Game challenge – Start The Challenge http://startthechallenge.org/ Tue, 20 Sep 2022 19:12:59 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://startthechallenge.org/wp-content/uploads/2021/08/cropped-icon-32x32.png Game challenge – Start The Challenge http://startthechallenge.org/ 32 32 North Carolina will still tax federally canceled student loans https://startthechallenge.org/north-carolina-will-still-tax-federally-canceled-student-loans/ Tue, 20 Sep 2022 19:12:59 +0000 https://startthechallenge.org/north-carolina-will-still-tax-federally-canceled-student-loans/ RALEIGH North Carolina residents whose student loans are canceled by the federal government will still have to pay state taxes on the money they would have paid. The General Assembly could change that, but it won’t, according to Sen. Phil Berger, a Republican from Eden who leads the state Senate. Canceling student debt is a […]]]>

North Carolina residents whose student loans are canceled by the federal government will still have to pay state taxes on the money they would have paid.

The General Assembly could change that, but it won’t, according to Sen. Phil Berger, a Republican from Eden who leads the state Senate.

Canceling student debt is a policy of President Joe Biden’s administration, and therefore of his fellow Democrats. After it emerged that current North Carolina state law means former students still owe taxes — not to Uncle Sam, but to the former North State — Democrats lobbied for a change.

In late August, the State Department of Revenue announced that while the loan cancellation plan exempts borrowers from paying federal taxes on those canceled loans, the same does not apply to state taxes. . A spokesperson for the IRS said the agency would “monitor any further enactments by the General Assembly that may change the imposition of student loan forgiveness in North Carolina.”

Governor Roy Cooper, a Democrat, and State Rep. Brian Farkas, also a Democrat, have proposed a legislative change that appears to be dead in the water.

Berger told reporters Tuesday at the Legislative Building that his chamber would not take him back.

“Student loan forgiveness, number one, is a federal policy that is not backed by any federal law as far as I can see,” he said. “Secondly, if we are going to make this change to our tax policy, to our tax laws, for this type of debt forgiveness, it would be totally unfair to people who have had credit card compromises, where those are taxable, and mortgage compromises, where taxable I think that’s something that I don’t think we need to approach in that way.

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The NC State University Memorial Steeple in Raleigh, North Carolina, shown in a 2021 file photo. Ethan Hyman ehyman@newsobserver.com

PPP Comparison

The White House has criticized Republican politicians who oppose the student debt forgiveness plan for providing loan forgiveness under the Paycheck Protection Program. Cooper, too, when seeking a state tax exemption, said this month that legislative leaders “need to find a solution that treats student loan forgiveness the same way they treated forgiving. PPP loan that many of them have received”.

But PPP loans during the coronavirus pandemic were a “completely different situation,” Berger said on Tuesday, saying they were taken out “as a result of the federal government and US government shutting down the economy.” state”, and were federal law.

“In this case, we basically have an executive order from the president,” Berger said before questioning Biden’s authority to grant loan forgiveness in the first place.

According to the North Carolina Department of Revenue, the General Assembly would have to pass a section of the tax code that would include student loan forgiveness as nontaxable income if state leaders wanted to pass a change.

Regarding the state’s tax revenue from these loans, Berger said he always said that when the state got additional money, it could “increase spending to meet any real needs that exist, we can take part of it and we can give part back.

Although the state recorded a revenue surplus of more than $6 billion in 2022, lawmakers did not include any kind of taxpayer rebates or refunds in the budget, as has been proposed in the past. This year’s budget bill, which consists mostly of minor changes since budgets are two-year spending plans, included significant increases in savings funds.

The 170 seats in the General Assembly are to be filled in November. A new legislative session begins in January.

For more on North Carolina government and politics, listen to the Under the Dome political podcast from The News & Observer and NC Insider. You can find it at https://campsite.bio/underthedome or wherever you get your podcasts.

Raleigh News & Observer related stories

Dawn Baumgartner Vaughan covers North Carolina state government and politics at The News & Observer. She previously covered Durham and received the McClatchy President’s Award, the NC Open Government Coalition Sunshine Award and several awards from the North Carolina Press Association, including for politics and investigative journalism.

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5 cheap CBN loans to access in 2022 https://startthechallenge.org/5-cheap-cbn-loans-to-access-in-2022/ Fri, 16 Sep 2022 05:37:28 +0000 https://startthechallenge.org/5-cheap-cbn-loans-to-access-in-2022/ If you are a Nigerian looking for a quick injection of cash to meet costs or expand, consider the Central Bank of Nigeria low interest rates can be the way to go to avoid paying excessive interest at loan sharks or commercial banks. The Central Bank of Nigeria has a series of low interest loans […]]]>

If you are a Nigerian looking for a quick injection of cash to meet costs or expand, consider the Central Bank of Nigeria low interest rates can be the way to go to avoid paying excessive interest at loan sharks or commercial banks.

