Page 7 - Metro Record April 2021 filea

THE METRO RECORD - APRIL 2021 7

In Spite of the Challenges We Achieve! FUNDING NEWS

New Haven Paycheck Protection Program

Foundation Donates

$400K To State’s (PPP) Changes for Sole

Black Communities Proprietors / Schedule C Filers

NEW HAVEN, CT – Amidst a other funders. Significant By Jeff Sullivan, $20,833 PPP loan depending on gross income is greater than
pandemic that has exacerbated flexible resources can enable President, New Valley Bank their gross revenues. $150,000, there may be
racial disparities and widened TPF to focus attention on its own additional certifications needed,
inequities, a $400,000 multi- growth and growing On March 4 the Small Business Below are a few details around and the SBA reserves the right to
year grant has been awarded by philanthropic resources that Administration announced a the rule change that may help to ask for more documentation in
The Community Foundation for advance economic and social significant change to the formula clarify a few important points: the future to prove that the loan
Greater New Haven (The mobility in Greater New Haven's used to calculate Paycheck was absolutely necessary to
Community Foundation) to Black communities and beyond." Protection Program (PPP) loans � The primary rule support ongoing operations.
strengthen the capacity of The for sole proprietors and others change allows Schedule C filers � Borrowers will also
Prosperity Foundation (TPF) as In addition to the grant, The who file their business taxes on to base their PPP calculation on have to provide evidence that
a local Black-led and Black- Community Foundation for Schedule C of their individual tax “gross income” (line 7) instead of they were in business and
serving organization. Greater New Haven will return. “net profit” (line 31). operating on February 15, 2020.
continue to provide back office � The same calculation New Valley continues to actively
"This grant from The and investment management The changes allow for the PPP methodology that has been used accept applications and advise
Community Foundation for services to TPF, as it has done loan to be calculated based on all along for PPP loans – divide both existing and new clients
Greater New Haven comes at a since TPF established itself as an gross income, not on net profit of the “gross revenue” by 12 and with the PPP process. If you or
critical time in our growth and independent entity in 2015. the proprietorship as has been multiply that number by 2.5 to anyone you know believes you
puts TPF in a stronger position the rule previously. In other arrive at the PPP loan amount. have potentially been impacted
to grow our organizational Among its many activities, TPF words, the SBA is recognizing � If a Schedule C filer by this rule change, our team is
capacity and become a more has engaged African Americans that sole proprietors and other paid wages (line 26), employee ready to assist you. Applicants
potent philanthropic force by, throughout Connecticut through Schedule C filers were being benefits (line 14), or pension/ can apply at
for and of the Black community educational events in various penalized as compared to profit share expenses (line 19), www.banknewvalley.com. New
in Connecticut," says Howard K. parts of the State, including entities that file a stand alone tax these expenses must be Valley staff members can also
Hill, Founder and President of Hartford, Stamford and New return, and they are intending to deducted from the “gross assist in answering questions by
The Prosperity Foundation. Haven. It has also produced a eliminate that penalty. income” found on line 7 prior to calling 413-739-2265 or emailing
seminar series providing donors completing the rest of the ppp@banknewvalley.com.
"A strong, growing statewide and prospective donors with At New Valley Bank, we calculation above.
Black community foundation greater awareness about how witnessed many applicants who � Borrowers cannot New Valley Bank is a full service
has greater potential to expand philanthropy can contribute to had negative or zero net income amend a First Draw or Second bank based in Springfield, MA
opportunity and advance racial addressing critical needs in on their Schedule C from 2019, Draw PPP loan that were specializing in meeting the needs
equity, both priorities of The Black communities. And it and were therefore ineligible for previously received under the of small business owners and
Community Foundation's manages a Small Grants a PPP loan. These business old rules. However, borrowers their employees. New Valley
strategic plan framework," says Initiative funding Black-led and owners can now reexamine their can use the new rules for loans operates from two locations at
William W. Ginsberg, President serving community based 2019 or 2020 Schedule C and going forward. One Monarch Place and at 1930
and CEO of The Community organizations. In response to the could be eligible for up to � Please note that if your Wilbraham Rd. in Springfield.
Foundation for Greater New impact of the COVID-19
Haven. "We are proud to have pandemic in 2020, TPF help to
supported TPF since its origin feed over 60,000 families with
and are encouraged to see new fresh produce, dairy, and meat.
partnerships between TPF and