Bank Statement – Minecraft Inventions Wed, 26 Jan 2022 03:49:19 +0000 en-US hourly 1 Bank Statement – Minecraft Inventions 32 32 Will federal coronavirus paycheck loans actually be forgiven? Tue, 29 Jun 2021 03:40:53 +0000

On April 14, about a month after filing for bankruptcy, Mountain States Rosen was approved for a federal loan for an amount between $2 million and $5 million.


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The Greeley lamb processor was among more than 105,000 small businesses in Colorado approved for the Paycheck Protection Program, which offered 100% forgiveness on the loan if employees stayed on the payroll. The federal government aimed to get money out quickly to help small businesses during the coronavirus pandemic.

The money allowed 219 people to keep working at Mountain States Rosen, according to data released by the Small Business Administration, which oversaw the program. But two months after being approved for the loan, the company told the state that it would close and sell the Greeley plant, leaving 222 workers out of a job by Aug. 22.

Mountain States Rosen needed the money. But will the loan be forgiven?

Probably not, said Sarah Mercer, an attorney and lobbyist at Brownstein Hyatt Farber Schreck who works with clients on PPP loans. But it’s not because the company plans to cut jobs or was in terrible shape prior to the pandemic. She pointed to the first question on the PPP loan application. It asks whether the applicant is “involved in any kind of bankruptcy?” Answer yes and “the loan will not be approved,” the document says.

“It’s hard to know the specifics to that applicant, but there is a restriction that if you were in bankruptcy, you should not have been able to get a loan,” Mercer said.

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The $660 billion PPP program, which had its deadline extended by almost six weeks to Aug. 8, because there was still $100 billion available, was an unusual government relief program since it was open to nearly every small business and offered to turn loans into grants. It rolled out so quickly that regular updates were pushed out nearly weekly for three months. Fraud has already been discovered, but so have a lot of typos, errors and inaccuracies in the SBA database of loan recipients.

MORE: 5 charts showing where federal coronavirus loans went in Colorado, which industries benefited the most

But whether PPP did its job will become evident only as businesses gain forgiveness, pay back the loan or call it quits.

Neither Mountain States Rosen nor Converse County Bank, the Douglas, Wyoming, lender that approved the loan, responded to phone calls from The Colorado Sun. An email to Mountain States Rosen’s general inbox bounced. The lamb co-op, which is owned by 150 ranch families across the West, was approved May 14 by the bankruptcy court to use its $3.5 million PPP loan to fund necessary expenses, the legal news site JD Supra reported.

Without the bankruptcy, Mountain States Rosen stood a good chance of 100% forgiveness. According to Teamsters Local 455, which represented about 100 workers at the packing plant, there have been no layoffs yet.

Keeping people on the payroll was what the loan was meant to do, Mercer said.

“They might have actually taken the money because they were going to have to close and all those people are going to be laid off anyway,” she said. “But this actually allowed them to keep people on the payroll, maybe try to find other business opportunities and try to make a business plan that was going to allow them to reopen. And it just didn’t work out, unfortunately.”

The questionable

Banks began accepting PPP loan applications on April 3, one week after the president signed the $2 trillion CARES Act.

With the passage of the CARES Act, there was a lot of federal money making its way into the pockets of Americans, from the $1,200 stimulus checks to an extra $600 a week in benefits for the newly unemployed.

“No one in any of the areas of our economy was prepared for what we’ve gone through and what we’re still going through,” said Mac Clouse, a finance professor at University of Denver’s Reiman School of Finance. “… All of those (stimulus funds) were just trying to push a firehose amount of water through your garden hose. Things couldn’t keep up and so you’re going to find, unfortunately, errors. You’re going to find abuses. And you may find fraud in there as well. There was just a real need to move pretty quickly.”

Reports of PPP loan fraud are showing up across the country. In Houston, a man allegedly used the PPP money to invest in cryptocurrency. A film producer in California allegedly used his $1.7 million loan to pay off personal credit card debt. A Seattle doctor was accused of fraudulently seeking $3 million in loans by using fake tax documents of “purported employees who did not, in fact, work for the businesses,” according to the U.S. Department of Justice.

The U.S. Attorney’s Office for the District of Colorado has not publicly announced any actions in the state. But U.S. Attorney Jason Dunn provided this statement:

“The US Attorney’s office and its federal law enforcement partners are closely watching how PPP funds are allocated and utilized in Colorado, and will aggressively pursue any company or person that fraudulently obtains such funds or spends funds in a manner not permitted by law.”

Readers are reaching out to The Sun about suspicious PPP loans in their communities after searching the database of Colorado recipients.

Jim Schmidt, the mayor of Crested Butte, said he was scanning the names of local companies that received loans. He honed in on the largest applicant “NATION%27S BEST HOLDINGS,” a business classified as “hardware stores” and approved for a loan between $1 million to $2 million. The money would retain 199 jobs, according to SBA data.

“199 employees,” laughed Schmidt. His town has a population of about 1,550 residents.

A rental home managed by Chris & Emily Miller pops up when searching for the Crested Butte address on the internet. The town also confirmed that there is a license for vacation rental for the same address listed under Miller Property Holdings LLC.

Nation’s Best Holdings, without the gibberish, has the same name as one based in Dallas that helps small hardware stores. It was founded by a Chris Miller in 2019.

Answering the Dallas company’s phone number, a man who identified himself as Chris, would not answer questions about PPP loans or why the company was showing up with a Crested Butte address.

“I’m not willing to participate,” he said, and hung up.

Schmidt said if the two companies are one and the same, it was bizarre to use the Crested Butte address for a Texas business.

“And if they’re using it as the address, are they paying Crested Butte taxes? It’s kind of like what are you hiding,” Schmidt said.

Several other companies listed in SBA data with loans of up to $10 million did not respond to requests for more information. That included MAC Acquisition in Denver, with the same address as Romano’s Macaroni Grill. It was down for two loans from different banks, each for $5 million to $10 million. One covered 500 jobs, the other 36.

Wisconsin Illinois Senior Housing operates mostly in Wisconsin and Illinois, according to the organization’s site. It listed 500 jobs and a Denver address, plus a loan between $5 million and $10 million. The street address, however, is the same as Carriage Healthcare Companies in Lakewood. Carriage, approved for a separate PPP loan valued between $150,000 and $350,000, manages nursing facilities outside of Colorado.

Why so many loans saved 500 jobs or none, plus a $9.9 million error

There were also several typos and errors in the data provided by the SBA, which blamed mistakes on the lenders. The banks and lenders manually input the data, which led to more than 20 ways of spelling Colorado Springs.

A database of Paycheck Protection Program loan recipients contained numerous typos, including 20 ways to spell — or misspell Colorado Springs. The official data was provided by the Small Business Administration, which blamed the errors and typos on local banks and lenders who manually added the loan information and approved them. (Screenshot)

Several businesses also listed 500 employees exactly — including 10 that received loans of less than $150,000. Meanwhile, 26,775 left the “jobs retained” box blank or put “0,” with 2,380 of those receiving loans of more than $150,000.

Mercer, the Brownstein attorney, said the question was confusing; she suspects many business owners didn’t answer it.

“The first version of the application said, ‘How many jobs are you retaining?’ and people were  like, ‘I don’t know. I’m hoping to retain all of them. That’s why I’m trying to get this money,’” Mercer said. “We won’t know how many jobs were retained until after the forgiveness applications come in because then we’ll know how many people were actually able to maintain their payroll.”

Businesses weren’t required to provide the number of employees to get the loan even though the SBA application asked for it, said Christopher Chavez, a spokesman for SBA’s Region VIII Office in Denver. But small businesses must provide that number and how much they paid employees when seeking forgiveness.

Other errors were pretty major.

Dutch’s Home Improvement in Colorado Springs received a PPP loan between $5 million and $10 million for six jobs, according to SBA data. On the low end, that would average out to $833,333 per employee for an eight-week period. On the high end, it’s more than $1.6 million.

Owner Gary Dutch called the loan amount “insane.”

“We did not get that, not even close,” said Dutch, who confirmed that all six employees still had jobs and the loan was less than $100,000.

Local SBA officials have chalked up similar glaring mistakes to “a data entry error by the lender,” said Chavez at the SBA. The official data released last week came from initial approvals, which may have been adjusted later before the loan was accepted. The PPP loan data indicates only that the loan was approved, the SBA said. The data also doesn’t mean the business accepted the loan or took the full amount.

