The Leader • Saturday, Jan. 2, 2021 • Page 1B
Start preparing now to get more PPP relief By Jonathan McElvy jonathan@theleadernews.com
Last Sunday, President Donald Trump announced he would sign a second round of stimulus legislation that provides financial stimulus for many individuals, small businesses and defined business sectors like the airlines, restaurants and health organizations. We’re here to talk about the specific impacts on small businesses, so if you want information on the other sectors, some of the best coverage is at CNBC, Politico and the Wall Street Journal. Based on our experience of talking to thousands of small businesses this year, there are some critical steps we think you should be taking right now if you are considering applying for a second round of Paycheck Protection Program (PPP) funding (PPP.2, as I’m calling it). And even if your business did not apply during the first wave, we think it’s critical that any business interested in emerging from this pandemic consider doing so during this round. If we learned anything from the first round of PPP, it’s incredibly important that you have all your ducks in a row as soon as you possibly can. Banks will await guidance on how to administer this program, though things should move much quicker this goaround as national and community banks all seemed to perfect the process of accepting applications and approving them. Don’t forget, there was an initial PPP and then more money was released under the original CARES Act. So these banks know what they’re doing, and it’s important that you be ready. Here’s what we’ve been able to learn about this second round of PPP, assuming it passes: - You are eligible even if you received the initial round of PPP; - You are eligible if you have 300 or fewer employees (originally, it was 500 employees or less); - You are eligible if you can show that your revenue in any single quarter of 2020 was 25 percent lower than the same quarter of 2019. - Maybe as important as
Publisher launches McElvy Partners with focus on small businesses From Staff Reports
Stock photo Local businesses planning to seek assistance from federal economic stimulus legislation are encouraged to start preparing the information and paperwork needed to apply.
any, this legislation, confirmed by Treasury Secretary Steven Mnuchin, removes a frightening tax burden on small businesses that received funding from the original PPP. Originally, any forgiven portion of the loan would have also meant expenses covered by the loan would not be tax-deductible, setting off crippling tax ramifications for many small businesses already struggling. It’s also important that businesses that received the first round understand that this second round of funding will likely be smaller than the first round. The language of the legislation spells out exactly how this round of funding will be calculated. 1. If you qualify under the two provisions mentioned above (under 300 employees and revenues 25 percent in any 2020 quarter compared to the same quarter in 2019), you’ll then use your payroll to determine the amount of your loan. 2. You’ll take the LESSER (and that’s the key word) of the past 12 months of payroll or 2019 payroll and use that as your baseline number. My assumption is most businesses will end up using January 2020-December 2020 as the
baseline payroll number for their loan amount. 3. You’ll then be able to add your state payroll taxes, along with the employer portion of any health insurance, and add that to the payroll number mentioned in No. 2. 4. Once you combine 12 months of payroll, add the state payroll taxes and employer portion of healthcare contributions. Then, divide that number by 12 (giving you a monthly amount), and then multiply that monthly amount by 2.5. That will give you a fairly good idea of how much you’re eligible to receive through this second round of stimulus. It should be noted that if your payroll was higher in 2020 than it was in 2019, then you’ll use the same formula, except you’ll use 2019 numbers. And the max amount you can receive from this program is $2 million. What You Do Right Now Let’s start with businesses that didn’t get a loan from the original PPP loan. If you’ve somehow held on through the past year, and if you meet any of the criteria explained above, I can find no financial or debtfearing reason you should not
apply in the second round. (If you’d like more information, feel free to contact me directly at https://www.mcelvypartners.com/contact/). If you are considering applying in the second round, here’s a quick list of things you need to do: - Call your bank. Call any bank. Preferably, you’ll use the bank where you currently do business. But if you happen not to have a relationship, make one. Set a meeting with a banker and let that bank know you plan to apply. This step is more important than you can imagine. - Get your business incorporation documents in order. (Yes, you need to be a legitimate business with an EIN, if you have employees. Same for a sole proprietor.) - Make sure you have copies of your 2019 tax returns. Even if you filed an extension last year, you should have them now. - Compile your revenue, by month, for 2019. If you don’t have good accounting software, that doesn’t mean this is impossible. There are plenty of people who can help you do so. See PPP, P. 2B
Business Briefs: Thiel assumes ownership of CH&P Architects By Betsy Denson
Oak Forest Baskin-Robbins closes A sign on the door at Baskin-Robbins, 1354 W 43rd St., Suite D, announced the closure of the franchise location of the ice cream parlor. “This shop will permanently close,” read the sign. “We apologize for the inconvenience.” Earlier this year, Charles Donut Shop – a few doors down – also closed its doors, citing an inability to keep up with rent payments while business slowed down due to the pandemic. The strip center is part of Oak Forest Shopping Center owned by Weingarten Realty.
