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  • 14 May 2024 8:50 PM | Anonymous


    One of the most difficult stains to identify and remove are yellow stains that are of an unknown origin. These stains may be visible prior to the dry cleaning or wet cleaning processes or may appear after processing. It is often difficult to explain to the customer the cause of these discolorations.

    Yellow stains may be caused by:

    1.      Grease or oil stains that have oxidized
    2.      Oxidized tannin stains
    3.      Oxidized protein stains (oxidized protein stains are usually yellow or brown in color)
    4.      Staining substances that have chemically degenerated the fluorescent dyes (optical brighteners) within the garment

    The identification of the source of a yellow stain can be difficult. Most yellow stains can be identified by inspecting the stain itself and its location.

    Oxidized Grease Or Oil Stains. This type of staining substance can appear anywhere within a garment. This type of yellow stain can often be identified by its color (usually yellow in color). The outer portion of the stain will usually have linear jagged edges or may be cross shaped. These stains can be removed by treating them on the “dryside” (OTPR or POG and amyl acetate)

    Oxidized Tannin Stains.Oxidized tannin stains are yellow or light brown in color. .When these stains oxidize, they will develop a darker smooth outer ring. Oxidized tannin stains can be removed on the board by following the tannin spotting procedure followed by 3% hydrogen peroxide or sodium perborate

    Oxidized Protein Stains.In most cases, this type of yellow stain is the result of perspiration that has discolored the underarm areas of a garment. Yellow perspiration stains can sometimes be removed on the board by using the protein stain procedure (including 3% hydrogen peroxide). Unfortunately, since the acids and chloride salts in perspiration can chemically degenerate the fluorescent dyes within the fabric, these yellow underarm discolorations may be impossible to correct.


  • 30 Apr 2024 9:39 PM | Anonymous

    How to Hire the Right Customer Experience Professional for Your Dry Cleaning Business

    In the competitive landscape of the dry cleaning industry, delivering exceptional customer service is key to retaining loyal customers and attracting new ones. A skilled Customer Experience (CX) Professional can significantly enhance your service delivery and set your business apart. Here’s your guide to hiring the perfect CX Professional, ensuring you have a strong labor pool that drives customer satisfaction and business growth.

    Understanding the Role of a CX Professional

    A Customer Experience Professional in the dry cleaning industry is crucial for creating positive interactions at every customer touchpoint. From greeting customers and explaining services to handling complaints and gathering feedback, their role is integral to your business’s success.

    Key Skills and Qualifications for CX Professionals

    1. Stellar Communication Skills
    Effective communication is non-negotiable. A great CX professional must articulate services clearly and handle inquiries and complaints gracefully.

    2. Proven Customer Service Experience
    Candidates with experience in customer service, especially in similar service-oriented industries, typically bring valuable insights and proven strategies to the table.

    3. Strong Problem-Solving Abilities
    Look for individuals who demonstrate quick thinking and effective problem resolution skills, essential for maintaining customer satisfaction.

    4. High Empathy and Patience Levels
    The ability to empathize with customers and handle service interactions with patience can differentiate your business in a crowded market.

    Educational and Technical Requirements

    While formal education in business or communication can be beneficial, practical experience and technical proficiency with CRM/ POS systems and digital communication tools often take precedence. Ensure your candidates are comfortable using the tech platforms your business relies on.

    The Interview Process: A Strategic Approach

    Behavioral Interview Techniques:
    Ask candidates about past customer service experiences to gauge how they handle challenges and interact with clients.

    Role-playing Scenarios:
    Simulate typical customer interactions to see how candidates manage real-time problems and use their interpersonal skills effectively.

    Assessing Customer Service Philosophy:
    Understanding a candidate's customer service philosophy is crucial to ensure alignment with your business values.

    Ensuring a Good Fit

    Cultural Fit:
    A candidate who resonates with your company’s culture is more likely to excel and remain committed in the long term.

    Reference and Background Checks:
    Always verify a candidate’s past job performances and conduct thorough background checks to ensure they meet your standards.

    Conclusion

    Hiring the right Customer Experience Professional is a strategic investment in the future of your dry cleaning business. By focusing on these key areas during the hiring process, you can build a robust team that not only meets but exceeds customer expectations, fostering loyalty and driving business success.

