Fund – Tadasei http://tadasei.com/ Mon, 03 May 2021 05:47:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 http://tadasei.com/wp-content/uploads/2021/04/tadasei-icon-150x150.png Fund – Tadasei http://tadasei.com/ 32 32 Nissan dealers get paid more for 84- or 96-month loans http://tadasei.com/nissan-dealers-get-paid-more-for-84-or-96-month-loans/ http://tadasei.com/nissan-dealers-get-paid-more-for-84-or-96-month-loans/#respond Wed, 07 Apr 2021 23:14:05 +0000 http://tadasei.com/nissan-dealers-get-paid-more-for-84-or-96-month-loans/

Illustration from article titled Nissan to Pay Dealers More to Referral Customers on 84 Month Loans

Picture: Paul J. Richards (Getty Images)

First, Nissan double subprime loans. He is now prepared to pay more money to dealers when customers sign up for longer terms. This is the new plan that Nissan presented to dealers, according to a report by Cars Direct.

Nissan calls this the future of NMAC dealer compensation, referring to its financial arm, Nissan Motor Acceptance Corporation. In the plan, when customers finance their loans through NMAC, Nissan will pay dealers 1% of the total amount financed.

But it’s getting better.

Cars Direct says that in the fine print, you’ll learn that dealers will receive up to $ 450 when customers opt for 84-month financing. Nissan appears ready to steer people into financially precarious loans for the benefit of dealer profits. It’s not about putting the customer first.

Illustration from article titled Nissan to Pay Dealers More to Referral Customers on 84 Month Loans

Picture: Nissan

All of this has the potential to be bad on many fronts. The main problem is that it disproportionately affects – or outright targets – low-income people and minorities.

How? ‘Or’ What? Some dealers may discriminate. Judging people is one thing when it comes to car sales, as a test conducted in 2018 by the National Alliance for Fair Housing using two couples at dealerships in Virginia, one black and one white. Their results showed that 63% of the time, black clients received higher interest rates on their loans, even though they were more qualified than their white counterparts. The potential effect is that buyers with higher interest rates would choose longer terms to reduce their monthly payments.

Illustration from article titled Nissan to Pay Dealers More to Referral Customers on 84 Month Loans

Screenshot: NMAC

This is all linked to another problem as well. Dealers will be inclined to offer customers longer terms to get higher compensation for the dealership. Suspending the lower payments that come with the 84 and 96 month loan terms could cause problems for clients as the loans are underwater – due to more than the car’s value – especially with the brands. and models that have steep depreciation curves.

Nissan is one of those brands. A Altima for example, with an assumed selling price of $ 26,453, 59 percent after only five years. What about five-year depreciation of a seven-year loan with a high interest rate? It doesn’t bode well for anyone. The sad part is, I’m sure Nissan dealers would be more than willing to welcome these customers again, turning that negative equity into another loan to fill their pockets again.


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Holland Steakhouse Jointly Owned by State Representative Tommy Brann Fined $ 1,750 for COVID-19 Violations http://tadasei.com/holland-steakhouse-jointly-owned-by-state-representative-tommy-brann-fined-1750-for-covid-19-violations/ http://tadasei.com/holland-steakhouse-jointly-owned-by-state-representative-tommy-brann-fined-1750-for-covid-19-violations/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/holland-steakhouse-jointly-owned-by-state-representative-tommy-brann-fined-1750-for-covid-19-violations/

HOLLAND, MI – The co-owner of Brann’s Steakhouse and Grille in the Netherlands has paid a fine of $ 1,750 for workplace COVID-19 violations at his restaurant.

According to the Michigan Occupational Safety and Health Administration (MIOSHA).

The fine, issued on February 11, was originally for $ 3,500. The inspection that led to the fine took place in response to an employee complaint.

MIOSHA spokesperson Camara Lewis said Brann filed an appeal on February 24. The agency confirmed the quote, but offered to cut the fine in half. Brann accepted the deal and paid the reduced penalty, she said.

In an interview with Grand Rapids Press / MLive, Brann said the fine was imposed because there was no protective shield installed at the hostess station and because a few employees had their masks down.

