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Student Life Discussion
Q&A about impact of COVID-19 on student life and fraternity community with Chris Graham, Director of Fraternity and Sorority Life, Florida State; Jenny Loeffelman, Assistant Vice President for Student and Campus Life, Cornell University; Jeremiah Shinn, Vice President of Student Affairs, LSU; and Judson Horras, NIC President and CEO
Key Points:
- Major changes are coming for Fraternity/Sorority Life. Fraternities need to have hard conversations going into fall.
- How can fraternities support campuses as they deal with sick students? Connections with health departments and residence life will become critical.
- Modify protocols from past situations (Example: Mumps cases).
- Prepare to coach students who are unwilling to follow protocols.
The CARES Act: Income Tax Provisions for Businesses
Among its many provisions designed to stimulate the economy and provide relief to businesses, the CARES Act includes several tax provisions designed to do so through the US Internal Revenue Code. These tax provisions relate to industry-specific excise taxes, payroll taxes, income taxes and credits, charitable organizations, and tax-deferred retirement savings.
This Advisory focuses on the following income tax provisions in the CARES Act that impact businesses:
- Businesses now generally can carry back a net operating loss (NOL) generated in 2018, 2019, or 2020 for up to five years. In addition, the annual limitation on the deduction of an NOL of 80 percent of taxable income is suspended until 2021. The CARES Act also suspends the limitation for noncorporate taxpayers on the deductibility of excess business losses until 2021.
- The limitation on interest deduction, which otherwise permits businesses to deduct interest expense only up to 30 percent of adjusted taxable income, has been generally increased to 50 percent for 2019 and 2020.
- Tax credits related to the repealed corporate alternative minimum tax (AMT) now can be refunded entirely in either 2018 or 2019, instead of over four years through 2021.
- A technical error in the Tax Cuts & Jobs Act of 2017 (TCJA) has been fixed, making the cost of real property improvements eligible for immediate expensing under the “bonus” depreciation rules beginning in 2018.
We expect that most businesses will find these changes beneficial. However, as discussed in more detail below, there may be unintended tax consequences of carrying back NOLs. Legal questions also could arise from carrying back NOLs of recently acquired corporations.
Technology & Virtual Experiences Discussion
Q&A about the impact of COVID-19 on the fraternal community and how technology can be used for virtual experiences with Mike Bourassa of WBT Systems; Holly Rider-Milkovich of EverFi; Chris Woods of Plaid; and Judson Horras, NIC President and CEO
Key Points:
- Recognize that students are more comfortable with technology than organizations are.
- Provide tools for chapters to continue operations, philanthropy and service.
- Shorter is better, students will not be willing to sit through long virtual experiences.
- Find ways to retain personal touch or students won’t connect well.
How to Prepare Attendees for a Virtual Conference—or Other Online Learning Options
The modus operandi these days is making the best of a bad situation. Many associations are containing the financial ripple effects of cancelled conferences by converting them into virtual conferences and/or other online learning programs. Even within a short timeframe, they’re managing to register and prepare attendees for a virtual conference.
Shifting to a virtual conference makes the most sense for everyone.
Preparing to apply for Payroll Protection Program (PPP)
To be prepared for Payroll Protection Program (PPP), please have the following ready and available:
- PPP application form 2483 (blank form below) version 4/20 complete in its entirety by an authorized representative of the company, include addendum if requested (worksheet below);
- Additional PPP info form – should add up to amount requested, your best guess as to how funds will be used (worksheet below); and
- Supporting payroll information that supports the amount requested. Further guidance on payroll calculations can be found at the Treasury web
Documents to support their payroll/loan amount request must be attached. Supporting payroll documentation includes, but is not limited to:
- 2019 W3
- 2019 IRS quarterly 940, 941 or 944 payroll tax reports
- 2019 business tax return
- 2019 personal tax return (if the business files as a sole proprietorship or single entity LLC)
- Third party payroll processing documents
Step-by-Step: Emergency Injury Disaster Loan (EIDL) application
Michael Wilson, NIC chief financial officer, walks viewers through the online application for EIDL
Collegiate Athletics & Campus Life Discussion
April 3, 2020—Q&A about impact of COVID-19 on collegiate athletics and campus life with Mary Ellen Gillespie, Deputy Director, Women’s Basketball Coaches Association and Judson Horras, NIC President and CEO
Key Points:
- Expect delays and changes, particularly with football season and tailgate culture.
- How can fraternities get a seat at the table to reiterate the importance of our role as a retention tool for the athletics department?
The CARES Act: Economic Injury Disaster Loan (EIDL) Program vs. Paycheck Protection Program (P3)
On Friday, March 27, the President signed and enacted into law the Federal stimulus bill in response to the COVID-19 virus, known as the CARES Act. Many key provisions in the Act benefit small businesses and nonprofit agencies, including the small business loan programs administered through the U.S. Small Business Administration (SBA), like the Economic Injury Disaster Loan (EIDL) Program, and those directly administered through the CARES Act. known as the Paycheck Protection Program (P3). We created a comparison of these programs.
Continue to comparison of programs:
Offer: Blue & Co. SBA Emergency Injury Disaster Loan application assistance
All 501c entities are eligible to apply for a COVID-19 EIDL loan. This includes sorority or fraternity organizations, house corporations and other similar nonprofit organizations. The loan provides working capital of up to $2 million to small businesses and can be used for payroll, accounts payable, debt payments and other bills that could have been paid had the disaster not occurred.
Blue & Co. can complete the application process with the SBA for organizations interested for a fee not to exceed $1,750. Completing the application does not guarantee approval or fund payout. Formal approval of loan requests will come directly from the SBA.
The information requested in the attached form must be completed in its entirety and the form emailed to anovotney@blueandco.com.
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