“Put the ‘U’ back in Syrac_se” promotes local businesses

Get our email updates

Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.

SYRACUSE — It’s designed to encourage consumers to return to the local businesses and attractions they used to like to visit and spend money at before the pandemic struck. The Downtown Committee of Syracuse, Inc. on Sept. 2 launched the “Put the ‘U’ back in Syrac_se” campaign. It’s an eight-week long initiative that includes a […]

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

SYRACUSE — It’s designed to encourage consumers to return to the local businesses and attractions they used to like to visit and spend money at before the pandemic struck.

The Downtown Committee of Syracuse, Inc. on Sept. 2 launched the “Put the ‘U’ back in Syrac_se” campaign.

It’s an eight-week long initiative that includes a scavenger hunt and is supported with an advertising campaign designed to put the “U” back in the community, Merike Treier, executive director of the Downtown Committee of Syracuse, Inc., said.

She and several others spoke at the Millpond Landing Wall at 327 W. Fayette St. in Syracuse.

“Put the ‘U’ back in Syrac_se is the result of a community wide partnership to encourage consumers to visit businesses, institutions, and destinations throughout Onondaga County now that many of the places that make our community unique — including our shops, restaurants, and museums — have reopened safely and responsibly,” Treier said in her remarks.

Treier went on to say that people everywhere have been learning to adjust to the “new normal” and that people can now “safely and responsibly” return to the businesses that they miss. At the same time, Treier also acknowledged that the general public has “varying levels of comfort” about visiting local establishments.

“This campaign builds a buzz about the many ways you can still support our community’s businesses and show support for the destinations that we all know and love while staying safe and socially distant,” said Treier.

The campaign involves several businesses and elected officials. It is supported by 10 media outlets, involves more than 50 local businesses, and has the support of Onondaga County Executive Ryan McMahon, Syracuse Mayor Ben Walsh, and Visit Syracuse.

“This is about really getting back to living with this virus in a safe way and really supporting each other, especially our local businesses. They need your help and they need your help in a big way right now,” Onondaga County Executive Ryan McMahon said in his remarks at the late-morning ceremony.

“I want to thank all the business owners and property owners here for investing in Syracuse,” Ben Walsh, Syracuse Mayor, said. “I want to thank everyone who has come back into the city and into downtown to do business and thank those of you who haven’t in advance for coming. We’re ready for you. Everyone is taking this very seriously. We’re doing it safely. So, come on down.”

Danny Liedka, president of Visit Syracuse, told the gathering that the campaign will help his office attract visitors to downtown Syracuse.

“My team is tasked with bringing not only people from our county downtown but from afar. And we can’t do that without showing a vibrant city center. That is super important,” Liedka said.

Syracuse–based Mower — a marketing and advertising agency — created and donated the creative concept behind “Put the ‘U’ back in Syrac_se,” along with all campaign materials, Treier noted.

“This campaign you’ll see on TV. You’ll see it in digital and print advertising, [and in] billboards on the highway,” Stephanie Crockett, executive VP and managing director of Mower, said in her remarks.

Treier also credited artist Ally Walker with designing the mural on the wall behind the speakers at the Sept. 2 event.

“Our community should feel proud of the progress we’ve made to keep COVID-19 at bay. Our community is staying healthy and we’re doing this while reopening, which shows our ability to be safe and enjoy all that comes with it,” said Treier.

Scavenger hunt

One element of the campaign is a socially-distanced, digital Syracuse Scavenger Hunt, which encourages the community to visit places throughout Onondaga County, inviting them to enjoy businesses, restaurants, and explore iconic landmarks.

By reading the clues, participants are eligible to win prizes by earning points by completing the tasks listed on the Scavify app, accessible by visiting UBackinSyracuse.com/Hunt.

Drone test site in Rome to participate in next phase of drone-integration program

Manufacturing & Engineering, Regional News, Subscriber Only, Technology

ROME — The Federal Aviation Administration (FAA) has selected the New York UAS test site at Griffiss International Airport in Rome as one of two sites for the second phase of the unmanned aircraft-traffic management pilot program (UPP). Virginia Tech Mid-Atlantic Aviation Partnership in Blacksburg, Virginia is the other, NUAIR said in a news release.

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Virginia Tech Mid-Atlantic Aviation Partnership in Blacksburg, Virginia is the other, NUAIR said in a news release.

Syracuse–based NUAIR is short for Northeast UAS Airspace Integration Research. The nonprofit focuses on UAS operations, aeronautical research, safety management, and consulting services.