In Dutch’s Home Improvement’s case, Dutch recalls there was an error on his application — “It was something like $18 million, something stupid,” he said. “They put the decimal point in the wrong place.”

MORE: $1 loans? $10 million for a nail salon? Colorado’s federal coronavirus loan data has some eye-popping errors

Rules and safeguards

A few rules were added to prevent abuse, like the bankruptcy disqualification. PPP applicants also could not have more than 500 employees, a principal place of residence outside the United States, a delinquent government loan or an owner on parole or incarcerated. The company also had to be in business on Feb. 15.

Another rule was intended to discourage companies with other funding sources since they were “unlikely” to make a case that they needed the money (see question 31 in the PPP FAQ). The government would also audit loans greater than $2 million.

But the revised guidance didn’t dissuade all public or investor-backed companies from applying. According to analytics researcher FactSquared, 440 public companies received loans, though 69 of them returned the money. In Colorado, at least 27 acknowledged receiving a loan, and at least two returned them.

Even the bankruptcy prohibition is now in question after a Texas judge ruled in April to allow an emergency service provider in bankruptcy to get a PPP loan to maintain current staff during the pandemic.

The thing is, loans were approved for nearly every type of business.

Tax-exempt nonprofits and religious organizations could apply and many did — about 4,000 nonprofits and 1,550 religious organizations were approved in Colorado. (While religious organizations are exempt from paying property taxes, all employees must pay income taxes, according to the Internal Revenue Service.)

So did 265 private and public charter elementary and secondary schools, 1,650 physician offices, 2,271 lawyers offices and 3,839 offices of real estate agents and brokers.The vast majority of loans were less than $150,000, with 91,019 in Colorado. An additional 13,336 received loans of more than $150,000, including The Colorado Sun. Overall, Colorado businesses were approved for $10.4 billion in PPP loans.

Some recipients legally received multiple loans for more than 500 employees. That was allowed for large hotels and restaurant chains that took a massive financial hit when pandemic safety measures began and business closures were mandated in the state. As long as each location employed fewer than 500 workers, PPP was available.

Good Times Restaurants in Lakewood received three loans for a total of $11.6 million to retain 1,400 jobs. The company had reduced managers’ pay and cut some staff but after receiving the loans, it restored pay and rehired workers at its drive-thru’s and restaurants, though not all returned.

Timberline Steaks & Grille at Denver International Airport initially warned the state Department of Labor that layoffs were looming due to the pandemic safety measures and the decline in travel. But in April, parent company Mission Yogurt received a federal Paycheck Protection Program loan and was able to rehire workers at its restaurants, including Timberline. (Mission Yogurt handout)

Mission Yogurt, which operates many of the restaurants and eateries at Denver International Airport, warned of layoffs in March as coronavirus safety measures went into place. On its website, the company calls itself “one of Colorado’s fastest growing companies,” and employs 650 people.

In April, it received a $5.5 million loan for 500 employees.

Its eateries, including Kentucky Fried Chicken, Root Down and Etai’s Cafe & Bar, never shut down closed completely, though layoffs occurred. With the money, workers were brought back to satisfy PPP loan requirements for forgiveness, Mission Yogurt President Rod Tafoya said in an email.

“This loan helped cover costs to stay in operation,” Tafoya wrote. “The company is still hiring. Mission has exceeded hiring the number of employees covered as part of the PPP. The company has continued to hire, but this has proven to be a challenge as many still feel unsafe.”

No need for forgiveness

Here’s an easy one: American Financing, an Aurora-based mortgage company, was among the 90-some Colorado small businesses approved for a loan between $5 million and $10 million.

The company’s loan won’t be forgiven.

That’s because American Financing isn’t asking for forgiveness.

It received the loan in May, used a portion of it to pay staff and then realized the mortgage-lending market was better than anyone could have anticipated in a global pandemic. Mortgage rates dropped to record lows. And the housing market, despite early orders prohibiting open houses, surged in May and June. Colorado Association of Realtors said June’s pending sales are up 30% from last year.

American Financing in Aurora borrowed a federal Paycheck Protection loan between $5 to $10 million. But during the first months of the pandemic, business thrived so owners Damian and Gabie Maldonado returned the money and paid back what they had used. (Handout)

American Financing, which has roughly 410 employees and now expects to increase staff by 50% this year, returned the unused part of its PPP loan to the bank and paid back the rest already, said Devan Barrett, the company’s vice president of advertising and marketing.

“Due to the economic uncertainty facing our business and the world during this pandemic, we decided to take a PPP loan to protect our company and keep all of our employees on the payroll, which was exactly the intent of the CARES Act,” Barrett said in an email. “Since that time, and with more clarity on our business stability and economic outlook, we have paid back 100% of those funds, retained 100% of our workforce and subsequently, have even provided dozens of new job opportunities for the community.”

PPP loans required applicants to certify that they needed the loan due to “current economic uncertainty.” But who could have known what the impact of the coronavirus would be? Congress passed the $2 trillion CARES Act to get money to small businesses fast — and with few safeguards built in to prevent fraud and abuse.

“The goal was to get a lot of money out the door very quickly, to help businesses keep going as much as they can and also keep people employed,” said Koger Propst, CEO of ANB Bank and the bank’s holding company Sturm Financial Group in Denver. “I’m not very sympathetic to the people (now) going back and looking at businesses and saying, ‘Well you shouldn’t have gotten this.’ Because if you wanted to limit it, then put more underwriting. But there was no underwriting.”

The loans are backed by the federal government. As long as applicants certified they needed the money and showed documents of existing payrolls, banks approved the loans. Banks were expected to “Know your customer,” but did not have to request personal guarantees or ask for collateral in the event a borrower couldn’t pay back the loan. The bank had to take the business at its word.

“It’s still been a wonderful lifeline for a lot of businesses and I just hope we don’t lose that,” Propst said. “When it’s put out that fast, there will be problems. But this has made a difference for a lot of small businesses and their employees.”

The unforgiven

While the government’s guidance for 100% forgiveness is still not crystal clear, there is one agreed-on rule of thumb: Rehire and pay employees even if there was nothing for them to do but stay home.

For any employee laid off since Feb. 15, or whose wages or hours shrunk more than 25%, that same amount is subtracted from loan forgiveness. The loan amount is reduced proportionally to any reduction in pay or job cuts. A worksheet to help calculate forgiveness is on the federal forgiveness application.

Loan forgiveness for fast-growing Mile High Labs, a Broomfield extractor of CBD, is up in the air. The company received a PPP loan between $2 million and $5 million in early May. But it had shed jobs earlier in the year, including in March and April, according to a laid-off worker who spoke on the condition of anonymity. For 100% forgiveness, the company can still qualify if it rehires laid-off staff or replacements by Dec. 31 (a date that was originally set at June 30). The company, which on its website said it employed 180 people last year, did not respond to requests for comment.

However, any company could lay everyone off and keep the money. But then the loan becomes just a loan, albeit one with a very low interest rate of 1%. Loans must be paid back within two years if the loan was made before June 5, or up to five years for loans made after June 5.

At a massive greenhouse in Grand Junction, EcoGen Laboratories grows hemp for seeds and CBD Isolate. The company received a federal Paycheck Protection Program loan between $2 million to $5 million to save 163 jobs. (EcoGen handout)

EcoGen Laboratories, a hemp and CBD manufacturer in Grand Junction, may be under similar economic pressures as Mile High Labs. But its PPP loan of $2 million to $5 million for 163 jobs, has a good shot at forgiveness, though the company does not want to speculate.

Since getting the money in early April, EcoGen kept its employees for the minimum eight weeks, which is now an optional 24 weeks. On July 1, it laid off 101 employees.

The money helped the company retain its employees for longer than they might have otherwise been able to, Andrei McQuillan, EcoGen Laboratories chief marketing officer, wrote in an email. After rapid growth, the company is now “right sizing” with recent staffing changes to “reflect the volatility in (the) price taking place across the board in the hemp genetics and hemp-derived products space.

“Notably,” McQuillan added, “EcoGen still employs nearly 100 people and will evaluate reopening positions as necessary to support further growth when the time is right.”

The key will be what happens with forgiveness. Lenders are expected to review payroll and other expenses to see how borrowers used the loan and whether the number of employees match up to Feb. 15.

Only then will the public learn how many of Colorado’s $10.4 billion worth of PPP loans convert to grants.

“In the end, in order to get the loan forgiveness the business will need to show their lender that they paid their employees during the eight-week or 24-week period,” said Chavez, with the SBA. “That process will ultimately provide loan accountability.”

