ada NELIS website at www.leg.state.nv.us/Session/80th2019/Reports/AllBillsThatBecameLaw.cfm.
During the 80th Legislative Session, Nevada lawmakers passed a sub-stantial number of laws that impact Nevada’s employers and employ-ees. Bills were passed that raise the minimum wage, provide addition-al rights for employees, prohibit denial of employment due to a posi-tive result for marijuana along with many industry specific measures. The information contained in this article provides a brief synopsis of a select number of bills. For a comprehensive list of all bills passed, visit the Nev ada NELIS website at www.leg.state.nv.us/Session/80th2019/Reports/AllBillsThatBecameLaw.cfm.
P3 / Ask an Expert: Business Continuity of OperationsP5/ Nevada nonprofit launch-es investment fundP4 / Resource Organization Spotlight: Nevada Legal ServicesDuring the 80th Legislative Session, Nevada lawmakers passed a sub-stantial number of laws that impact Nevada’s employers and employ-ees. Bills were passed that raise the minimum wage, provide addition-al rights for employees, prohibit denial of employment due to a posi-tive result for marijuana along with many industry specific measures. The information contained in this article provides a brief synopsis of a select number of bills. For a comprehensive list of all bills passed, visit the Nevada NELIS website at www.leg.state.nv.us/Session/80th2019/Reports/AllBillsThatBecameLaw.cfm.Minimum wage increaseWith the passage of Assembly Bill 456, the minimum wage must be increased by 75 cents on July 1 of each year until 2024 when themini-mum wage reaches 1) $12 per hour worked if the employer does not offer health benefits to the employee in the manner described in Sec-tion 16 of Article 15 of the Nevada Constitution; or 2) $11 per hour worked if the employer does offer health benefits. The billalso removed certain exceptions to the minimum wage requirement which have been held to be unconstitutional by the Nevada Supreme Court. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6870/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Minimum%20Wage%20AB%20456.pdf.Qualifying health benefits defined for lower tier minimum wage The Nevada Constitution establishes a two-tier minimum wage allowing an employer who provides qualifying health benefits to pay $1 per hour less than those that do not offer heath benefits. Senate Bill 192 reintroduces substantive requirements that a health plan must meet to qualify for the payment of the lower tier minimum wage effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6334/Text.Mandatory paid leave Senate Bill 312 provides that every private employer in Nevada with 50 or more employees is obligated to provide paid leave to each em-ployee of at least 0.01923 hours of paid leave for each hour of work performed. Employers are allowed to limit paid leave use to 40 hours per benefit year and limit the amount of any unused leave carried over from one benefit year to the next to 40 hours. Employees can begin using accumulated leave beginning on the 90th calendar day of employment and may do so without providing a reason for using the leave. Additional provisions apply and the bill allows for some exceptions such as seasonal or on-call employees. The bill becomes effective Janu-ary 1, 2020. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6553/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/SB%20312%20Paid%20Leave%20English.pdf.2019 LEGISLATIVE SESSION BRINGS NEW LAWS, SIGNIFICANT CHANGES TO EXISTING EMPLOYMENT LAW(continued)P7 / Additional NMJA tax credits to be made available Effective DateLower TierHigher TierJuly 1, 2019$7.25$8.25July 1, 2020$8.00$9.00July 1, 2021$8.75$9.75July 1, 2022$9.50$10.50July 1, 2023$10.25$11.25July 1, 2024$11.00$12.0022019 Legislative session brings new laws, significant changes to existing employment law, continuedNotice to employer that employee is sick or sustained injuryAssembly Bill 181, which became effective May 15, 2019, makes it unlawful for an employer to require an employee to be physically present at his or her place of work in order to notify the employer that he or she is sick or has sustained an injurythat is not work-related and cannot work. However, an employer may require the employee to notify the employer that he or she is sick or injured and cannot report for work. For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6284/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Notice%20of%20Sick%20or%20Injury%20613.pdf.Penalties for misclassifying employees as independent contractorsSenate Bill 493 addresses employers that misclassify employees as inde-pendent contractors. The bill defines “employee misclassification” as the practice by an employer of improperly classifying employees as independ-ent contractors to avoid