An unmanned aircraft system (UAS) includes a drone and equipment used to control its flight. A drone is also referred to in the industry as an unmanned aerial vehicle, or UAV.

The second phase of UPP will showcase capabilities and services that support high-density UAS or drone operations, including remote identification services and public-safety operations. Data collected from the UPP second-phase tests will help inform a cross-agency, unmanned traffic management (UTM) system implementation plan.

“We couldn’t be happier that the FAA has selected Oneida County’s New York UAS test site at Griffiss to develop the next phase of UAS traffic management,” Oneida County Executive Anthony Picente, Jr. said. “That our site has been chosen from what is already a small, elite group that has been granted test-site status, is a testament to the high quality of work and collaboration of our partners in Rome. It’s an honor to be on the forefront of the next evolution of this transformative technology.”

An unmanned traffic-management system would function much like the current manned air-traffic management system — assuring people, aircraft, and structures both in the air and on the ground remain safe.

“To unlock the full capabilities and functionalities” of drones for commercial use like package delivery or medical supply drop-offs, a safe, universal UTM system is needed nationwide, NUAIR contends. Research and testing done at the New York UAS test site through the UPP Phase II program will help make that UTM system “a reality.”

Over 3,000 advanced UAS test flights, including UTM tests, have been conducted at the New York UAS test site over the past five years. In 2019, Gov. Andrew Cuomo announced the completion of New York’s 50-mile drone corridor, which starts at the test site in Rome and stretches across the state to Syracuse. The corridor has the “needed” infrastructure and technologies in place to complete the advanced drone operations and UTM standardization work outlined in UPP Phase II, NUAIR said.

“The New York UAS test site being selected by the FAA to take part in this next phase speaks to the amount of meaningful testing and research we’ve been doing here in Central New York to advance the industry,” Tony Basile, COO of NUAIR, said. “The collaborative work we will achieve with our industry-leading partners will help shape the commercial drone industry on a national, if not international level.”

Virtual collaboration on UPP Phase II began in mid-April of this year, with live flights and component testing taking place at the test site starting this month.

UPP Phase I was completed in August 2019, in collaboration with NASA, FAA UAS test sites, and their industry partners. Phase I tested capabilities such as the exchange of flight data among UAS operators and generating an emergency “no-fly zone” for general unmanned aircraft, “clearing the skies for emergency response drones,” NUAIR said.

McCarthy Mercantile to provide showcase for artists, makers

Small Business, Subscriber Only

SYRACUSE — A new underground indie marketplace, called the McCarthy Mercantile, is set to open under Wildflowers Armory in the basement of the McCarthy Building at 217 S. Salina St. on Sept. 16. The mission of McCarthy Mercantile is “to promote the independent makers, collectors, and artists of Central New York and foster creative collaborations,

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

SYRACUSE — A new underground indie marketplace, called the McCarthy Mercantile, is set to open under Wildflowers Armory in the basement of the McCarthy Building at 217 S. Salina St. on Sept. 16.

The mission of McCarthy Mercantile is “to promote the independent makers, collectors, and artists of Central New York and foster creative collaborations, as well as provide the most unique underground shopping experience available in the heart of downtown Syracuse,” says Michael John Heagerty, founder and co-owner of Wildflowers Armory, an artisan collective which describes itself as a “multi-vendor marketplace” shop. McCarthy Mercantile “seeks to strive to reflect the diversity of our community — both artists and audiences — while providing a welcoming space for creatives to connect with the public,” he adds.

The 8,100-square-foot lower level of the McCarthy Building will house eight tenants, including Wildflowers expanding into a multi-level shop as the corner tenant in the underground level, Heagerty says.

Wildflowers Armory moved to a 2,000-square-foot space on the ground floor of the McCarthy Building in late 2019 after previously being located at 225 W. Jefferson St., in a 2,200-square-foot space across from the MOST since May 2018. Wildflowers will nearly double its space with the expansion to the lower level.

The other tenants of the McCarthy Mercantile are: SoFlea and Syracuse Yoga, combining a vintage shop and yoga classes; Lakeshore Hardwoods, a shop for woodworkers; Better, serving the skateboard, art, and subculture community; Simplistically Holistic, a holistic shop; P.A.S.T. (People Are Stronger Together) a multifaceted network that begins with an emphasis on the artist in all of us; Kanga Tutoring, a provider of tutoring services to students; and Accents, a shop for jewelry, local art, home decorations, furniture, and accessories.

