Businesses often require additional capital to start, grow, or manage business operations. To satisfy this need, businesses can pursue a variety of financing options, including debt financing.
In a previous blog post we discussed the unintended consequences and proposed legislative corrections to New Jersey's 11.65% tax on short-term rental properties located within the State (referred to colloquially as the "Airbnb Tax"). Since then, the competing bills were consolidated and on June 27, 2019, the Legislature voted 74-0-1 in near unanimous favor of the revised Assembly Bill 4814 (“AB 4814”).
In Part 1 of this series, we discussed the circumstances that have led to the planned phase-out of the London Inter-bank Offered Rate, commonly referred to as “LIBOR”. In this part of the series, we will discuss the proposed replacement rate referred to as the Secured Overnight Financing Rate (“SOFR”).
On June 10, 2019, the New Jersey State Assembly passed legislation, A-1677, which would suspend penalties for businesses that make certain paperwork violations of state laws.
The widely publicized phase-out of the London Inter-bank Offered Rate (commonly referred to as LIBOR) has been cast as the most significant challenge facing global finance over the next several years. The Financial Conduct Authority’s (“FCA”) decision to end its oversight of LIBOR virtually guarantees LIBOR’s demise by the end of 2021.
It is generally thought that backdating an agreement is done with an intent to deceive. However, backdating documents is practical in certain instances where the parties made an agreement on a certain date but were unable to memorialize that understanding in writing on that date.
On April 9, 2019, the New Jersey Economic Development Authority (NJEDA) authorized the creation of a revised Brownfields Loan Program (the "Program") to provide low-interest financing to borrowers in an effort to facilitate remediation of vacant or underdeveloped brownfields sites and return such sites to full and productive use, particularly in the under-served communities within the State. The Program is an expansion of the NJEDA's existing Brownfields Loan Program.
Last month the New Jersey Economic Development Authority (NJEDA) announced that it would begin taking applications for tax credits through New Jersey's Offshore Wind Tax Credit Program (the "Program") from businesses that make a capital investment of at least $50 million dollars in certain qualified offshore wind facilities within Burlington, Camden, Gloucester, Salem, Cumberland, Mercer or Cape May counties.
The primary benefit of using a corporate entity to conduct business is the limited liability protection afforded to its owners. Corporations, limited liability companies, and other such entities are recognized as legally distinct and separate from their owner(s). As a result, the owner’s personal assets are shielded from any liability for the entity’s debts. This principle applies equally whether in the context of a parent company using a subsidiary entity for a particular venture or in the case of an individual using an entity to operate a new business.
On February 19, 2019, the New Jersey Economic Development Authority ("NJEDA") announced the expansion of the existing Business Lease Incentive Program (commonly known as the "BLI Program").