“We’re doing all the right things that we can and need with masks,” Brann said. “But are we slipping?” Everyone is human.

Brann said he “asked for a break” with the fine because his business was struggling due to the COVID-19 pandemic and was relying on his line of credit to make ends meet. “We just asked for a break… if you want to call $ 1,750 a break. For me, that’s a lot of money.

Brann is the full owner of Brann’s Steakhouse and Grille at 4157 S. Division Ave. in Wyoming. He said he co-owned Brann locations in Holland, Muskegon, Grandville, Cascade Township, as well as a permanently closed location in Portage.

Brann said he co-owned the Holland restaurant with his brothers Johnny and Mike Brann.

Lewis said the February 11 breach was the first COVID-19 breach for a restaurant in Brann.

In total, 190 workstations have been cited for issues related to the pandemic by MIOSHA. Brann’s restaurant was among the 16 recently added to the agency’s website.

Related: Grocery store and ice cream factory among 16 Michigan workplaces fined for COVID-19 violations

Brann was first elected to the State House in 2016, and represents Michigan’s 77th District, which includes the City of Wyoming and the Township of Byron. He was a defending small businesses, including state and federal relief for those affected by the COVID-19 pandemic.

His steakhouse received a $ 15,000 Michigan Small Business Survival Grant that helped the restaurant retain or rehire 20 positions, according to status data.

Tommy Brann’s Steak & Seafood Inc. received two loans under the Federal Paycheck Protection Program (P3), which was designed to help businesses keep workers affected by the pandemic keep workers on the list payroll.

One loan, approved Jan. 23, was $ 229,646. Another, approved in April 2020, was $ 164,033, according to data compiled by the news site Propublica.

Some PPP borrowers may be eligible for a loan discount.

Brann said he supports face masks and supports a proposal requiring the use of face masks as a way to fight the COVID-19 pandemic.

Brann says he is running for the vacant 28th seat of the Kent District State Senate. The seat was once held by Republican Peter MacGregor, who stepped down from the seat after being elected Kent County Treasurer last year. A special primary election for the 28th district seat is scheduled for August 3, followed by the general election on November 2.

Read more:

How a fake lawyer and conservative outrage made Marlena’s Bistro a national symbol of pandemic freedom

MDOT seeks comment on proposed roundabouts at the US-10 interchange in Bay County

Saginaw County Health Department Offers COVID-19 Test After Spring Break


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Minnesota House Democrats unveil bundle of budget bills http://tadasei.com/minnesota-house-democrats-unveil-bundle-of-budget-bills/ http://tadasei.com/minnesota-house-democrats-unveil-bundle-of-budget-bills/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/minnesota-house-democrats-unveil-bundle-of-budget-bills/

MINNEAPOLIS (AP) – Minnesota House Democrats on Monday unveiled legislation calling for more spending on education and rehabilitation for those hardest hit by the pandemic, while raising taxes for wealthy residents and large corporations .

The bill set follows the $ 52.5 billion budget targets released by House Democrats late last month, which is more than Democratic Governor Tim Walz’s proposal and Senate GOP proposal . The legislation would provide more than $ 1 billion in tax cuts for workers, families and small businesses while raising taxes for the wealthy and businesses that have used the pandemic to fund investments in education and COVID-19 recovery efforts.

The tax bill echoes Walz’s proposal by expanding the tax credit for state-worker families and creating a fifth tax bracket with an 11.15% rate for income more than $ 1 million for a couple declaring jointly. The bill also includes a tax exemption for businesses that received up to $ 350,000 in federal loans from the Paycheck Protection Program, which lawmakers said would include 90% of Minnesotans who received the loan, and tax relief of up to $ 10,200 in unemployment benefits received by workers.

“The fifth level is also trying to address the big disparities in income that this COVID-19 has brought,” said the chairman of the House Tax Committee, Rep. Paul Marquardt, of Dilworth. “This is a bill that creates more tax fairness, but provides the significant investments in COVID-19 recovery and future investments.”


The education budget bill – which includes $ 722 million in new spending for Kindergarten to Grade 12 – includes increased funding for kindergartens and school districts, as well as several measures to recruit teachers of color while improving the school environment for teachers and students of color. .