    Ensure your recruitment strategy is thorough and tailored to attract candidates who not only have the necessary skills and experience but also share your commitment to outstanding customer service.


  • 12 Dec 2023 11:04 AM | Anonymous

    Please check out our upcoming in-person class schedule. We will be releasing new dates for Online Classes, Webinars, and a host of new and exciting programs.

    If you want to sign up either download the the signup sheet - click here

    Or click over to events and sign up online- 


  • 12 Dec 2023 11:03 AM | Anonymous

    Dawn Hargrove-Avery Appointed as Interim Executive Director of the National Cleaners Association

    New York, NY, December 8, 2023 – The National Cleaners Association (NCA) has announced a significant leadership change with the appointment of Dawn Hargrove-Avery as its new Interim Executive Director. This pivotal announcement comes at a time when the NCA is also paying tribute to its former Executive Director, Nora Nealis, whose recent passing has left a profound impact on the association and the industry.

    Building on a Strong Foundation

    Dawn Hargrove-Avery brings to the NCA a wealth of experience and a progressive vision. Her primary focus will be to build upon the robust foundation established by Nora Nealis, ensuring that the NCA continues to lead and innovate within the industry. Dawn's commitment to excellence and her strategic approach are expected to be instrumental in advancing the association's mission during this crucial period.

    Honoring Nora Nealis

    As Dawn Hargrove-Avery steps into her new role, the NCA also pauses to honor the memory of Nora Nealis. Nora’s leadership and dedication have left an indelible mark on the association and the industry. Her legacy is a testament to her passion and commitment to the NCA. The association extends its deepest condolences to her family, friends, and colleagues.

    A New Chapter Under Dawn Hargrove Avery's Leadership

    Dawn Hargrove-Avery assumes her role at a critical juncture and is fully prepared to lead the NCA with the same spirit of innovation and dedication exemplified by Nora. The NCA looks forward to a future of continued growth and success under Dawn's leadership.

    Bruce Barish, the Board President of the NCA, expressed his full support for Dawn's appointment. "Dawn Hargrove-Avery is uniquely qualified to guide the NCA during this transitional period. “Her extensive experience and visionary leadership are precisely what the association needs to continue our legacy of excellence and innovation," said Barish. "We are confident that under Dawn's leadership, the NCA will not only honor Nora's legacy but also blaze new trails in the industry."

    Looking Forward

    The NCA community is enthusiastic about this new phase of leadership. With Dawn Hargrove-Avery at the helm, the association is set to continue its role as a leading voice and resource in the dry cleaning industry, driving forward with innovation and excellence.

    Conclusion

    The appointment of Dawn Hargrove-Avery as the Interim Executive Director of the National Cleaners Association marks a significant milestone in the association's history. Her leadership, alongside President Bruce Barish, is anticipated to usher in an era of strategic growth and renewed vigor for the NCA.

    For more information about the National Cleaners Association and its new leadership, please contact the association at 212-96-3002 or email info@nca-i.com.


  • 30 Nov 2023 9:56 AM | Anonymous

    n Memoriam: Nora Nealis, Champion of the Dry Cleaning Industry

    (October 22, 1953 - November 12, 2023)

    With profound sorrow, we announce the passing of Nora Nealis on November 12, 2023. Nora, a beacon in the dry cleaning industry, served as the revered Executive Director of the National Cleaners Association. Her extraordinary journey began at Diversitron, where she sold and repaired equipment for dry cleaners, amassing invaluable insights and expertise.

    Nora's tenure as Executive Director was marked by her remarkable acumen and dedication. She passionately advocated for the responsible use of perchloroethylene (perc), masterfully navigating environmental concerns while safeguarding the interests of countless small businesses. Her diplomacy and foresight were instrumental in harmonizing industry and governmental goals.

    Yet, Nora's legacy extends far beyond her professional feats. Her boundless generosity and wisdom touched many lives, particularly those within the dry cleaning community. She was a mentor and a guiding light, offering her time and knowledge selflessly, even to those struggling to meet dues. Her compassion and commitment to inclusivity were unparalleled.

    Nora's impact was not confined to those she directly assisted; her efforts to ensure environmental compliance have left an enduring imprint on the industry, benefiting even those she never met.

    Nora leaves behind a loving family, a legion of friends, and an industry forever enriched by her contributions. Her spirit of magnanimity and her relentless pursuit of industry excellence will be profoundly missed.