any legal obligation under state labor, employ-ment and tax laws, including, without limitation, the laws governing mini-mum wage, overtime, unemployment insurance, workers compensation insurance, temporary disability insurance, wage payment and payroll tax-es. Employers are prohibited from willfully misclassifying or willfully fail-ing to properly classify a person as an independent contractor and from requiring a person to be classified as an independent contractor “through means of coercion, misrepresentation or fraud.” Employees who believe they have been misclassified can file complaints with the Nevada Labor Commissioner and can recover lost wages, benefits or other economic damages. In addition, SB 493 creates a task force on misclassification issues and re-quires multiple agencies, including the Office of the Labor Commissioner and the Division of Industrial Relations to share infor-mation regarding suspected misclassification collected in the course of performing their official duties. Effective July 1, 2019.For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6952/Text.Prohibition on disqualifying employment based on positive marijuana testAssembly Bill 132 addresses pre-employment marijuana screening of job applicants. Subject to certain exceptions such as pub-lic safety and transportation workers, it is unlawful for any employer in Nevada to “fail or refuse to hire a prospective employ-ee because the prospective employee submitted to a screening test and the results of the screening test indicate the presenceof marijuana.” The bill also provides that if an employer requires an employee to submit to a screening test within the initial 30 days of employment, the employee has the right to submit to an additional test at the employee’s expense to rebut the results of the initial test. The employer is required to accept and give appropriate consideration to the results of the second test.The new law becomes effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6191/Text.In addition to the Nevada Labor Commissioner’s bulletins mentioned throughout the article, an updated Rules to Be Observed by Employers bulletin—required by law to be posted in a conspicuous location—is available at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Rules%20to%20be%20Observed%20by%20Employers%20June%202019.pdf.Information on Nevada’s labor laws, required postings, and bulletins and guides can be located on the Nevada Labor Commis-sioner’s website at www.labor.nv.gov. In addition, the Office of the Labor Commissioner conducts regular training and out-reach about Nevada’s labor laws and changes made during the 2019 Legislative session. For more information or to request a training on these topics, you can email their office at mail1@labor.nv.gov. Q: Why do I need a business continuity of operations plan? A: I’m often asked what kind of plans are essential to a community to increase its resiliency and ability to recover from a natural or human caused disaster. The answer is simple: Business Continuity of Operations (COOP) Plans. The fastest way to recovery is not through state or federal assistance. The key is the quick recovery of businesses to bring vital services to the public.According to FEMA, up to 80% of small businesses do not recover from catastrophic disasters. In fact, many businesses may not re-cover from a small localized fire in their building or a loss of data. COOP planning can make the difference for a business’ ability to recover after a short delay versus shutting its doors forever.The good news -COOP planning is fairly simple and there are a lot of resources on the internet. My favorite website is the FEMA Business Continuity page: www.fema.gov/media-library/assets/documents/89510. It has simple COOP plan templates and step by step instructions. Most plans can be developed in a few days and most contain the following steps:• Identify your business’ essential functions. What are the key elements of your business? Is it sales, manufacturing, consulting or service based? Identify all the processes that are absolutely essen-tial to making your business minimally viable.• Determine your business’ risks to natural or technological risks and develop mitigation strategies to lessen the impact. For exam-ple, establish priority need contracts for generators if the business is dependent on electricity. Ensure product shelves are bolted to the wall in case of an earthquake.• Identify essential staff positions or functions. An emergency or disaster could limit your access to your staff. Key personnel may not be available, so it is important to cross-train staff. Establish poli-cies for key staff to work off-site performing essential functions while the business is recovering.