This story was updated at 5 p.m. on July 17 to clarify that ministers and clergy members are exempt from some taxes but must pay taxes on their income.

MORE: See a list of Colorado companies that received federal Paycheck Protection Program loans.

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EBRD grants 50 million euro loan to Ukraine for the purchase of new metro cars Tue, 09 Mar 2021 10:58:00 +0000

The European Bank for Reconstruction and Development (EBRD) has granted a new loan of 50 million euros to Ukraine for the acquisition of new metro cars.

The bank supports the extension of the underground rail network from Kiev to Vynohradar.

Offering a clean rail transit option, the new metro line will encourage more residents to adopt advanced and environmentally friendly transportation.

the EBRD has put in place a critical infrastructure support program to ensure that critical infrastructure continues to function during the pandemic.

The loan also removes investment disruption to promote greater sustainability.

Kyiv Mayor Vitali Klitschko said: “We are delighted that our cooperation with such a reliable partner as the EBRD continues. Today we are entering a new stage in this cooperation.

“We are implementing a project to modernize the rolling stock of the Kiev metro. Thanks to the EUR 50 million loan from the EBRD, we will be able to buy 50 new metro cars. They will form up to ten metro trains. I am grateful to our partners for their cooperation and support for projects that are important to Kiev and its people.

EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone said: “We are delighted to be able to help Kiev extend metro services to densely populated and isolated areas. Our loan will help ensure that more people in the Ukrainian capital will be able to leave their cars at home in the future and get around the city in comfort and ease.

To date, the EBRD has provided almost € 14.5 billion collectively through 486 projects in Ukraine.

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Hotel workers renew pressure for recall rights and job protection Tue, 09 Mar 2021 10:58:00 +0000

In summary

California hotel workers are eager to see if state lawmakers can revive a proposal for a “recall right” for rehiring based on seniority or offering new help. Many are also concerned that the additional help from last month’s federal relief program will not help them.

Jhonae Mazique doesn’t feel like the person she was before the pandemic. The coronavirus deprived the 25-year-old of her reservist job at the Harbor Court hotel in San Francisco and sent her surfing on her sofa with friends. The stress of her situation has caused her to lose 30 pounds since she was laid off in March.

In Los Angeles, Raquel Lezama wakes up her three children for distance learning, but not before they join her in her new routine: meditation. The single mom lost her job as a minibar attendant at the Mr. C Beverly Hills hotel in March.

Hector Morales, 52, lines up at the North County Food Bank in Vista every two weeks. He devoted three decades of his life to working at La Costa Hotel and Resort in Carlsbad before the pandemic put him out of work. Today he is on the verge of losing his home.

Like thousands of laid-off hotel workers across the state, they wonder when – or if – they’ll get their jobs back. As the pandemic heads into 2021, hotel workers are eager to see if state lawmakers can revive earlier proposals for a “recall right” to re-hire based on seniority or come up with a new one. aid. And while many workers will receive $ 600 in out-of-pocket payments and an increase in unemployment of $ 300, they fear new aid from last month’s $ 900 billion federal relief program will reach them again.

Unions accused the first coronavirus relief program of being flawed for allowing large hotel chains to participate in the paycheck protection program, which aimed to help small businesses. UNITE HERE, the country’s largest hospitality workers union, alleges that hotels that took out PPP loans did not use the loans to rehire workers or extend benefits as planned by the program. Hotel officials called the abuse allegations baseless.

“The paycheck protection program did not protect jobs,” said Marty Leary, research director at UNITE HERE. “Certainly not in our industry.

Travel restrictions and a tanking economy devastated an industry fueled largely by business travel and tourism. The unemployment rate in the leisure and hospitality sector is 15% – twice the national unemployment rate – and holds the largest share of the jobs lost in the country at 35%. California’s entertainment and hospitality industry has lost 518,000 jobs since October 2019, according to data from the state’s Department of Employment Development.

In Los Angeles County alone, more than 16,000 hotel workers have lost their jobs. Lezama is one of them.

For most of that year, Lezama, 39, was unsure whether Mr. C Hotel would offer him a job again. She and 18 of her colleagues were permanently sacked. Lezama suspected the permanent layoffs were masked retaliation for their involvement in unionizing the hotel.

A National Labor Relations Board investigation validated this claim and the hotel agreed in a settlement to convert the permanent layoffs to temporary layoffs and restore recall rights for all 19 workers.

Recall rights – this is where the work has taken a big step forward. LA Local 11, UNITE HERE, has supported several recall orders for local workers in Southern California.

The city and county of Los Angeles both passed COVID-19 right of recall and retention orders over the summer, forcing companies to offer jobs to laid-off workers as soon as positions become available.

Gov. Gavin Newsom vetoed a bill that would have done the same statewide, Assembly Bill 3216, saying the bill would impose “too great a burden” on employers in the hard-hit hospitality sector. Democratic Assembly member Ash Kalra, who drafted the bill, is still questioning whether he should reintroduce the bill, according to a spokesperson. The deadline for tabling the bill is February 18.

Lynn Mohrfeld, president of the California Hotel and Lodging Association, says recall orders are unnecessary as hotels have an incentive to rehire their already trained former employees.

He is challenging orders requiring recalls to be in seniority order, meaning hotels must offer positions to workers with the most seniority even if they had held a different position. Unions see it as a defense against employers seeking to cut labor costs by phasing out older and more expensive employees. Mohrfeld sees it as nothing more than an obstacle.

Morales did it right, climbing the ranks at La Costa for 32 years. A well-paying union job helped him start a family, get health insurance and become a homeowner. His fears that he would never find his job were allayed last month when the city of Carlsbad passed an ordinance requiring large hotels to guarantee the right of recall to laid-off hotel workers in the city. But he remains unemployed.

Now he is preparing to sell his house, standing in food queues and giving his son old drugs because he was kicked out of his health insurance.

“Everything I’ve worked for 30 years is going to be taken away in one day,” Morales said.

Jhonae Mazique, who is currently staying with a friend in Oakland’s Lake Merritt neighborhood, enjoys coming to the lake to clear her head in order to deal with the stress of losing her job. Photo by Anne Wernikoff for CalMatters

Even though Lezama is guaranteed a recall by law in Los Angeles, she fears her employer will find a way around it. But it must first overcome the obstacles of today. His unemployment benefits expired last month. Left with no income, Lezama had to pull out her 401k to pay rent this month.

Mazique’s unemployment benefits are also due to expire soon. She was earning an income from her independent eyelash business before her supplies were stolen from her car in June. Now she is looking for a new job.

UNITE HERE alleged that the hospitality industry abused the paycheck protection program, prompting members of Congress to ask the Small Business Administration to investigate a company that has received millions.

The $ 669 billion PPP fund, which was renewed as part of the new stimulus bill with an additional $ 284 billion, has been proposed by lawmakers as a remedy for struggling small businesses, but Congress has cleared them. large hotel companies in the hospitality industry struggling to participate. The union alleges that hotel companies received PPP loans with no intention of spending 60% on salary costs as the loan requires to be canceled.

Mohrfeld says the work charges are just that – charges.

“I mean, has there been any other evidence or is it just UNITE HERE getting a letter from Congress,” Mohrfeld said. “As far as I know, these are just baseless allegations.”

Leary says the PPP was a bailout for the hospitality industry that failed to protect workers. The union estimates that 80% of its members remain unemployed. Leary says hotels could have used the loans to pay for health insurance for their laid-off employees, a reimbursable salary expense. They did not do it.

It’s simple for Mohrfeld. If hotels haven’t used PPP loans to rehire workers, it’s because there is no work for the employees to do.

Hotel occupancy rates in California were 45.7% in the last week of November, down 36% from a year ago. Travel to the state is expected to drop from 264 million visitors in 2019 to 160.9 million visitors in 2020, according to Visit California, bringing visitor spending to $ 66.1 billion from $ 144.9 billion in 2019 .

Industry forecasts are bleak. Hotel occupancy rates will be at 94% of pre-pandemic levels in 2023, which means the payback is years away.

Updated January 7, 2021 to correct Hector Morales has recall rights due to a local ordinance.

This article is part of California Division, a newsroom collaboration examining income inequality and economic survival in California.

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]]> Whitmer veto bills to add multi-state licensure for nurses and psychologists Tue, 09 Mar 2021 10:57:59 +0000

Gov. Gretchen Whitmer has vetoed two bills that would have allowed Michigan to join other states in licensing deals for nurses and psychologists.

