Ohio TechCred Accepts Applications in September

Date August 30, 2022
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Ohio manufacturers have another opportunity this September to apply for funds to be used to improve employees’ skills. Ohio’s Tech Cred program will accept applications for its 16th round of funding starting September 1 and continuing until 3:00 p.m. on September 30.

Frequently asked questions regarding the program include:

What is TechCred?

TechCred is a program available to eligible Ohio businesses and their current or prospective employees to support skill advancement. The state-funded program provides up to $2,000 per employee and $30,000 per company per funding round for employees to complete technology-focused training.

Which businesses are eligible to participate?

Eligibility criteria include businesses:

  • Registered in Ohio, employing Ohio-resident W-2 employees
  • With an OH|ID
  • Of any size
  • In any industry, although manufacturers have historically been the most frequent participants

One of my employees is interested in a credential not included on the list. Can they still participate?

All credentials must be short-term, industry-recognized, and technology-focused. If a credential meets these criteria and is not included on the current credential list, employers may submit it by choosing “Credential Not Listed” when prompted during the application process. They will then be asked for information including the name of the credential, credit hours, skills taught, and value brought to organizations. Employers must also submit a syllabus or brochure on the credential for it to be considered for program reimbursement.

How do I apply?

After ensuring eligibility, an interested business can apply at https://techcred.ohio.gov/apply. Eligible employers must be prepared to submit the following information:

  • Employer information, including name, Federal Tax ID, supplier ID number, Ohio Charter Number, address, and more
  • Credentials from approved credentials list
  • Cost of training and certification
  • Training Provider
  • Number of current and prospective employees earning each credential
  • Average wages of each employee before and after receiving the credential

How do I receive the funding?

Employers with approved applications will be eligible for reimbursement after the employee receives the credential or certificate. The employer must provide proof of credential completion, documentation of costs, proof of payment, and information about the individual(s) who earned the credential(s). Information must be submitted through the TechCred website at https://techcred.ohio.gov/apply, under “Submit for Reimbursement.”

Where can I learn more?

Learn more about the TechCred program at https://techcred.ohio.gov/about/overview. Or contact a member of the HBK Manufacturing Solutions team by email at manufacturing@hbkcpa.com, or call us at 330-758-8613.

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SBA Releases Restaurant Revitalization Fund Guidance

Date April 19, 2021
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On April 17, SBA released guidance related to the Restaurant Revitalization Fund. This program, created by the American Rescue Plan Act (ARPA) that was enacted on March 11, 2021, aims to provide relief to restaurants, bars, and similar eligible businesses who were impacted by the COVID-19 pandemic.

General Overview

The Restaurant Revitalization Fund provides grants to eligible businesses, including restaurants, food stands, food trucks, food carts, caterers, bars, saloons, lounges, taverns, snack and nonalcoholic beverage bars, and licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products. In addition, bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries may be eligible if onsite sales to the public comprise at least 33% of gross receipts, and inns may be eligible if onsite sales of food and beverage to the public comprise at least 33% of gross receipts.

Grant Amount

For all applicants in operation as of January 1, 2019, grant amounts will be calculated by determining 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program (PPP) loan amounts. Amounts will be capped to $5 million per location, not to exceed $10 million for the total applicant and its affiliated businesses. No awards will be made under $1,000.

When determining gross receipts, applicants should not include PPP loans, Economic Injury Disaster Loans (EIDL), EIDL Advances, Targeted EIDL Advances, state and local grants (via CARES Act or otherwise) or amounts paid on behalf of SBA loans through Section 1112 of the CARES Act.

Fund Uses

Restaurant Revitalization Funds may be used for certain business payroll costs (including sick leave and group health care, life, disability, vision or dental insurance premiums), payments on business mortgage obligations, rent, principal and interest payments, utilities, maintenance expenses, construction of outdoor seating, business supplies (including personal protective equipment and cleaning materials), business food and beverage expenses (including raw materials), covered supplier costs as defined by the program, and business operating expenses as defined by the program. Awardees must use all funds by March 11, 2023 on eligible expenses incurred between February 15, 2020 and March 11, 2023. Unused funds must be returned.

Grant recipients will be asked to complete annual reporting submissions beginning no later than December 31, 2021 regarding their use of funds, until the funds have been depleted. SBA may ask for supporting documentation at any time.

Applications

Although the SBA has not announced when it will begin accepting applications, ARPA indicates that the SBA can only fund certain entities in the first 21 days of the application period. Specifically, applications from small businesses that are at least 51% owned by women, veterans, or socially and economically disadvantaged individuals will be considered for funding. Other entities may apply during this time, but their applications will not be considered for funding until the 21-day priority period ends. A sample application can be found at https://www.sba.gov/document/sba-form-3172-restaurant-revitalization-funding-application-sample.

