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Paycheck Protection Program: Self-Employed and Independent Contractors can now pay themselves more

Author By Rebecca L. SimpsonPosted on

 

 

 

 

 

 

Attorney Rebecca L. Simpson

New Regulations regarding changes to PPP in Flexibility Act

On Friday, June 5, the Paycheck Protection Program Flexibility Act was signed into law and significantly loosened many Paycheck Protection Program (“PPP”) rules to make it easier for small businesses to use the loans in a way that will be forgivable. Two of the major changes to the PPP in the Flexibility Act where:

  1. The loan forgiveness covered period (“Covered Period”) was extended from 8 weeks to 24 weeks, so borrowers have 24 weeks after receiving their funds to spend them
  2. The required payroll percentage was reduced from 75% to 60%, so borrowers can spend up to 40% on covered non-payroll expenses (mortgage interest, rent, utilities)

These and other changes in the PPP Flexibility Act raised many questions about the impact of the new rules on the calculation of PPP forgiveness.

In the last few days, the Small Business Administration (“SBA”) has issued three new sets of regulations announcing revisions to prior PPP SBA regulations, to make the regulations consistent with the changes in the Flexibility Act.

Major Revision Impacting Self-employed and Independent Contractors

One of the revisions announced by the SBA raises the cap on how much self-employed and independent contractors can pay themselves out of their PPP funds.

Prior to the PPP Flexibility Act and the SBA revisions to the regulations, in general the amount that self-employed and independent contractors could pay themselves out of PPP funds was capped at the lessor of:

  • 8 weeks (or 8/52) of 2019 net profit, OR
  • $15,385 per individual in total across all businesses

According to a revision issued by SBA yesterday, that cap for the 24-week Covered Period has been raised to the lessor of:

  • 2.5 months (or 2.5/12) of 2019 net profit, OR
  • $20,833 per individual in total across all businesses

This higher cap applies to those who file a Schedule C or F and who use the PPP 24-week Covered Period (rather than the 8-week Covered Period). Although the Covered Period was increased from 8 to 24 weeks in the Flexibility Act, if your PPP loan was made before June 5, 2020, you may elect to have your Covered Period be the 8-week period beginning on the date of your PPP loan. If, however, you want to take advantage of the higher cap described above, you will need to use the 24-week Covered Period.

Conclusion

As part of our new Small Business Solutions Group, we will continue to stay on top of changes that may impact your PPP loan forgiveness and we will post updates on our blog. If you need assistance maximizing the forgiveness of your PPP loan, please contact Rebecca L. Simpson at 513.797.2856.

Employment Law: US Supreme Court holds that discrimination based upon status of being gay or transgendered is prohibited

Author By Matthew S. OkiishiPosted on

On June 15, 2020, the Supreme Court of the United States, in Bostock v. Clayton County, Georgia, held that gay and transgender employees may not be fired merely for being gay or transgender. In a 6-3 decision, the Court held that termination on the basis of gender identity or sexual orientation violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment on the basis of sex, race, color national origin, or religion.

The Court only addressed the issue of whether termination on the basis of gender identity or sexual orientation is prohibited under Title VII. However, employees and small businesses should be aware that it is a near certainty that all forms of discrimination on the basis of sexual orientation or gender identity, including harassment, pay disparity, and discrimination in hiring and promotion decisions, are now prohibited under Title VII.

Title VII only applies to employers with more than 15 employees, and current Ohio and Kentucky jurisprudence has held that their respective antidiscrimination laws (Revised Code 4112.02, et seq. and Kentucky Revised Statutes 344, et seq.) do not prohibit discrimination on the basis of sexual orientation or gender identity. As a result, it is possible that businesses with less than 15 employees will not be affected by Bostock. However, Ohio and Kentucky courts normally interpret their states’ antidiscrimination laws in a manner consistent with the interpretation of Title VII. Therefore, there is a very good chance that the protections now afforded to gay and transgender persons by Title VII will also be applied to smaller employers in Ohio and Kentucky.

The employment attorneys at the Finney Law Firm take pride in staying up-to-date with recent developments in employment law, including the recent Covid-19 leave requirements and expansion of Title VII protection. Employers and employees should consult experienced legal counsel to be fully advised of their rights and obligations under the law. For assistance with these matters, consult  Matthew S. Okiishi (513.943.6659) and Stephen E. Imm (513.943.5678).