In her veto letter to lawmakers, the governor said both bills would violate sections of the Michigan Constitution by “waiving our prerogative as a state to set the standard of care required of practicing nurses and psychologists. in our state “.

Governor Gretchen Whitmer

“While I appreciate interstate cooperation, especially on matters of a particularly interstate nature, these agreements require Michigan to cede its sovereign interest in regulating the health professions to an outside body,” Whitmer wrote.

Legislation to adhere to an Interstate Nursing Licensing Agreement, HB 4042 sponsored by Representative Mary Whiteford, Township of R-Casco, would remove “the state’s authority to regulate the nursing profession”, according to a statement released today by the governor’s office announcing the signing. of 19 bills and a veto for 13 others.

Meanwhile, SB 758, sponsored by Sen. Peter MacGregor, R-Rockford, would have allowed an independent commission to establish rules “which would have the effect of a law in Michigan,” according to the Whitmer statement. .

Supporters of the legislation saw it as a way to increase access to mental health care in Michigan.

The State House passed SB 758 on Dec. 17 with an 89-16 vote, and it easily cleared the Senate the next day with a unanimous 37-0 vote. The bill would have brought Michigan into the intergovernmental psychology pact that already includes 15 states, allowing psychologists to treat patients in other states through telehealth without going through the licensing process in each state. .

Likewise, HB 4042 would have allowed Michigan nurses to have multi-state licenses.

Whitmer has also vetoed bills to put a 28-day limit on emergency orders to control a pandemic, unless they are approved by both houses of the state legislature, and to repeal the governor’s emergency powers.

The 28-day limit for emergency pandemic orders “would unwisely undermine the ability of the Department of Health and Human Services to stop the spread of this pandemic, endangering the lives of countless Michiganders,” wrote Whitmer in his veto letter to lawmakers.

“Unfortunately, outbreaks are not limited to 28 days. We should not limit our ability to respond to them in this way, ”she wrote.

Whitmer also vetoed an SB 1185 that would have provided liability protection to protect healthcare workers from lawsuits from a patient claiming to be injured while receiving care related to COVID-19. Whitmer said earlier executive order and legislative action earlier this year already offered similar protections.

“When a COVID-19 patient receives substandard care, they should not be deprived of their day in court,” she wrote in a veto letter to lawmakers on SB 1185, sponsored by the senator Curtis VanderWall, R-Ludington.

In a statement, VanderWall said the governor “sided with trial lawyers eager to prosecute.”

“The stress and fatigue facing our health heroes on the front lines of this fight is unimaginable. The last thing they should worry about is frivolous lawsuits, but that’s exactly what Governor Whitmer did with that veto. No one should take her seriously any longer when she claims that she supports them, “he said in a statement.

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Definition of simple interest Tue, 09 Mar 2021 10:57:58 +0000

What is simple interest?

Simple Interest is a quick and easy way to calculate interest charges on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of days that elapse between payments.

This type of interest generally applies to auto loans or short-term loans, although some mortgages use this method of calculation.

Key points to remember

  • Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days between payments.
  • Simple interest benefits consumers who repay their loans on time or at the start of each month.
  • Auto loans and short term personal loans are generally low interest loans.

Understanding the simple interest

Understanding the simple interest

Interest is the cost of borrowing money. Usually expressed as a percentage, this is a commission or supplement that the borrower pays to the lender for the amount financed.

When you make a payment on a simple interest loan, the payment goes toward the monthly interest first, and the rest goes toward the principal. The interest for each month is paid in full, so that no accumulates. In contrast, compound interest adds a portion of the monthly interest on the loan; each subsequent month, you pay new interest on the old interest.

To understand how simple interest works, consider a car loan with a principal balance of $ 15,000 and an annual simple interest rate of 5%. If your payment is due on May 1 and you pay it precisely on the due date, the finance company calculates your interest on the 30 days of April. Your 30-day interest is $ 61.64 in this scenario. However, if you make the payment on April 21, the finance company charges you interest for only 20 days in April, which reduces your interest payment to $ 41.09, a savings of $ 20.

Simple formula of interest and example

The simple interest formula is pretty, well, simple. It looks like this:

Simple interest













Daily interest rate



Number of days between payments

begin {aligned} & text {Simple interest} = P times I times N & textbf {where:} & P = text {Principal} & I = text {Daily interest rate } & N = text {Number of days between payments} end {aligned}

Simple interest=P×I×NOTor:P=MainI=Daily interest rateNOT=Number of days between payments

As a general rule, simple interest paid or received over a certain period constitutes a fixed percentage of capital borrowed or loaned. For example, suppose a student gets a simple interest loan to pay for a year of college tuition, which costs $ 18,000, and the annual interest rate on the loan is 6%. The student repays the loan over three years. The amount of simple interest paid is:














begin {aligned} & $ 3.240 = $ 18.000 times 0.06 times 3 end {aligned}


and the total amount paid is:















begin {aligned} & $ 21.240 = $ 18.000 + $ 3.240 end {aligned}


Who Benefits from a Simple Interest Loan?

Since simple interest is often calculated daily, it primarily benefits consumers who pay their bills or loans on time or earlier each month.

In the student loan scenario above, if you sent a payment of $ 300 on May 1, then $ 238.36 will go into principal. If you sent the same payment on April 20, then $ 258.91 will go into principal. If you can pay off earlier each month, your principal balance goes down faster and you pay off the loan sooner than the original estimate.

Conversely, if you pay off the loan late, more of your payment goes towards interest than if you pay it on time. Using the same car loan example, if your payment is due on May 1 and you make it on May 16, you will have to pay 45 days of interest at a cost of $ 92.46. This means that only $ 207.54 of your $ 300 payment goes towards principal. If you regularly pay late throughout the life of a loan, your final payment will be higher than the initial estimate because you haven’t paid back the principal at the expected rate.

What types of loans use simple interest?

Simple interest generally applies auto or short-term loans personal loans. In the United States, most mortgages on a Amortization schedule are also simple interest loans, although they can certainly feel like compound interest.

The impression of membership comes from the change in principal payments – that is, the percentage of your mortgage payment that actually goes to the loan itself, not the interest. Interest is not compounded; principal payments do. A principal payment of $ 1,000 saves interest on that $ 1,000 and results in higher principal payments the following year, higher principal payments the following year, and so on. If you don’t let the principal payments vary, such as with an interest-only loan (zero principal payment), or equalizing the principal payments, the interest on the loan itself does not compound. Lowering the interest rate, shortening the term of the loan, or prepaying the principal also have a cumulative effect.

For example, take bi-weekly mortgage payment plans. Bi-weekly plans typically help consumers pay off their mortgage sooner because borrowers make two more payments per year, saving interest over the life of the loan by paying off the principal faster.

If you are looking to take out a short term personal loan, then a personal loan calculator can be a great tool for determining in advance an interest rate that is within your means.

Simple interest vs compound interest

Interest can be simple or compound. Simple interest is based on the original the principal amount a loan or a deposit.

Compound interest, on the other hand, is based on the principal amount and the interest that accumulates in each period. Simple interest is calculated only on the principal, so it is easier to determine than compound interest.

In real life situations, compound interest is often a factor in business transactions, investments, and financial products intended to span multiple periods or years. Simple interest is mainly used for easy calculations: those usually for a single period or less than a year. Simple interest also applies to open situations, such as credit card balances.

Why is simple interest “simple”?

“Simple” interest refers to the direct credit of the cash flows associated with an investment or deposit. For example, an annual simple interest of 1% would credit $ 1 for every $ 100 invested, year after year. Simple interest, however, does not take into account the power of capitalization, or interest on interest, where after the first year, the 1% would actually be earned on the $ 101 balance, for a total of $ 1.01. The following year, the 1% would be earned on $ 102.01, or $ 1.02. And so on.

What will pay off more over time, simple or compound interest?

Compound interest will always pay more after the first payment period. Suppose you borrow $ 10,000 at an annual interest rate of 10% with the principal and interest due like a lump sum in three years. Using a simple interest calculation, 10% of the principal balance is added to your repayment amount in each of the three years. This works out to $ 1,000 per year, which represents $ 3,000 in interest over the life of the loan. On reimbursement, the amount due is then $ 13,000. Now suppose you take out the same loan, with the same terms, but the interest is compounded annually. When the loan matures, instead of $ 13,000, you owe $ 13,310. While you might not think of $ 310 as a huge difference, this example is only a three-year loan; compound interest accumulates and becomes oppressive with longer loan terms.

