PPP: What You Need to Know – Right Now.

Here is strategic information you need right now.

Receiving that PPP loan was great! But now you face significant accounting questions if your fiscal year-end is 12/31. You need to determine the proper way to account for this transaction on your company financial statement. This has big implications for your relationship with your bonding company (Subdivision, Bid and Performance Bonds,) and your bank credit line.

You may have applied for loan forgiveness, and you may have received it from the bank and SBA. Let’s find your exact situation, and how to proceed. Which of the following is your case? In this discussion, we are assuming the company fiscal year-end (FYE) is 12/31.

  1. Forgiveness application has been submitted and approved by the bank and SBA prior to the 12/31 FYE. The loan is wiped off the balance sheet and the funds are recorded as *INCOME. Hooray! There is no remaining debt.
  2. Application submitted, and it looks OK, but forgiveness has not yet been approved. From an accounting standpoint, this is somewhat vague.
    • Treat it as Debt. This may be the safest, most conservative accounting approach. It was, and still is, a Debt on the balance sheet. It’s not income.
    • Record it as a Gain Contingency. This is similar to the Debt approach but instead, the loan is classified as a “deferred income” liability on the balance sheet. When the loan is forgiven, it comes off the balance sheet and becomes income.
    • Record it as a Government Grant. For this treatment, there must be a high likelihood of forgiveness by the bank and SBA. Under this treatment the debt disappears and is recorded as “other income.” This is a much more aggressive approach.

*Reminder: “Forgiven” PPP loan proceeds are not taxable income!

Sound complicated? It is. You need the advice of your accounting professional to handle this properly. Its worth it to have a good one.

Same thing with your bonding company. A good one is capable, responsive and stable. For over 40 years, FIA Surety has been a dependable provider of Site, Subdivision, Bid and Performance bonds. Try us! We want to write the business.

First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950Office: 973-541-3417
Visit us: www.fiagroup.com
Cell: 856-304-7348 We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Celebrate Native Americans!

After graduating college, I had the pleasure of teaching Native
American children in New York State. What a great honor! And they taught me about Corn Chowder, yum!

Today we celebrate these original Americans and their amazing culture. Steve Golia

Looking to next week, Tuesday, 12/1 is our last Free CE class of the year. Get 3 free credits from the convenience of your home or office computer! Click here for details.

Our teleconference courses are approved for resident agents of:

  • Florida
  • Georgia
  • New Jersey
  • North Carolina
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas

Your best market for Site and Subdivision Bonds:
FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com

Surety Bonds: “Baby Underwriters”

OK they’re cute, I get it. Click for ambient sounds.

And I understand why Bonding Companies have them. They are cheap and plentiful. But that doesn’t mean YOU have to like dealing with a “Baby Underwriter.”

When you need to get a bond written, you don’t want to train the underwriter. You don’t want to deal with a person who can’t give you answers or approvals. Underwriters are supposed to help you get the deal done – efficiently.

That’s where FIA Surety comes in. Each of our underwriters has at least 20 years in the business, and that’s great news for you! We really know surety and how to get things done, and yes, we’re pretty cute too! Call us with your next bond.

First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Surety Tongue Twister

Bet you can’t say this three times fast!!!

“FIA is my Best Surety for Site and Subdivision Bonds!”
“FIA is my Best Surety for Site and Subdivision Bonds!”
“FIA is my Best Surety for Site and Subdivision Bonds!”

Wow, you did it!

Now here’s how to recognize a Site or Subdivision Bond: Click

FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

More Info On Home Builders Advantage

The best cure for Friday the 13th is some great news!

Home Builders Advantage is it! You finally found the bonding company that is serious about providing Site and Subdivision Bonds. We put together an info kit in response to the phone calls and inquiries. 

To bond a new project or replace an existing ILOC, call us!

FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

Hellloooo North Carolina!

First off, we are pleased to announce that our Free CE program is now approved for agents in North Carolina. Esse Quam Videri!*”

Recent comments from attendees:

  • “Steve was very thorough and provided examples and documents to review and discuss.”
  • “knowledgeable instructor; usable info”

Secondly, our last program of the year is coming up on 12/1/2020. It’s not too late to get in on the webinar “Understanding Site and Subdivision bonds.”

Sign up or watch one minute video.

FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417

Visit us: www.fiagroup.com

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

*N.C. State motto translated from Latin means “To be rather than to seem…”

“Here is the outcome of the Presidential Election!”

Boy, you just can’t wait to hear those words! We’re all sick of the political ads.

So here’s a refreshing change of pace: We just completed a radio show for the Atlanta Real Estate Forum: Why Home Builders LOVE Subdivision Bonds. Click to listen.

FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

172. Eureka! Agent Finds Gold Nugget!

It was right there all the time, and he didn’t know it!

These “gold nuggets” are missed commission opportunities within your current client base, and they’re NOT hard to find.

Some of your client’s activities must be guaranteed with a 1. Cash Bond, 2. Irrevocable Letter of Credit (ILOC) or 3. Surety Bond. Experts agree* that a surety bond is best. You can find these transactions that are not bonded, and offer to replace the existing security with a Site or Subdivision Bond. Here’s how:

  1. Search your clients for those who have added GL codes 91581, 91583 or 91585. These codes mean your client has added Subcontracting Exposures in connection with property development.
  2. Such projects may require a guarantee to the township for Public Improvements (work such as curbs, sidewalks, etc. your client is required to perform at their own expense.)
  3. If they used a Cash Bond or ILOC, they may unnecessarily tie up their cash – possibly for years! A Surety Bond can be filed to release the cash immediately, and YOU win a “Gold Nugget!

Start panning, and call when we can help. When it comes to Site and Subdivision bonds, We’re Golden! Try us!

Steve Golia
FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-541-3417
Visit us: www.fiagroup.com
Cell: 856-304-7348 
Currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX

*International Risk Management Institute – About Site and Subdivision Bonds

FIA: The Surety That Loves You Back

YOU LOVE US because you need at least one enthusiastic market for Site and Subdivision Bonds!

WE LOVE YOU BACK by providing Free CE Credits from the convenience of your home or office computer. Free webinar, no exam!

Need a bond? 856-304-7348

Join our 11/2/2020 free, 3 credit webinar. Approved CE provider in: FL, GA, NJ, PA, SC, TN, TX

FIA Surety / First Indemnity of America Insurance Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950

Office: 973-541-3417

We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN,  FL, GA, AL, OK, TX