Constitutional Law: Finney Law Firm sues Elmwood Place for wrongful arrest in profiling of black man

Author By Christopher P. FinneyPosted on

A second in a series of wrongful arrest claims against local police for what amounts to racial profiling was filed this week by Finney Law Firm attorney Bradley M. Gibson, this time against the Village of Elmwood Place and police officer Robert McConnell. The Plaintiff is Monday Oduimoh.

You may read the Complaint here and below.

You may read the Cincinnati Enquirer story here. Video of the incident accompanies the story, separately linked here.

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Constitutional Law: Media wrap for today’s Kalahari win

Author By Christopher P. FinneyPosted on

Here is the media coverage from today’s win for Kalahari Resort Water Park and Convention Center against Dr. Amy Acton before Judge Roger Binette in Erie County Common Pleas Court:

Constitutional Law: Finney Law Firm client Kalahari Water Park and Convention Center win Preliminary Injunction against Dr. Amy Acton

Author By Christopher P. FinneyPosted on
Ohio’s largest hotel and convention center, Kalahari Park in Sandusky

In a second State Court win against the arbitrary and unconstitutional shut-down Orders of Dr. Amy Acton and Governor Mike DeWine, the 1851 Center for Constitutional Law (Maurice Thompson) and Finney Law Firm (Christopher Finney and Julie Gugino) today obtained a Preliminary Injunction for the re-opening of Kalahari Water Park and Convention Center in Sandusky, Ohio.

Read the Order here and below. More on this will follow.

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Constitutional Law: Music festivals are latest client of Finney Law Firm to sue Dr. Amy Acton to reopen

Author By Christopher P. FinneyPosted on

As is reported here by Jennifer Baker of Fox 19, today Finney Law Firm filed suit against Dr. Amy Action, former director of the Ohio Department of Health, to allow planned summer music festivals to proceed.

Read the story here.

David Nethers of Fox 8 in Cleveland also has the story here.

Read the Complaint here.

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Paycheck Protection Program: “Forgiveness” webinar is now available on-line with attorney Rebecca L. Simpson and Congressman Dr. Brad Wenstrup

Author By Christopher P. FinneyPosted on

Last night, Empower U, the Cincinnati Area Board of Realtors, the Ohio Real Estate Investors Association, and Finney Law Firm  co-hosted a webinar for more than 140 participants on the topic of PPP loan forgiveness.

As background, in April, we helped hundreds of Ohio businesses access PPP and EIDL loan funds (see this webinar for small businesses for and this webinar aimed at independent contractors).

But Part #2 of the PPP program is qualifying for and applying for loan forgiveness. If you don’t do Part #2 properly, you will have to re-pay the funds.

Rebecca L. Simpson and Congressman Dr. Brad Wenstrup gave a detailed webinar (with a great and detailed PowerPoint) on the rules and approach to obtain forgiveness.  That webinar is posted by Empower U here.

If you have further questions about the PPP or EIDL loan programs, contact Rebecca L. Simpson (513.797.2856).

 

Bankruptcy Law: Basics of Ohio Chapter 7 Bankruptcy

Author By Susan Cress BrowningPosted on

 

Attorney Susan Browning

 

This blog addresses the basics of a Chapter 7 bankruptcy filing. It is the first in a four-part series covering Chapter 7, Chapter 13, Chapter 11 and Subchapter V.

In today’s economic climate, you may find yourself experiencing a financial downturn, whether it stems from the COVID-19 crisis, the current political unrest or is something you have been struggling with for some time. The bills are stacking up, late fees are being assessed, minimum payments are increasing, and you can no longer keep up. In addition, creditors are contacting you constantly and possibly lawsuits are being filed. You need to take some action, but where do you begin? This blog series is designed to give you some preliminary information regarding the different types of bankruptcy. You can stop the harassing phone calls and letters by contacting a bankruptcy attorney at Finney Law Firm.

Part One: Basics of Chapter 7

Chapter 7 bankruptcy can eliminate or “discharge” most, if not all, of your unsecured debt and put you back on the track to financial stability. Although some exceptions exist, generally you can get rid of credit card debt, unsecured loans, medical debt, overdue utility bills, as well as contractual obligations. There are certain debts that cannot be discharged in bankruptcy including recent taxes, student loans and domestic support obligations.