betsy@theleadernews.com
Effective Jan. 1, Garden Oaks resident and architect Kyle Thiel assumed 100 percent ownership of Courtney Harper & Partners Architects. Courtney Harper founded the company in 1994. Thiel has a bachelor’s degree in architecture from Kansas State University and a master’s from Washington University. He is a member of the American Institute of Architects and Texas Society of Architects. Thiel has been practicing architecture for 20 years, focusing on renovation, adaptive reuse and interior build-outs. One of Thiel’s major recent projects at CH&P was a renovation at the University of Texas M.D. Anderson Cancer Center School of Health Professions, where the floor of the research building was split into hybrid teaching and research labs as well as a student commons for the undergraduate and graduate student populations. As a new “front door” for the school within the M.D. Anderson complex, the entrance to the student commons became a visual and architectural threshold. A member of the firm for the past nine years, Thiel said he is ready for the opportunities and growth that lie ahead. “I am honored and excited to be leading the company into the next phase of its life,” Thiel said. “With the rest of the CH&P team, we look to continue and build upon the reputation that Courtney has cultivated over these past 26 years.” New studio for Creative Motion Creative Motion owner Mary Pulliam Tiras recently announced she has acquired her own studio space in the old
Kyle Thiel
Rita Brosh studio at 720 Pinemont Dr. “Creative Motion 2021 is all about excitement and big changes, and I’m so thrilled to be able to offer this elevated comprehensive dance program to the amazing children of our community,” Tiras said. “Classes start in January, and I look forward to filling our new location with dancing bodies and smiling faces.” Classes will be both virtual and in person. Space sizes for the in-person classes are limited. For more information, email mary@ creativemotion.com, visit www.creativemotion.com or find the studio on Facebook. It’s user name is Creative Motion Houston.
Relic General Store opens in Heights Linda Trieu, the founder of baby clothing brand Three Hearts Apparel, along with Bear Cub Leather’s Manuel Lopez, opened Relic General Store at 205 Aurora St. in mid-December. The store offers clothing for men, women and children in addition to hand-poured candles, fragrances, food items and more. Lopez will also be crafting custom leather goods on site. “Classic general stores don’t really exist anymore, and we wanted to be more than your average (convenience) store,” Trieu told Houstonia Magazine. “We wanted to be a neighborhood place where people can stop in and have access to artisan products at a reasonable price.” Relic is open from 10 a.m.-5 p.m. Tuesday–Saturday and 11 a.m.-3 p.m. Sunday. If you have something for Business Briefs, please email betsy@theleadernews.com. Follow us on social media @FromTheLeader
Jonathan McElvy, publisher and president of The Leader, has launched a new division of his company focused specifically on small business partners, their operations, and their ability to navigate a diverse and ever-changing marketing landscape. McElvy Partners will become the umbrella organization for the different companies of which Jonathan McElvy has a majority ownership stake, including The Leader, The Greensheet, Texas Printers, the Fort Bend Star, Coastal Bend Publishing and Charlotte Media Group. “Since acquiring The Leader in 2012, we’ve been able to grow our company to include a number of strong print publications, along with their digital audiences,” McElvy said. “But the real growth of our company has come in the number of small businesses we work with every year.” Photo by Patric Schneider In 2020, McElvy said his media company has Jonathan McElvy is the CEO of helped more than 2,000 McElvy Partners, which serves businesses with their small businesses. marketing needs. “Internally, we’ve realized that business owners aren’t looking for consultants or career coaches,” he said. “What they need are partners. Small businesses today need information about very specific aspects of their operations. They need help understanding their value in the market. And they need help turning that value into a message that resonates with potential customers.” McElvy Partners, and its related website, McElvyPartners.com, will be an information source specifically for small businesses, with Jonathan McElvy’s writing serving as the anchor for the website. “For the past 20 years, I’ve either managed or owned small businesses. But I’m fortunate that I’ve also spent two decades talking with thousands of small business owners,” McElvy said. “Through that experience – largely on the marketing side – we’ve had the chance to learn about every sort of business you can imagine. And taking all that information and sharing what we’ve learned with other owners will be tremendously rewarding.” McElvy Partners also will leverage its own resources to help other small businesses. “For years, we’ve been considered a newspaper company, and I’m extremely proud of our print publications and their resiliency,” McElvy said. “But it’s important that our partners understand the entirety of our company. Our digital services division has built and maintains nearly 100 websites for small businesses. We write stories, produce video and handle photography for other businesses. We have a commercial printing operation that handles everything from flyers to brochures to business cards to signs.” Those are the resources McElvy said the new division of his company will better gear toward specific customers. “In the old days, we went to market with a flyer and a sale on a full-page ad,” McElvy said. “Today, we start with individual businesses, help them better understand how to grow their businesses, and then build individual plans that help them market a message that resonates with their customers.”
Jennifer M. Solak Attorney & Counselor at Law
ESTATE PLANNING PROBATE BUSINESS LAW
713.588.5744 jennifer@solaklegal.com 1305 W. 11th St., #3094, Houston, TX 77008