    The family graciously suggests that, in lieu of flowers, donations be made to Coats for Kids, a charity dear to Nora's heart. (https://www.coatsforkidsusa.com/)

    As we mourn her loss, we also celebrate the monumental impact Nora Nealis had on our lives and the industry. Her legacy serves as a steadfast foundation for a brighter, more inclusive future in the world of dry cleaning.


  • 13 Oct 2023 3:40 PM | Anonymous

    Who Needs to Provide Training?

    • If you are an employer with 15 or more employees, you must provide sexual harassment training to your staff every year. This rule also applies if you employ even one domestic worker, like a housekeeper or nanny.

    When Is the Training Due?

    • You should provide this training to your employees every calendar year.

    Who Gets Trained?

    • All employees should be trained if they work more than 80 hours in a year and are with the company for at least 90 days. This includes part-timers and interns.
    • Independent contractors also need training if they meet the same conditions.

    What Counts Towards the 15-Employee Minimum?

    • You count everyone, even contractors and employees who don't work in New York City, to meet the 15-employee minimum.

    What About Employees Outside NYC?

    • Even if you're not based in NYC, you still have to train employees who work in NYC for more than 80 hours a year and at least 90 days.

    What Should the Training Include?

    • The training should explain what sexual harassment is, and how to file a complaint within the company and with legal bodies, and it should include some examples. It should also talk about the responsibilities of managers and how bystanders can intervene.

    Record-Keeping

    • Keep records of those who completed the training for at least three years. These could be certificates or signed forms from the employees.

    Accessibility

    • The training must be accessible to all, including those with disabilities or those who don't speak English well.

    Group Training

    • You can train employees in a group, but you must keep separate records for each employee to show they completed the training.

    Training Outside Work Hours

    • If you ask employees to complete the training outside of regular work hours, you have to pay them for their time.


  • 14 Mar 2023 2:24 AM | Anonymous


    Dye crocking occurs when the dyestuffs break away from the surface of the fabric due to the incomplete penetration of the fibers, yarns, or fabric. When a fabric “crocks” the loss of color is more pronounced in the areas of the garment that are exposed to friction or abrasion during wear (collar, cuffs, pocket edges, underarms, elbows). If a fabric is susceptible to dye crocking, the “high points” of the garment such as the seams, selvage, stitched or double layers of fabric will crock more severely than other portions of the garment.

    The crocked areas of the garment are seldom noticeable prior to the dry cleaning, laundering or wet cleaning processes. When the garment is processed, the dry cleaning solvent or water will flush the loosened dyestuffs from the fabric, revealing its true (lusterless or faded) condition. When a fabric is prone to dye crocking, the condition of the garment will worsen each time it is worn. Subsequently, the fading of the dyestuffs in the crocked areas of the garment will become more severe each time that it is processed.

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News Update:

We have been made aware that National Waste sold its facility to Clean Earth.

www.cleanearth.com/contact

If you visit, www.cleanearth.com/contact and fill out the form, you can get registered as a customer.

Clean Earth Phone Number: 866-303-7644

Another option for waste removal is.

Clean Harbors- Clean Harbors recently purchased Safety Clean

Visit www cleanharbors.com/locations for a complete list of the facilities.

example NY  631-703-3451     Bridgeport NJ 856-467-3103

ERC FAQ's



I already received PPP. Can I still get the ERC?

The simple answer is YES! On December 27, 2020, The Taxpayer Certainty and Disaster Tax Relief Act of 2020 was enacted. This Act modified the ERC credit rules. One change included a modification that permits a company to have a PPP loan, and also be able to take advantage of the ERC credit. But, you may not use the same dollar for dollar funds. We consider this when we process your ERC credit.

How will my ERC tax credit be disbursed?

We are proud to have established the ERC Master Trust for the benefit of our clients’ Tax Refunds. Eastern Point Trust Company (EPTC) — the same prestigious Trust Company that assisted in disbursing the Flint Contaminated Water Fund, The NFL CTE Concussion Fund, the Bernie Madoff Settlement Fund, and many other nationally known Escrow accounts — is our trust company. Feel safe knowing that all funds received are deposited directly into the Eastern Point Trust Company and are placed into the ERC Master Trust; then dispersed into separate sub-trust accounts for each individual client.

How do I repay the ERC Credit?