• Identify essential processes, data and equipment. If data and databases are essential to your business, it is important to have a system to back up that data off-site. Fires are the #1 hazard for businesses and while insurance may restore business equipment and servers to your company, it cannot restore your data.• Identify temporary alternate sites for your business. Some busi-nesses are developing “mutual aid” agreements with like businesses for warehouse space or office space in the event one or the other space is damaged by an event. Like business insurance, a simple COOP plan that is trained and oc-casionally exercised can be the difference between a swift recovery providing services to your community, or seeing your hard work become part of the tragedy.3Bill Elliott, MSMLNevada Emergency Management PlannerDivision of Emergency Managementwelliott@dps.state.nv.us775-697-0308When you match employee contributions into your employee’s Nevada sponsored 529 College Savings Plan, you are eligible for a modified business tax credit, equal to 25% of all matching contribu-tions, up to $500 per employee each year. College debt is at an all-time high.Nationwide, American families currently owe a staggering $1.56 trillion dollars in student loan debt.* To help families save for col-lege and lower their reliance on borrowing, Nevada is paving the way for the nation by offering this innovative tax benefit to employ-ers. Be a leader in your industry as an early adopter of this pro-gram established during the 2015 Legislative Session (Senate Bill 412). Attract new talent with no new administrative burden.With little effort and no cost to implement, this important benefit can be a key differentiator in attracting and retaining top talent in a competitive job market. Plus, the new tax credit allows complete flexibility in design, so you can create a unique program tailored to your specific business needs and employee demographics. Customize to fit your needs.Do you want to offer a dollar for dollar match? Do you want to allow all parents and grandparents to save? The impact you make on your employees’ 529 college savings plan as well as on your business’ Nevada modified business tax liability is up to you. For more information on the modified business tax and this exciting new Nevada tax credit visit: https://tax.nv.gov/Forms/Modified_Business_Tax_Forms/. Questions about the modified business tax credit should be directed to the Nevada Department of Taxation at 775-684-2052.For more information on the Nevada 529 College Savings Plans and how to assist employees contribute through payroll deposit, please visit: http://NV529.orgQuestions about the Nevada 529 College Savings Plan should be directed to the Nevada Treasurer’s office at 702-486-3817 or by email at NevadaCollegeSavings@nevadatreasurer.gov. *Forbes, Student Loan Debt Statistics in 2019:A $1.5 Trillion Crisis, February 25, 2019.Nevada values a well-educated workforce as much as you do!Resource Organization Spotlight: Nevada Legal Services4Nevada Legal Services is Nevada’s only statewide non-profit legal aid organ-ization,providingfreelegalrepresentation,briefservices,advice,educa-tion, ask-a-lawyer sessions, and self-help clinics to low-income Nevadans since 1981. The majority of Nevada Legal Services’ approximately 50-person staff is split between the organi-zation’s two main offices located in Reno and Las Vegas, with the remainder divided among sat-ellite offices in Carson City, Yerington, and Elko. As Nevada Legal Services provides legal aid to Nevadans in all seventeen counties, attorneys also regularly travel to outlying areas to provide outreach services, and low-income Nevadans who require more extensive services are eligible to request assistance regardless of their location.As a traditional legal aid organization, Nevada Legal Services dedicates the majority of its re-sources to assisting veterans, seniors, Native Americans, and low-income individuals with civil legal problems affecting their ability to obtain or maintain stability for themselves and their fami-lies. Common problems include poor living conditions in rental housing, illegal eviction actions, wrongful denials of public benefits (such as unemployment or social security), predatory con-sumer practices, and so many other issues that make it difficult—if not impossible—to break the cycle of poverty. In 2016, Nevada Legal Services received a grant specifically directed toward supporting commu-nity development and economic growth as Nevada communities continued to work toward a sustainable recovery in the wake of the recession. With that grant, Nevada Legal Services creat-ed a new department and expanded its services to include what is now known as the Community Economic Development Program. The goal of the Community Economic Development Program is to support