There will also be an industrial creative event space at the McCarthy Mercantile, called ROOTED, which Heagerty says he will run for benefit of the other tenants.

“Syracuse wants something different — something they haven’t seen before,” he says. “Artistic workshops, dance lessons, pop-ups, fashion shows, craft fairs, and more will fill the eclectic calendar.”

The McCarthy Building’s landlord Washington Street Partners (WSP) funded and completed the renovations to create McCarthy Mercantile. The WSP team doing the renovation work was led by William and Johnny Mahar.

Heagerty says he acted as leasing agent to recruit the various vendors. He declined to disclose the total cost of the project.

After opening, what’s next? Heagerty replies, “Continue the momentum and foster the undeniable creative buzz at the McCarthy Mercantile. Fill the calendar with interesting, intimate events from burlesque to DIY workshops, artist lectures to film screenings, floating galleries to disco roller-parties, and so much more.”

Syracuse looks for buyer for former Syracuse Developmental Center property

Construction, Design & Real Estate, Subscriber Only

SYRACUSE — The City of Syracuse has put the former Syracuse Developmental Center campus up for sale. It is the “long vacant,” 48-acre property that the City of Syracuse seized for back taxes last year, per a news release. The westside site is listed with commercial-brokerage firm Cushman & Wakefield/Pyramid Brokerage Company, which the city

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

SYRACUSE — The City of Syracuse has put the former Syracuse Developmental Center campus up for sale.

It is the “long vacant,” 48-acre property that the City of Syracuse seized for back taxes last year, per a news release.

The westside site is listed with commercial-brokerage firm Cushman & Wakefield/Pyramid Brokerage Company, which the city selected in a public request for proposals to market and sell the property.

The property — located at 800-802 Wilbur Ave. next to Tipperary Hill — includes more than 600,000 square feet of buildings. Walsh authorized seizure of the property from Syracuse Center LLC, which owed more than $887,000 in back taxes, including interest and penalties going back to 2015. The property had also been vandalized.

“This is a prime piece of real estate with close proximity to major transportation routes and the downtown area. It has tremendous potential to positively contribute to our economy and our neighborhoods,” Walsh contended. “We acted decisively to address the public safety problems the site was creating. I’m looking forward to this next phase in redeveloping and restoring activity to the site.”

The city and Cushman & Wakefield/Pyramid Brokerage Company said they are seeking proposals for investment that will have a positive impact on surrounding or adjacent neighborhoods, as well as the rest of the city.

The city hasn’t set a formal asking price. It will consider all proposals for the full or partial redevelopment of the property’s campus, “allowing for subdivisions and investment by multiple developers and end-users,” the City of Syracuse said.

All letters of interest and offers are to be submitted though Cushman & Wakefield/Pyramid Brokerage. The site was listed in mid-August, and proposals will be accepted “prior to Oct. 15,” the city said.

Further information on the property is available at the following website:

https://www.pyramidbrokerage.com/properties/listings/details/Y16966/800-wilbur-avenue-syracuse-ny-former-sdc.

Bassett’s new leadership team includes COO, other members

Employee Benefits & Human Resources, Health Care, Subscriber Only

COOPERSTOWN, N.Y.— The new leadership team of the Cooperstown–based Bassett Healthcare Network includes Jeff Joyner as chief operating officer (COO) and other officials. Joyner has served as president of A.O. Fox Hospital in Oneonta since 2015. He will remain involved in the leadership of A.O. Fox Hospital as part of his broader responsibilities and officially

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

COOPERSTOWN, N.Y.— The new leadership team of the Cooperstown–based Bassett Healthcare Network includes Jeff Joyner as chief operating officer (COO) and other officials.

Joyner has served as president of A.O. Fox Hospital in Oneonta since 2015. He will remain involved in the leadership of A.O. Fox Hospital as part of his broader responsibilities and officially started working in his new role on Aug. 31, Bassett announced in a news release.

Joyner is among the first appointments of Dr. Tommy Ibrahim, president and CEO of Bassett Healthcare Network, to the new network leadership team.

The group is described as “individuals who will work in various capacities to propel the network toward full integration, optimize core solutions, and position Bassett as a national player in health care delivery.”

Besides Joyner, Ibrahim’s appointments to the leadership team include Lisa Betrus, senior VP, chief strategy, and transformation officer; Cailin Purcell, VP, chief of staff; and, Michael Thompson, VP, systems improvement.