The Central Bank of Nigeria has a series of low interest loans aimed at stimulating economic growth in Nigeria. However, to fight against inflation, the apex bank was forced to increase its intervention interest rate.

The central bank raised the interest rate on all intervention loans from 5% to 9%, effective July 20, 2022. This means that sectors like agriculture, electricity and aviation, which benefited from trillions of dollars in central bank intervention funds, must pay.

Nevertheless, given Nigeria’s runaway inflation rate of 20.52% as of August 2022 and the high monetary policy rate of 14%, CBN intervention loans remain the cheapest in the market.

The news continues after this announcement




recommended reading: Top 10 Loan Apps in Nigeria in 2022

Here are some CBN loans to consider

Agribusiness Small and Medium Enterprise Investment Program (AGSMEIS)

  • The CBN oversees the intervention program of the Federal Government of Nigeria, known as AGSMEIS. The loan is primarily targeted at micro, small and medium-sized enterprises (MSMEs) with the aim of boosting employment and promoting sustainable economic growth.
  • A candidate can get up to 10 million naira through the CBN AGSMEIS Loan at 9% annual interest, with a term of 7 years and a moratorium of 18 months. The AGSMEIS CBN loan is available for businesses engaged in all aspects of the agricultural value chain, including input supply, production, storage, processing, logistics and marketing. MSMEs in real industry, which includes petrochemicals, mining and manufacturing.

CBN Prime Borrower Program (ABP)

  • The Anchor Borrower Scheme is a Central Bank of Nigeria intervention scheme, i.e., single digit loan, established by the Federal Government in 2015 with the aim of boosting Nigeria’s agricultural sector. ‘economy. It is designed to create an economic link between smallholder farmers and agro-processors/anchors.
  • The initiative takes a value chain approach, linking inputs to production, processing and marketing. The program targets smallholder farmers to improve their access to high-quality agricultural inputs and, therefore, production that meets international standards.
  • The Main borrower The program essentially provides farmers with unsecured loans. They also receive agricultural inputs such as seeds and fertilizers. Loans are repaid in cash or harvested produce of equal value. This loan is available for companies that use agricultural products as raw materials (for manufacturing). In other words, agricultural enterprises.
  • The CBN revealed that “Between May and June 2022, under the Anchor Borrower Program (ABP), the Bank disbursed the sum of N3.62 billion, as disbursements for 12 rice, wheat and maize, bringing the cumulative disbursement under the program to N1.01 trillion, to over 4.21 million smallholder farmers growing 21 commodities across the country.
  • With this program, the CBN seeks to stimulate the production of cassava, cotton, maize, poultry, rice, sorghum, tomatoes, etc.

CBN Commercial Agriculture Credit Scheme (CACS)

  • Agribusinesses could benefit from the Central Bank of Nigeria’s Commercial Agriculture Credit Scheme. The CBN and the Federal Ministry of Agriculture have both contributed to the development of this facility. It aims to accelerate the development of the Nigerian agricultural sector, create jobs and improve food security by providing loans to eligible agri-allied enterprises.
  • The interest rate for this program is 9%. Loan amounts of up to N2 billion are possible, with loan terms of up to 60 months. If your business is involved in activities such as cultivation, fishing or animal husbandry, you may be eligible for the CACS fund.
  • The Bank has also disbursed “3.72 billion naira to fund three (3) large-scale agriculture projects under the Commercial Agriculture Credit Scheme (CACS). These disbursements brought cumulative disbursements under this program to N744.32 billion for 678 agricultural production and agricultural transformation projects as of June 2022.”

CBN Real Sector Support Facility (RSSF)

  • The Real Sector Support Facility Goals to boost production, create jobs, diversify the revenue base, increase foreign exchange and give inputs to the industrial sector on a long-term basis for the economy.
  • According to the Central Bank, as part of its efforts to boost the manufacturing sector, the CBN has disbursed N113.08 billion for 19 new projects under the Real Sector Facility. The funds were used for both greenfield and brownfield projects under the COVID-19 Response for Manufacturing (CIMS) and the Real Sector Support Facility from cash reserves differentiated (RSSF-DCRR).
  • The apex bank too declared this “Cumulative disbursements under the Real Sector Facility currently stand at N2.183 billion for financing 414 real sector projects across the country. In addition, as part of the 100 percent policy on production and productivity”

CBN 100 Percent Policy on Production and Productivity (PPP)

  • The Central Bank of Nigeria (CBN) has launched the 100 Percent Policy on Production and Productivity (PPP) for private companies that have a project to finance and can apply for up to N5 billion under the scheme.
  • Initiative, 100 percent PPPis a financial instrument designed to create a flow of finance and investment to businesses with the potential to catalyze a sustainable economic growth trajectory, accelerate structural transformation, promote diversification and improve productivity.
  • The initiative is funded through the CBN’s Real Sector Support Facility (RSSF-DCRR) Differentiated Cash Reserves window or any other funding window that may be determined by the CBN.
  • Apex bank said at the last MPC that “Under the 100 percent policy on production and productivity, the Bank has disbursed N9.98 billion for five (5) projects, bringing cumulative disbursements under the intervention to N68.13 billion. naira for 48 projects, including twenty-six (26) in manufacturing, seventeen (17) in agriculture, three (3) in health and two (2) in the service sector.

