Could a fix finally be on the way from some of the Paycheck Protection Program’s most arduous restrictions?
The House voted 417-1 yesterday to pass legislation
that would make urgently needed changes to the program which was created to help small businesses and nonprofits but has been widely criticized
for being too restrictive.
This new bill
extends the time in which businesses must use the funds from eight weeks to 24 weeks. It also amends the 75/25 rule for how much businesses must
spend on payroll versus non-payroll costs in order to get full forgiveness to 60/40.
And it pushes back the deadline to rehire workers from June 30 to Dec. 31, while allowing businesses that receive loan forgiveness to defer payroll
Now comes the tricky part. The Senate also has its own PPP extension bill, that would increase the time frame from eight to 16 weeks and allow businesses
to use funds to purchase protective equipment for employees, among other amendments. Senators failed to pass the bill before adjourning for a recess
this week, but will return next week.
How one bank managed the PPP onslaught
Remember a few weeks back when small business owners were desperately trying to find a bank to process their PPP applications?
Here’s an example: When Needham Bank President and CEO Joe Campanelli realized the demand for the loans was going to outstrip his team’s capacity
he turned to Babson College
, his alma mater, and asked for help.
“We knew that we would receive more loan requests than we could handle with current resources. Instead of turning people away, we reached out to Babson
to get interns in place to help with various parts of the process,” Campanelli said.
Babson’s Centers for Career Development
folks quickly reached out and notified students about this opportunity. Over one weekend they recruited 16 interns who spent the next five weeks
helping process loans.
CARES act can help donors help nonprofits
As Bloom Shapiro reminds us in this blogpost
the CARES Act (the same law that gave us the PPP) also includes features that can help donors looking to help nonprofits.
This includes an above-the-line deduction of up to $300 of charitable contributions, including from individuals who do not itemize. Providing a much
greater potential benefit, the law also allows individual donors to deduct qualified cash donations of up to 100 percent of their AGI, instead
of the previous 60 percent. This increased deduction is an excellent opportunity for donors to reduce their 2020 tax bill, while providing a great
benefit to charitable organizations.
The CARES Act also allows for deduction of up to 25 percent of the corporation’s 2020 taxable income, up from 10 percent.
Double whammy: Rent and property taxes due Monday
Back in early April, the governor signed into law a bill allowing municipalities to delay payments of Fiscal Year 2020 real estate and personal property
tax bills (that were we due April 1) to no later than June 1.
The move was certainly helpful at the time. Now, of course, June 1 is Monday, which means its time to make those payments; placing a further burden
on landlords who may have tenants struggling to pay rent (also due Monday).
Help for those left out in Baker’s ‘four phases’
Or, do you have a specific question about how the available guidance applies to your work place?
The state has set up a portal just for those kinds of questions: Submit you inquiry here
Officials promise that every comment will be reviewed and compiled, but only questions will receive a response.
Finally, two new faces in Needham
Needham has hired Katie King
as the new Assistant Town Manager/Director of Operations. King most recently worked for Boston, where she served as Mayor Marty Walsh’s Director
of Intergovernmental Relations and former Mayor Thomas Menino’s Director of State Relations. Before that she held various policy and advocacy roles
with the American Cancer Society, US Department of Health and Human Services and American Lung Association of the Northeast. King starts work Monday.
And Kyle I. Grimes
has been appointed to the new president and GM at WCVB-TV (Channel 5). Grimes comes from the NBC affiliate serving the Lancaster-Harrisburg-Lebanon-
York, Pennsylvania and succeeds Bill Fine,
who announced his plans to retire earlier this month.
“I have closely followed Kyle since he became general manager at the same station where I started my broadcasting career,” Fine said. “It is clear
to me that he brings the necessary qualities to lead this great television station. I look forward to working with Kyle over the next few months
as I transition from general manager to loyal viewer and alum.”
Take good care this weekend.
President, Newton-Needham Regional Chamber