Another simple answer…You don’t! The ERC credit IS NOT A LOAN! The ERC credit is a refundable tax credit that you are eligible to receive if you meet the criteria. If you do not file for the ERC credit and are eligible for it, you will lose out on receiving thousands, or even millions of dollars that are actually owed to you.


How long does it usually take to get my ERC Credit?

The process works in 5 easy steps:

  • You submit our pre-qualifying questionnaire.
  • You will receive a link to upload the documents we will request.
  • Within 2-7 days (and at no charge), we provide you the exact dollar amount of the credit you are owed.
  • If you decide to contract with us, you will select a payment option, and your claim will be filed.
  • Your refund will be generated by the IRS (there is currently a 20-week minimum backlog for ERC refunds).

Why should I contract ERC Helpdesk…can’t my CPA file for me?

The only service ERC Helpdesk provides is the calculation and filing for ERC refunds—which is based on your payroll. Your CPA likely handles your business income tax returns. ERC is likely not their specialty. While your CPA can file for your ERC, it is highly likely that because of their unfamiliarity with The Cares Act and ERC credit, they might miss important findings that can make your ERC refund greater. To put it in simpler terms, we are ERC credit experts; your CPA is a tax specialist. You need an ERC expert to maximize the opportunity for a greater ERC refund. In fact, many CPAs and payroll companies do not want to file ERC and refer their clients to us.

Can I qualify for the ERC program if my 2020 revenue went up?

Another resounding, “YES!” There are two qualifiers for 2020: either revenue reduction, or a “full or partial shutdown of your business due to COVID-19.” The IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” These are some examples of possible qualifying events:

A business that ordinarily met with clients in person had to cancel meetings due to COVID-19.

A restaurant was forced to close and/or limit its on-site dining capacity due to COVID-19 restrictions.

Supply chain interruptions caused your business to have delayed production timelines.

COVID-19 restrictions lowered the amount of people who could attend an event with your business.

Your business had to reduce operating hours due to COVID-19 cleaning requirements and restrictions.

Will the IRS run out of ERC funds?

The government has funded $400 billion for the ERC credit program. When the funds are exhausted, the program will end. If you are an eligible employer, currently, there are funds available, and you will receive the ERC credit. The faster you file, the more likely you are to receive your credit.

As an owner, do my wages or the wages of any family member I employ qualify?

Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has 50% or less ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.

Is the ERC Credit taxable?

For federal income tax purposes, you will need to provide the credit information to your CPA and report it on your tax return.

We have researched the Employee Retention Credit, but we do not offer accounting or legal advice. Please contact your attorney and CPA regarding this program.

Blog posts

According to the record, The City Council took this action based on the recommendation of the Workplace Taskforce, of which the NCA was an active member.

On July 18, 2021, the City enacted Local Law 80 of 2021, which repeals the licensing requirement for retail laundries. This repeal goes into effect on December 31, 2021.

Beginning December 31, 2021, you will no longer need a Retail Laundry license from DCWP to operate your retail laundry business. Because the license is no longer required, DCWP will no longer accept new or renewal license applications.

NOTE: Industrial Laundry and Industrial Laundry Delivery businesses will continue to be licensed. The license repeal is only for Retail Laundries.

NEXT STEPS:

On December 31, 2021, your current Retail Laundry license will expire and you may take down DCWP’s license sign. You will not need to surrender or renew your Retail Laundry license.

Even though you will no longer need a license for your retail laundry, you will still be required to comply with other laws DCWP enforces, such as:

  • Your business’s bills, tickets, business cards, advertising and stationery must list your business name and address;
  • Every document (example: receipt, delivery ticket, invoice, statement, etc.) that contains charges to a consumer must accurately and clearly state each of the laundry charges, not just the total charge;
  • All vehicles used for delivery of laundry must include your business’s name, address, and telephone number in letters at least 2 inches in height;
  • You must post a price list where orders are placed or payments are made by consumers;
  • Your price list must contain a list of services offered, the minimum price charged for each service, and a description of any factors that may cause the price to be higher than the minimum. Your price list must not contain different prices for men and women for the same services;
  • If scales are used to weigh laundry on the premises, each scale must have a DCWP seal and must be inspected annually;
  • If your business offers self-service laundry machines to the general public:
  • an attendant must be on site from 8:00 P.M. until closing or 6:00 A.M. the following day, whichever is earlier; and
  • you must post a sign in a location that is clearly visible to consumers which states to whom complaints and claims for refunds must be made.


