, 2020, related to the maintenance of standards for sanitation, social distancing or any other worker or customer safety requirements related to COVID-19

Loan Details

  • The time to pay back any unforgiven portion of a PPP loan is increased to 5 years. This is automatic for loans submitted after June 5; pre-existing loans can also be extended to 5 years, but require agreement by the lender.
  • Payment of principal, interest and fees is deferred until “the date on which the amount of forgiveness determined…is remitted to the lender.”
  • Borrowers can now apply for loan forgiveness up to ten months from the day their covered period ends (whichever period is elected); if they fail to do so, no forgiveness will be allowed.

Payroll Taxes

  • Borrowers may defer 50% of the employer share of their 2020 Social Security taxes until end of 2021 and the other half until end of 2022, even if the borrower’s PPP loan is forgiven prior to December 31, 2020 (originally, deferral was not permitted for a borrower with a forgiven PPP loan).

*Attorney Advertising: The foregoing is a summary of the laws discussed above for the purpose of providing a general overview of these laws. These materials are not meant, nor should they be construed, to provide information that is specific to any law(s). The above is not legal advice and you should consult with counsel concerning the applicability of any law to your particular situation.



PPP Forgiveness Application Process & Documents to Prepare

Here’s a follow up on yesterday’s post, did you get the PPP loan and now you are concerned about the process and what documents you need to prepare in order to have the loan forgiven?  Check out this great video from colleague, Chelsea Whalley of J Donovan Financial.

The CARES Act requires employers to apply for loan forgiveness with the same lender they applied for the PPP loan at the end of the eight-week period following the disbursement of their loan.

When applying for loan forgiveness, employers will need to provide the following information:

  • The total requested amount to be forgiven
  • Documentation verifying the number and pay rate of FTEs on payroll:
    • Payroll tax filings with the IRS
    • State income, payroll and unemployment insurance filings
  • Documentation verifying covered mortgage interest, rent or lease obligations, and utilities
  • Certification from an authorized representative for the employer that all supplied documentation is true to the fullest extent possible
  • Certification from an authorized representative for the employer that the amount requested to be forgiven complies with PPP guidelines

After submitting an application, lenders must make a decision on whether an employer’s PPP loan will be forgiven, or how much of the loan will be forgiven, within 60 days. In some cases, a lender may ask for additional information. Employers should monitor their application and pay attention to any requests for additional information. For questions on your company’s loan forgiveness eligibility or application, contact your lender.



Maintain Eligibility for PPP Forgiveness

Did you get the PPP loan and now you are concerned about making sure the loan is fully forgiven?  Check out this great video from colleague, Chelsea Whalley of J Donovan Financial.

U.S. small businesses that were able to secure financial relief through the SBA’s Payroll Protection Program should consider the following to help their cause for qualification of forgiveness of the full principal amount of the loan and any accrued interest:
• Use the loan funds only toward: payroll, including salary, wages, tips and covered benefits for employees; rent or mortgage interest; and utilities.
• Ensure at least 75% of loan funds are allocated for payroll costs.
• Maintain the level of full-time employee (FTE) headcount without reduction during the eight-week covered period.
• Maintain the salaries and wages of your workforce during the eight-week covered period. Any reduction of more than 25% for any employee who makes less than $100,000 will reduce the amount forgiven.
• Preserve proper documentation to support the amount of proceeds used for payroll costs, rent or mortgage, and utilities.
• Prior to June 30, 2020, restore all full-time employment and salary levels back from any reductions made between Feb. 15, 2020, and April 26, 2020. As mentioned above, preserving proper documentation is important, as this information will be used by your lender when evaluating whether an employer qualifies for PPP loan forgiveness.
For more information regarding loan forgiveness eligibility, go to the following link: https://www.sba.gov/funding-programs/…
Video on how to APPLY for Forgiveness will be released tomorrow!


Working from Home Guide

Most people are working from home these days due to the Covid-19 Pandemic. In order to make work more efficient it’s important to follow these steps in order to be most productive.

