steve golia

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

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

171. HOW TO Replace an ILOC with a Subdivision Bond

 

The Land Developer’s money is tied up because an ILOC* was used to secure the township instead of a Subdivision Bond. It’s not too late to fix this critical error! (Why an error?)

Here’s how to do it:

  1. Have your insurance agent contact us or the land developer can call us directly to start the process.
  2. We’ll get to know you and find out about the project.
  3. We approve the bond, and normally no collateral (security deposit) is required!
  4. Contact the planning board and request permission to replace the ILOC with a Subdivision Bond.
  5. We issue the bond. The developer’s ILOC, and the funds that back it are released!!

It’s just that simple…

Let’s go! Call FIA Surety: 973-541-3417

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

*Irrevocable Letter of Credit issued by bank

 

 

Surety Bonds: An Irish Tale “Lynch the ILOC Slayer”

There once came a Irish warrior from a family of mariners.  He lived in an ancient time, a time of struggle. (Celtic music)

   Gaelic nobles were the landowners of this era.  It was their mission to develop and improve the region by use of their special skills.  But an impediment arose.  The ILOCs came to prey on them – savaging the noble’s efforts to expand their estates.
   And so Lynch was summoned home from the sea.  The storied fighter donned his battle gear and the hunt commenced.  He pursued the ILOCs from the Hill of Tara to Newgrange.  He brought them destruction.
   Some nobles were in the clutches of the ILOCs, no hope of escape. Lynch’s iron spear came to bear, vanquishing the oppressors!
   The nobles flourished under the protection of Lynch’s shield – and a defense against future ILOC attack was mounted.
Thus is the Irish tale of “Lynch the ILOC Slayer!”
Is this a true story?  Could it be based on fact?  Find the answer here in one week.

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

Increased Production

Ever wonder why a surety bond underwriter asks you for new business?

  • Is it because they are nosy and want to gauge your agency strength?
  • Does the surety has a loss ratio problem?
  • Has poor customer service caused the underwriter to fall short of goals?
  • Or maybe the underwriter has a sincere interest in deepening your relationship for mutual benefit.

FIA has been writing Site/Subdivision, Bid and Performance Bonds for over 40 years.  We are “A” Rated and having an excellent 2020!

“Can we help you with any new business?”

Call: 856-304-7348

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

Bnods? Bonsd? You can’t even spell “Bonds!”

Maybe you don’t need to be a super expert on Surety Bonds. But you don’t want to be intimidated by the word either…

You can fix that now with our FREE CE program! FIA Surety is a bonding company that has specialized in Site, Subdivision and Contract surety since 1979. We’re also an approved Continuing Education provider.

It’s not too late to register for our 10/1/20 free webinar worth 3 CE credits in NJ, PA, SC,FL, TX and TN. The subject is Understanding Site and Subdivision Bonds.

The 11/2/20 class is on Bonding Basics – fun for all!

Don’t miss out. Learn how to spell B-O-N-D-S and more. The classes are a free service of FIA Surety. No exam. Take the Zoom class from your home or office computer.

Learn more and register now.

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

Changing Horses: Site & Subdivision Bonds #169

Abe Lincoln said it.  And it’s mostly true.  But here is one time when it really does make sense to “Change Horses In Mid-Stream!”

When Developers and Home Builders start a new project, they give security to the city or township guaranteeing the construction of public improvements (streets, curbs, lights, water, sewer, etc.) The security may be in the form of cash, a bank issued irrevocable letter of credit (ILOC), or a surety bond.

They’re all the same to the township, but there are huge differences for the contractor. The most obvious is the loss of use of their funds. How long will the money be tied up? It can take much longer than expected to get these obligations released (the township is in no hurry!)

If a dispute arises and cash or an ILOC was used, the township just takes the contractor’s money.  It’s all over.  With a surety bond, there is a discovery process through the claims department.  The contractor has input and may affect the outcome.

So, back to the horses.  For clients that have already posted cash or an ILOC, they can swap it out with a surety bond!  Get their money back. Gain more control. Protect company assets.  Put the cash to good use!

How to start? Call FIA Surety.  Since 1979, we have been a steady provider of site and subdivision bonds.  We do little $20,000 site bonds for commercial property owners and have written multi-multi million dollar subdivision projects.  Come to the experts to swap in a surety bond, or to write a new project. We get them done!