The package also includes paid and sick leave, emergency paid leave for healthcare workers, and health and safety protections for meat and poultry processing workers. Other measures would provide grants to businesses that lost revenue during the pandemic, as well as other investments in businesses in underserved communities.

Senate Republicans oppose any further tax increases, citing the state’s projected surplus of $ 1.6 billion and about $ 4.8 billion in federal aid to the state through the President Joe Biden’s $ 1.9 trillion stimulus package. GOP Senate Majority Leader Paul Gazelka of East Gull Lake called the creation of a fifth tax bracket a ‘bad idea’, and reiterated his call for tax exemptions on all loans PPP.

“In Minnesota, you probably know we’re one of the highest taxed states in the whole country, yet Democrats in the House are saying, ‘We need more, we want more taxes,'” a- he said in a video response on Facebook. “It’s the last thing we need right now.”


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Investar Reaches $ 41.1 Million Deal to Buy Alabama Bank | Business http://tadasei.com/investar-reaches-41-1-million-deal-to-buy-alabama-bank-business/ http://tadasei.com/investar-reaches-41-1-million-deal-to-buy-alabama-bank-business/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/investar-reaches-41-1-million-deal-to-buy-alabama-bank-business/

Investar Bank completed the previously announced acquisition of Alabama-based Cheaha Bank nearly a year after the transaction closed.

The $ 41.1 million deal was reached on Thursday. The move expands Investar’s footprint in northeast Alabama by giving it four branches in Calhoun County.

“We believe these branches will complement our recent entry into Alabama,” said John D’Angelo, President and CEO of Investar. The Baton Rouge-based bank moved to the state in 2019 when it bought another small Alabama institution, the Bank of York. It now has six branches and a loan production office in the state.

Investar Bank’s parent company has signed a new deal to acquire Alabama-based Cheaha Financial Group for $ 41.1 million after a previous deal …

Investar first announced its intention to buy Cheaha in December 2019 and said the transaction would close in the second quarter of 2020. But that deal fell through due to unpredictable financial conditions caused by the COVID-19 pandemic.

Investar cancels plan to acquire Alabama bank and will close Zachary branch

The parent company of Investar Bank has said it will not go ahead with the purchase of Alabama-based Cheaha Financial Group due to the unforeseen …

In January, Investar announced that a new deal had been struck and the deal would close in the spring.

Cheaha Bank has around $ 238 million in assets, $ 120 million in net loans and $ 206 million in total deposits. The move gives Investar nearly $ 2.6 billion in total assets and 35 branches in Louisiana, Texas and Alabama.


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The Fond du Lac prosecutor announces the appointment of the Attorney General | state http://tadasei.com/the-fond-du-lac-prosecutor-announces-the-appointment-of-the-attorney-general-state/ http://tadasei.com/the-fond-du-lac-prosecutor-announces-the-appointment-of-the-attorney-general-state/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/the-fond-du-lac-prosecutor-announces-the-appointment-of-the-attorney-general-state/

MADISON, Wisconsin (AP) – Fond du Lac County District Attorney Eric Toney will challenge Attorney General Josh Kaul next year.

Toney announced his candidacy on Saturday afternoon in a statement. He is the first Republican to enter the race. He accused Kaul, a Democrat, of being more interested in politics than law enforcement, saying Kaul strives to advance liberal causes such as student debt cancellation.

Kaul joined a group of 23 attorneys general in a letter to U.S. Education Secretary Miguel Cordona on Wednesday calling for more reforms to make the student loan repayment process easier and prevent borrowers from repaying old college loans. .

Toney was elected first district attorney at Fond du Lac in 2012 and is in his third term. He is also president-elect of the Wisconsin District Attorneys Association. He holds a law degree from Hamline University and has completed seven marathons.