What are the financial instruments that use simple interest?

Most coupon bonds use simple interest. So do most personal loans, including student loans and auto loans, and mortgages.

What are the financial instruments that use compound interest?

Most bank deposit accounts, credit card, and some lines of credit will tend to use compound interest.

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Opinion: UCLA must develop, promote financial aid resources to help student borrowers Tue, 09 Mar 2021 10:57:58 +0000

Although the global pandemic has affected almost every aspect of the lives of UCLA students, tuition fees remains the same – just like the student debt crisis.

On September 25, California Governor Gavin Newsom sign Assembly Bill 376, providing student borrowers with a bill of rights that improves communication standards and increases protection of borrowers. While this bill helps protect students from private companies seeking to take advantage of those who are financially precarious, it does not address the high tuition fees and lack of public funding of public schools that are causing the student debt problem. in the first place.

Interim measures like this make it clear that students in public universities cannot depend on federal or state funds to deal with the student debt crisis. Without significant financial relief, students will continue to take loans and accumulate huge debts. Ultimately, this requires reform at the state and federal levels to ensure that schools are sufficiently equipped to support their students. In the meantime, UCLA must strengthen its financial services to help student borrowers, especially during a global recession in which neither tuition fees nor student debt decline.

While this new bill of rights is a step in the right direction in terms of protecting California students, it has little effect on students in the University of California system. The vast majority of CU Student borrowers take out loans through the federal direct lending program, which already has the protections of AB 376, said Stett Holbrook, spokesperson for the president’s office at UC, in an emailed statement.

“AB 376 will impact a small number of student loan borrowers at UC, which includes the 1.4% who take out private student loans and the 3.1% for whom the University is the official lender.” Holbrook said in the emailed statement. .

Bills like AB 376 show the government has taken a reactive – rather than preventive – approach to helping students, indicating a worrying reluctance on the part of state and federal authorities to support students at a time when many are in difficulty.

“It’s not so much about influencing whether students take loans in the first place,” said Ozan Jaquette, assistant professor at the Graduate School of Education and Information Studies. “It doesn’t solve the fact that university costs more than it should, but it makes the system work better. “

In recent years, tuition fees on UC campuses have resurrected and state funding has decreases. As of 2016, CUs started receiving more money from tuition and fees than from state funding. Additionally, after adjusting for inflation, Congress allocated less funding to the Department of Education in 2018 than in 2011. These changes undoubtedly increase the number of students who need to take out loans for education. pay for their studies.

Jaquette added that the bill is likely a response to a lack of action at the federal level as well. Federal funding for higher education has been relatively stagnant in recent years.

“Members of the California governor’s office assembly said, ‘We have to be the one to step up and protect California student loan borrowers,” “Jaquette said.

Fortunately, UCLA already has a plethora of resources for student borrowers to try to compensate for this lack of preventative action. the Financial wellness program and the Loan Services Office to provide educational and counseling services to student borrowers, now available on YouTube and Zoom due to distance learning, UCLA spokesman Ricardo Vazquez said in an emailed statement.

UCLA needs to educate students about the complexities of getting a loan, especially when students always pay full tuition and online courses like EverFi’s fail to clarify the processes. for financial assistance. At the very least, that would mean promoting the financial services that the university already offers. Increased awareness of these services would certainly help students who are unfamiliar with or who feel intimidated by the financial aid process.

UCLA should also prioritize expanding these programs where funds permit. Seventy-one percent of incoming students and 92% of transfer students I feel very uncomfortable taking out a student loan, Vazquez said in the emailed statement. Distance learning likely exacerbates these numbers.

Financial aid is a daunting idea for students under normal circumstances, but to manipulate this process is even more alienating when all resources are now limited to a computer screen. Expanding the financial aid resources available to students is essential to meet the unprecedented challenges of distance learning.

Since the CPU has lost nearly $ 2 billion during the pandemic and has little room in its budget for student resources, critical as they are. UCLA alone lost $ 653 million, which is the best of any individual UC campus. In addition, 45% undergraduate UCLA students are already receiving financial aid in the form of grants and scholarships from federal, state or university sources.

But unnecessary spending like the recent UCLA Slack subscription of $ 259,200 show that the university must redefine the priorities where it allocates funds available.

It starts with meeting the most basic needs of students – providing them with the resources to pay for their studies.