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Milwaukee auto retail store owner faces charges of misusing PPP loans https://startthechallenge.org/milwaukee-auto-retail-store-owner-faces-charges-of-misusing-ppp-loans/ Thu, 15 Sep 2022 19:29:20 +0000 https://startthechallenge.org/milwaukee-auto-retail-store-owner-faces-charges-of-misusing-ppp-loans/ A Milwaukee business owner faces federal charges of providing false information to obtain $176,895 in PPP loans, allegedly later using those funds for his own personal expenses. Larry Hart, owner of Hart of… A Milwaukee business owner faces federal charges of providing false information to obtain $176,895 in PPP loans, allegedly later using those funds […]]]>

A Milwaukee business owner faces federal charges of providing false information to obtain $176,895 in PPP loans, allegedly later using those funds for his own personal expenses. Larry Hart, owner of Hart of…


A Milwaukee business owner faces federal charges of providing false information to obtain $176,895 in PPP loans, allegedly later using those funds for his own personal expenses.

Larry Hart, The owner of Hart of Detailing LLC, a Milwaukee auto detailing store specializing in vehicle cleaning, is charged with two counts of wire fraud related to two different Paycheck Protection Program (PPP) loans he received. The United States Small Business Administration has overseen Paycheck Protection Program, but business owners could receive individual loans from approved private lenders as long as they applied and were approved. The PPP loans were intended to help businesses during the COVID-19 pandemic, providing funds for up to 8 weeks of payroll costs including benefits. The funds could also be used to pay interest on mortgages, rent and utilities. A criminal complaint alleges that on August 5, Hart received $90,999 from a moneylender in Atlanta. On February 2, 2021, Hart also received $85,896 from the same lender. Hart allegedly submitted fraudulent PPP loan applications to obtain these loans. “The defendant falsely asserted that he intended to spend the proceeds of the loan on payroll expenses, rental and mortgage costs, interest and utilities,” according to the complaint. “In fact, the loan funds were used, among other things, for personal expenses and other non-business expenses.” Hart was in U.S. District Court in Milwaukee on September 14 for a first appearance, at which he pleaded not guilty. His attorney was not immediately available Thursday for further comment. Hart faces up to 20 years in prison and a $250,000 fine.

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NEWITY is now offering SBA 7(a) loans up to $250,000 https://startthechallenge.org/newity-is-now-offering-sba-7a-loans-up-to-250000/ Tue, 13 Sep 2022 14:00:00 +0000 https://startthechallenge.org/newity-is-now-offering-sba-7a-loans-up-to-250000/ Faster access to affordable capital for small businesses CHICAGO, September 13, 2022 /PRNewswire/ — NOVELTYa small business marketplace dedicated to creating equitable access to small business loans and trusted business service providers, today announced the expansion of its lending solutions to include SBA 7 loans (a ) until $250,000. This new offering increases access to […]]]>

Faster access to affordable capital for small businesses

CHICAGO, September 13, 2022 /PRNewswire/ — NOVELTYa small business marketplace dedicated to creating equitable access to small business loans and trusted business service providers, today announced the expansion of its lending solutions to include SBA 7 loans (a ) until $250,000. This new offering increases access to affordable capital for small business owners who have historically struggled to obtain funds to grow their business.

NEWITY has simplified the 7(a) application to allow small business owners to apply for a business loan in less than 30 minutes. Plus, NEWITY offers phone and virtual support from seasoned SBA professionals through every step of the loan process. Northeast Bankan SBA approved lender, works with NEWITY to support small businesses by funding SBA loans made available through NEWITY’s portal.

Created to better serve Paycheck Protection Program (PPP) loans, NEWITY found it could do more to support American businesses and underserved communities after the program ended. “Now that the PPP is over, there is an even greater need to support American entrepreneurs,” said Luc LaHaie, co-founder and co-CEO of NEWITY. “After maintaining more than $11.4 billion PPP loans and helping 115,000 small businesses, we are strengthening our commitment to empowering entrepreneurs by expanding the size of our small business loan offering and continuing to work with the SBA.”

“We’re excited to continue leveling the playing field for small business owners,” said David Cody, co-founder and co-CEO of NEWITY. “This broader loan offering is a testament to our continued efforts to be a champion for American entrepreneurs who are otherwise disadvantaged when seeking traditional means of financing.”

About NEWITY

NEWITY is America’s small business marketplace, focused on empowering entrepreneurs with access to trusted service providers and affordable lending solutions – all in one place. NEWITY uses advanced technology to help small businesses access services to make their business more efficient and profitable. Today, this includes simplified online accounting with Xendoo to help entrepreneurs easily apply for 7(a) loans; personalized and competitive insurance with Mylo to help businesses meet specific loan requirements; and access to a market of marketing agencies with Breef to enable businesses to use their 7(a) funds more effectively. To join NEWITY’s growing small business community, visit NEWITYmarket.com.

