The Small Business Development Center at Southwest Virginia Community College provides our registered clients with a monthly newsletter to keep them informed of the latest funding opportunities, regulatory issues, and best business practices.
We would like to share our updates with you.
Please feel free to pass this information to others and let us know how we can be of service to you.
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Recovery Startup Businesses Are Now Eligible For the Employee Retention Credit |
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Written into law with the American Rescue Plan Act, new businesses that opened during the pandemic are now eligible to receive stimulus funding as a Recovery Startup Business.
A Recovery Startup Business for the purposes of the Employee Retention Credit is defined as a business that:
- Began operations on or after February 15, 2020, and
- Average annual gross receipts do not exceed $1 million
As a Recovery Startup Business, here is what you need to qualify for the ERC:
- You must have 1 or more employees
- You must be a startup company and started operations on or after 2/15/2020
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Note: If you purchased an existing business that was open on or before 2/15/2020, your business is NOT a startup business and would qualify under the other ERC rules.
- You must have gross receipts under $1 million dollars for 2020 and 2021 each
- If you own multiple companies or have common ownership, you will need to speak to an accountant as the requirements differ and are beyond the scope of this blog. (In short: certain businesses with common ownership are grouped together through what the IRS calls “attribution rules.”)
- You must not be eligible for ERC under the other requirements, i.e. a significant decline in gross receipts or subject to governmental imposed orders/restrictions.
- You will be paying employees during Q3 and Q4 of 2021.
You can’t claim the credit for any of 2020, nor can you claim Q1 or Q2 of 2021. But the good news is you do qualify for up to $50,000 in credits for each quarter of Q3 and Q4 of this year – 2021.
As a new business, you are eligible to receive up to $7,000 per employee, per quarter, capped at $50,000, for the final 2 quarters of this year.
EXAMPLE
New startup with 5 employees.
$35,000 (5 employees x $7,000 per employee) in Q3
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$35,000 (5 employees x $7,000 per employee) in Q4 = $70,000
As a new business with 5 employees, you would receive a $70,000 check from the IRS this year. With the $70,000, you can buy new equipment, sign up for a nicer lease, or do more marketing – whatever you need to accelerate your business growth this year. You can even just distribute the funds to the owners. There are no stipulations for how these funds must be invested or spent.
Eligible Employers will report their total qualified wages for purposes of the Employee Retention Credit for each calendar quarter on their federal employment tax returns, usually Form 941, Employer's Quarterly Federal Tax Return. The Form 941 is used to report income and social security and Medicare taxes withheld by the employer from employee wages, as well as the employer's share of social security and Medicare tax and will take into account the credit applied.
Consult your CPA or tax advisory for more details.
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This information is for educational purposes only. The diagram serves to inform the small business owner on the types of different avenues that could be pursued to potentially increase revenue. This information pertains to small business owners in general and should not replace recommendations or advice obtained from business advisors, accountants, attorneys, etc.
The SBDC at SWCC urges small business owners to continue to stay abreast of funding opportunities that provide low interest rate loans or grants. Owners should check in regularly with their local SBDC or local government Industrial Development Authority/Economic Development Authority.
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LEARNING OPPORTUNITIES THIS MONTH |
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VPN WORKSHOP:
Protect Your Critical Information Series
Tuesday October 5, 2021 at 4 PM or
Wednesday October 6, 2021 at 12 PM
Do you use VPN for remote workers?
If you answered NO or if you are unsure, then your business is vulnerable to cyber attacks.
Virginia SBDC Cybersecurity advisor, Tom Stamulis, will show you how to implement the process and techniques in a how-to workshop to help protect your critical information.
This workshop will cover:
- Dangers of open WiFi
- How a VPN works
- How to set up a VPN
- Commercial VPN options
This 45 minute workshop is limited to 15 people. This workshop is set up for small group interaction and discussion. To protect the sensitivity of the information shared, these sessions will not be recorded.
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PATCHING AND SOFTWARE UPDATES
Wednesday, October 13, 2021 at 12 PM or
Thursday, October 14, 2021 at 4 PM
Do you regularly update your software and devices?
If you answered NO or if you are unsure, then your business is vulnerable to cyber attacks.
Virginia SBDC Cybersecurity advisor, Tom Stamulis, will show you how to implement the processes and techniques in a how-to workshop to help protect your critical information.
This workshop will cover
- Patching solutions for both Mac and PC
- How to automate patching and updates
This 45 minute workshop is limited to 15 people. This workshop is set up for small group interaction and discussion. To protect the sensitivity of the information shared, these sessions will not be recorded.
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PASSWORD MANAGEMENT
Tuesday, October 19, 2021 at 4 PM or Wednesday, October 20, 2021 at 12 PM
Do you have a system for managing passwords?
If you answered NO or if you are unsure, then your business is vulnerable to cyber attacks.
Virginia SBDC Cybersecurity advisor, Tom Stamulis, will show you how to implement the processes and techniques in a how-to workshop to help protect your critical information.
This workshop will cover:
- How to set up complex password requirements for MAC and PC
- Commercial and free password managers
This 45 minute workshop is limited to 15 people. This workshop is set up for small group interaction and discussion. To protect the sensitivity of the information shared, these sessions will not be recorded.
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QUICKBOOKS WORKSHOP
Tuesday, October 26, 2021
3:30 PM- 5:00 PM ET
This free virtual course reviews the three hot topics for any small business:
- Bank reconciliation
- Entering transactions vs. expenses
- Connecting your account with your banking institution
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FUNDAMENTALS OF A SECURE NETWORK
Wednesday, October 27, 2021 at 12 pm or Thursday, October 28, 2021 at 4 pm
Is your network secure?
If you answered NO or if you are unsure, then your business is vulnerable to cyber attacks.
Virginia SBDC Cybersecurity advisor, Tom Stamulis, will show you how to implement the processes and techniques in a how-to workshop to help protect your critical information.
This workshop will cover:
- Dangers of an insecure network
- What makes up a secure network
- Benefits of a secure network
- Commercial and free security devices
This 45 minute workshop is limited to 15 people. This workshop is set up for small group interaction and discussion. To protect the sensitivity of the information shared, these sessions will not be recorded.
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Webinar presented by The Virginia SBDC Craft Beverage Assistance (CBA) program. Visit the CBA program page for more information.
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CRAFT BEVERAGE FINANCE:
What You Need to Know Before Speaking With Your Banker
Thursday, October 28, 2021 9-10 AM
It takes significant financial wherewithal to enter and succeed in the competitive craft beverage industry, but it's not always clear what it takes to raise capital.
In this webinar, Virginia SBDC Craft Beverage Assistance Manager Chris Van Orden will ask Jason Sleeman, VP of Craft Beverage Lending at United Community Bank, what he looks for when working with craft beverage clients.
The free-flowing conversation will touch on key ratios, benchmarking, revenue projections, and other important information that you'll want to have prepared before approaching a lender. New and existing breweries, wineries, cideries, and distilleries all stand to benefit from this informational webinar.
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