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The following is Management's discussion and analysis of certain significant
factors affecting our financial condition and results of operations for the
periods included in the accompanying condensed consolidated financial
Founded in 1954, Nordson Corporation delivers precision technology solutions to
help customers succeed worldwide. We engineer, manufacture and market
differentiated products and systems used for precision dispensing, applying and
controlling of adhesives, coatings, sealants, biomaterials, polymers, plastics
and other materials; fluid management; test and inspection; and UV curing and
plasma surface treatment. These products are supported with extensive
application expertise and direct global sales and service. We serve a wide
variety of consumer non-durable, consumer durable and technology end-markets
including packaging, nonwovens, electronics, medical, appliances, energy,
transportation, building and construction, and general product assembly and
finishing. We have approximately 7,600 employees and direct operations in more
than 35 countries.
Segment Update
Effective in the second quarter of 2020, we made changes to realign our
management team and our operating segments. This realignment will enable us to
better serve global customers and markets, to more efficiently leverage
technology synergies, to operate divisions of significant size in a consistent
and focused way and to position ourselves for our next chapter of profitable
growth. The revised segments better reflect how we manage the Company, allocate
resources, and assess performance of the businesses.
We realigned our former three operating segments into two: Industrial Precision
Solutions (IPS) and Advanced Technology Solutions. Existing product lines were
unchanged as part of this new structure.
Industrial Precision Solutions: This segment combines our former Adhesive
Dispensing Systems (ADS) and Industrial Coating Systems (ICS) businesses. IPS
enhances the technology synergies between ADS and ICS to deliver proprietary
dispensing and processing technology, to diverse end markets. Product lines
reduce material consumption, increase line efficiency and enhance product brand
and appearance. Components are used for dispensing adhesives, coatings, paint,
finishes, sealants and other materials. This segment primarily serves the
industrial, consumer durables and non-durables markets.
Advanced Technology Solutions: This segment integrates our proprietary product
technologies found in progressive stages of a customer's production processes,
such as surface treatment, precisely controlled dispensing of material and
post-dispense test and inspection to ensure quality. Related single-use plastic
molded syringes, cartridges, tips, fluid connection components, tubing, balloons
and catheters are used to dispense or control fluids in production processes or
within customers' end products. This segment predominantly serves customers in
the electronics, medical and related high-tech industrial markets.
The financial information presented herein reflects the impact of the preceding
changes and prior periods have been revised to reflect these changes.
COVID-19 Update
We continue to support multiple "critical infrastructure" sectors by
manufacturing materials and products needed for medical supply chains,
packaging, transportation, energy, communications, and other critical
infrastructure industries. We have benefited from our geographical and product
diversification as the end markets we serve have remained resilient in response
to the COVID-19 pandemic. We continue to actively monitor the impact of the
COVID-19 pandemic, which may negatively impact our business and results of
operations for 2021 and potentially beyond. However, the full extent of the
COVID-19 pandemic on our operations and the markets we serve is uncertain and
will depend largely on future developments, including the availability and
effectiveness of vaccines, new information which may emerge concerning the
severity of the pandemic and actions by government authorities to contain the
pandemic or mitigate its economic, public health and other impacts. These
developments are constantly evolving and cannot be accurately predicted. We
continue to invest in the business, people, and strategies necessary to achieve
our long-term priorities as we focus on driving profitable growth. We have
continued to operate during the course of the COVID-19 pandemic in all our
production facilities, having taken the recommended public health measures to
ensure worker and workplace safety. As a result, there have been unfavorable
impacts on our manufacturing efficiencies. Additionally, we continue to take
steps to offset cost increases from pandemic-related supply chain disruptions.
                                    Page 22
                                                             Table of Contents
Nordson Corporation
Critical Accounting Policies and Estimates
The preparation and fair presentation of the consolidated unaudited interim
financial statements and accompanying notes included in this report are the
responsibility of management. The financial statements and notes have been
prepared in accordance with U.S. generally accepted accounting principles for
interim financial statements and contain certain amounts that were based upon
management's best estimates, judgments and assumptions that were believed to be
reasonable under the circumstances. On an ongoing basis, we evaluate the
accounting policies and estimates used to prepare our financial
statements. Estimates are based on historical experience, judgments and
assumptions believed to be reasonable under current facts and
circumstances. Actual amounts and results could differ from these estimates used
by management.
A comprehensive discussion of the Company's critical accounting policies and
management estimates and significant accounting policies followed in the
preparation of the financial statements is included in Item 7 of our Annual
Report on Form 10-K for the year ended October 31, 2020. There have been no
significant changes in critical accounting policies, management estimates or
accounting policies followed since the year ended October 31, 2020.
Results of Operations
Three months ended January 31, 2021
Worldwide sales for the three months ended January 31, 2021 were $526,566 an
increase of 6.4% from sales of $494,916 for the comparable period of 2020. The
increase consisted of a 2.6% increase in organic sales volume, a favorable
effect from currency translation of 2.8% and a 1.0% increase due to
acquisitions. Strength in consumer non-durable and industrial end markets were
the primary drivers of the growth.
Sales outside the United States accounted for 64.8% of our sales in the three
months ended January 31, 2021 compared to 61.9% in the comparable period of
2020. On a geographic basis, sales in the United States were $185,316, a
decrease of 1.7% compared to the comparable period of 2020 consisting of a 2.8%
decrease in organic sales volume partially offset by a 1.1% increase from
acquisitions. In the Americas region, sales were $36,138, an increase of 16.3%
from 2020, consisting of an organic sales volume increase of 9.9% and an
increase of 9.8% due to acquisitions, partially offset by unfavorable currency
effects of 3.4%. In Europe, sales were $135,151, an increase of 6.9% from the
comparable period of 2020, consisting of an organic sales volume increase of
0.3% and favorable currency effects of 6.6%. In Japan, sales were $27,115, a
decrease of 1.6% from the comparable period of 2020, consisting of an organic
sales volume decrease of 6.3%, offset by favorable currency effects of 4.7%. In
the Asia Pacific region, sales were $142,846, an increase of 17.7% from the
comparable period of 2020, consisting of an organic sales volume increase of
13.4% and favorable currency effects of 4.3%.
Cost of sales for the three months ended January 31, 2021 were $236,606 up from
$231,722 in the comparable period of 2020. Gross profit, expressed as a
percentage of sales, increased to 55.1% from 53.2% in the comparable period of
2020. The 1.9 percentage point increase in gross margin was driven by a
favorable sales volume and product mix impact of 1.0 percentage point, favorable
currency translation effects of 0.5 of a percentage point, a favorable impact of
0.2 of a percentage point related to acquisitions, and lower costs related to
cost structure simplification actions of 0.2 of a percentage point.
Selling and administrative expenses for the three months ended January 31, 2021
were $180,935 down from $188,101 in the comparable period of 2020. Of the 3.8%
decrease, lower services and employee related costs contributed 5.5 percentage
points, and lower costs related to cost structure simplification actions
contributed 1.3 percentage points. These improvements were partially offset by
2.2 percentage points due to unfavorable currency translation effects, and 0.8
of a percentage point due to acquisitions.
Operating profit as a percentage of sales increased to 20.7% for the three
months ended January 31, 2021 compared to 15.2% in the comparable period of
2020. Of the 5.5 percent increase in operating margin, lower services and
employee related costs contributed 3.0 percentage points, favorable absorption
due to higher sales volume and product mix contributed 1.4 percentage points,
and lower costs related to cost structure simplification actions and favorable
currency translations effects each contributed 0.6 of a percentage point.
Interest expense for the three months ended January 31, 2021 was $6,932,
compared to $9,740 in the comparable period of 2020. The decrease was due to
lower average debt levels and lower variable interest rates compared to the
prior year period. Other expense was $4,661 compared to $2,846 in the comparable
period of 2020 due to higher foreign currency losses. Included in the current
year's other expense were pension costs of $1,476 and $2,760 in foreign currency
losses. Included in the prior year were pension costs of $2,772 and an
immaterial impact from foreign currency.
Net income for the three months ended January 31, 2021 was $77,582, or $1.32 per
diluted share, compared to $52,004, or $0.89 per diluted share, in the same
period of 2020. This represents a 49.2% increase in net income, and a 48.6%
increase in diluted earnings per share.
                                    Page 23
                                                             Table of Contents
Nordson Corporation
Industrial Precision Solutions
Sales of the Industrial Precision Solutions segment were $288,416 in the three
months ended January 31, 2021, an increase of 9.3%, from sales in the comparable
period of 2020 of $263,799. The increase was the result of an organic sales
volume increase of 5.9% and favorable currency effects that increased sales by
3.4%. Growth in product lines serving consumers in the non-durable and
industrial end markets, particularly in the Asia Pacific region, was partially
offset by weakness in Japan.
Operating profit as a percentage of sales increased to 28.9% for the three
months ended January 31, 2021 compared to 21.4% in the comparable period of
2020. Of the 7.5 percentage point improvement in operating margin, lower
services and employee related costs contributed 5.2 percentage points, favorable
absorption due to higher sales volume and product mix contributed 2.0 percentage
points, and favorable currency translation effects contributed 0.3 of a
percentage point.
Advanced Technology Solutions
Sales of the Advanced Technology Solutions segment were $238,150 in the three
months ended January 31, 2021, an increase of 3.0% from sales in the comparable
period of 2020 of $231,117. The increase was the result of a 2.2% increase from
acquisitions and favorable currency effects that increased sales by 2.1%, offset
by an organic sales volume decrease of 1.3%. Sales growth in test and inspection
and fluid dispense product lines was offset by weaker shipments in electronic
dispense and medical interventional solutions product lines during the quarter.
Growth in the Asia, Americas and Japan regions was partially offset by declines
Operating profit as a percentage of sales increased to 19.8% for the three
months ended January 31, 2021 compared to 14.0% in the comparable period of
2020. Of the 5.8 percentage point improvement in operating margin, lower
services and employee related costs contributed 3.6 percentage points, lower
costs related to cost structure simplification actions contributed 1.3
percentage points, favorable currency translation effects contributed 0.7 of a
percentage point, and favorable product mix contributed 0.5 of a percentage
point. These improvements were minimally offset by 0.3 of a percentage point due
to acquisitions.
Income taxes
We record our interim provision for income taxes based on our estimated annual
effective tax rate, as well as certain items discrete to the current
period. Significant judgment is involved regarding the application of global
income tax laws and regulations and when projecting the jurisdictional mix of
income. We have considered several factors in determining the probability of
realizing deferred income tax assets which include forecasted operating
earnings, available tax planning strategies and the time period over which the
temporary differences will reverse. We review our tax positions on a regular
basis and adjust the balances as new information becomes available. The
effective tax rate for the three months ended January 31, 2021 and 2020 was
20.7% and 17.6%, respectively. The effective tax rate for the current quarter
was higher than the comparable prior year period primarily due to share-based
payment transactions which resulted in discrete tax benefits of $799 and $2,537
for the three months ended January 31, 2021 and 2020, respectively.
Foreign Currency Effects
In the aggregate, average exchange rates for 2021 used to translate
international sales and operating results into U.S. dollars were generally
favorable compared with average exchange rates existing during 2020,
particularly due to a strengthening EURO and Chinese Yuan. It is not possible to
precisely measure the impact on operating results arising from foreign currency
exchange rate changes, because of changes in selling prices, sales volume,
product mix and cost structure in each country in which we operate. However, if
transactions for the three months ended January 31, 2021 were translated at
exchange rates in effect during the same period of 2020, sales would have been
approximately $13,800 lower while costs of sales and selling and administrative
expenses would have been approximately $7,800 lower.
                                    Page 24
                                                             Table of Contents
Nordson Corporation
Financial Condition
Liquidity and Capital Resources
During the three months ended January 31, 2021, cash and cash equivalents
increased $17,445. Cash provided by operations during this period was $143,289,
compared to $116,275 for the three months ended January 31, 2020. This increase
was primarily due to higher net income. Changes in operating assets and
liabilities increased cash by $29,416 in the three months ended January 31,
2021, compared to $28,486 in the comparable period of 2020.
Cash used in investing activities was $7,895 for the three months ended
January 31, 2021, compared to $13,816 used in the comparable period of 2020
which included capital expenditures of $7,917 and $13,881 for the same periods,
Cash used in financing activities was $122,278 for the three months ended
January 31, 2021, compared to $138,219 used in the comparable period of
2020. Repayments of long-term debt were $100,000 in the three months ended
January 31, 2021, compared to $125,951 for the same period of 2020. Cash of
$22,672 was used for dividend payments and cash of $5,310 was used for the
purchase of treasury shares associated with employee benefit plans in the
current year period, compared to $21,915 and $4,311, respectively, in the
comparable period of 2020. Issuance of common shares related to employee benefit
plans generated $7,438 during the three months ended January 31, 2021 compared
to $16,379 in 2020.
The following is a summary of significant changes in balance sheet captions from
October 31, 2020 to January 31, 2021. The decrease of $17,132 in accrued
liabilities was primarily due to compensation adjustments and bonuses paid out
in the first quarter of 2021. Long-term debt decreased $86,668 primarily due to
a repayment of $100,000 on our Term loan.
We believe that the combination of present capital resources, cash from
operations and unused financing sources are more than adequate to meet cash
requirements for 2021. There are no significant restrictions limiting the
transfer of funds from international subsidiaries to the parent company. We were
in compliance with all covenants at January 31, 2021. See Long-term debt in the
notes to these financial statements for additional details regarding our debt
We are optimistic about our longer-term growth opportunities in the diverse
consumer non-durable, industrial, medical, electronics, consumer durable and
automotive end markets we serve. We also support our customers with parts and
consumables, where a significant percentage of our revenue is recurring. Based
on backlog and order entry trends, and the correlation to sales timing, we
expect 2021 full year sales growth to be approximately 4% to 6% over 2020.
Additionally, we are forecasting full year 2021 earnings per diluted share in
the range of $6.30 to $6.70.
Safe Harbor Statements Under The Private Securities Litigation Reform Act Of
This Form 10-Q, particularly the "Management's Discussion and Analysis",
contains forward-looking statements within the meaning of the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements relate to,
among other things, income, earnings, cash flows, changes in operations,
operating improvements, businesses in which we operate and the U.S. and global
economies. Statements in this Form 10-Q that are not historical are hereby
identified as "forward-looking statements" and may be indicated by words or
phrases such as "anticipates", "supports", "plans", "projects", "expects",
"believes", "should", "would", "could", "hope", "forecast", "management is of
the opinion", use of the future tense and similar words or phrases.
In light of these risks and uncertainties, actual events and results may vary
significantly from those included in or contemplated or implied by such
statements. Readers are cautioned not to place undue reliance on such
forward-looking statements. These forward-looking statements speak only as of
the date made. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.
Factors that could cause actual results to differ materially from the expected
results are discussed in Part I, Item 1A, Risk Factors in our Form 10-K for the
year ended October 31, 2020.

