Day: April 17, 2025

Small Businesses and MWBEs: Access Reduced-Interest Loans through New York’s Linked Deposit Program

Small businesses are at the heart of New York’s economy, culture, and communities. According to Empire State Development, “small businesses make up 98 percent of New York State businesses and employ 40 percent of New York’s private sector workforce.” And yet, small businesses, along with minority and women-owned businesses (MWBEs), often face limited access to capital, inhibiting their growth and ability to take on new projects. In response to these challenges, New York developed the Linked Deposit Program as a way of making low-interest loans available to small businesses and MWBEs, supporting these vital businesses and encouraging economic growth in the state.

What is the Linked Deposit Program?

The Linked Deposit Program (LDP) is an economic development initiative under which eligible businesses can obtain commercial loans at an interest rate 2-3% lower than the prevailing rate. The reduced rate is guaranteed to borrowers for a period of four years. Lending institutions—which include commercial banks, savings banks, savings and loan associations, credit unions, Pursuit Lending, and farm credit institutions—receive a deposit of State funds at a similarly reduced interest rate. The deposit is returned to the State at the end of the four-year term of the program.

What is the purpose of the Linked Deposit Program?

By offering reduced interest rates on commercial loans, this program makes funding more accessible to the state’s small businesses and minority and women-owned businesses, who may otherwise face difficulties obtaining financing. These businesses can use the loans to invest in improved operations, research and development, market expansion, modernized technologies and equipment, renovations, facility expansions, and more.

Who is eligible for the program?

Manufacturing firms with 500 or fewer full-time, NYS-based employees.
Service businesses with 100 or fewer full-time, NYS-based employees. The business must be independently owned and operated and not dominant in its field.

What are the loan limits?

An eligible business can have outstanding LDP loans totaling up to $6 million. There is no limit on the number of loans.
The single deposit limit is $4 million. There is no minimum deposit.
Total lifetime assistance cannot exceed $6 million, including renewals and prior deposits.

How can businesses apply for a Linked Deposit loan?

Eligible businesses can apply for the program at a participating lender (a list of participating lenders can be found here) or the New York Business Development Corporation. The lender then sends the application to Empire State Development for approval. The application can be found here.

How long is the approval process?

Once submitted, an LDP application will be approved or rejected within 28 days, but the average approval time is five business days. Incomplete applications result in longer processing times. Delays are most commonly caused by the following application errors: incomplete information, no statement describing how the project will improve the business’s competitiveness, an insufficient “impede” statement (statement describing how the project would be impeded without LDP assistance), or a missing NYS-45 form.

Want to learn more?

For a complete list of eligible applicants and projects, see the Linked Deposit Program Frequently Asked Questions. The FAQ page also specifies which firms qualify for 2% interest rate subsidies and which ones qualify for 3% subsidies, along with other helpful information. For additional insights and guidance, please don’t hesitate to reach out to our experts at RBT CPAs. RBT CPAs has been providing accounting, tax, audit, and advisory services to businesses in the Hudson Valley and beyond for over 55 years. Call us today to find out how we can be Remarkably Better Together.

NSPIRE Standards: An Overview and How to Prepare

By October 1, 2025, HUD-assisted properties must implement the NSPIRE standards, a new set of standards for physical inspections of HUD properties. HUD property owners and landlords should familiarize themselves with the new standards and implement the required changes to inspection procedures prior to the October 1 compliance date.

NSPIRE Overview

The NSPIRE Standards, replacing the Uniform Physical Condition Standards (UPCS) and the Housing Quality Standards (HQS), provide a new inspection model for HUD-assisted properties. NSPIRE, standing for the National Standards for the Physical Inspection of Real Estate, aims to improve the quality of HUD housing by focusing on the health, safety, and functionality of HUD properties. To allow HUD programs sufficient time to prepare for NSPIRE implementation, the compliance date for many programs was extended from October 1, 2023 to October 1, 2025. Properties wishing to implement NSPIRE before the compliance date are encouraged to do so, but must notify HUD of their planned transition date.

NSPIRE defines three different inspectable areas of HUD properties: “unit,” “inside,” and “outside.” The “unit” refers to the interior components of a building such as bathrooms, kitchens, carbon monoxide and smoke detectors, ceilings, floors, HVAC units, and lighting. “Inside” refers to common areas within the interior of the building such as basements, community rooms, utility rooms, laundry rooms, halls, stairs, offices, and shared kitchens. Also included under the “inside” category are building systems providing electricity, water, emergency power, etc. “Outside” refers to all building systems and components located outside of the building such as grounds, fences, mailboxes, lighting, parking lots, play areas, roads, walkways, storm drainage, balconies, fire escapes, and roofs. For a complete list of inspectable components, see page 1 of the NSPIRE Standards.