community-based efforts to improve conditions and economic stability throughout Nevada. Accordingly, through its Community Economic Development Program, Nevada Legal Services provides legal support for entrepreneurs, freelancers/independent contractors, micro-businesses, local non-profit organizations, individuals seeking to remove barriers to employment or housing, and community groups working to increase the number and quality of affordable housing units and living wage jobs available in our communities.As relevant to the small business sector, Nevada Legal Services provides a range of transactional legal services to those whootherwise cannot afford to retain private counsel. Most often, business clients seek assistance with start-up matters (e.g. business entity selection and formation, preparing an operating agreement, determining what business licenses are required, whether to file a fictitious firm name certificate, and advice regarding legal issues that can arise in the course of operating the business), advice on commercial leases, review-ing or drafting business contracts, and advice regarding hiring employees and independent contractors; however, Nevada Legal Services has also assisted clients with trademarks, copyright, website terms of service, advertising compliance, and legal advice concerning a varie-ty of other issues. Clients who are determined eligible and accepted for assistance receive these services free of charge, withthe client being responsible for any out-of-pocket costs associated with the work (e.g. Secretary of State filing fees, business license fees, etc.). By way of example, Nevada Legal Services recently assisted a woman-owned, minority-owned business with forming a Nevada limited liability company, drafting an operating agreement, preparing fictitious firm name filings, drafting a form service agreement, and providing legal advice regarding matters relevant to the business, allowing the owner to move forward with bidding on jobs and pursuingcustomers confident in the knowledge that she has taken steps to protect herself and her business. If not for Nevada Legal Services, thisclient would not have been able to get the legal help she needed. Even if an individual or business does not qualify for direct services, all are welcome to take advantage of Nevada Legal Services’ free legal education opportunities. Throughout the year, Nevada Legal Services partners with organizations like the Nevada Small Business Develop-ment Center, SCORE, University of Nevada Cooperative Extension, and UNLV’s William S. Boyd School of Law to offer classes on topics rel-evanttosmallbusinesses,suchasbasicemploymentlaw,intellectualproperty,andtaxes,bothin-personandviawebinar.Inaddition, Nevada Legal Services invites entrepreneurs, small business owners, and members of the business community to attend the firstannual Small Business Institute, a free two-day conference taking place on July 25-26, 2019, in Reno. The conference will include seminars on popular small business topics, ask-a-lawyer sessions, and networking.Web: www.nlslaw.netFacebook: www.facebook.com/nevadalegalservicesMorgan F. Shah, Esq.Community Development Attorney530 S. 6th StreetLas Vegas, NV 89101(702) 386-0404Serving Clark, Lincoln, Nye and Esmeralda CountiesStephanie Little, Esq.Community Development Attorney 204 Marsh Avenue, Suite 101Reno, NV 89509(775) 284-3491Serving Washoe, Carson City, Churchill, Douglas, Elko, Eureka, Humboldt, Lander, Lyon, Mineral, Pershing, Storey, and White Pine Counties5Nonprofit business incubator launches investment fund, announces angel investment conference in Las VegasStartUpNV is a Nevada-based nonprofit business incuba-tor dedicated to identifying, supporting and promoting the commercialization of innovative ideas and technolo-gies. With offices located throughout Nevada and a lead-ership team with proven experience in the startup world, StartUpNV has launched many businesses that might otherwise have languished for lack of support. Today, this nonprofit is working with entities such as the U.S. Small Business Administration, Nevada Department of Business and Industry, Governor’s Office of Economic Development, Economic Development Authority of Western Nevada (EDAWN), and both of our state univer-sities to grow a more polished and robust startup culture in all parts of our state.Earlier this year, StartUpNV received a $300,000 grant from the U.S. Economic Development Administration (EDA) to help promote and facilitate angel investing in southern Nevada. The award was part of EDA’s FY19 Seed Fund Support (SFS) Grant Competition, which fo-cuses on “unlocking risk cap-italforentrepreneursandstartups to grow” and pro-vides funding for projects that “create, launch, or ex-pand equity-based seed funds or that create net-works and