SOURCE New

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Former Los Angeles woman charged with arranging 110 fraudulent PPP loans https://startthechallenge.org/former-los-angeles-woman-charged-with-arranging-110-fraudulent-ppp-loans/ Sun, 11 Sep 2022 22:55:01 +0000 https://startthechallenge.org/former-los-angeles-woman-charged-with-arranging-110-fraudulent-ppp-loans/ U.S. Attorney Duane A. Evans today announced the indictment of Sharnae Every, 27, of Houston, charged with one count of conspiracy to commit mail fraud and two counts of mail fraud. The case against each began following a referral from the Accountability Committee in Response to the COVID-19 Pandemic regarding possible fraudulent Paycheck Protection Program […]]]>

U.S. Attorney Duane A. Evans today announced the indictment of Sharnae Every, 27, of Houston, charged with one count of conspiracy to commit mail fraud and two counts of mail fraud.

The case against each began following a referral from the Accountability Committee in Response to the COVID-19 Pandemic regarding possible fraudulent Paycheck Protection Program loans. Investigators determined that there were at least 110 PPP sole proprietor loan applications in and around the Thibodeaux area and that they all had the same federal tax bills and forms with the same business name and amounts.

According to the indictment, Every created a fictitious business called “Natural Hair Afro, LLC, Houma, LA 70360” and used this fictitious business name on nearly all fraudulent PPP loan applications. Each advertisement under various aliases on Facebook to recruit individuals to obtain money from the PPP program. All fake and fraudulent PPP Sole Proprietor Loan applications prepared and submitted through various online portals including but not limited to Blueacorn. Each created all fake and fraudulent invoices, bank statements and schedules. Each falsely certified that the applications and information provided in the supporting documents were true and accurate when electronically submitting the fraudulent PPP loan applications.

Each charged $45 to $120 from the people they recruited to prepare and submit the fraudulent PPP application. Each Cash app primarily used to receive initial payments. Each then charged around $3,500 once the loans were funded. Each received these funds in her Cash App account or in her boyfriend’s checking account.

If convicted, Every faces a maximum sentence of 20 years, followed by a period of supervised release of up to three years, a fine of up to $250,000, or double the gross gain for the defendant, or double the gross loss for any victim, and a mandatory special assessment fee of $100.00, per count.

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Forgiveness of student debt, PPP loans and taxes https://startthechallenge.org/forgiveness-of-student-debt-ppp-loans-and-taxes/ Thu, 08 Sep 2022 07:55:12 +0000 https://startthechallenge.org/forgiveness-of-student-debt-ppp-loans-and-taxes/ 401(K) 2012: Taxes / flickr “And forgive us our debts, as we also have forgiven our debtors”; (Mat. 6:12 RSV). Jesus was clear: we must be merciful to others because we ourselves have received mercy. We are meant to uplift each other, ensuring that those who need it most are not neglected. If we are […]]]>

401(K) 2012: Taxes / flickr

“And forgive us our debts, as we also have forgiven our debtors”; (Mat. 6:12 RSV). Jesus was clear: we must be merciful to others because we ourselves have received mercy. We are meant to uplift each other, ensuring that those who need it most are not neglected. If we are ruthless, we risk losing pity for ourselves. This was something Jesus wanted us to understand in his parable of the merciless debtor. In it, he tells the story of a man with large debts forgiven by his lord (or king), who, nevertheless, does not want to be so generous to those who owe him money. Because the debtor was ruthless, his lord decided to make him repay his debt:

When his fellow servants saw what had happened, they were very grieved, and they went to report to their lord all that had happened. Then his lord called him and said, “Wicked servant! I have forgiven you all this debt because you begged me; and should you not have taken pity on your companion, as I have taken pity of you?” And his lord in anger delivered him to the jailers, until he had paid all his debt. So shall my heavenly Father also do to each one of you, if you do not forgive your brother for all your heart” (Matthew 18:31-35 RSV).

Certainly, mercy and forgiveness are not intended only for material debts; people should be willing to forgive others who truly seek their mercy. That doesn’t mean we have to be reckless. We can forgive, but that doesn’t mean we have to forget what people have done and how they are. While we should love everyone, we can and should be careful with those who hurt us or those who we feel continue to wish us harm. Saint Alphonsus de Liguori explained that our love is represented by our inner disposition and desire for others, using this to recognize that we can and must be careful in how we engage others.[1]

What is important is that our love for others means that we must be merciful to them, as we should be merciful to everyone, working to promote their good as part of the common good. As those who are oppressed, those who are unjustly persecuted and mistreated, those who are poor or those who are considered outcasts of society, receive less of what should be rightfully theirs, so we must focus on promoting them, as scripture and tradition point out. This is why those who are very indebted, without the means to take care of it, should be helped by society. While there are many ways to do this, depending on the need, President Biden does this most notably with student loan forgiveness (something that can be shown to follow sound moral reasoning, either from a Christian perspective , or from the point of view a secular point of view).What Biden intends to do should be seen as a start because, as most people recognize, much more needs to be done to fix the situation, including reforming the system that created the crisis. in the first place.