1. Follow your standard routine.
2. Set up a special workspace.
3. Use video calls to keep in touch.
4. Use task management to keep track of progress.
5. Do not stay in the same position for too long.
6. Make sure to exercise everyday.
7. Find what helps you concentrate.
8. Look after your mental health.



Feature Friday: Business As (Un)usual?

Business as un-usual

Business As (Un)usual?

Guest Blogger:  Kevin Trokey
Original Post:  Click Here

I recently posted an observation on LinkedIn. In one 24-hour period . . .

  • We entered a bear market.
  • A significant travel ban from Europe was imposed.
  • The NBA suspended its season while the NCAA announced March Madness would be played in empty arenas (talk about surreal).
  • And, what may have been at the top of the surreal scale on any other day, a former vice-presidential candidate (Sarah Palin) sang “Baby Got Back” on “The Masked Singer.”

Of course, that surreal 24 hours has grown into an exponentially more surreal week with no end to the escalation in sight.

The questions are endless, personally and professionally. In that post, I offered some suggestions to maintain SOME level of personal grounding. I suggested we all . . .

  • Sit in 10 minutes of meditation
  • Go for a walk
  • Read something for pure enjoyment
  • Call a friend and have a nostalgic conversation (i.e., nothing about current events)
  • Just do something to restore a sense of sanity and control to your day

I encouraged us to all – Be safe. Be smart. Be balanced.

I feel these suggestions are still solid but, given the events of the 72 hours or so that have transpired since then, they only begin to touch on the significance of what we are experiencing. This is a much more significant health crisis than we knew even that short time ago. It seems clear we still don’t just how significant it will prove to be.

It cannot be denied; we are all being impacted personally.

But, what about professionally?

At the risk of seeming impersonal and insensitive, what about our businesses? What adjustments do we need to be making?

We see many government-imposed changes. Restaurants and bars are being closed or put on restricted operations. Schools are being closed or moved online. Gatherings of more than 10 (as of this writing – it was 50 when I started) are being canceled or postponed.

Beyond the government-imposed restrictions, many businesses that rely on “social proximity” (I know, not necessarily the right use of this phrase, but I mean the opposite of social distancing) have chosen to close on their own.

I understand the need to protect health and life at all costs, but that doesn’t stop me from worrying about the long-term business implications of these decisions. How many businesses will fail? How many employees of closed businesses will never recover financially? Again, these aren’t life and death questions (in most cases), but they’re still very real.

A business “gray” area?

And, what about businesses that are either already virtual and remote in their operations or are capable of performing at least some activities without threat to others? By maintaining some “new normal” level of business operations, do they run the risk of appearing insensitive? Or, is it maybe their responsibility to continue operations?

Before I share my thoughts, you should know that our entire business operation runs virtually and remotely. Each of our team members works individually in their own office space. We are among the “socially-distanced elite” in that regard. While this arrangement does present limitations, it has prepared us for where we are today. Over the next few days/weeks, we’ll be sharing some tips that have helped us build a successful business this rather unusual way.

Here’s my perspective and opinion.

  • If a behavior puts anybody else at risk, it needs to be changed. The physical health of everyone has to be our number one priority.
  • I believe our mental health has to be a very close second to our physical health. For me, that means maintaining daily activities that are as close to normal as possible. Sure, we may have to work from home instead of going into the office but, if that’s possible, I feel it is way healthier than not working at all.
  • Finally, we will come out of this and, when we do, we need businesses to be as strong as possible. That can’t be the case if we bring everything to a complete halt.

So, what will I be doing personally?

  • I will be aware of my physical movements and the effects they have on others.
  • I will be respectful of the decision others may make to more drastically curtail their business operations.
  • I will continue to work/live as much of an uninterrupted daily life as is responsibly possible.
  • I will be understanding of those who have a different opinion than mine.

What about us as Q4intelligence?

Our role is to help our clients build stronger businesses, and we’re finding there are a lot of needs right now to that end. We’re helping our agencies make decisions and take actions in the best interests of their own businesses and the lives of their clients. So, our work isn’t slowing down.