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Pipe, a B2B SaaS funding platform, raises $ 6 million from craft businesses to help growing startups avoid dilution Tue, 09 Mar 2021 10:57:56 +0000

Alex Danco wrote a thought-provoking blog post that investors and founders in Silicon Valley have spoken to over the past two weeks. In his tweet where he shared the blog post, he wrote: “Someday, and not today, but soon – and first gradually, but then suddenly”, a new option for start-up financing “Arrives in Silicon Valley”.

That day has come.

Founders of fast-moving Software as a Service (SaaS) startups should always think about how they will finance their growth. Will they grow with the income they generate or will they trade part of their business ownership for capital from technology investors? Founders usually go for the latter option, as engaging in venture capital funding at an early stage allows them to grow faster. However, they dilute themselves (and their employees) as equity is traded for more capital to continue their rapid growth path. Serial entrepreneurs Harry Hurst, 30, Josh Mangel, 27, and Zain Allarakhia, 31, observed the canonical cash flow problem in SaaS startups, creating Pipe as a solution. Pipe is a funding platform that provides non-dilutive funding to SaaS businesses in the form of an instant cash advance. The Los Angeles-based startup raised $ 6 million in a funding round led by Craft Ventures, with participation from Fika Ventures, MaC Ventures, Naval Ravikant, WorkLife Ventures and The Weekend Fund.

“The primary funding option for SaaS companies so far has been dilutive fund rounds,” said David Sacks, co-founder and general partner of Craft Ventures. “Pipe is the tool every SaaS founder has been waiting for. It enables SaaS companies to grow without dilution by financing their SaaS receivables.

For B2B SaaS companies, the trade-off between cash flow and growth is particularly painful, as most of their products and services have high upfront costs. The dilemma is compounded by the relatively slow growth in income at the start to offset these initial expenses. At this point in the business, the founders lack the flexibility to offer their customers attractive monthly payment plans. Sometimes founders need to discount the full value of an annual subscription so that customers pay in full at the time of purchase. Lack of payment flexibility prevents transactions from closing faster, which negatively impacts the rate of revenue growth. Given these canonical cash flow issues, early stage founders backed by venture capital are more inclined to raise funds rather than seed. However, a large number of SaaS companies in the United States indicate that a large customer base needs a non-dilutive solution to their growth problems.

AngelList CEO and Pipe investor Naval Ravikant urges SaaS companies to “come forward to customers, not investors, and let Pipe convert subscriptions into instant, no-dilution funding.” Fountain CEO Keith Ryu adds, “Having efficient cash flow is essential to our mission to grow. We often risked losing business by requiring annual upfront payments when customers wanted to pay monthly. Pipe solves this problem for us and allows us to invest more heavily in our growth. It can easily save us a fundraiser. ”

Cloud service companies are a type of business that provides an essential function for most businesses that depend on the Internet to operate today. Without these suppliers, many of their customers would not have the digital capacity they need to do business in today’s economy. Gartner believes the global public cloud services market will grow to $ 266.4 billion in sales in 2020, an increase of 17% from $ 228 billion in 2019. The global cloud services market provides a great bridge opportunity for Pipe due to the need for offerings from these vendors.

“SaaS businesses have wonderfully predictable recurring revenues that, assuming a negative churn rate, last forever. The problem is, their customers want to pay their subscriptions monthly or quarterly, ”says Hurst, co-founder and co-CEO of Pipe. “Founders of high growth startups find themselves slashing their revenues by up to 40% to get clients to prepay each year and, at the same time, raise dilutive equity to close the cash flow gap.” . “

Pipe offers a clear, non-dilutive alternative to founders who choose how to grow their business. By providing a cash advance equal to the annual price of the software subscription, a business using Pipe can gain immediate access to the full annual value of a customer subscription. In other words, startups using Pipe can immediately turn their monthly recurring revenue (MRR) into annual recurring revenue (ARR). Converting MRR to ARR allows businesses to focus on acquiring more customers and investing in the critical infrastructure needed for expansion. The fees charged to Pipe are comparable to those of current competitors in the financing industry. The key to Pipe’s financing is its integration into its customers’ accounting, billing and subscription management systems. Information from these systems is used to instantly decide whether the business qualifies for funding from Pipe. The founders say customers can turn their MRR into ARR “within hours of demand.”

Jon Runyan, Okta General Counsel, explained, “Having overseen thousands of sales and contracting processes over my career, I immediately saw the value of Pipe’s elegant solution to the contract conditions problem. payment versus the cash flow that so many businesses face. “

Pipe’s “smart solution” competes with specialist banks that offer venture capital and late-stage venture capital firms. The Kauffman Foundation definition of risky debt is “a form of debt financing for venture-backed companies that do not have the assets or cash flows for traditional debt financing, or who want more flexibility.” Specialized banks offer this financing tool which has two key components. The first element is the debt itself structured as a series of loans (usually a term of three years is the norm). The second and most important part of venture capital debt is the warrants included in the loan package. Warrants are debt securities that give the loan creditor the opportunity to buy shares in the indebted start-up. These equity instruments can prove to be costly in the last fundraising for a startup, especially if a company was about to go public.

If they took on risky debt, the mandate would allow the creditor to buy part of the equity in the business at a predetermined price, which would cost the business up to hundreds of millions of dollars. However, by using Pipe, a SaaS business can avoid the dilution and debt caused by raising additional funds or borrowing venture capital debt. Pipe’s co-founders discovered the appeal of their funding option to fast-growing SaaS startups and the potential new market for the financial instruments they created. The three realized that the underlying value of their clients’ contracts is equivalent to an asset.

Why is calling Stable MRR from Pipe customers a remarkable asset?

Going back to Danco’s blog post, he makes a bold prediction:

“The tipping point occurs when an important person, and possibly a local one, announces a new fundraising product: securitization of recurring income. ”

Danco’s conjecture is what Pipe aims to produce. Hurst says, “Pipe is creating a new asset class for investors: a fixed income type product that generates attractive returns from recurring, predictable, asset-backed income streams. ”

Vista Equity Partners CEO Robert Smith understands how valuable these cloud service providers are, saying in his Forbes Mars cover story, “Software contracts are better than senior debt. A business will only pay interest on its first lien after paying its software maintenance or subscription fees. We get paid our money first. Pipe provides cash advances ranging from $ 10,000 per month to several million per month to its clients. The financing of this type of SaaS startups is less risky because of the essential nature of their services and, above all, the stability of their recurring revenues.