The standards use the terms “life-threatening,” “severe,” “moderate,” and “low” to describe the risk level of deficiencies identified during inspection. NSPIRE specifies the deficiency criteria, health and safety determination, rationale, and correction timeframes for each inspectable component. Life-threatening deficiencies must be addressed within 24 hours, while all other deficiencies must be corrected within 30 days (or a reasonable longer period determined by the PHA).

NSPIRE introduces several new protocols and requirements for property inspections. These include: new requirements for smoke and carbon monoxide alarms, new inspection processes and repair timeframes for infestations, new repair guidelines and timeframes for handrails and guardrails, and new processes and equipment for detecting mold-like substances.

How to Prepare for NSPIRE

According to HUD’s website and the NSPIRE Toolkit Cheat Sheet, landlords and owners of HUD properties can prepare for the upcoming compliance date in the following ways:

Carefully review the NSPIRE Standards (HUD provides this guide for reading the standards).
Refer to HUD’s notice on NSPIRE administrative procedures for details on inspection timeframes, preparation, and protocols.
Review the “Preparing for an NSPIRE Inspection” guide for landlords.
Train staff on new protocols and requirements.
Ensure that property profiles and contact information are correct (more details can be found on page 7 of HUD’s notice under “Property Verification and Document Collection”).
Perform regular preventative maintenance to identify and correct potential issues and hazards.
Consider resident feedback and respond promptly to resident concerns.
Utilize HUD’s NSPIRE Toolkit for additional resources, guidance, and training videos.

While you’re busy preparing for the upcoming NSPIRE compliance date, please know that RBT CPAs is here to support all of your accounting, tax, audit, and advisory needs. Reach out to us today and find out how we can be Remarkably Better Together.

Are You Making the Most of Direct-to-Consumer Opportunities?

In today’s world, nearly anything can be delivered directly to our front doorsteps. With a few clicks of a button, groceries, household items, furniture, prescriptions, and electronics are shipped straight to customers via e-commerce platforms. Beginning in 2020, COVID-19 lockdowns gave rise to huge surges in online ordering and delivery services, as people searched for ways to stock their homes without needing to travel beyond their front doors. As consumer demand has increased, alcoholic beverage companies have also jumped on the direct-to-consumer opportunity. In 2024—thanks largely to the advocacy of organizations like the NYS Distillers Guild—legislation allowing New York’s spirits, mead, and cider manufacturers to ship products directly to customers was passed, significantly expanding opportunities and markets for the state’s craft beverage producers.

Let’s explore some of the details of direct-to-consumer (DTC) shipping for alcoholic beverage producers in New York, as well as some of the regulations producers must follow when engaging in DTC sales.

Background of DTC Shipping in New York

Though New York wineries have been allowed to partake in DTC sales for several years now, the opportunity was not available to other alcoholic beverage manufacturers prior to COVID-19. As a way of supporting craft beverage producers during the pandemic lockdowns, New York temporarily expanded direct-to-consumer shipping privileges to the cider, mead, and spirits industries. In November 2024, New York enacted legislation permanently allowing these producers to ship products to consumers in New York State. As of November, New York manufacturers can ship “up to 36 cases (no more than 9 liters per case) of wine, distilled spirits, cider, mead, and braggot per year directly to a New York resident for personal use” (New York State Liquor Authority).

Benefits of the DTC Model

Since the pandemic, direct-to-consumer models have continued to grow in popularity as more and more people seek convenience through online ordering. Many people today would rather order alcohol directly to their doors than make a stop at the liquor store. As such, the demand for DTC alcohol has increased significantly. This creates the potential for growth for many of New York’s alcoholic beverage manufacturers. One of the main benefits of direct-to-consumer (DTC) shipping is the ability to bypass retail distribution models. By skipping the middleman and selling directly to customers online, producers can reach a wider range of audiences and expand profits through new revenue streams.

Another potential benefit of the DTC model is the opportunity to form deeper connections with customers and create personalized customer experiences. E-commerce platforms allow for increased customer engagement and also enable sellers to collect valuable data. This data can then be used to create customized shopping experiences for buyers, tailored to their individual needs and preferences. Customer data can also offer insights into consumer trends and behaviors, information that can help guide business decisions.