  • We hope you aren’t offended when you see us active on LinkedIn.
  • We hope you aren’t shocked when you see our blog posts pop up in your inbox on Mondays and Thursdays.
  • We hope you don’t mind when we respond to your inquiry.
  • We hope you understand the spirit in which we will be working for the foreseeable future.
  • We hope you know how much we are thinking about you during this unprecedented time.

Above all else, we hope for your health, safety, and balance.

Photo baranq.



Wonder Woman Wednesday: Amanda Kindler

This week’s #WonderWomanWednesday is someone near and dear to us in NYC. Amanda Kindler was a Registered Nurse working in Oncology prior to the Covid-19 Pandemic and was part of the first Covid Unit in the NYU Hospital System. When Amanda has some downtime, which is rare, she’s sure to log in her CrossFit workout from the CrossFit Dutch Kills box in Queens, NY where she has been a member for about 2 years. We salute Amanda and all the other healthcare providers putting themselves at risk during this time to help the people of our city!

Amanda Kindler WWW

 

 



Feature Friday! Managing Remote Employees: Key Insights and Advice

For this edition of #FeatureFriday check out our guest blog by The Jacobs Group, the leading provider of talent to the insurance industry.  We greatly appreciate their keen insight to the subject matter and contributing to our blog this week, this content applies to anyone that is managing employees remotely during this time and beyond.

As the insurance industry adapts to a workforce that is primarily – if not completely – remote, many managers are finding themselves overseeing work-at-home employees for the first time. At Jacobson, many of our corporate employees and temporary staff work remotely on a regular basis. We asked a few leaders across our organization for their key insights and advice on effectively managing remote staff.

Prioritize communication.

video-chat-iconDave Coons, Senior Vice President: Stay engaged! Host regularly scheduled one-on-one meetings and team meetings over Skype and Zoom. Video is great because it creates a more personal connection and gives you the ability to read people’s non-verbal cues.

Salil Shenoy, Controller: My open-door policy remains the same whether we’re in the office or working remotely. Making time to be actively engaged and available is crucial. This entails scheduled and ad-hoc one-on-one and team meetings with clear agendas to ensure the time is focused and productive. Communication and trust are key! This is even more true when individuals on your team are dependent on other employees they no longer see in person. Open and honest communication helps create a collaborative and positive environment that is proactive and preventative, rather than reactive and corrective.

tasks-iconSet clear expectations.

Nikki St.Martin, Vice President, Marketing Communications: It is more important than ever to ensure everyone is on the same page regarding everything from work hours to deadlines and production levels. Schedule a weekly call with your team to share the department’s priorities for the week and address workflows and any challenges. Continue to provide regular feedback, both positive and constructive, so employees know if they are performing at the expected levels.

Karen Aiello, Assistant Vice President, Account Management: I’ve been doing this for almost 20 years, and it’s important to stay in constant communication. Make sure there is a good understanding of priorities, expectations and performance/quality goals.

Alison Wetmore, Assistant Marketing Manager: Coach your team for your communication style. Be sure to spell out the level of communication you expect. For example, if you want individuals to confirm they have received emails about new projects, be sure to let them know.

Focus on trust.

Kylee Lacson, Assistant Vice President, Life: It’s important to trust your employees and let them do their jobs. Micromanaging will have a negative impact on productivity. If you are seeing a dip in work product or quality, approach them from the angle of “How can I help?” versus “Why didn’t you do X?”

Tanya Rinsky, Senior Account Manager, Health: Come from a place of support, always assume positive intent and respond quickly, even if it’s just to say you’ll get back to them when you know more. When communicating by phone and body language can’t be used as a guide, it’s important to ask lots of probing questions to ensure you fully understand what the person is trying to communicate.

desk-iconRecognize different work styles.

Abbe Sodikoff, Senior Vice President: For people who prefer to work alone, it can be challenging to get them engaged with the group as a whole. Finding ways for those individuals to lead a discussion or participate and contribute without feeling put on the spot can be challenging. However, taking extra time to meet those people at their comfort level is well worth it.

Judy Busby, Senior Vice President, Executive Search and Corporate Strategy: Each employee has different needs. You must adapt to each employee to maximize team contributions, company culture and professional development.