About Joyner

In his role as senior VP and COO for Bassett Healthcare Network, Joyner will serve as the executive responsible for network-hospital operations, system-support services, and all integration efforts.

Prior to his tenure at A.O. Fox Hospital, Joyner held executive-leadership positions in several organizations, including system VP of operations at St. Joseph’s Healthcare in New Jersey; VP of professional services at Sibley Memorial Hospital, an affiliate of Johns Hopkins Medicine; and VP of patient support services at Holy Cross Hospital in Silver Springs, Maryland.

He holds a master’s degree in health-care administration and is a fellow of the American College of Healthcare Executives.

Besides his work as a health-care executive, Joyner is also former member of the Maine State Legislature, having served two terms from 1993 to 1997, per Bassett.

About Betrus

Betrus has been the CEO and administrator for Valley Health Services and Valley Residential Services in Herkimer since 1998, Bassett said.

In 2017, her role was expanded to include VP for continuum of care for the Bassett Healthcare Network.

In her role as senior VP, chief strategy and transformation officer, Betrus’ duties will include developing, communicating, executing, and sustaining network strategic initiatives. She’ll remain “very involved” in the leadership of long-term care at Valley Health Services, Valley Residential Services, other continuum-care services, and will lead continued development of ambulatory services across the region, the organization said.

About Purcell

Purcell has been a leader in the Bassett Medical Group for 10 years, beginning as a manager in the department of medicine before moving into the role of senior director for the department.

In 2018, Purcell transitioned to the senior director of the department of surgery, which includes leadership of women’s health, anesthesia, and perioperative services.

In her role as the VP, chief of staff, Purcell will support the president and CEO and all members of the executive leadership team in all aspects of daily operations of the network. She will also be working on system-improvement activities and “will play an important role” in building the Bassett Healthcare administrative-fellowship program, developing future leaders for the organization.

Purcell worked for more than 10 years in a variety of leadership roles in health-care organizations in the Capital Region, prior to her arrival at Bassett.

About Thompson

Reporting to the chief of staff, Thompson will join Bassett Healthcare Network as the VP of systems improvement.

He comes to Bassett from INTEGRIS Health in Oklahoma City, where he has spent the last five years in a variety of roles — most recently as VP for provider services and integration.

In his role as VP of systems improvement, Thompson will partner with administrative and medical-staff leadership to develop and implement a strategic performance-improvement plan for all hospitals across the Bassett Healthcare Network.

Prior to working for INTEGRIS, Thompson spent 10 years with the U.S. Postal Service in a “variety of positions with increasing responsibility.” He is described as a Lean Six Sigma expert and has “extensive experience” in LEAN methodology and system design.

Dannible & McKee readies for virtual fraud prevention conference

Employee Benefits & Human Resources, Insurance & Financial Services, Law, Accounting & Taxes, Subscriber Only, Technology

SYRACUSE, N.Y. — Two representatives from insurance firm Haylor, Freyer & Coon, Inc. are among the presenters at a virtual fraud-prevention conference that Syracuse–based accounting firm Dannible & McKee, LLP is set to host on Sept. 22 from 8:30 a.m. to 12:00 p.m. The “uncertainty and disruption” that the COVID-19 pandemic has caused has also

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

The “uncertainty and disruption” that the COVID-19 pandemic has caused has also created opportunity for crime and fraud, the firm said in an email about the fraud conference.

Businesses are faced with “increased risks” from remote access and growing use of electronic transactions, along with the “rising revenue losses due to fraudulent activities,” Dannible & McKee noted.

In the conference, participants can learn about fraudulent threats amid the pandemic crisis and about steps they can take to minimize their exposure and protect their business.

Presentations

Leigh Balcom, a business & planning manager at M&T Bank, will speak on the topic, “Fraud Threats to a Business in a Remote Environment.” It’s a discussion on threats that may impact a business. Topics include the current fraud landscape, trends in payment fraud, social engineering, and best practices for safeguarding one’s company and customer data.

Another topic, called “Cyber Liability – Proactive and Reactive Protection,” will focus on how cyber-crime is “quickly becoming one of the most intimidating threats the business community has ever seen.” Businesses worldwide watch as their networks are locked down, Bitcoin ransom is requested, information is stolen, and the personal data of customers and employees is compromised. As technological integration continues, these incidents are becoming “more and more common.” Through real-life examples, this presentation aims to educate attendees on how businesses can proactively prepare for cyber events by implementing the proper insurance and risk-management strategies.