Next Steps

As demand is expected to exceed funding availability, interested businesses should carefully review SBA guidance and confirm their eligibility. Eligible entities may wish to begin preparing documentation and the draft application, understanding that the application may be changed before the application portal goes live. SBA guidance can be found as follows:

For assistance or questions regarding the Restaurant Revitalization Fund, please contact your HBK Advisor.

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PPP Loan Deadline Extended

Date March 31, 2021
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On March 30, 2021, President Biden signed the PPP Extension Act of 2021 into law.

Previously, the SBA had until March 31, 2021 to approve new first draw or second draw Paycheck Protection Program (PPP) loans. Many lenders closed their application processes or portals early, to ensure the SBA had time to approve loans in the queue. This early close, paired with changes made to the program in late February and early March, caused some confusion at the end of the original application period.

With the PPP Extension Act of 2021 now enacted, the program is extended to May 31, 2021. SBA will have an additional 30 days to approve loans after this deadline. This Act does not affect PPP loan forgiveness applications or timing.

Those interested in obtaining a first or second draw PPP loan should consider the following actions:

  1. Ensure eligibility requirements are met. The PPP has evolved since the program was introduced by the CARES Act in March 2020. Potential borrowers should understand program rules and eligibility requirements before applying.

  2. Watch for communication from your lender. As many lenders have closed their loan application portals, it is unknown when they may reopen.

  3. Prepare your application and related documentation. The SBA and Treasury have provided guides to help determine eligible loan amounts, measure gross receipts reductions, and ensure proper documentation is submitted with the loan application.


For questions regarding PPP, please contact your HBK Advisor.

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SBA Increases EIDL Maximum Loan Amounts Beginning April 6

Date March 26, 2021
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On March 24, the U.S. Small Business Administration (SBA) announced additional relief available for businesses impacted by COVID-19.

The Economic Injury Disaster Loan Program (EIDL) was made available to small businesses and non-profit organizations last spring. Due to high demand, loan amounts were capped at $150,000. The loans, which are intended to support certain working capital needs, carry a 3.75% interest rate for businesses or a 2.75% rate for nonprofit organizations and a maturity of up to 30 years.

In its announcement, SBA indicated that effective April 6, the maximum COVID-19 EIDL program loan amount will be increased to $500,000, based on 24 months of economic injury. This change was made due to the pandemic continuing longer than expected, causing many organizations to require additional financial support. Borrowers who previously received funds should not submit a request for an increase; instead, SBA may contact these borrowers regarding their eligibility for an increased loan amount.

This new funding is in addition to the SBA announcement that loans issued through the EIDL program would have an extended deferment period, meaning that borrowers would not be required to make payments until 2022. As interest is accruing through this time, some borrowers may wish to make payments during the deferment period.

To learn more about the COVID-19 EIDL program, please visit sba.gov/disaster and choose the COVID-19 EIDL link. For more information about COVID-19 relief options, contact your HBK Advisor.

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SBA Opening Shuttered Venue Operators Grants on April 8

Date March 25, 2021
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The Small Business Administration’s (SBA) Office of Disaster Assistance will begin accepting applications for Shuttered Venue Operator Grants on April 8. This grant program was introduced in the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act signed into law on December 27, 2020 and recently modified by The American Rescue Plan Act, the $1.9 trillion stimulus bill passed on March 11. The program focuses on supporting performing arts businesses that have been closed or limited by COVID-19 restrictions.

Eligibility

The list of entities eligible for the grants includes live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, and talent representatives. It also includes certain entities owned by state or local governments—for example, museums or historic homes—that are operated solely as a venue. Eligibility is limited to venues operating as of February 29, 2020.

Originally, venues that received Paycheck Protection Program (PPP) loans were prohibited from receiving the grants, but the American Rescue Plan Act removed that restriction. However, entities will be ineligible for a PPP loan once they receive an SVOG.

Grants will generally be available equal to 45 percent of 2019 gross earned income, or $10 million, whichever is less. Grant awards may be reduced by PPP loan amounts.

How to apply

As the SBA works on its application platform, applicants are advised to proceed as follows:

  • Reference the SVOG Eligibility Requirements and register for a DUNS number.
  • Register in the System for Award Management (www.SAM.gov). Each eligible entity must have its own SAM registration.
  • Gather documents to support your employee count and monthly revenues.
  • Determine the amount of gross revenue loss you suffered between 2019 and 2020. You can use this information to see if you qualify for one of the priority periods.
  • Reference the SVOG Preliminary Application Checklist for additional preparation recommendations.

The application schedule

The SBA expects to open applications on April 8, 2021. Entities who have suffered great revenue loss will be prioritized.