Read expert analysis: Why Surety Bonds are the way to go here.

Call FIA Surety: 973-541-3417

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

 

FIA Surety: Turning “DUH!” into “TA-DAH!”

How it started: “Hi Steve, I have a strange scenario I hope you can help me with.”

Our agent had a performance bond client established with a surety and the SBA program.  They needed a P&P bond for a municipal project and the surety demanded payment in advance.  The client could not comply.

The award and notice to proceed were issued and the contractor commenced with the work – but the obligee forgot about the bond, until now. The contract is completed but the client cannot receive their final payment until they file a maintenance bond.  Due to weak credit, the surety is refusing to issue unless they add additional indemnitors.  The job is finished: DUH!

We gathered a file and asked for a status inquiry form from the obligee (to confirm the degree of completion and obligee’s satisfaction with the project.)  The contractor passed along the form, but the project manager refused to complete it, stating he “never saw one of these before.” DUH #2!

We made contact with the township engineer and after a friendly conversation, were able to verify everything was OK and they promptly completed the form for our records.  We evaluated the bonding requirements and determined that the Performance bond form contained an 18 month maintenance clause (no separate maintenance bond), so the P&P bond was still needed.  FIA Surety issued it, and with no SBA support or additional indemnity required: TA-DAH!

The agent is happy.  The contractor is happy.  The township has a completed project with maintenance coverage. We bonded a job that was completed and accepted.  Now was that so hard?

FIA Surety is First Indemnity of America Insurance Company, your go-to carrier for Site, Subdivision, Bid and Performance bonds. Call 856-304-7348

Making TA-DAH moments for our clients since 1979.

FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ

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

FREE CE!

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

An “A Rated” Carrier

 

FIA Surety is First Indemnity of America Insurance Company, a provider of Site, Subdivision, Bid and Performance Bonds since 1979.  Call us when you need a surety bond!

Through our accredited FIA Surety School, we offer continuing education courses for insurance agents.  These courses are provided free of charge, a service of FIA Surety. You can participate in these teleconference sessions from the convenience of your home or office computer.

Use the registration form below and join us for the next CE webinar!

Our teleconference courses are approved for resident agents of these states:

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

Upcoming Classes:

  • February 1, 2021, Monday, 9:00 am to 12 noon Eastern Time, teleconference CE class “Surety Bonds 101 Webinar” (3 CE credits)
  • March 1, 2021, Monday, 9:00 am to 12 noon Eastern Time, teleconference CE class “Understanding Site and Subdivision Bonds Webinar” (3 CE credits)
  • There WILL be future dates added.

To attend our webinars, please complete the form below and we will send you a confirmation email. Please register at lease five days before the scheduled class date.

Questions?  Call us!  Steve Golia, Director 856-304-7348

FAQS:

  • Q. Are the Continuing Education classes approved by the state? A. Yes, all our courses are fully approved by each state where we offer them.
  • Q. How many credits are provided in each course?  A. Three CE credits per course.  You can get credits for each course once per license cycle.
  • Q. Who is eligible to attend these classes.  A. Any licensed P&C agent is allowed to take our courses.
  • Q. How many people from our agency may attend? A. One or more may attend.  Tell your colleagues not to miss it.
  • Q. How much do the courses cost?  A. All our courses are free, a service of FIA Surety.
  • Q. How is the course delivered?  A. These are teleconference courses (webinars) you may attend from any computer at work or home.
  • Q. Do I need special software?  Do I have to buy anything?  A. No! This is a “Zoom” meeting.  Free!
  • Q. How do I attend a future course?  A. Complete the brief registration form below and press “Submit.”
  • Q. Can I take a course immediately before my license renewal date?  A. You can take our courses any time during the term of your license.  However, time is needed to post and process your credits, therefore we recommend attending the courses at lease 30 days prior to your anniversary.
  • Q. What do I need to do during the course?  A. You need to be present continuously, give the program your undivided attention and respond to our attendance verification prompts.
  • Q. When are the classes held?  A. From 8:45 am to 12:15 pm Eastern time zone (includes set-up and break time.)
  • Q. Is there a final exam?  A. No.

REGISTRATION FORM

Thanks for submitting your registration!