Unfortunately, what should be a boon to those in need could lead to them being placed on another unfair burden thanks to the way many want to ruthlessly ignore their plight and obstruct whatever is being done to help them. Because while those who receive student loan forgiveness won’t have to pay federal tax on what they receive, many states expect that any amount they have forgiven will be considered income that will be taxed, as was recently revealed to be the case in Indiana: “The Indiana Department of Revenue confirmed in an email Tuesday to the Associated Press that residents canceled the loans as taxable income under Indiana law.[2]

If it is important to talk about the tax burden that some states want to impose on those who get student loan forgiveness, because clearly many of them are impoverished despite whatever credentials they might have, it’s also important to consider what other ramifications they might suffer from states treating these funds as taxable income. This will put many of them in higher tax income brackets, which means they will have to pay a lot more taxes, money they may not have. Similarly, one wonders how this will affect other government aid they may receive, aid that is tied to their income. This is why we have to ask ourselves what will be used to determine their eligibility for aid. Will it be their federal taxable income or their state taxable income? It might seem that federal programs would use federal taxable income to make such decisions, but what about states that have their own particular variation of these programs, such as HIPs in Indiana, where HIP serves as an Indiana-accepted alternative to traditional Medicaid? Will they use state taxable income to determine eligibility? If so, ten to twenty thousand dollars in additional income would probably cause people to lose their health insurance! This is an issue that needs to be carefully considered so that the poor do not find that what is supposed to help them only makes things worse. It is also clear that placing the burden on those who are poor and receive only limited loan forgiveness, while forcing those who are wealthy and have received larger loan forgiveness, such as those with PPP loans, tax exemptis indicative of an unjust system that aims to harm the poor. [3]

In 1999, in preparation for the Year of Jubilee and the debt relief program for poor countries promoted by the Vatican, the USCCB explained how the Scriptures show us that a society should be judged by the way its subclass is processed. Debt relief, he said, is one of the ways in which society and the global community can help those who need it most and thus promote the common good:

The common good is the sum total of those conditions in society that enable all people to realize their full potential. This broad concept suggests the need to consider a wide range of factors in assessing the moral adequacy of debt policies. Ultimately, debt policies must consider the good of society as a whole, not just certain segments of it, and the global common good, not just that of individual nations. A moral assessment of debt policies must therefore include the extent to which the debt burden undermines the ability of governments to fulfill their obligation to promote the common good, forcing them to spend their scarce resources on servicing the debt rather than for essential investments in health. , education or drinking water. Debt policies cannot be judged solely on their impact on countries or institutions, but must take into account the interests and needs of all those affected by debt, at home and abroad. In this broader perspective, the debilitating debt of poor countries far removed from our own is a problem because it erodes the global common good.[4]

But, he also stressed, while debt relief, whether local, national or internal, is important, it should always be seen as a start of what needs to be done:

Overcoming poverty and inequitable development will require more than debt relief. This will require private and public investment, foreign aid, fair trade, better controlled and regulated capital flows, economic policies that promote growth, accountable and open government decision-making, and the growth of a civil society. dynamics in developing countries. Nevertheless, debt relief is often a prerequisite for the long-term sustainable development of the poorest countries. [5]

Debt relief is the foundation for a better future. Thanks to it, the extreme burdens it imposes on people can be lifted. However, to the extent that the system remains unjust, for example through systematic racism, sexism, ageism or other injustices, debt relief is not enough and the system must be changed. So when it comes to student loans and the issues associated with them, debt should only be the starting point; the education system must be reformed, ensuring that future generations do not go into debt. States that impede the effectiveness of debt relief by imposing penalties or burdens on those who need it most, while finding loopholes to help the wealthy avoid being burdened if they have their own debts written off (as happened with PPP loans), show that they oppose the common good and must be judged for their position. They must be reformed. Some of them can be achieved by external pressures, such as, for example, by the federal government; but ultimately much of the reform must be done from within, by those who live in the states, for they must remove from office the politicians who cause the most harm and replace them with those who will do what they can to promote the common good.


[1] “(Moreover, the Continuateur de Tournely, loc. cit., Tertio, si quis, notes that if one has refused to converse with an enemy because one can only expect harm from him, or because ( as Saint Bernadine of Siena says), he probably fears that something worse will result, so he can refrain from these signs of friendship, only he must love it inwardly and repair scandals with others)” , Saint Alphonse of Liguori, Moral theology. Volume I: Books I – III On Conscience, Law, Sin and Virtue. Trans. Ryan Grant (Post Falls, ID: Mediatrix Press, 2017), 537.