Two representatives from Haylor, Freyer & Coon — Anto Almasian, risk-management advisor, and Steve DeRegis, senior VP/risk-management advisor — will handle the presentation.

In addition, Christopher Didio and Sean Daughton, audit partners at Dannible & McKee, will speak on the topic, “Don’t Lose Control During COVID-19.”As companies adjust to the “new normal” of remote operations during the COVID-19 crisis, maintaining focus on the effective operation of internal controls is “critical.” In this session, the Dannible & McKee audit partners will provide insight into COVID-19 focused fraud trends and the new fraud risks arising in the current landscape and offer practical considerations to ensure internal controls are operating effectively.

Brian Johnson, also an audit partner at Dannible & McKee, will speak on the topic, “5 Most Scandalous Fraud Cases of 2019.” “Fraud, sadly, never seems to be on the decline — fraudsters come up with new ways to defraud their victims every year. With so many notable schemes, it’s hard to narrow down those that take the cake as the most scandalous. In this presentation, we will count down the top five that shook the world in 2019, according to Fraud Magazine,” Dannible & McKee explained.

OCRRA appoints two to board of directors

Employee Benefits & Human Resources, Energy, Environment & Sustainability, Nonprofits, People on the Move, Subscriber Only

SYRACUSE, N.Y. — The Onondaga County Resource Recovery Agency (OCRRA) recently announced it has appointed Corey Driscoll Dunham and Stephanie Pasquale to its board of directors. Driscoll Dunham has more than 10 years of experience, including roles in government and community relations at Syracuse University and Cornell University, as well as positions in public service

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

New state law requires plans to protect public workers in health emergencies

Employee Benefits & Human Resources, Insurance & Financial Services, Law, Accounting & Taxes, Subscriber Only

A new state law requires all public employers to create plans to “adequately” protect workers in the event of another state disaster emergency involving a communicable disease. The plans would apply to both the state and localities, including school districts, the office of Gov. Andrew Cuomo announced. The governor signed the legislation on Labor Day. Plans

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

VIEWPOINT: How To Stop Toxic Leadership From Spreading A Virus In Your Company

Business Mentors, Employee Benefits & Human Resources, Insurance & Financial Services, Subscriber Only

Toxic workplaces sometimes start at the top. Difficult, abrasive leaders can create a culture of tension, fear, and abusive behavior at every organizational level. Those types of leaders may produce results, but their actions also lead to dysfunction and employee turnover. Ending the pattern of toxicity starts with companies recognizing red flags, coming up with new

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Toxic workplaces sometimes start at the top. Difficult, abrasive leaders can create a culture of tension, fear, and abusive behavior at every organizational level.

Those types of leaders may produce results, but their actions also lead to dysfunction and employee turnover.

Ending the pattern of toxicity starts with companies recognizing red flags, coming up with new principles of management behavior, and holding leaders accountable for their actions.

Organizations often overlook abrasive behavior or see it as a necessary means to an end. This sends employees the message that such behavior is acceptable and to be imitated to skyrocket up the corporate ladder. Then it’s like a virus that continues to spread.

All too often, companies are overly results-oriented. Leaders tend to be preoccupied with what needs to be done and what key performance indicators to monitor, but they rarely pay attention to how the work is to be done and whether employees are using acceptable behaviors to achieve those results. This focus on outcomes over methods allows toxic behaviors to remain unchecked for years.

Here are three ways businesses can encourage leaders to engage in healthy behavior and detoxify the culture:

Establish specific codes of conduct. Correcting or preventing abusive behavior by leaders means first establishing a code of conduct — with management principles — as an essential part of the corporate culture. Communicate to all employees, including supervisors, managers, and executives, that the organization will not tolerate bullying to any degree. Post these codes everywhere — in company manuals, in meeting rooms, on the website — and discuss them at kickoff meetings and conferences. The codes of conduct should explicitly state that employees who violate this principle will be disciplined and may be terminated. Organization heads should communicate to their brilliant jerks that they are valued for their brilliance, but that misbehavior has consequences, which will be applied.

Expand evaluations. Leaders should be evaluated not only on what results they are achieving, but also on how they are performing as overall leaders. Performance reviews should also consider the quality of interactions with employees. It’s important in this evaluation process that employees should have an opportunity to evaluate their manager’s leadership in annual or semi-annual reviews.