How to use the funds

Funds may be used for certain expenses, including:

  • Payroll costs
  • Rent payments
  • Utility payments
  • Scheduled mortgage payments (not including prepayment of principal)
  • Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020)
  • Worker protection expenditures
  • Payments to independent contractors (not to exceed $100,000 in annual compensation per contractor)
  • Other ordinary and necessary business expenses, including maintenance costs
  • Administrative costs (including fees and licensing)
  • State and local taxes and fees
  • Operating leases in effect as of February 15, 2020
  • Insurance payments
  • Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be the primary use of funds)

Funds may not be used to:

  • Buy real estate
  • Make payments on loans originated after February 15, 2020
  • Make investments or loans
  • Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election
  • Any other use prohibited by the Administrator

To learn more about the SVOG program, visit https://www.sba.gov/funding-programs/loans/covid-19-relief-options/shuttered-venue-operators-grant or visit the FAQs at https://www.sba.gov/sites/default/files/2021-03/3-22-21%20SVOG%20FAQ%20FINAL.pdf. For more information about the SVOG program or other COVID-19 relief options, contact your HBK Advisor.

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Schedule C Tax Filers Eligible for Additional PPP Relief

Date March 19, 2021
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On Monday, February 22, the Biden-Harris Administration announced changes to the PPP program that focus on small businesses. These changes included expanded eligibility and a fourteen-day period during which only businesses that employ fewer than 20 people could apply for a PPP loan. This period ends on March 9.

In addition, the Administration announced that sole proprietors, independent contractors, and self-employed individuals could be eligible for more financial relief. At the time of the announcement, no specifics regarding how to calculate the larger loan amount were released.

On March 3, SBA issued an Interim Final Rule detailing this new calculation. Now, Schedule C tax filers with or without employees can apply for a PPP loan based on the net income or the gross income reported on their Schedule C. By using gross income, some Schedule C filers who were excluded from the PPP could now be eligible to apply for a PPP loan while others could receive substantially larger loan amounts.

Schedule C filers seeking to apply using their gross income should consider the following:

  • Borrowers whose loans were approved before March 3 cannot modify their loan amount. Only Schedule C tax filers who are eligible for a first or second draw PPP loan and who have not applied for that loan may now apply with this new calculation.
  • SBA released revised loan applications for first draw and second draw applications using this calculation methodology. Interested borrowers may choose to discuss any revised processes regarding the submission of this application version and related documentation with their PPP lender.
  • If a first draw PPP Borrower who applies for a loan using the gross income calculation has Schedule C gross income that exceeds $150,000, they will not be automatically deemed to have made the certification concerning the necessity of loan in good faith. SBA has determined that these borrowers may have other sources of liquidity and is committed to reviewing a sample of these loans. This does not apply to second draw loans since those applicants are required to certify a reduction in their gross receipts.
  • The period to apply for a loan has not been extended. Loans must be approved by March 31, 2020.

For questions regarding your PPP loan, please contact your HBK Advisor.

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SBA Releases New PPP Forgiveness Applications, Guidance

Date January 25, 2021
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The Consolidated Appropriations Act, 2021 includes several changes to the CARES Act’s Paycheck Protection Program (PPP) loan forgiveness process. The changes are reflected in new forgiveness applications issued January 19 by the Small Business Administration (SBA). The two applications can be found at: Standard Application: https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-Application-and-Instructions–Form-3508-1192021.pdf EZ Application: https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-Application-Instructions–Form3508EZ-1192021.pdf Criteria for using the standard application versus the EZ application remain the same. Key changes to the applications include:
  • Checkboxes were added to select whether the forgiveness application is for the first draw or second draw loan.
  • The Economic Industry Disaster Loan (EIDL) Advance Amount and EIDL Application Number fields were removed. Per the Act, the EIDL Advance no longer reduces the amount of PPP forgiveness.
  • Lines were added to report new nonpayroll costs: covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures.
On the standard application, the safe harbors for the FTE Reduction (Safe Harbor #2, Step 4), and Salary/Hour Wage Reduction (Step 2c) were updated so that borrowers who received a loan before December 27, 2020 (the date the Consolidated Appropriations Act was passed) have until December 31, 2020, to eliminate any reduction to their forgiveness amount, while those receiving a loan after December 27, 2020, have until the last day of their covered period to take this action. In addition, an updated 3508S application was released for borrowers who received loans of $150,000 or less: https://home.treasury.gov/system/files/136/PPP–Loan-Forgiveness-Application-Instructions–Form-3508S-1192021.pdf. Borrowers using the form are required to make two certifications: 1) confirm that they complied with the rules regarding the use of the funds, the proportion of funds used for payroll costs, and their calculations regarding forgiveness, and 2) that the information they are providing in the application is “true and correct.” Borrowers who received a PPP loan between $50,000 and $150,000 and borrowers of a loan of $50,000 or less who received, together with their affiliates, loans of $2 million or more are required to complete FTE and Salary/Wage Reduction tests that may reduce forgiveness. While the borrower is not required to submit this documentation, they are required to maintain it in order to provide it to the SBA upon request. Other Guidance For questions regarding your PPP loan and related forgiveness, contact your HBK Advisor.
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