Tag Archives: covid-19

SBA and Treasury Simplify Forgiveness for PPP Loans Under $50K

On October 8th, the U.S. Treasury Department issued new rules simplifying forgiveness for businesses who took out PPP loans of $50K or less. Back in March, Congress passed the CARES Act, which established the Paycheck Protection Program (PPP), an SBA loan designed to help small businesses maintain their workforce during the COVID-19 crisis. It offered SBA-backed loans that could be forgiven as long as the business met conditions such as retaining full-time employees for eight weeks and using a minimum of 60% of the loan towards payroll costs. However, a number of amendments and seemingly conflicting rules have left many business owners confused about how to go about getting their loans forgiven.

Prior to last week, no loan forgiveness applications were being approved by the SBA. This past Thursday night, a new forgiveness application, Form 3508S, and a new Interim Final Rule regarding loan forgiveness was unveiled.

What this means:

The SBA and the Treasury Department intends that this new application will simplify the forgiveness and loan review process. Under the new rule, PPP borrowers of $50,000 or less won’t have the amount of their loan forgiveness reduced based on reductions in full-time-equivalents or reductions in employee salary or wages. This means that borrowers who received small PPP loans likely won’t be penalized for laying off staff members or cutting employee hours due to financial hardship. The changes are estimated to cover approximately 9 million forgiveness applications. It should be noted that even with the new rule, borrowers are still required to provide additional information to the lender, certify how it’s reviewed, and calculate their payroll and non-payroll costs .

Have questions about your PPP Loan Forgiveness? Call us at (818) 377-7260 or email us at marketing@www.corpstrat.com

8 Things to Include in Your Work From Home Benefits Plan

If your team has gone remote due to COVID-19, you already know how difficult it can be to make sure employees are feeling valued and appreciated. Even though employees are saving time on their commute, studies have shown that, on average, the lockdown workday is 48.5 minutes longer. Which means it’s more important than ever for employers to get creative when it comes to commending their team’s hard work. Including a Work From Home Plan as part of your benefits package can help you make sure your remote employees are being rewarded for their efforts.

Here are 8 things to include in your Work From Home Benefits Plan:

1. Monthly Lunch Stipend for Managers

Pre-COVID, many companies would have perks like free lunches a few times a month. Company-wide lunches aren’t feasible in the current climate however, giving managers a monthly lunch stipend to treat their team to take-out or delivery meals is a great way to ensure team members feel appreciated.

2. Delivery Lunch for Employee of the Month

In the same vein, you may not be able to take your star employees out for a one-on-one meal but you could surprise them with a Postmates or UberEats gift card so they can treat themselves.

3. Monthly Coffee & Tea Stipend

Gearing up for the day by sipping on coffee with your co-workers is a delightful aspect of working in an office. Keep the caffeinated delight going by sending employees monthly credit to a coffee shop or coffee bean subscription service.

4. Virtual Gym Membership

It’s easy to get so overloaded when working from home that employees aren’t incentivized to move, which can be detrimental to their overall health. Since most gyms are currently closed or limited, offering a virtual gym membership can help keep your team healthy and happy. Hosting a group Zoom class with a certified instructor could be a fun way to keep each other motivated and give employees permission to step away from their emails in order to work out.

5. Mental Health App Subscription

Lockdown can be especially difficult for people who are living alone—people across the country are struggling with feeling isolated and depressed. Long-term, this can mean employees feel unmotivated, listless, and less productive. Including a mental health app like TalkSpace for therapy or Headspace for meditation in your Work From Home plan will help employees stay on top of their mental health.

6. Telemedicine and Wellness Checks

Telemedicine has been growing in popularity the past few years, for good reason—it can reduce medical costs and save patients a trip to the clinic or hospital. Now with the pandemic in full swing in the US, telemedicine has exploded in popularity and it’s helping people across the country keep hospital waiting rooms clear for COVID-19 patients while limiting their own exposure to the virus.

7. Wifi or Cell Phone Bill Reimbursement

Instead of using a company phone line or logging onto office internet, employees are taking on the burden of these expenses themselves. Consider offering reimbursement for a percentage of their home internet or cell phone bill to offset the expenditure.

8. Send a Care Package

When it comes to care packages, a little bit of thought goes a long way. Whether you’re sending special company swag or a customized basket of their favorite snacks, getting a little something at their door can help employees feel connected to company culture even when they’re working from home.