tools that enable capital to flow into high-growth startups.”StartUpNV’s goal under the grant is to raise at least $4 million in early stage capital, invest in at least 24 compa-nies, and support the creation of at least 300 jobs in the five years following grant receipt. As part of this commit-ment, StartUpNV will execute training events and pitch sessions to help entrepreneurs better develop their skills and understand what angel investors are looking for. It will also organize a yearly Southern Nevada Angel Con-ference (SNAC) to attract and educate current and po-tential angel investors in Nevada and from throughout the western United States. The intent is to identify quali-fied local early-stage companies, particularly women-and Hispanic-led startups, for increased investment and support.The first of the training events –a Fundamentals of An-gel Investing workshop –took place on April 11, 2019, at the U.S. Air Force’s AFWERX incubator space at the Howard Hughes Center in Las Vegas. The workshop was conducted by Bill Payne, a noted angel investor and member of the Angel Capital Association, a national trade group representing the interests of angel inves-tors and various angel investing syndicates. The event attracted about 70 attendees, including investors as well as entrepreneurs seeking both to understand the angel funding process and the chance to network with pro-spective investors.At the end of the event, StartUpNV announced the launch of FundNV, its new startup funding vehicle. FundNV (www.FundNV.com) is not a 501(c)(3) like StartUpNV, but a for-profit investment vehicle focused on Nevada startup opportunities. With initial capital of $1 million, FundNV plans to invest in approximately 20 companies over the next two years. Investments will be in the range of $25K to $50K each. Companies become eligible to pitch for FundNV invest-ment after gaining acceptance and spending 90-180 days in the StartUpNV incubation program, suc-cessfully achieving agreed goals, and gaining the support of their mentors and coaches.StartUpNV strongly believes this initial round of pre-seed funding, together with participation in the incubation program and the due diligence the program provides, will attract addi-tional investment to the target firms, thereby helping them better position themselves to scale and achieve successful exits. The larger goal is to catalyze communi-ty interest in establishing three to five pre-seed and seed angel funds in southern Nevada over the next sev-eral years.Along this line, StartUpNV announced it will hold the first Southern Nevada Angel Conference (SNAC) on Oc-tober 9-10 in Las Vegas. The event will be held in the City Council Chambers at Las Vegas City Hall with the cooperation and support of the City of Las Vegas. Check the StartUpNV website (www.startupnv.org) for details on the two-day SNAC program.Southern Nevada Angel ConferenceOctober 9-10, 2019Las Vegas City Hall: Council ChambersEARLY BIRD tickets available now! Details and ticketing: http://startupnv.org/snacACCESSABILITYAdditional tax credits to be made available through Nevada New Market Jobs Act programThe Nevada New Markets Jobs Act (NMJA) was modeled after the federal New Markets Tax Credit (NMTC) program. Signed into law in 2013 (codified as Chapter 231A of Nevada Revised Statutes), the Nevada program authorizes the Department of Business and Industry to administer the allocation of tax cred-its against insurance premium tax equal to 58%, or $116 mil-lion in tax credits spread across a 7-year period. These credits are distributed to federally certified Community Development Entities (CDEs) to raise capital for investment into low-income communities across the state.Assembly Bill 446 of the 80th(2019) session of the Nevada Leg-islature authorized an additional amount of investment to con-tinue the success of the state program for 7 more years. The purpose of the state and federal tax credits is to drive in-vestments into businesses and development in distressed communities, creating jobs and economic growth. The Nevada NMJA achieved these goals and more, including attracting three times the amount of federal tax credits being invested in the state. Further, results of the initial round of investments include:$11 of economic impact for each $1 of tax credit$1.29 billion total economic impact24 businesses participating in the program2,000 jobs created4,000 Nevadans supported193 million invested including $88 million of federal tax credits brought to NevadaPeople moving off state assistance programs How will the newly authorized credits be allocated? To facilitate the additional tax credit investments, the pro-gram will follow similar steps taken in 2013. Community De-velopment Entities (CDEs) approved by the U.S. Department of the Treasury may