- Investing $200 million in grants for bars and restaurants;
- Investing $150 million in grants for Small Business Relief Grant applicants, who previously applied and are qualified;
- Investing $50 million in grants for lodging industry businesses;
- Investing $40 million in grants for indoor entertainment venues;
- And investing $20 million in grants for new businesses, many of whom were unqualified to receive previous funding.
- Investing an additional $5 million for 5,000 tech-focused credentials through the TechCred program in fiscal year 2021;
- Funding $50 million ($25 million in each fiscal year 2022 and 2023) for 40,000 tech-focused credentials through the TechCred program;
- And investing $15 million for workforce efforts in economically distressed rural and urban communities.
January 26, 2021
Recently, Attorney General Dave Yost has asked Congress to protect hundreds of thousands of working Ohioans who may have had fraudulent unemployment claims filed in their names, shielding them from having to pay taxes on benefits that they never received.
The Ohio Department of Job and Family Services (ODJFS) is expected to send 1.7 million 1099-G forms this month to those whom ODJFS have a record of receiving unemployment benefits. However, it is anticipated that a significant amount of the 1099-Gs will likely go to Ohioans who did not file for or receive unemployment assistance.
“Construction workers, daycare providers, service industry workers – the backbone of this state – have worked hard throughout the pandemic and now the government is going to ask them to pay taxes on money they didn’t receive – it’s just not right,” Yost said.
Other states are reporting similar problems with fraudulent claims, which is why Yost is turning to Congress.
Yost believes there’s enough evidence of fraud to notify Ohio’s congressional delegation that it should suspend tax collection efforts and pause fees or interest from taxes owed on the claims until they are investigated.
He sent a letter to those members of Congress on Thursday asking for safe harbor provisions on behalf of Ohioans.
Yost is specifically asking Congress to consider:
• Exclude the amount from the income for the taxpayer in the given year until a final determination is made by the state unemployment compensation administrator that the amount is valid.
• Once an amount is determined to be valid, the IRS shall apply the amount to the tax year in which it was determined to be valid without any penalties or interest.
• If an amount certified to the IRS is determined to be invalid, the unemployment compensation administrator shall indicate to the IRS that the 1099-G was issued in error, and assist the taxpayer with any correction the taxpayer is required to make to modify their reported income to the IRS.
Any incidents of identity theft regarding unemployment benefits need to be reported to ODJFS. Ohioans can report those issues online at https://unemploymenthelp.ohio.gov/.
If you or an employee has been the victim of this type of fraud and you need assistance sorting out the ‘to-do’ list, please call the office. Unfortunately, I know first hand what steps must be taken.
Good Friday afternoon!
Below you will find a comprehensive explanation of the most current round of PPP loans. Please remember that while the portal for application is open, your personal lender may not have the information necessary to assist you at this time. Please be patient as they await direction and appropriate loan documents. This is a great time to gather your finances and read up on what will be expected of you throughout the loan application process.
If you received a PPP Loan during the first application period, the information below pertains to you and your business:
Second-draw PPP loans
One of the biggest changes with the new PPP is that Congress made funding available to businesses that had previously received a PPP loan. Borrowers are eligible for a second-draw PPP loan of up to $2 million, provided they have:
The Economic Aid Act did not provide a general definition of gross receipts for determining a borrower’s revenue reduction, so the new guidance makes the definition consistent with the definition of receipts in 13 C.F.R. Section 121.104 of SBA’s size regulations. Specifically, the IFR defines gross receipts to include all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Forgiven first-draw PPP loans are not included in the 2020 gross receipts.
The Economic Aid Act makes first-draw PPP loans available to borrowers that were in operation on Feb. 15, 2020, and come from one of the following groups:
PPP applicants must submit documentation sufficient to establish eligibility and to demonstrate the qualifying payroll amount, which may include, as applicable, payroll records; payroll tax filings; Form 1099-MISC, Miscellaneous Income; Form 1040, Schedule C, Profit or Loss From Business, or Schedule F, Profit or Loss From Farming; income and expenses from a sole proprietorship; or bank records.
PPP borrowers can have their first- and second-draw loans forgiven if the funds are used on eligible costs. As with the first round of the PPP, the costs eligible for loan forgiveness in the revised PPP include payroll, rent, covered mortgage interest, and utilities. In addition, the following costs are now eligible:
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period between eight or 24 weeks.
Borrowers that receive a PPP loan of $150,000 or less shall receive forgiveness if the borrower signs and submits to the lender a certification that is not more than one page in length, includes a description of the number of employees the borrower was able to retain because of the loan, the estimated total amount of the loan spent on payroll costs, and the total loan amount. The SBA has yet to create the simplified application form but must do so by Jan. 20. The form may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements. Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans to check for fraud.
To apply, CLICK HERE then choose the appropriate option – PPP First Draw or PPP Second Draw.
Again, we find ourselves in uncharted waters. Many have called with questions and we are happy to help you navigate. I will do my best to answer your questions or provide you with the necessary resources.
Monday, January 8th is Martin Luther King, Jr. Day and as such, many of our businesses will be closed in observation. Enjoy your weekend!
- You are a member in good standing prior to June 3, 2020
- Your payroll does not exceed ten individuals
- Your business was adversely affected by the Stay at Home Order
- You share our webstore link on your business Facebook page.