[2] Arleigh Rodgers,Indiana will enforce loan forgiveness, like other states” in AP (9-6-2022)

[3] Indiana, for example, made sure that the PPP loan exemption was not taxable: S corporations for COVID-19 reasons. The loan amount will be treated as tax-free income and all expenses paid by the loan will be fully deductible. This processing will modify the adjusted partner base. Any increase in the adjusted base of a partner’s interest in a partnership due to the excluded loan will be equal to the partner’s distributive share of deductions for expenses paid with the loan. Similar rules apply to S corporations and their shareholders. See Indiana Department of Revenue, Coronavirus Information (Questions on income tax).

[4] Board of Trustees of the United States Conference of Catholic Bishops, “A jubilee for debt forgiveness(4-1999).

[5] United States Conference of Catholic Bishops Board of Trustees. “

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Biden ‘evaluates’ student loan forgiveness for some with private loans https://startthechallenge.org/biden-evaluates-student-loan-forgiveness-for-some-with-private-loans/ Tue, 06 Sep 2022 18:10:17 +0000 https://startthechallenge.org/biden-evaluates-student-loan-forgiveness-for-some-with-private-loans/ The Department of Education is determining whether to extend student debt relief to all FFEL borrowers. Borrowers with FFEL loans held by businesses can consolidate them into direct loans to receive relief. Private, non-federal loans will not qualify for student loan relief. Loading Something is loading. President Joe Biden’s student loan forgiveness plan may be […]]]>
  • The Department of Education is determining whether to extend student debt relief to all FFEL borrowers.
  • Borrowers with FFEL loans held by businesses can consolidate them into direct loans to receive relief.
  • Private, non-federal loans will not qualify for student loan relief.

President Joe Biden’s student loan forgiveness plan may be the largest yet, but it still excludes millions of borrowers.

The majority of borrowers with federal student loans will be eligible to access Biden’s $10,000 to $20,000 relief if they earn less than $125,000 a year. This means that all borrowers with federally held loans – subsidized and unsubsidized loans, parent PLUS loans, graduate loans PLUS and loans in default – taken out before June 30, 2022, can apply in early October to reduce their balances.

However, the waters are a little murkier when it comes to the Federal Family Education Loan (FFEL) program. The FFEL program originally provided private loans guaranteed by the Ministry of Education. When the program ended in 2010, the department bought back some of the loans and they became federally owned. However, approximately 5000000 borrowers continue to have FFEL loans held by businesses, which means they are not eligible for federal relief.

According to a FAQs released by the department, it “evaluates whether to extend eligibility to borrowers with private federal student loans, including FFEL and Perkins loans.”

“In the meantime, borrowers with private federal student loans, such as the FFEL, Perkins, and HEAL programs, can take advantage of this relief by consolidating those loans into the Direct Lending Program,” the FAQ added. If consolidation is approved, these borrowers will be eligible for relief. The decision facing the ministry is whether or not to make all these borrowers automatically eligible without requiring consolidation.

Consolidation allows borrowers to combine federal loans they might be holding into one loan with a fixed interest rate, and the department says it’s a step borrowers can take if they want to qualify for a federal relief. Borrowers can apply to consolidate their debt into direct federal loans through this formbut the processing of the request can take more than a month and coincide with the deadline for requesting debt relief.

At this point, the ministry has yet to provide an update on whether it will expand eligibility for Biden’s relief to all FFEL borrowers. He also argued that borrowers who once had federal loans and consolidated them into private loans will not be eligible for the relief.

All other student loan borrowers who have federal loans likely won’t need to take any further action until October when it’s time to apply. They will have until December 31, 2023 to submit the form, and eight million borrowers will also be automatically eligible for loan forgiveness because the department has their tax information either through a FAFSA form or through requests for repayment plans. based on income.

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UK suspects fraudulent $1.3bn loans https://startthechallenge.org/uk-suspects-fraudulent-1-3bn-loans/ Fri, 02 Sep 2022 22:08:21 +0000 https://startthechallenge.org/uk-suspects-fraudulent-1-3bn-loans/ The British government expects 3.3 billion pounds (around $3.8 billion) of the “rebound” loans it has provided to small and medium-sized enterprises (SMEs) in response to the pandemic will turn out ultimately fraudulent. According to a Friday (September 2) Reuters report, another source said 1.1 billion pounds (about $1.3 billion) of these loans have already […]]]>

The British government expects 3.3 billion pounds (around $3.8 billion) of the “rebound” loans it has provided to small and medium-sized enterprises (SMEs) in response to the pandemic will turn out ultimately fraudulent.

According to a Friday (September 2) Reuters report, another source said 1.1 billion pounds (about $1.3 billion) of these loans have already been classified as suspected fraudthis amount could increase as more frauds are uncovered, and this will be announced in upcoming government data.

Forty-seven billion pounds (around $54.1 billion) of “bouncing” loans have been dispensed by UK banks under the plan since May 2020, according to the report.