apply for a portion of the state tax credit allocation. Upon receipt of an allocation, the CDEs sell the tax credits to insurance companies. Using the funds raised, the CDEs evaluate funding proposals and make loans to business-es located in low-income census tracts based on the merits of the business and its community impact. Nonprofit businesses may also be eligible.What is the nature of the CDE’s investments? These loans are considered gap funding that addresses the “if not for” statement. That is, “if not for the NMJA funding the business would not be able to provide the jobs or services in that location.” Each CDE has unique structures and require-ments for these loans. Some of the loans function as a tradi-tional loan structure with more favorable terms to help the business succeed. Other CDEs structure the loans such that the funds are released at the end of the 7 years and become equity to the business. When will the additional funds be available? The allocation process is projected to take at least 4 to 6 months, which means that the funds will likely become avail-ablestartingin2020.What is required for a business to qualify to receive this funding?For an organization to receive these funds, first it must be located in a low-income census tract. These tracts can be found through several mapping tools on the internet includ-ing the U.S. Department of the Treasury Community Develop-ment Financial Institutions Fund: www.cdfifund.go. The busi-ness must also be considered a small business as defined by the Small Business Administration. Visit www.SBA.govand search “small business size standards.” The dollar amount of the loans can range from $300,000 to over $5 million and ad-ditional funds must be brought to the table by the business to complete the capital stack. There are types of businesses that cannot receive NMJA funds including, but not limited to: liquor stores, golf courses, gambling facilities, massage parlors, bath houses or hot tub facilities, tanning salons, country clubs, and rental income properties. How can I learn more? Although going through the vetting process to receive NMJA investments can be complicated and time consuming, Depart-ment of Business & Industry staff is available to answer ques-tions and facilitate introductions to the CDEs. In addition, the CDEs will also guide qualifying businesses through the process. Starting in the fall of 2019, B&I will offer educational programs on the NMJA for businesses that may qualify. Please email Karen Schnog at kschong@business.nv.govwith questions or to receive an NMJA Referral Form. 67The remarkable impact of minority-owned businesses in NevadaBy Marcel Schaerer, Deputy Director, Department of Business and IndustryTravel anywhere in Nevada and you will see and experience the strong presence of minority businesses. Their growth in re-cent years has been no small feat. Not only have the numbers been quite phenomenal, but also these minority entrepreneurs have seized all sorts of significant opportunities for themselves across our great state. According to the Minority Business Development Agency, a branch of the U.S. Department of Commerce, there are eight mil-lion minority-owned businesses in the United States today, a 38% increase from 2007. These firms generate about $1.4 tril-lion in annual sales, which is a sizeable contribution to our nation’s economic activity. Consider the following statistics to understand the remarkable growth and impact of minority-owned businesses in Nevada: In just 10 years, Nevada saw a three-fold increase in the number of businesses, sales were tripled, and job creation doubled. In fact, the number of minority-owned firms in Nevada increased by 38% between 2007 and 2012 during the depths of the greatest economic downturn since the Great Depression. The fact that these firms also increased payrolls by 22% (directly creating almost 3,500 new jobs) and saw an increase in sales of 40% (a $3.4 billion boost to economic activity) is indicativeofa strong, healthy trend. This is good news for minority owners and the state.This data comes from the U.S. Economic Census, which is collected every five years. Data from the most recent U.S. Economic Census in 2017 survey will not be released until September 2019, but if we take the past trends in minority business growth and project them out, I think the 2017 U.S. Economic Census will show anywhere from 93,000 to well over 100,000 minority firms in Nevada. The numbers could be even greater –the trendline of minority business growth has been that strong here in the state. The impact of minority business owners on the economy will continue to grow in the coming years. The future for them is bright and our call for action is simple: no matter where we are in Nevada, let us continue to wholeheartedly