The consequences of such an asset class are unclear, but Danco extrapolates further:

“If you think there is too much money flowing into startups now, just wait for someone to create a high yield fixed income product for institutional investors to buy recurring income … imagine how it goes. be to compete with someone who is connected to the debt market. “

With Pipe providing non-dilutive funding to hyper-growing SaaS startups, the day of debt-fueled competition will come sooner than we think.

If you liked this article, feel free to check out my other work on LinkedIn and my personal website, Follow me on twitter @fredsoda, on Medium @fredsoda, and on Instagram @fred_soda.

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Texas leads COVID-19 small business loan approval – Houston Public Media Tue, 09 Mar 2021 10:57:56 +0000
President Donald Trump listens to Treasury Secretary Steven Mnuchin speak about the coronavirus in the James Brady press conference room of the White House, Tuesday, April 21, 2020, in Washington.

Updated at 11:50 p.m. CT Wednesday: California has now been approved for more total dollars in small business loans, although Texas still has the most loans approved

The state of Texas is on track to receive more small business loans than any other state since passing federal legislation to keep the economy afloat amid the coronavirus pandemic – and lawmakers and the White House reached a deal on Tuesday that would provide even more funding to small businesses affected by COVID-19.

The deal totals more than $ 480 billion and includes $ 320 billion for the Small Business Administration’s paycheck protection program, created by the CARES Law.

As of April 16, the SBA had approved nearly 135,000 loans totaling more than $ 28.4 billion for Texas companies under the PPP, making Lone Star State the No. 1 approved loan. California companies were approved for even more money overall, $ 33.4 billion.

As of April 13, nearly $ 3 billion of that money had gone to more than 8,300 small businesses in Southeast Texas, including Houston.

That number is already much higher than the disaster loans approved after Hurricane Harvey.

At the time, small businesses received over $ 450 million, for a total of 3,906 loans. With the owners added, a total of $ 1.3 billion in loans has been approved for Harvey, said Mark Winchester, deputy district manager at the Houston SBA.

The comparison shows how the coronavirus pandemic is affecting small businesses in Southeast Texas.

“What the lenders here in Houston would normally do in a year, they did it in 14 days,” Winchester said. “Three hundred percent of what they normally would do in a year.”

He said community lenders are stepping up their efforts and have doubled their numbers to 400 in the region.

The CARES Act funded the PPP for loans totaling $ 349 billion to small businesses nationwide.

The 1% interest loan is capped at $ 10 million per business. It does not have to be repaid if it is used to cover salary costs and most mortgage interest, rent and utility costs over an eight week period after the loan is granted, and if the levels compensation and employees are maintained.

Congress is expected to vote on the additional funds this week.

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How will the pandemic impact credit scores? Tue, 09 Mar 2021 10:57:55 +0000

Lenders and creditors of all sizes are asking three key questions related to the impacts of the COVID-19 pandemic:

  • How has the pandemic changed credit data?
  • How has the pandemic affected credit scores?
  • How can lenders understand and control the risks in their portfolios?

These are important questions. The overall effect of the pandemic on the US economy and consumers continues to be largely fluid, making it difficult to make forecasts and projections related to portfolio performance. There is factual information I can share to help creditors and lenders understand how the economic impacts of the pandemic can affect credit decision making and what actions they should consider to best respond to them.

How credit data changes

We do not yet know the full duration or magnitude of the economic impacts of the pandemic, although we can examine the economic impacts so far and balance these short-term effects with observations of past economic events. This approach is useful and can only be directional, as today’s drivers differ from past economic distress events. The mortgage recession of 2008 and Hurricane Katrina in 2005 are good examples where the downturn had specific antecedents and consequences. These events can shed light on what can happen in this economic event, although the drivers and outcomes of this event could turn out to be very different.

We have seen declines during COVID-19 in general underwriting with surges in activity associated with government programs such as Paycheck Protection Program (PPP) small business loans. These surges have generally been caused by low-risk consumers and businesses looking for bridging loans to weather the crisis.

What has changed in the composition of the candidates? The increase in the number of low risk applicants has led to changes in the way lenders perceive and treat applicants. We also noticed that scammers and fraud patterns continued, resulting in an overall increase in suspicious activity as a percentage of all activity, even amid an overall decline in requests. We have seen the most notable increase in synthetic fraud and chargeback fraud. We have also seen a dramatic increase in digital transactions, especially the use of new devices to complete transactions. Payment platforms have been adjusted as well as cash transactions migrated to online payment processors.

These changes will surely affect the way consumers, small business owners, retailers and financial services companies do business in the future.

We cannot easily pinpoint the impacts of the pandemic as many factors change daily. Multiple global and regional factors are influencing this change. A very complex set of macro and micro effects impact credit defaults, including geography, consumer work, immediate and extended family health, and local government restrictions and assistance. We’re also seeing a divide between the effects on Wall Street, where the stock market has so far recouped some of its losses but remains volatile, and the effects on Main Street, where consumers and businesses continue to struggle economically. .

Here’s what we know so far: It could take a long time for our economy to recover. We could see rising consumer and business credit balances, high credit utilization and high defaults for months on end. Financial services companies must apply thoughtful risk controls that balance both risk management best practices and compassion for clients navigating a difficult economic climate.

The good news is that financial institutions are in a position to help mitigate the impact of COVID-19 thanks to the U.S. government’s request to help facilitate the implementation of stimulus programs like PPP. They are also able to help consumers with new loans or lines of credit during this time. Many of these products have deferred payments, which provide short-term relief but could increase long-term risk as payments come due for those with lower incomes in 2020.

The impact on credit scores

Economic stress tends to increase overall credit risk as unemployment rates rise and incomes decline. Lenders should monitor the various impacts on credit scores during economic downturns by relying on the credit risk tools in their toolkit.

We saw during the recession of 2007 that default rates increased for every slice of credit risk score. The magnitude of the change in overall risk is likely to vary depending on the lender, portfolio, consumer segment and other factors. Increased fault rates do not mean that an algorithm has failed; this could be the result of consumers prioritizing their payments, for example choosing to pay various debts through alternative methods or choosing to pay essential bills first.

Past recessions tell us that defaults will increase although it is impossible to precisely calibrate these scores to account for the change in behavior on a specific portfolio. Policy changes based on history may be less effective over time if the economy changes rapidly, especially if different markets like auto, real estate, and unsecured renewable trends are driven by different disruptive factors.

For example, automobile surpluses can drive down the prices of automobiles, leading to increased auto loan risk due to customers replacing backward loans with heavily discounted auto purchases. This macroeconomic trend would affect auto loan repayment behavior but would have less impact on credit card or mortgage portfolios.

We’ve learned from previous recessions that while actual default rates fluctuate with economic changes, credit scores continue to rank effectively if a consumer will default: while the default rate of a 700 may increase. , for example, a score of 700 continues to be less risky than a score of 650 and riskier than a score of 750.

Creditors and lenders can track customer performance over time to see short-term changes in risk to consumers. They can also adjust their thresholds in real time by understanding the changing relationship between score and fault rate in rapid test cycles to avoid costly rearrangements based on predictions of volatile information. Lenders could use this empirical and statistically valid information to adjust their risk exposure without worrying about inaccurate adjustments.

Understand the overall risk of your credit portfolio

Federal and state governments, creditors and lenders have announced a variety of programs to reduce credit report updates for new defaults during the pandemic. This gives creditors and lenders an important role in protecting the short-term financial health of consumers and businesses.

These consumer-friendly policies reduce the effectiveness of rating solutions that rely heavily on credit bureaus data. Lenders cannot accurately predict portfolio losses or develop a proactive approach with financially distressed clients if they underestimate this risk due to undeclared information about defaults.

Creditors and lenders need accurate data solutions to assess credit and help consumers. It is important that lenders use a variety of sources other than credit bureaus data ratings to assess credit risk.

The financial sector must take advantage of all the data and analytical capabilities at its disposal to understand and adapt to market conditions. Creditors and lenders can then effectively mitigate the risks associated with a catastrophic economic event like this.

Jeffrey Feinstein, Ph.D., Vice President of Global Analytics Strategy, LexisNexis® Risk Solutions

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