“We continue to crack down on COVID support program fraud and will not tolerate those who seek to defraud consumers and taxpayers,” a government spokesperson said, according to the report.

As early as November 2020, the Financial Times reported that UK banks had rejected 27,000 “bounce back” loans that would have totaled $1.3 billion.

Read more: UK banks nix $1.3bn in fraudulent ‘rebound’ loans

As PYMNTS reported, the ‘rebound’ loans were designed to help UK businesses get back on their feet following the pandemic and subsequent economic downturn.

The program allowed SMEs to borrow just under $65,000 interest-free for one year, with the loans guaranteed by the government.

Fraud has been a problem with a similar program in the United States, the Paycheck Protection Program (PPP).

As PYMNTS reported in December, the U.S. Secret Service Department said criminals seized about $100 billion in pandemic relief funds.

See more : PPP Loan Fraud Shows the Lures and Risks of Rapid Onboarding

CNBC reported that the funds had been diverted from the PPP program and the economic disaster loan program, among others.

Assistant Special Agent in Charge Roy Dotson told CNBC “there’s no doubt that the programs were readily available online. And so with that comes the opportunity for bad actors to get into that mix.” .

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS HAVING HIGH DEMAND FOR SUPER APPS
About: Results from PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy,” a collaboration with PayPal, analyzed responses from 9,904 consumers in Australia, Germany, UK and USA. and showed strong demand for one super multi-functional app rather than using dozens of individual apps.

We are always looking for partnership opportunities with innovators and disruptors.

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https://www.pymnts.com/news/ipo/2022/report-chobani-says-market-conditions-caused-withdrawal-of-ipo/partial/

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Seven plead guilty to stealing $1.5 million in COVID-19 loans https://startthechallenge.org/seven-plead-guilty-to-stealing-1-5-million-in-covid-19-loans/ Thu, 01 Sep 2022 09:00:00 +0000 https://startthechallenge.org/seven-plead-guilty-to-stealing-1-5-million-in-covid-19-loans/ Seven defendants, including three who had worked for JetBlue Airways, pleaded guilty to stealing $1.5 million from a federal pandemic relief program for small businesses, prosecutors said. The defendants, from Queens and New Jersey, each face up to 20 years in prison. They agreed to give up COVID-19 Economic Disaster Loan funds they fraudulently obtained […]]]>

Seven defendants, including three who had worked for JetBlue Airways, pleaded guilty to stealing $1.5 million from a federal pandemic relief program for small businesses, prosecutors said.

The defendants, from Queens and New Jersey, each face up to 20 years in prison. They agreed to give up COVID-19 Economic Disaster Loan funds they fraudulently obtained in 2020 and luxury watches and automobiles, prosecutors said.

JetBlue computers were used to submit some of the loan applications, according to the criminal complaint.

Orlando Sanay, Keily Nunez, Michael Pimentel Veloz, Fanny Plasencia, Ramon Osvaldo Pena and Angel K. Colon have each pleaded guilty to one charge of conspiracy to commit wire fraud in connection with false statements they made to obtain EIDL loans from American small businesses. Administration. The statements included false claims that the businesses in need of assistance had 2019 employees and revenue, the complaint says.

Nunez’s twin, Keimi, pleaded guilty to wire fraud.

All seven are expected to be sentenced later this year in federal court in Brooklyn.

The defendants stole “a government program designed to help small businesses and struggling families survive the pandemic,” said Breon Peace, U.S. Attorney for the Eastern District of New York, which includes Long Island.

The plea agreements are part of a nationwide effort by federal prosecutors and investigators to combat widespread fraud in COVID relief programs. EIDL has the highest percentage of projected fraud: up to $86 billion out of $350 billion in total loans, or nearly 25%, according to the SBA’s Office of Inspector General.

Of the seven defendants, only Pena’s attorney responded to a request for comment. Pena, 39, of Maywood, New Jersey “has admitted responsibility for his actions and hopes [the federal judge] takes into consideration all the significant positive aspects of his life during sentencing,” his attorney Todd A. Spodek said.

A JetBlue spokesperson did not respond to requests for comment this week.

Sanay, 41, of Elizabeth, New Jersey, and Keimi and Keily Nunez, both 42, of Queens, were employed by JetBlue from April to November 2020 when they and the other defendants requested EIDL loans for at least 10 companies, according to the complaint. A year ago, a federal prosecutor told Newsday that Keily Nunez no longer worked for the Queens-based airline.

In one instance, Sanay applied for an EIDL loan using a JetBlue computer in July 2020. The loan application was for Sanay Venture Capital LLC, which he said employed 26 people and had revenue of $839,000 in 2019. But government records show the business, which Sanay said he owned, had no employees and never filed taxes, according to the complaint.

Sanay Venture received $139,400 from the SBA, the complaint states.

