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Category: Emerging Businesses

November 4, 2020

COVID-19 Related Paid Leave Requirements Get a Fine-Tuning

The Families First Coronavirus Relief Act (FFCRA) made substantial tax subsidies available to eligible employers, so they can provide paid sick leave and Family and Medical Leave Act (FMLA) leave for certain employees impacted by the COVID-19 pandemic. Eligible employers are those with fewer than 500 employees. An employer that has fewer than 50 employees may be able to make the case to the Department of Labor (DOL) that complying with rules would jeopardize the viability of his or her… Read more ›

October 30, 2020

Forecasting Cash Flow in the COVID-19 Era

Business valuation is a prophecy of the future. That is, investors typically value a business based on its ability to generate future cash flow. However, with so many uncertainties in the current marketplace, forecasting expected cash flow can be challenging. Income Approach Under the income approach, the value of a business interest is a function of two variables: 1.  Expected economic benefits. 2.  A discount rate based on the risk of the business. Economic benefits can take many forms, such as earnings… Read more ›

September 30, 2020

Small Businesses: Are First-Year Depreciation Write-Offs Right for You?

Under today’s federal income tax rules, your small business may be able to claim big first-year depreciation write-offs for eligible assets that are placed in service in the current tax year. But that strategy might not be right for every small business every year. Here’s what you should know before claiming 100% first-year bonus depreciation or first-year Section 179 deductions. First-Year Depreciation Breaks The Tax Cuts and Jobs Act (TCJA) included two generous first-year depreciation tax breaks for business taxpayers:… Read more ›

August 19, 2020

Using a Valuation Expert to Help with Chapter 11 Bankruptcy

The novel coronavirus (COVID-19) pandemic has caused many businesses to temporarily shut down or scale back operations. Slowly, states are allowing businesses to reopen to the public. But it may be too late for some businesses to bounce back. When the economy went into lockdown mode, some small businesses — including certain brick-and-mortar boutiques, niche manufacturers and family-owned restaurants — were already struggling and lacked financial resources to weather the downturn. And federal relief efforts weren’t enough to cover their… Read more ›

August 19, 2020

Why Maintaining Payroll Records Remains an Absolute Must

The COVID-19 pandemic has forced many small businesses to reduce their operations, furlough workers and even shut down for a period. But this doesn’t mean employers can allow payroll recordkeeping obligations to lapse. Your business is still responsible for creating and maintaining records for possible inspection by the Equal Employment Opportunity Commission (EEOC) and the Department of Labor (DOL). Documents to Keep In general, payroll records refer to documentation of employee time worked and wages paid for each payroll period…. Read more ›

June 23, 2020

Small Business Administration to Publicly Release Names of PPP Loan Recipients

In response to increasing public pressure, the Small Business Administration announced on June 19 that it would release the names of Paycheck Protection Program (PPP) loan recipients awarded at least $150,000 in funds. No timeline for the disclosure has been announced, but the SBA said it would “disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges as follows:” $150,000-$350,000 $350,000-$1 million $1-2 million $2-5 million $5-10 million Participants… Read more ›

June 18, 2020

PPP Flexibility Act of 2020 Results in Additional Guidance, a Revised Loan Forgiveness Application and a New EZ Application for Qualifying Borrowers

Since passage of the Paycheck Protection Program Flexibility Act of 2020 on June 5, 2020, the Small Business Administration has continued to bring current and prospective borrowers up to speed through a series of interim rules for the program, as well as the release of a revised loan forgiveness application, a revised loan borrower application, and a new EZ form of the loan forgiveness application. Updated PPP Loan Forgiveness Application (and a new EZ Version) On June 17, the Small… Read more ›

May 16, 2020

New SBA Guidance Addresses Safe Harbor Deadline Extension, Audits of Businesses That Receive PPP Loans; Employer Requirements When Employees Refuse Recall to Work

Last week, the Small Business Administration clarified which businesses can expect to be audited once they certify in good faith that they received Paycheck Protection Program loans based on economic need. The SBA also delivered requirements for Maryland employers whose furloughed workers refuse to accept a recall to work. Read more below. Good Faith Certification and the Safe Harbor Deadline Extension The goal of the Paycheck Protection Program since it was established in late March under the CARES Act has… Read more ›

May 8, 2020

The IRS Clarifies the Deductibility of Paycheck Protection Program-Funded Expenses

The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC). The guidance in IRS Notice 2020-32 doesn’t provide the answer borrowers hoped for, but that may yet come. The root of the question The Coronavirus Aid, Relief and Economic Security (CARES) Act created the widely… Read more ›

May 7, 2020

SBA Extends the Paycheck Protection Program Repayment Deadline for Self-Certification

The Small Business Administration (SBA) has extended the repayment deadline for Payroll Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now May 14, 2020. Companies that repay their loans by that date preempt the possibility of criminal liability if they’re subsequently found ineligible for PPP loans. The loans are intended to help small businesses with fewer than 500 employees weather the novel coronavirus (COVID-19) pandemic, but some large… Read more ›