He said he had reorganized the district attorney’s office to allow full-time prosecutors to handle cases of minors, domestic violence and sexual assault. He also praised himself for making the office paperless to operate more efficiently during the COVID-19 pandemic and for leading an effort to bring a drug court to the county.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


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USDA Calls Social Justice Advocate for New Role | 2021-03-31 http://tadasei.com/usda-calls-social-justice-advocate-for-new-role-2021-03-31/ http://tadasei.com/usda-calls-social-justice-advocate-for-new-role-2021-03-31/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/usda-calls-social-justice-advocate-for-new-role-2021-03-31/

WASHINGTON – A former Goldman Sachs vice president and social justice advocate has been appointed as assistant secretary of administration at the US Department of Agriculture.

Oscar Gonzales, who previously held a number of USDA Under Secretary Tom Vilsack positions in the Obama administration, was appointed on March 29 by President Joe Biden.

“Oscar has dedicated his life and career to fighting for disadvantaged and marginalized communities,” said Mr. Vilsack. “He grew up in a working class family in East Los Angeles and worked at almost every level of food and agriculture – from working on a horse farm to serving at the highest levels of leadership. in state and federal government.

“With Oscar’s leadership and a team that reflects the diversity of our country behind him, the USDA is committed to ensuring equity throughout the department, eliminating systemic racism and discrimination, and removing barriers to access to USDA programs. ”

Mr. Gonzales, a graduate of the University of California, San Diego and East Los Angeles College, has a long history of working at the federal and state levels to advocate for social justice for underserved and marginalized communities by putting the emphasis on Hispanic communities. He worked for the United Farm Workers Foundation for several years. His wife, Christine Chavez, is the granddaughter of American labor and civil rights legend Cesar Chavez.

In the Obama administration, Mr. Gonzales held a number of high-level positions at the USDA, including as Deputy Assistant Secretary for Administration, Deputy Chief of Staff for Operations, and Senior Advisor on United Nations Reform. immigration to Secretary Vilsack.

Previously, Mr. Gonzales oversaw FSA programs in 58 counties in the nation’s largest agricultural producing state, California, as executive director of the USDA Farm Service Agency.

Prior to entering public service, Mr. Gonzales worked with various nonprofits including the Constitutional Rights Foundation, Building Up Los Angeles, the Corporation for National Service, the California Community College Foundation, the National Hispanic Environmental Council. , the East Los Angeles Residents Association, and the UFW. Foundation.

In his most recent role, Mr. Gonzales worked for Goldman Sachs where he held the title of Vice President of Government Relations for Western States.

Previously, he was vice president of community and government relations for Aura Financial, a CDFI-certified financial technology company disrupting the predatory lending industry with loans that helped low-income people.


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Fair Shot: Minority Business Owners Advocate For More State Contracts http://tadasei.com/fair-shot-minority-business-owners-advocate-for-more-state-contracts/ http://tadasei.com/fair-shot-minority-business-owners-advocate-for-more-state-contracts/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/fair-shot-minority-business-owners-advocate-for-more-state-contracts/

Magali Verdugo is no stranger to challenges.

In 2004, she immigrated to America from Ecuador and learned English.

In 2013, she started a construction company, a sector in which only 10% of the workforce and 14% of managers are women.

Last year, as the owner and president of American Building Wreckers, an East Hartford-based demolition and asbestos abatement company, Verdugo had to deal with the impact of COVID – which has postponed some projects – to support its employee base.

And now Verdugo is accepting a new challenge: advocating for the State of Connecticut to assess whether its set-aside program, designed to guarantee minority businesses (MBEs) like his a minimum percentage of contracts with the state, responds adequately. needs, in light of increased national attention to racial equity issues and the dire impact of the pandemic on minority-owned businesses.

In Connecticut, which first implemented its set-aside program in 1977, 25% of all government contracts must be awarded to small businesses and at least 6.25% of contracts must be specific to small businesses. minority-owned businesses.

Thirty-eight states have some form of layaway programs, according to the National Conference of State Legislatures, but Connecticut is one of the few to set a mandated percentage.

But the 6.25% gap for minorities has not changed for almost 35 years.

“The percentage [for state contracts] is too small and there is not enough area to grow them [minority] entrepreneurs to become more valuable for the [construction] industry, ”said Charles LeConche, Labor Relations Specialist for American Building Wreckers.