support the suc-cess of these minority entrepreneurs.An Inc.com article titled Minority-Owned Businesses1, sheds light on the factors that contribute to the growth and success of minority-owned businesses. In addition to mentioning a shift in population demographics, affirmative action programs, and general growth opportunities, the report reveals the following important reasons for the explosive growth in minority-owned business in the United States. Here are a few of the factors mentioned (Note: all reasons are excerpted directly from the arti-cle):Community Support—Many entrepreneurial ethnic minorities benefit by instituting businesses within their communities that meet needs of that community. When these businesses succeed, the individual communities gain a greater measure of auton-omy and financial health, thus laying the groundwork for additional businesses. Programs—In addition to federal set-aside programs, a variety of local, state, and federal agencies have extended help—whether in the form of legal expertise, grants, loans, or some other type of assistance—to encourage the establishment of minority-owned businesses.FACTORS CONTRIBUTING TO THE GROWTH OF MINORITY BUSINESS(continued)1) https://www.inc.com/encyclopedia/minority-owned-businesses.htmlThe Business Advocate is a free publication of the Nevada Department of Business and Industry. The Business Advocate welcomes ideas and suggestions. Questions or concerns about content of this publication may be addressed to: Teri Williams, Department of Business and Industry, 3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 89102. Subscription requests can be made to: twilliams@business.nv.govMichael Brown, DirectorTerry Reynolds, Deputy DirectorMarcel F. Schaerer, Deputy Director3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 891021830 College Parkway, Suite 100, Carson City, NV 89706biinfo@business.nv.govNewsletter Production Team Carrie Foley, Program OfficerKaren Schnog, Management AnalystChris Weiss, Management AnalystTeri Williams, Public Information Officer 8Increased Networking—As the number of minority entrepreneurs has grown, so too has the number of organizations, associ-ations,andothergroupsthathaveformedtoprovideassistanceandinformationtominority-ownedbusinesses.Corporate Acceptance—Observers point to increased corporate acceptance of minority-owned businesses as a key factor in the successes that minority-owned enterprises have registered over the past two decades. Corporations and large firms are buying from minority businesses in greater and greater numbers.Urban Revitalization—Many minority entrepreneurs have established themselves as business owners in urban areas at a time when several large cities have experienced heartening signs of rebirth. Moreover, state and federal agencies have shown in-creased willingness to provide greater assistance to business owners and others who are intent on reversing declines in urbanareas, which typically contain large minority populations.Access to Financing—Minority-owned businesses have benefited from several economic trends. Perhaps most importantly, minority businesspeople have benefited from the financial community’s belated recognition that small businesses are power-ing much of the nation’s current economic growth Moreover, the emergence of alternative financing sources friendly to mi-nority entrepreneurs has made it easier for minority-owned businesses to secure funds for start-up costs or expansions. Final-ly, agencies such as the U.S. Small Business Administration (SBA) have increased the volume of loans to minorities (for exam-ple, minority business owners received a record $8.65 billion in approved SBA lending in fiscal year 2016).Expansion into Emerging Industries—Increasing numbers of minority entrepreneurs have successfully ventured out into realms where minority owners had previously been less commonplace, such as manufacturing and high-technology indus-tries.Factors contributing to the growth of minority business, continuedThe Department of Business and Industry’s Division of Industrial Relations and the International Workers’ Compensation Founda-tion are jointly sponsoring a conference to educate participants in Nevada’s workers’ compensation system regarding current law, rules, procedures/policies and forms. Who should attend? The program focuses on topics of importance to employers, occupational health physicians and nurses, insurance adjusters, claimant’s defense attorneys, and anyone with an interest in learning more about Nevada’s workers compensation system.What is the conference format? This two-day conference includes exhibits open throughout the conference and a full schedule of general and breakout sessions covering a wide variety of topics including: Do’s and Don’t of Subsequent Injury, Compliance and You: A Success Story, 2019 Legislative Update and much more.Registration$400 per person, which includes special functions, continental breakfast, lun