Repeal of Retail Laundry License


COVID-19 Response Document


https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

Sections 3203 and 4510 of the Insurance Law are modified to extend the grace period for the payment of premiums and fees to 90 days for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic;  

Sections 3203, 3219, and 3220 of the Insurance Law are modified to provide a life insurance policyholder or annuity contract holder or a certificate holder, as those terms are used in such sections, under a group policy or contract with 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder or contract holder or certificate holder under the group policy or contract who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic;

Section 1116 and Articles 34, 53, 54, and 55 of the Insurance Law and Sections 54 and 226 of the Workers’ Compensation Law are modified to impose a moratorium on an insurer canceling, non-renewing, or conditionally renewing any insurance policy issued to an individual or small business, or, in the case of a group insurance policy, insuring certificate holders that are individuals or small businesses, for a period of 60 days, for any policyholder, or in the case of a group insurance policy, group policyholder or certificate holder, facing financial hardship as a result of the COVID-19 pandemic.  The foregoing relief shall also apply to the kinds of insurance set forth in paragraphs (16), (17), (20), (21), (24), (26), and (30) of Section 1113(a) of the Insurance Law.  For purposes of this Executive Order, a small business shall mean any business that is resident in this State, is independently owned and operated, and employs one hundred or fewer individuals;

City

New York City – 5 Boroughs

NY Hero Act, Model Airborne Infectious Disease Exposure Prevention Plan

Protecting New York Workers from Airborne Diseases

On May 5, 2021, Governor Andrew Cuomo signed the New York Health and Essential Rights Act (NY HERO Act) into law. The law mandates extensive new workplace health and safety protections in response to the COVID-19 pandemic. The purpose of the NY HERO Act is to protect employees against exposure and disease during a future airborne infectious disease outbreak.

Under this new law, the New York State Department of Labor (NYS DOL), in consultation with the NYS Department of Health, has developed a new Airborne Infectious Disease Exposure Prevention Standard, a Model Airborne Infectious Disease Exposure Prevention Plan, and various industry-specific model plans for the prevention of airborne infectious disease. Employers can choose to adopt the applicable policy template/plan provided by NYS DOL or establish an alternative plan that meets or exceeds the standard’s minimum requirements.

The airborne infectious disease exposure prevention plans must go into effect when an airborne infectious disease is designated by the New York State Commissioner of Health as a highly contagious communicable disease that presents a serious risk of harm to the public health. 

Currently, while employers must adopt plans as required by the law, as of the date of this writing no designation has been made and plans are not required to be in effect.

The standard and model plans are available in English and will be available in Spanish in the coming days. Employers are required to provide a copy of the adopted airborne infectious disease exposure prevention plan and post the same in a visible and prominent location within each worksite.

Templates that apply to the Dry Cleaning Industry

Eviction Updates by State


Economic Injury Disaster Loan Assistance:

https://www.sba.gov/disaster/apply-for-disaster-loan/index.html

Online Application:

https://covid19relief.sba.gov/#/

U.S. SMALL BUSINESS ADMINISTRATION ECONOMIC INJURY DISASTER LOAN SUPPORTING INFORMATION

https://www.sba.gov/disaster/apply-for-disaster-loan/pdfs/Economic%20Injury%20Disaster%20Loan%20Supporting%20Information%20(P-019).pdf

Additional Forms

A Disaster Assistance loan officer may request you to fill out the following additional forms:

Home Loans or Sole Proprietor Loans

Download corresponding forms below:

Mailing Instructions

All required documents listed below under Forms must be returned. All forms requiring signature must be signed and dated. Incomplete applications will not be accepted.