To encourage the state to examine any disparities in state contracts and, they hope, increase the percentage of state dollars allocated to minority businesses, Verdugo and LeConche are working with some state lawmakers to pass the bill. 5652 – introduced by Hartford Democratic State Representative Edwin. Vargas – to investigate the matter. It is one of the few House bills currently in the Legislature to address racial equity concerns.

It’s a question that is already on the radar of the State Department of Administrative Services (DAS), which administers the set-aside program, according to agency spokeswoman Lora Rae Anderson.

The curriculum, which is enforced by the State Human Rights and Opportunities Commission, can only be legally changed if the state conducts a formal disparity study that shows inequalities for certain minority groups.

And although funding for such a study has not been approved by the legislature in the recent past, Anderson said, state budget chief Melissa McCaw intends to commit carry-over funds into the state budget to finance a study on disparities.

“This past year has hit our economy hard and we know that… state government agencies have a role to play in our important recovery efforts,” Anderson said. “We are optimistic about the launch of this disparity study and [potentially] make the necessary changes based on its results. “

Lifebuoy required

This focus comes as small employers in general and minority-owned businesses in particular grapple with the fallout from COVID, which has highlighted racial disparities, said Glendowlyn Thames, deputy commissioner of the Department of Economic and Community Development. (DECD).

“Among the most affected sectors [by the pandemic] were hospitality, tourism and retail and these are traditional industries in which minorities and women operate, ”Thames said.

According to the National Bureau of Economic Research, 41% of black-owned and 32% of Latino-owned businesses closed their doors temporarily or permanently last April, at the start of the pandemic, compared to a quarter of businesses owned by Latinos. women. and 22% of all businesses.

In part, Thames says, this is because minority-owned businesses traditionally face barriers in accessing capital through traditional lending institutions. In fact, a pre-COVID study by JPMorgan Chase found that more than half of minority-owned businesses have less than two weeks of operational cash reserves.

This is not the case with Verdugo’s company, which generated $ 2.5 million in revenue in 2020 – modest growth in recent years.

But she still relied on $ 100,000 from the federal government’s Paycheque Protection Program (P3P) to keep her 30 employees, all minorities, at work.

It is an infusion of capital that many minority-owned businesses have not received. According to figures from the Small Business Administration, of the 4.9 million loans granted under the CARES Act, only 2% went to black-owned businesses.

This has put additional pressure on federal and state governments to throw a lifeline to MBEs.

Recent changes to the PPP program, whose deadline has been extended to May 31, aimed to expand access for minority-owned businesses.

Meanwhile, Thames said the Lamont administration had attempted to provide assistance, including in October when it committed $ 50 million from the state’s CARES Act relief funds for grants to small employers. hardest hit by the pandemic; 50% of the money was intended for businesses in struggling municipalities.

It is a temporary solution to a longer term challenge. As the state – and its minority businesses – seek to rebuild the economy after the pandemic, providing access to capital and creating more access to state-certified projects for minority-owned businesses will be an important consideration. .

While Verdugo’s company is fortunate to have strong working relationships with several construction companies in need of demolition services, and its state certification status has created many business opportunities, Verdugo said that his push for greater equity under the state set-aside program was about his business; it is about the minority community as a whole.


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Utilities committee revises water and sewer rate recommendations http://tadasei.com/utilities-committee-revises-water-and-sewer-rate-recommendations/ http://tadasei.com/utilities-committee-revises-water-and-sewer-rate-recommendations/#respond Wed, 07 Apr 2021 23:14:00 +0000 http://tadasei.com/utilities-committee-revises-water-and-sewer-rate-recommendations/

GREENVILLE – The Utilities Committee of Greenville City Council on Thursday reconsidered the city’s plans to increase water and sewer rates for city residents.

By unanimous consent, the three committee members approved a recommendation to council for a decrease in the planned rate increases.

A previous measure, which would have increased water tariffs by 50% in May 2021 and 18% in November 2021, as well as increases of 25 and 10% in sewer tariffs, respectively, was rejected 6-0 at the March 16 board meeting. .

Instead, the committee will change the recommended increase percentages to 20% in September 2021 and 10% in March 2022, for both water and sewage. Each following year, we would see increases of 20% in September and 10% in March, for a period of 3 years. Thereafter, the tariffs for each utility would increase by 5% per year unless they were reviewed by the council.