The defendants used the EIDL funds for personal expenses not related to the business, including the purchase of a house, bank account overdraft fees and medical bills. Sanay made a car payment to BMW Financial Services in September 2020 using part of the Sanay Venture loan, said Angel Martinez, a special agent with the U.S. Department of Homeland Security.

Separately, federal investigators have had more time to pursue fraud in the EIDL program and another COVID relief initiative, Paycheck Protection Program loans.

Last month, President Joe Biden signed into law two bills that extend the statute of limitations to 10 years for civil and criminal fraud charges involving EIDL and PPP loans. “My message to those cheaters out there is this: You can’t hide,” the president said Aug. 5. “We will find you. We’ll get you back what you stole.”

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PPP loans have helped many small businesses scale https://startthechallenge.org/ppp-loans-have-helped-many-small-businesses-scale/ Tue, 30 Aug 2022 07:00:00 +0000 https://startthechallenge.org/ppp-loans-have-helped-many-small-businesses-scale/ The Paycheck Protection Program was back in the news last week after it emerged that a number of Republican members of Congress who had criticized President Joe Biden’s student loan forgiveness order had taken out PPP loans and had them forgiven. The federal pandemic relief program provided small business forgivable loans to help business owners […]]]>

The Paycheck Protection Program was back in the news last week after it emerged that a number of Republican members of Congress who had criticized President Joe Biden’s student loan forgiveness order had taken out PPP loans and had them forgiven.

The federal pandemic relief program provided small business forgivable loans to help business owners keep staff on the payroll as the pandemic ravaged the economy. More than two years after the program launched, many small business owners say their business has changed a lot since then.

It took Sherard Duvall a while to secure a PPP loan for his South Carolina video production company, OTR Media Group. The company finally received its check in July 2020 – four months after submitting its first application.

At the time, Duvall said he used the money to pay workers and pay bills.

“It freed up our ability to say, ‘OK, now that some of this debt is gone, let’s consider recalibrating sales and advertising, let’s consider creating a website,'” Duvall said in 2020.

By the time he got the loan, Duvall’s video production work had dried up. So the company started a new line of business: setting up live streaming equipment in home offices, businesses, and churches.

Duvall said business has been good since.

“Almost every week we would do an installation, or we would do training, or we would send a team to an office or hire a team to go somewhere,” Duvall said.

Meanwhile, video production work returned, so Duvall expanded the business. In May — nearly two years after getting his PPP loan — Duvall took out a small business loan to buy video equipment to help the company meet demand.

“Without the success we’ve had since the pandemic, I wouldn’t have gotten this loan in May,” Duvall said.

Duvall has also hired more staff and he wants to build offices. Now he is preparing to take out another loan.

“We may have to purchase a seat, or we may have to deposit a large enough amount up front on a rental space so that we can make adjustments to the physical space inside,” said Duvall.

The pandemic has forced many businesses to evolve.

Before the pandemic, Naomi Pomeroy ran a restaurant in Portland, Oregon called Beast. Diners ate a set menu for around $175 per person. The Award-winning Chef James Beard said this was all not very COVID friendly.

“People literally sat almost side by side, with people they had never met before, for two and a half hours, eating the same thing at the same time,” Pomeroy said. “It was super fun, but I didn’t see a future with it for quite a while.”

Pomeroy closed the restaurant and used its PPP loan to start a new business: Ripe Cooperative sold boxed meals people could cook at home, as well as pastas, sauces and salads.

Then, in the spring of last year, restaurants started to reopen. “As soon as people started getting vaccinated, I had a lot of FOMO, honestly, with my friends, who had these big outdoor patio spaces,” Pomeroy said.

Last November, Pomeroy turned Ripe Cooperative into a cafe. She used some of her remaining PPP money to expand her own outdoor patio.

Pomeroy said she likes the cafe to be a lot less exclusive than her old restaurant. The challenge, she said, has been to generate profits.

“Now the model is very, very different, because it’s a cafe, and we have a lower check average,” Pomeroy said. “So it’s busier for us, but it makes a little less money, actually.”

Turning a profit has been particularly difficult for restaurants as costs rise throughout their supply chains.

“We’re at the end of that, so we’re seeing all of these increases as we buy the produce,” said Mark Frier, owner of two restaurants in Vermont. “And then we have to turn around and try to make a profit. It’s tough right now. »

Frier had a third restaurant, as well as a concert hall. He said his PPP loans kept his three businesses alive at the start of the pandemic. But late last year, between higher costs and new COVID variants, it closed the restaurant and the concert hall.

“That concert hall had been there for 50 years,” Frier said. “And I felt bad for being the one closing it. But there really was no other option. We still bore the cost of that space, even though we couldn’t make a dollar out of it. »

Frier said the outlook for his remaining restaurants is bleak. He said he couldn’t keep raising prices to cover costs. During this time, it has been difficult to find workers, so he has to close his restaurants one day a week.

“We would like to go back to seven days a week,” Frier said. “We can’t get along with the staff so we continue to stay closed for a day.”

This means he has to cover all his expenses for the week in just six days, instead of seven.

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