Regulations and Requirements

It’s important that manufacturers of alcoholic beverages are aware of the legal requirements surrounding direct-to-consumer shipping in New York State. For a complete list of requirements, see the New York State Liquor Authority website. Some of the requirements for manufacturers shipping alcoholic beverages in New York State include:

Manufacturers must require buyers to provide proof they are at least 21, and that the alcohol is for personal use (not resale).
Shipping containers used to deliver alcohol must be conspicuously labeled using specific text provided by the NYS Liquor Authority (found here).
Manufacturers must maintain records of all DTC shipments for a minimum of three years and produce them upon request of the Liquor Authority or the NYS Department of Taxation and Finance.
Manufacturers must permit the SLA or DTF to perform audits upon request.

New York manufacturers with the following licenses are permitted to engage in direct-to-consumer sales without needing to apply for a separate license or permit: cider producers, farm cideries, micro-distilleries, micro-rectifiers, farm distilleries, fruit brandy producers, mead producers, farm meaderies, farm wineries, micro-farm wineries, and wineries.

How We Can Help

The direct-to-consumer model presents significant opportunities for growth for New York’s craft beverage industry. While you take advantage of the DTC opportunities available in our state, please know that RBT CPAs is here to support all of your accounting, tax, audit, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

Implementing GASB 101’s Guidance on Compensated Absences: What School Districts Need to Know

As government entities, school districts are required to implement GASB 101’s updated guidelines for the treatment of compensated absences for employees of state and local governments.

What is GASB 101?

The Governmental Accounting Standards Board (GASB) Statement No. 101 (GASB 101) updates the guidelines for state and local governments regarding paid employee leave, or “compensated absences.” Replacing GASB Statement No. 16, GASB 101 modifies the procedures for the recognition and measurement of compensated absences. The requirements of GASB 101 are effective for fiscal years beginning after December 15, 2023. All governmental entities with fiscal year-ends of December 31, 2024, or later must implement the new guidance.

A compensated absence is leave for which employees receive compensation in the form of cash payments for time off, cash payments for unused leave if terminated, or a non-cash settlement. Examples of compensated absences include paid time off, sick leave, holidays, parental leave, military leave, jury duty, bereavement, sabbatical, and floating holidays.

When Are Liabilities Recognized?

Liabilities for compensated absences must be recognized in the following cases: for unused leave and leave that has been used but not yet compensated.

Unused leave (unused leave must meet the following criteria to be recognized as a liability):
1. The employee has performed the services required to earn the leave
2. The leave accumulates (carries forward into future pay periods)
3. The leave is more likely than not to be used for time off, or otherwise paid in cash or settled through non-cash means
Leave that has been used but not yet compensated (that is, paid in cash or settled through non-cash means)

As is the case under GASB 16, salary-related payments—including the employer’s share of payroll-related taxes (FICA, Medicare), defined pension contributions, and other post-employment benefit plans—should also be part of the compensated absence liability calculation.

Note: Liabilities for certain types of compensated absences that are sporadic in nature, such as parental leave, military leave, and jury duty leave, should not be recognized until the leave commences.

How is Liability Measured?

For unused leave: To measure liability for unused leave, use the employee’s pay rate as of the date of the financial statements, unless a compensated absence arrangement calls for a different pay rate at the time of payment (for example, sick pay based on 50% of the employee’s pay rate).
For leave that has been used but not yet paid or settled: To measure liability for leave that has been used but not yet paid or settled, use the amount of the cash payment or non-cash settlement to be made.

What Has Changed from Previous Guidance?

The most significant change brought about by GASB 101 is the application of the “more likely than not” condition when calculating the unused leave liability. This lower threshold will likely result in a higher compensated absence liability than under the previous “probable” threshold.
Under the new guidance, liability for sick leave should now be calculated the same way as all other compensated absences.
GASB 101 updates the previous requirement (established by GASB 16) to disclose gross increases and decreases in liability for compensated absences. School districts can now choose to disclose only the net change in the liability, but they must identify this figure as the net change.
In addition, under the new statement, school districts are no longer required to disclose which funds have been used to liquidate the liability for compensated absences.

What Actions Do School Districts Need to Take?

School districts should review their current compensated absences policy and make adjustments in line with GASB Statement No. 101.
School districts should also review employee contracts and assess whether a change needs to be made to the compensated absence calculation.
School districts will need to assess leave usage by asking key questions (the answers to these questions will depend largely on employee contracts):
1. What is the likelihood that the leave will be used?
2. What is the likelihood that the leave will be paid out upon termination, death, or retirement?
3. At what rate will the leave be used or paid out?

Additional Resources

For more details on GASB 101, visit the GASB pronouncements page. For advice or assistance with your GASB 101 implementation, please don’t hesitate to reach out to us at RBT CPAs. Our experts are happy to answer your questions and help you navigate the latest GASB requirements.