The committee will continue to recommend moving from quarterly billing to monthly billing starting in September.

The committee discussed various ways to ease the burden on citizens while still being able to afford infrastructure upgrades, including a new water tower and main waterline.

“The intention is to put the money in a safe place where it can only be spent on infrastructure,” Councilor John Baumgardner said. “It’s my heartburn and I believe it’s the heartburn of the rest of the board.”

“Compared to other towns and even villages around us, we are still the cheapest water tariff, and I think there is a need for it. All we want to do is protect that money for infrastructure, ”he added.

Security and Services Director Ryan Delk told the committee that even beyond infrastructure improvements, operating costs “continue to rise.”

“One example, transporting sewage sludge, prices continue to skyrocket,” Delk said. “For the transport of water pipes, the last [estimate] was $ 150,000, and the next closest auction was $ 350,000. “

Delk added that the COVID-19 pandemic has also resulted in increased construction costs.

Baumgardner, along with Councilors Clarence Godwin and Doug Wright, agreed that a small increase in funding for daily expenses was needed.

When asked if the city is exploring outside funding options, such as federal or state infrastructure grants, Delk said the city is looking for them, but there are conditions that must be met by the city before it can in. make a request.

“Our plan is, once we get the rates online, that we can support to pay off low interest loans. We want to move forward with two of our big projects, which is the main water line entering the plant, around $ 1.5 million, and what we call “ Water Tower East ” in the industrial park, or approximately $ 6.5 million. Said Delk.

“Because our rates are so low, they [EPA, USDA, Small Cities] will not give us grants, ”Baumgardner said.

The committee will bring the revised recommendations to Greenville City Council at the April 20 council meeting.

The Greenville utilities committee met on Thursday to review its recommendations on water and sewer rate increases. The committee will recommend increases that are smaller than those initially planned, but extended over time.

Lower the initial rate hike from 50% to 20%

To contact Darke County Media Editor Erik Martin, email emartin@aimmediamidwest.com or call 937.569.4312.


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Call on social workers to help rebuild in the post-Covid world http://tadasei.com/call-on-social-workers-to-help-rebuild-in-the-post-covid-world/ http://tadasei.com/call-on-social-workers-to-help-rebuild-in-the-post-covid-world/#respond Wed, 07 Apr 2021 23:13:51 +0000 http://tadasei.com/call-on-social-workers-to-help-rebuild-in-the-post-covid-world/

The Covid-19 pandemic is not just a historic public health crisis. It is an economic and mental health crisis unlike anything in recent memory.

Social workers have played an indispensable role in helping people cope with the most devastating consequences of the coronavirus pandemic.

Their efforts will be just as crucial in the months and years to come, as we move into a post-COVID-19 world.

Angelo McClain

The impact of the pandemic on our collective mental health has been staggering, especially due to social isolation and loss. More than four in ten adults now report symptoms of anxiety and depression. Drug overdoses have increased and an increase in domestic violence has been a terrible consequence of orders for people to stay at home.

After:Central Ohio hospitals focus on caregiver care amid COVID-19


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All is not forgiven: forgiveness and PPP credits | Morrison & Foerster LLP – Public Procurement Overview http://tadasei.com/all-is-not-forgiven-forgiveness-and-ppp-credits-morrison-foerster-llp-public-procurement-overview/ http://tadasei.com/all-is-not-forgiven-forgiveness-and-ppp-credits-morrison-foerster-llp-public-procurement-overview/#respond Wed, 07 Apr 2021 23:13:51 +0000 http://tadasei.com/all-is-not-forgiven-forgiveness-and-ppp-credits-morrison-foerster-llp-public-procurement-overview/

On March 23, 2021, The House Small Business, Markets and Infrastructure Subcommittee held a remote hearing titled: “The Interaction Between Paycheck Protection Program and Federal Acquisitions Regulations: What It Means for Government Contractors.” The hearing focused specifically on the interplay between the Paycheck Protection Program (PPP) loan cancellation and Federal Acquisitions Regulation (FAR) 31.201-5 “credits”, and how this interaction affects federal contractors who perform cost type contracts. This meeting highlights an area where entrepreneurs have incomplete directions at best. We will continue to monitor these issues as new guidance is released.