U.S. Small Business Administration

Processing and Disbursement Center

14925 Kingsport Rd.

Ft. Worth, TX 76155-2243

If you have any questions, please contact 1-800-659-2955 or (TTY) (800) 877-8339

Use this form to upload your disaster loan application.

the 100 most active SBA 7(a) lending banks

https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

State

New York- Insurance

NYS Executive Order 202.13   Re-Insurance Law Modifications

Insurance Carriers must allow a 60 day grace period

https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

Sections 3203 and 4510 of the Insurance Law are modified to extend the grace period for the payment of premiums and fees to 90 days for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic;

• Sections 3203, 3219, and 3220 of the Insurance Law are modified to provide a life insurance policyholder or annuity contract holder or a certificate holder, as those terms are used in such sections, under a group policy or contract with 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder or contract holder or certificate holder under the group policy or contract who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic;

• Section 1116 and Articles 34, 53, 54, and 55 of the Insurance Law and Sections 54 and 226 of the Workers’ Compensation Law are modified to impose a moratorium on an insurer canceling, non-renewing, or conditionally renewing any insurance policy issued to an individual or small business, or, in the case of a group insurance policy, insuring certificate holders that are individuals or small businesses, for a period of 60 days, for any policyholder, or in the case of a group insurance policy, group policyholder or certificate holder, facing financial hardship as a result of the COVID-19 pandemic.  The foregoing relief shall also apply to the kinds of insurance set forth in paragraphs (16), (17), (20), (21), (24), (26), and (30) of Section 1113(a) of the Insurance Law.  For purposes of this Executive Order, a small business shall mean any business that is resident in this State, is independently owned and operated, and employs one hundred or fewer individuals;

Small Business

Federal

CARES

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.

What will lenders be LOOKING FOR?

In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020, and had employees for whom they paid salaries and payroll taxes or paid independent contractors.

Lenders will also ask you for a good faith certification that:

1. The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations

2. The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments

3. Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here

4. From Feb. 15, 2020, to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan)

If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.

Revised PPP application form (4/2/2020)

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

Revised PPP Loan Updated (6/2020)

As of Thursday morning, the Senate unanimously approved a new bill that makes PPP loans more flexible in how and when they’re used. The House passed its version last week. Now, the bill just needs to be signed by the president for it to become law.

The centerpiece of the CARES Act, the PPP, was intended to prop up small businesses like dry cleaners and help keep small business employees on the payroll. Loans can be for 2.5 times payroll costs, with no collateral. Most significantly, PPP loans can be forgiven, fully or in part, depending on if borrowers maintain headcounts and payrolls at pre-pandemic levels and use their loan for permitted expenses.  Many cleaners applied for, and some received this assistance

The money can be used for payroll (no more than $100,000 annual salary per employee) as well as benefits (including paid sick leave and insurance premiums) and taxes on compensation. The new bill passed by the Senate allows for up to 40% (rather than 25%) of the loan to be used to cover mortgage interest, rent, and utilities.

The new bill also expands the amount of time borrowers have to spend their loan and have them forgiven. Before, covered expenses had to be incurred over the eight weeks right after loan disbursement. Now, small business owners have 24 weeks. Also, they have until December 31, 2020 (instead of June 30) to rehire or restaff up to their pre-pandemic level.

Any portion of the loan that is not forgiven will carry an interest rate of 1.0% and is due to be paid back within five (instead of two) years. However, payments are deferred for the first six months. There’s no pre-payment penalty.


PPP Loan Forgiveness

Borrowers will have their loans forgiven if they use the money for designated expenses. Participants are eligible for loan forgiveness for the amounts spent on authorized expenses over 24 weeks after loan disbursement.

Total payments for payroll may be forgivable. Mortgage interest, rent, and utilities are also forgivable, up to 40% of the PPP loan. (Note that if your loan is forgiven, these expenses covered by the loan are not tax-deductible, the IRS recently stated in Notice 2020-32.)

To get the entire amount of the loan forgiven (assuming that at least 60% is spent on payroll and the rest on permitted expenses), you must meet two criteria. 

First, the full-time employee headcount cannot decline from average monthly levels during 2019 or during the past 12 months. If your business launched in the second half of 2019, you can use average headcounts from January 1, 2020, to February 29, 2020. If your business is seasonal, you can base your monthly averages on numbers from February 15, 2019, or March 1, 2019, to June 30, 2019.

Second, for loans to become full grants, employers cannot cut salaries or wages. If they do, the forgiven amount will be reduced. Employers who already let workers go (between February 15 and April 26, 2020) have until December 31 to restaff.

The SBA has released the application for PPP loan forgiveness. It is two pages, plus nine pages of instructions and worksheets.  Three big changes to note:

1.      Instead of having to use your loan to cover the eight weeks right after loan disbursement, borrowers can start with the first pay period after the loan disbursement. (So if you receive the loan on Thursday, and your next pay period starts on Sunday, you can start with that Sunday pay period.)