BONUS

If your employees live locally, take a few hours to show up (masked-up, of course) to their door with a thoughtful physical gift or care package. The personal touch of seeing their boss in person, even from a distance, can be incredibly meaningful.

Need help doing an Employee Benefits Audit? Email us at marketing@www.corpstrat.com.

President Signs PPP Extension, New Deadline August 8th, 2020

If you haven’t applied for a PPP loan yet, you’re in luck—the deadline to apply has just been extended! Get started by filling out the borrower application form here.

On Saturday evening, July 4th, President Donald Trump signed into law a temporary extension for the Paycheck Protection Program (PPP). The legislation was signed hours after the previous deadline for applications lapsed. The original deadline was June 30th but $130 billion still remained in the fund of the $660 billion allocated. Now, the deadline has been pushed to August 8th, 2020 to give small business owners more time.

The program was created back in March to support small businesses affected by the fallout of COVID-19; lawmakers have modified it twice since, adding money on one occasion and more recently permitting more flexible use of the funding. In early June, the president signed the PPP Reform Bill which gave small business owners more flexibility and longer-term support. You can learn more about the PPP Reform Bill here.

If you have any questions regarding your PPP loan or application, please email us at marketing@www.corpstrat.com

PPP Borrower Application Form (Deadline to Apply: June 30th, 2020)

(UPDATE as of July 4th 2020: On Saturday, July 4th, President Trump signed an extension of the small business loan Paycheck Protection Program (PPP) into law, according to the White House. PPP will now remain open to applications through August 8th.)

A few weeks ago we updated you on the changes made to the Paycheck Protection Program (PPP) in the PPP reform bill. The revisions are designed to give small business owners more flexibility and time to use and pay off their PPP loan. With the June 30th deadline drawing near, here’s a friendly reminder to apply so you don’t miss out on this opportunity.

If you are eligible, use this form to apply for the Paycheck Protection Program (PPP) with an eligible lender. You can find additional guidance on the SBA website.

If you have any questions regarding PPP loans, please contact us at marketing@www.corpstrat.com.

Effective Ways to Manage Employees in a Remote Environment: The New HR Department

In these unprecedented times, employers are forced to make difficult decisions around how much of their team they can sustainably keep on. Unfortunately, when teams working remotely, the first department that seems easiest to trim down is the HR department. Once the HR department is eliminated or whittled down, it leaves employers without the tools or resources they need to navigate the pandemic and vulnerable to litigation. Before eliminating your HR department outright, we’d advise seeking out creative solutions that can help keep the functional use of your HR team while keeping within your budget.

The Danger

Google can not replace a trained HR professional. Which of us hasn’t quickly typed an HR or payroll question into Google and found the answer that we needed? But be warned, Google is good until it’s not. Letting Google be your HR department can easily lead to large claims and getting sued by employees. 

The employee/employer environment is as litigious as ever, making the wrong moves can come back to bite you. Add a pandemic with constantly updating rules and regulations to the mix and you have a real recipe for disaster. In our future post-COVID world, many employees who have exhausted unemployment may look for ways to get more compensation which could lead them to file claims against former employers. 

How to Avoid 

Don’t fire your HR team.  It sounds simple but many business owners are trying to save every dollar they can and when making difficult cuts, HR can seem non-essential in the short run. This couldn’t be further from the truth, we believe it may be the most vital time in the history of your business to have a strong HR person(s). With so many new regulations, you need a trained HR professional to help you navigate the complex policies. Trust us, it will ultimately save you a ton of time, frustration, and money. 

The Opportunity 

Right now is the time to make sure you have all your ducks in a row by completing an HR audit. Even if you still have a full-time HR person, a CorpStrat HR representative can help you take a good look at your HR infrastructure, discover any vulnerabilities, and find ways to improve on it. In times of crisis, it’s important to find creative, sustainable solutions. For example, if you can’t afford to keep on your entire HR department during the pandemic, there may be a way to combine fewer HR team members with an HR outsourcing firm to maximize efficiency and stay financially viable.

CorpStrat Tip:

Hire a good labor law attorney—it’s worth the added expense. A good labor law attorney can help employers avoid a lot of headaches. Many business owners hire HR consulting firms and assume that they are compliant but not all HR consulting firms are created equal. Without a labor law attorney, you could unknowingly be overlooking important legal documents and leave yourself open to litigation. This is why we’ve included unlimited phone and email support with a labor law attorney in our CorpStrat HR Plus and Pro services

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Interested in a full HR audit? Schedule a call with a CorpStrat agent: marketing@www.corpstrat.com