Most importantly, the bankruptcy court puts in place an “automatic stay” that prevents creditors from contacting you or taking any action to collect from you.

Upon filing bankruptcy, you must list all your assets, all your unsecured and secured debts, as well as all your monthly income and expenses.

Chapter 7 bankruptcy is a “liquidation”. As frightening as that term sounds, most clients escape a chapter 7 without any assets being collected and sold. The first step is to assess what assets you own and determine their value. If there is a lien on the property, we would examine if there is any value above and beyond the amount that you owe. This figure would be your equity. Pursuant to state law, certain types of assets are protected or “exempt” up to an allowed amount. If your equity does not exceed that amount, that asset is exempt property and is safe from liquidation.  To the extent the equity exceeds the state law exemption the asset would be nonexempt property and subject to turnover to the bankruptcy trustee

When filing Chapter 7 bankruptcy, a debtor must qualify financially. You must be below a certain income level for your household size as provided by the Census Bureau and IRS . This is calculated using the last six months of income to average your monthly income. Even if you exceed this income level, the court will take into account your necessary and reasonable monthly expenses to determine if the income is offset to the extent that there is very little left over to pay your unsecured creditors.  If your income exceeds your reasonable expenses  you may examine filing a chapter 13 bankruptcy which is a repaint plan over a period of time.

In addition to this preliminary income requirement, there will be an inquiry into your recent financial history. You will disclose certain transactions that have occurred over the last several years. You will provide information including, but not limited to, income, transfers of property, payments made to creditors and family members, and association with any businesses.

How to move forward

If you have made a decision to move forward, I will conduct an initial consultation to determine if you are a candidate for bankruptcy, a follow-up meeting for document and information gathering, as well as an appointment to  review and sign the bankruptcy forms included in the voluntary petition. You will also attend a brief hearing with me by your side in front of a bankruptcy trustee. The trustee’s role is to review your petition to determine if you have any unprotected, non-exempt property to distribute to creditors. If so, the trustee will collect and sell the asset and distribute proceeds to the creditors. If no assets are available for distribution the trustee will note it on the docket. The creditors will then have 60 days to object to discharge of your debts. If no creditors object in that timeframe, you will receive a discharge by mail and the case closes a short time after.

Of course, there are many more facets to Chapter 7, but this covers the topic with very broad strokes. Future blogs will delve deeper into individual issues. Part 2 of this blog series will cover the Basics of Chapter 13 and will be released soon.

Please contact Susan Browning at Finney Law Firm, 513.943.6650, to determine if bankruptcy is the right option for you. Remember, the initial consultation is free.

Ohio Constitutional Law: Erie County Common Pleas Court Judge Binette calls Monday 1:30 PM evidentiary hearing on case against Dr. Acton

Author By Christopher P. FinneyPosted on

Concurrent with yesterday’s filing by the 1851 Center for Constitutional Law’s suit against Dr. Amy Acton to reopen Kings Island and Cedar Point amusement Parks, we also filed a second suit in Erie County (Sandusky) to reopen Kalahari Resorts & Conventions Water Park.

That case was assigned to Common Pleas Court Judge Roger E. Binette. Today, we received the attached Judgment Entry from Judge Binette calling for an evidentiary hearing on Plaintiff’s request for Temporary Restraining Order and Preliminary Injunction. (See here and below.)

The Judge cautions both parties:

“Failure to appear may result in Court sanctions being imposed, including but not limited to, contempt actions.”

So, our attorneys and witnesses will be in Judge Binette’s courtroom Monday at 1:30 PM.

Kalahari’s resorts are America’s largest indoor water parks. Its Sandusky location has more 850 hotel rooms and a 225,000 SF water park, among dozens of other amenities.  It directly employs hundreds of Ohioans, and indirectly supports local businesses employing hundreds more.

Developments will be continuously posted on this web site and through our firms Twitter account: @FinneyLawFirm.

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Here’s the media wrap just this evening on the suit against Dr. Amy Acton to re-open Kings Island amusement park

Author By Christopher P. FinneyPosted on

The story on our lawsuit to open Kings Island Amusement Park has gotten significant media coverage:

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