Set boundaries.

Kylee: Set boundaries around availability to help people unplug for the day. If an email isn’t urgent at 9 p.m., then use the “delay send” feature so your employees can feel comfortable setting boundaries with their time. People who are new to working at home tend to be challenged with turning off work. Small adjustments can help with that.

Leverage technology.

communication-iconBeth Roekle, Senior Vice President, Talent Delivery: Leverage technology wherever you can. For instance, we use group chats, video conferencing and emails to help keep people connected. In addition, we prioritize our regularly scheduled communication as much as possible to ensure adequate opportunities to connect.

Alison: As our team has grown, we’ve needed to find ways to best manage multiple people working on different aspects of a project. Technology such as Basecamp and Trello can help track where projects stand at any given time, as well as who is responsible for each part of a project.

Connect on a personal level.

Dave: I believe that you don’t manage “people,” you manage “personalities.” What I mean by this is not all people are the same, and they have different needs when it comes to being supported and managed. It’s important to realize this and tailor the way you manage your employees using different means and techniques to get the best return on your investment.

Nikki: Small talk happens naturally in the office, in the lunchroom, passing in the hallway. When everyone is working remotely, maintaining a connection takes intentionality. Many of your employees are juggling more than they are used to in the game of life. Take a few moments at least once per week to just call (or even better, Facetime or Skype video) and see how they are really coping. Use group messaging software to say good morning, share a funny story in the afternoon or ask about employees’ plans for the weekend.

checkin-iconJudy: You need to make room for personal interactions, especially since people are now at home with their kids, cats and other distractions. This requires a relaxing of norms for all to feel comfortable videoconferencing. I’m learning so much about team members’ families, interests, pets and more and think it will bond us for many years to come. There’s typically so little time in the workplace to talk about these things, but it’s now integrated into everyone’s work day. As a high-performance leader, this is a great time to grab insight about someone to better lead them.

Catherine Prete, Senior Vice President, Operations: It can be easy to slip into “all business” mode when you don’t see the person. Be intentional about connecting differently in communications that don’t involve seeing your staff. For instance, start calls by asking about personal matters and express appreciation. Now that all of my staff is remote, I have learned that not only can we easily survive in this environment, we can thrive. Everyone has been diligent to keep the human connections in lots of unique ways.

About The Jacobs Group: The Jacobson Group is the leading provider of talent to the insurance industry. They offer executive search, recruiting and temporary staffing services at all levels across all industry verticals.

Click Here for the original post!



Here are ways for New Yorkers can help during this crisis

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We know New Yorkers are resilient and are ready to push up their sleeves and help their community during times of struggle, however we are in uncharged waters.  If you are looking for ways to help out during this time, the Capalino+Company team has published an excellent list to show creative ways you can help during this time!  Stay Safe!

Here are ways for New Yorkers can help during this crisis:

Click Here for the original post!



Stay Safe – Understanding the Symptoms of Covid-19

Just some quick information on symptoms of Covid-19 and what to do if you think you may be infected.



How CARES Act Impacts Employer Health Plans

Curious how the CARES Act will impact Employer Health Plans? Check out this great video from colleague, Chelsea Whalley of J Donovan Financial.

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law to provide $2.2 trillion in federal funding to address the COVID-19 crisis. The CARES Act makes a variety of changes affecting health plans. These changes include:

1. Expanding the types of coronavirus testing that all health plans and health insurance issuers must cover without cost-sharing (such as deductibles, copayments or coinsurance) or prior authorization

2. Accelerating the process that will require health plans and issuers to cover preventive services and vaccines related to COVID-19

3. Allowing telehealth and other remote care services to be covered under a high deductible health plan (HDHP) before the deductible is met, without affecting the HDHP’s compatibility with health savings accounts (HSAs) (applicable for HDHP plan years beginning on or before Dec. 31, 2021)

4. Treating over-the-counter (OTC) medications, along with menstrual care products, as qualified medical expenses that may be paid for using HSAs or other tax-advantaged arrangements, such as health flexible spending accounts (FSAs) or health reimbursement arrangements (HRAs)