Offer coaching and support. If they are receptive, brilliant jerks should be offered the support of a customized coaching program to help them change their destructive behaviors and leverage their strengths. They need to be shown how their outstanding abilities that help the company are being undermined by a lack of interpersonal skills. All too often, leaders think an authoritative, demonstrative style is largely responsible for their success, when an argument can be made that it’s just as responsible for driving good people away, and for planting the seeds of their own future derailment.

Management needs to keep behavior principles in mind and reference them every day. Otherwise, the company’s values and leadership principles are just talk, and it risks creating cynics throughout the organization.

Dr. Katrina Burrus (www.ExcellentExecutiveCoaching.com) is author of “Managing Brilliant Jerks: How Organizations and Coaches Can Transform Difficult Leaders into Powerful Visionaries.” She is also founder of MKB Conseil & Coaching and Excellent Executive Coaching, LLC.

VIEWPOINT: Amended Compensation Rule and Eligible Nonpayroll Costs for PPP forgiveness

Business Mentors, Employee Benefits & Human Resources, Subscriber Only

VIEWPOINT On Aug. 24, the U.S. Small Business Administration (SBA) issued guidance on the Paycheck Protection Program (PPP) pertaining to employee-owner compensation and nonpayroll costs eligible for loan forgiveness. Here is a rundown of the particulars. Payroll costs — owner-employee compensation The SBA stated that individuals with an ownership of less than 5 percent of

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

VIEWPOINT

On Aug. 24, the U.S. Small Business Administration (SBA) issued guidance on the Paycheck Protection Program (PPP) pertaining to employee-owner compensation and nonpayroll costs eligible for loan forgiveness. Here is a rundown of the particulars.

Payroll costs — owner-employee compensation

The SBA stated that individuals with an ownership of less than 5 percent of a C- or S- Corporation borrower are exempt from application of the PPP owner-employee compensation rule when determining the amount of their compensation that is eligible for loan forgiveness. This means that the forgiveness-eligible compensation of owner-employees with less than 5-percent ownership is no longer capped at an amount of 2.5 months’ worth of 2019 net profit (maximum of $20,833) for the extended 24-week period, but rather, the employee salary amount (maximum of $46,154). The SBA’s rationale was that owner-employees with less than 5-percent ownership in the company likely have no meaningful ability to influence decisions over how loan proceeds are allocated. However, the newly issued guidance does not address if this rule also applies to members owning less than 5 percent of interests in a limited-liability corporation, or LLC.

Nonpayroll costs — tenant, sub-tenant, and household expenses

The SBA stated that amounts attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, in the context of home-based businesses, household expenses are not eligible for forgiveness.

The SBA provided some examples:

• If a borrower rents an office building for $10,000 per month and subleases out a portion of the space to other businesses for, say, $2,500 per month, only $7,500 per month is eligible for loan forgiveness.

• If a borrower has a mortgage on an office building it operates from but leases out a portion of the space, the portion of mortgage interest that is eligible for loan forgiveness is limited to the percent-share of the fair market value of the space that is not leased out.

• If a borrower shares rented space with another business, when determining eligible loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrower’s 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.

• If a borrower works from home, when determining eligible loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower’s 2019 tax filing, or if a new business, the borrower’s expected 2020 tax filings.

Nonpayroll costs — rent, lease, and mortgage payments to a related party

The SBA stated that rent or lease payments to a related party may be eligible for forgiveness, but mortgage-interest payments to a related party are not eligible for forgiveness. Any ownership in common between the business and the property owner is a related party.

Further, rent payments to a related party are eligible for forgiveness as long as: (1) the amount of loan forgiveness requested for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the covered period that is attributable to the space being rented by the business; and, (2) the lease and the mortgage were entered into prior to Feb. 15, 2020. The borrower must provide its lender with mortgage-interest documentation to substantiate these payments.

Kate Chmielowiec and Elizabeth L. Lehmann are associate attorneys in the Syracuse office of Bond, Schoeneck & King PLLC. Contact them at kchmielowiec@bsk.com and elehmann@bsk.com, respectively. Jeffrey B. Scheer is a member (partner) in the law firm. Contact him at jscheer@bsk.com

Get our email updates

Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.

Get our email updates

What's New

Upcoming Events

Project Homecoming Job & Career Fair 2025

Annual Nonprofit Conference 2026

2026 CenterState CEO Economic Forecast Breakfast

CNYBJ Job Board

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get our email updates