FAR 31.201-5 states that: “The applicable part of any income, rebates, allowance or other credit relating to any eligible cost and received by or accruing to the contractor will be credited to the government either as a reduction in cost or in the form of cash refund. . This provision applies to: (1) the pricing of negotiated contracts and contract modifications each time the cost analysis is performed, (2) the determination of reimbursable costs under cost reimbursement contracts and the reimbursement part of the costs of time and material contracts,[1] and (3) negotiating indirect tariffs.[2]

Thus, insofar as the proceeds of the PPP loan are used by the contractor to cover the direct or indirect costs subject to the FAR 31.201-5 (for example, eligible cost reimbursed by the government under a cost reimbursement contract), and the loan is subsequently canceled, the government is entitled to a credit. Specifically, the Department of Defense (DoD) clarified that, to the extent that the proceeds from the PPP loan were used to pay for costs otherwise reimbursed under a government contract and the proceeds from the PPP loan were eventually canceled, a credit is required in accordance with FAR 31.201-5.

On December 20, 2020, the Defense Contracts Audit Agency (DCAA) issued advice to its statutory auditors, as subsequently revised on January 28, 2021, concerning the processing of the FAR credit 31.201-5. As part of these guidelines, DCAA has issued the following instructions:

  • The canceled PPP loan amount will apply as a credit or cash repayment in the same way that the PPP loan proceeds were used by the contractor. If, for example, the proceeds of the PPP loan were used to pay rent and the rent is included in an indirect cost pool, that cost pool should be credited during the period in which the PPP loan was canceled. .
  • Credit is not required for the proceeds of the PPP loan used for costs attributable to Firm Price Contract (FFP). For example, no credit is required for canceled PPP loan proceeds used to pay employees for work performed under commercial contracts or FFP contracts not subject to DSC cost principles.
  • With respect to forward pricing, as costs incurred in calendar years 2020 and 2021 are used as part of the basis for estimating proposals, auditors should understand how these costs incurred have been affected by Coronavirus Aid, Relief and Economic Security (CARES) Act as well as the effect on future estimates.

The House subcommittee noted that it had heard small businesses advocate for waiving the DSC loan clause to cancel PPP loans. Naturally, these small businesses have complained that applying for such credit is contrary to the intent of the PPP loan in that the loan is not really canceled if the government actually demands repayment of the loan through credits. Identifier.

This hearing may have been triggered by the Department of Transportation (DOT) draft guidelines released on January 22, 2021. Carlos A. Penin, PE President, CAP Engineering, testified at the hearing that these guidelines require that the costs be incurred. overheads of a contractor be reduced by the amount of PPP loan cancellations granted to engineering firms. Mr Penin added that a reduction in the overhead rate would in turn reduce future billing rates and, for many engineering firms, result in a net loss greater than the PPP discount. Robin S. Greenleaf, PE, speaking on behalf of the American Council of Engineering Companies, echoed Mr Penin’s concern, explaining that “[t]The audited indirect cost rate is used for an accounting period of one year, but it is also the rate used for the duration of a contract, which is often multi-year. Ms. Greenleaf noted that DOT’s work is typically done under multi-year contracts that set the billing rate.

In response to concerns raised by small business entrepreneurs, the subcommittee determined that “[a]At a minimum, it will be important to ensure consistency in the application of the credit clause between the agencies so that it does not result in an undue advantage for the government and that the well-being of the contractor is protected. The Sub-Committee apparently recognized that the guidelines to reduce an entrepreneur’s overhead costs for the amount of the PPP loan cancellation and to apply these reduced rates over the term of a multi-year contract were contrary to the requirement. FAR 31.205-1 according to which the “applicable part” of a credit relating to any eligible cost must be credited to the government.