2.      Borrowers are not required to report all allowed non-payroll costs (i.e., rent, mortgage interest, and utilities) if they don’t want to include them in the forgiveness amount. Before, there was some confusion over this; the flexibility may help borrowers keep their non-payroll costs within the required percentage (25%).

3.      The SBA recognizes that some employees who have been let go may get new jobs, or some may be fired with cause. So now there is a safe harbor for these situations.

--  The SBA has a summary of loan terms here.  link address.....https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf 

If you were wary of applying for PPP money before due to the nebulous information regarding forgiveness, consult with your accountant about whether the new terms make it a more comfortable fit for your business.

To increase your likelihood of getting money in the new round of funding, you should line up a bank and apply right away. Applications have slowed down compared to the first round, but the program is first-come, first-served. The deadline is June 30.  


Small Business Continuity Fund

1. As of March 27th, applications are open for INTEREST-FREE LOANS through the Small Business Continuity Fund. Go to https://www1.nyc.gov/nycbusiness/article/nyc-small-business-continuity-loan-program

The Fund, a public-private partnership between Goldman Sachs 10,000 Small Businesses, Tapestry, Inc.’s Coach Foundation and Pursuit, offers loans of up to $75,000 to small businesses in New York City as they deal with various challenges in response to the novel coronavirus. To qualify, businesses must:

• Be located within the five boroughs of New York City

• Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue

• Employ 99 employees or fewer in total across all locations • Demonstrate ability to repay the loan

• Have no outstanding tax liens or legal judgments

As part of the application, businesses will be required to demonstrate a revenue decrease by providing documentation such as: point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements. Goldman Sachs Foundation will provide a grant to support technical assistance and capacity-building for the Small Business Continuity Fund.


The Employee Retention Grant Program

2. The Employee Retention Grant Program is available to help small businesses deal with the impact of COVID-19. Go to https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program

The City has launched the Employee Retention Grant Program to help retain employees as businesses face decreased revenue.

This program is available to New York City businesses with:

a. one to four employees and

b. can demonstrate at least a 25% decrease in revenue as a result of COVID-19.

Eligible businesses will receive a grant covering up to 40% of their payroll for two months. Businesses can access up to $27,000.

Who Can Apply?

Businesses must:

  • Be located within the five boroughs of New York City

  • Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue

  • Employ 1-4 employees in total across all locations

  • Have been in operation for at least 6 months

  • Have no outstanding tax liens or legal judgments

3. Northern Manhattan Emergency Recovery Fund

The Northern Manhattan Emergency Recovery Fund has received $2 million from Presbyterian Hospital for immediate relief to aid in the recovery and development of the community. The Fund will be administered by the Hispanic

 Federation. Go here for details https://hispanicfederation.org/nomafund/


For Employees

Federal

State 

City 


Things to Consider

Miscellaneous

The New York State ban on plastic bags has been postponed from April 1st toMay 15th Utilities have been ordered to not shut off service for gas, water, or electricity.

For NYC Employees

Verizon, Spectrum, and other cable providers' offer for free internet for households with school-age children. Verizon is also offering other learning tools and some premium TV channels offered to customers at no additional cost. Read the release: http://verizon.com/about/news/verizon-customers-learning-tools-premium-tv

Con Ed has halted all meter reading and installation of smart meters; stopped shutoffs of electric, natural gas or steam service due to non-payment resulting from the health crisis; waived new late-payment charges; and suspended the fee charged to a customer who is unable to grant access to their property. They WILL continue to shut off service when there is a safety issue. Customer service walk-in centers are shut. Residential customers can choose one of the alternate ways to pay their bill, including online at My Account, by mail with a check or money order, or by phone at 1-888-925-5016,

SNAP ASSISTANCE. The nonprofit expensify.org will reimburse SNAP participants $50 after they use their EBT card for approved purchases and submit a receipt. They are allocating these funds to help families in need to purchase essential groceries during the COVID-19 outbreak. There's no "catch" and the money is directly deposited into the participant's bank account. Employees should visit Expensify.org/hunger for more information.

Beginning Monday, March 23rd, free meals will be distributed at more than 400 sites across the city. Students may pick up three meals at one time. Find a location near you.

The New York State ban on plastic bags has been postponed from April 1st to May 15th 


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