On March 24, 2021, the day after the House hearing, the DOT Federal Highway Administration (FHWA) issued a memorandum regarding “Processing of Paycheck Protection Program Funds for Architectural and Engineering Consultants”. The memorandum acknowledges that the proceeds from the PPP loan were intended to “enable companies to maintain wage costs, prevent employees from losing their jobs during the 2019 coronavirus pandemic (COVID-19), and cover the overhead costs necessary to the continuation of commercial activities ”. The memorandum, however, goes on to state that the PPP “was not enacted to provide an economic windfall to the employer (for example, when costs are reimbursed by the federal government under a contract financed by the federal government). and that the PPP loan is also canceled by the SBA.). ” Identifier. Therefore, neither DOT nor DOD guidelines waived the credit provision.

The memorandum applies to architectural and engineering services provided under Federal-Aid or Federal Lands Highway (FLH) funded contracts where the consultant seeks partial or full cancellation of the PPP loan. The guidelines recognize that these contracts include a provision prohibiting unauthorized donations to a project. Thus, the DOT guidelines require that consultants seek reimbursement from the agency for direct project costs and provide that a consultant cannot use the proceeds of the PPP loan to pay for direct project costs even if the costs do not. are not billed to the federally funded project. The DOT guidelines are as follows:

  • Architectural and Engineering (A&E) consultants cannot use the proceeds of the PPP loan to pay the direct costs of a contract funded by federal aid or by the FLH.
  • A&E Consultants cannot charge for direct costs and use the proceeds of PPP loans to fund direct labor compensation costs and other direct costs spent on federally funded contracts. This practice results in inappropriate payment for billing to the federal government on two occasions. A consultant can use the PPP loan as a working capital loan to pay the direct costs of a contract, but must submit a timely reimbursement request to the contracting agency and make the appropriate and necessary adjustments in its accounting records an once the refund has been received. .
  • The proceeds of the PPP loan cannot be used to pay for the direct costs of the project, even if these costs are not billed to the federally funded contract. This action results in a donation to the project, which has not been authorized and conflicts with the terms and conditions of the contract. A&E consultants should continue to allocate and invoice direct and indirect costs in accordance with the terms of the contract.
  • A&E consultants can use the proceeds of the PPP loan to pay indirect costs, but an adjustment of the indirect cost rate is required in accordance with [FAR 31.201-5].
  • A&E consultants must adjust their indirect cost rates for canceled PPP funds in order to provide the corresponding credit to the federal government. All indirect cost credits should be reflected in the subsequent adjusted indirect cost rate. If an A&E consultant can apply the appropriate credit for indirect costs on existing contracts, the contracting organization may authorize the consultant to do so.
  • All applicable credits (or loan recoveries) should be applied on the basis of an equitable allocation to all beneficiary cost targets in accordance with [FAR 31.201-4]. Credit at the indirect cost rate should only be applied until the credit is fully recovered. If an A&E consultant’s indirect cost rate adjustments do not affect the award or type of contract (e.g., Firm Fixed Price or Lump Sum contract), the adjustment of that contract will not. will not be necessary.

Identifier. at 2 hours.

The DOT FHWA guidelines allow the consultant to use the proceeds of the PPP loan as a working capital loan to pay the direct costs of a contract, but the consultant must submit a timely claim to the agency for reimbursement of the costs. direct costs and, after receiving reimbursement from the agency. , make the necessary adjustments to the accounting records. The consultant does not have the option of using the proceeds of the PPP loan to pay the direct costs and not request reimbursement from the agency.

DOT FHWA guidelines require consultants to adjust their indirect cost rates to the extent that the canceled PPP loan proceeds have been used to pay indirect costs. However, the guidance does not require the use of the reduced indirect rates for the entirety of a multi-year contract in that they state that the reduced rate for indirect costs is to be applied only until the credit is fully recovered. Thus, the consultants may be required to repay the PPP loan effectively through reduced indirect rates, but they will not be required to repay the government more than the amount of the PPP loan.

This hearing and the DOT FHWA guidelines, which appear to have sparked it, are unlikely to be the final say on this matter, as Congress balances the requirements of the FAR credit provision with the desire to provide government contractors with the same. advantage of the PPP discount than their sales. counterparts. We will continue to monitor directions in this area.

[1] FAR 31.201-5 does not apply to time and material contracts when the material is invoiced on a basis other than cost.

[2] FAR 31.103 (a), (b) (1), (b) (2).

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