P3 / Ask an Expert: Business Continuity of OperationsP5/ Nevada nonprofit launch-es investment fundP4 / Resource Organization Spotlight: Nevada Legal ServicesDuring the 80th Legislative Session, Nevada lawmakers passed a sub-stantial number of laws that impact Nevada’s employers and employ-ees. Bills were passed that raise the minimum wage, provide addition-al rights for employees, prohibit denial of employment due to a posi-tive result for marijuana along with many industry specific measures. The information contained in this article provides a brief synopsis of a select number of bills. For a comprehensive list of all bills passed, visit the Nevada NELIS website at www.leg.state.nv.us/Session/80th2019/Reports/AllBillsThatBecameLaw.cfm.Minimum wage increaseWith the passage of Assembly Bill 456, the minimum wage must be increased by 75 cents on July 1 of each year until 2024 when themini-mum wage reaches 1) $12 per hour worked if the employer does not offer health benefits to the employee in the manner described in Sec-tion 16 of Article 15 of the Nevada Constitution; or 2) $11 per hour worked if the employer does offer health benefits. The billalso removed certain exceptions to the minimum wage requirement which have been held to be unconstitutional by the Nevada Supreme Court. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6870/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Minimum%20Wage%20AB%20456.pdf.Qualifying health benefits defined for lower tier minimum wage The Nevada Constitution establishes a two-tier minimum wage allowing an employer who provides qualifying health benefits to pay $1 per hour less than those that do not offer heath benefits. Senate Bill 192 reintroduces substantive requirements that a health plan must meet to qualify for the payment of the lower tier minimum wage effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6334/Text.Mandatory paid leave Senate Bill 312 provides that every private employer in Nevada with 50 or more employees is obligated to provide paid leave to each em-ployee of at least 0.01923 hours of paid leave for each hour of work performed. Employers are allowed to limit paid leave use to 40 hours per benefit year and limit the amount of any unused leave carried over from one benefit year to the next to 40 hours. Employees can begin using accumulated leave beginning on the 90th calendar day of employment and may do so without providing a reason for using the leave. Additional provisions apply and the bill allows for some exceptions such as seasonal or on-call employees. The bill becomes effective Janu-ary 1, 2020. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6553/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/SB%20312%20Paid%20Leave%20English.pdf.2019 LEGISLATIVE SESSION BRINGS NEW LAWS, SIGNIFICANT CHANGES TO EXISTING EMPLOYMENT LAW(continued)P7 / Additional NMJA tax credits to be made available Effective DateLower TierHigher TierJuly 1, 2019$7.25$8.25July 1, 2020$8.00$9.00July 1, 2021$8.75$9.75July 1, 2022$9.50$10.50July 1, 2023$10.25$11.25July 1, 2024$11.00$12.0022019 Legislative session brings new laws, significant changes to existing employment law, continuedNotice to employer that employee is sick or sustained injuryAssembly Bill 181, which became effective May 15, 2019, makes it unlawful for an employer to require an employee to be physically present at his or her place of work in order to notify the employer that he or she is sick or has sustained an injurythat is not work-related and cannot work. However, an employer may require the employee to notify the employer that he or she is sick or injured and cannot report for work. For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6284/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Notice%20of%20Sick%20or%20Injury%20613.pdf.Penalties for misclassifying employees as independent contractorsSenate Bill 493 addresses employers that misclassify employees as inde-pendent contractors. The bill defines “employee misclassification” as the practice by an employer of improperly classifying employees as independ-ent contractors to avoid any legal obligation under state labor, employ-ment and tax laws, including, without limitation, the laws governing mini-mum wage, overtime, unemployment insurance, workers compensation insurance, temporary disability insurance, wage payment and payroll tax-es. Employers are prohibited from willfully misclassifying or willfully fail-ing to properly classify a person as an independent contractor and from requiring a person to be classified as an independent contractor “through means of coercion, misrepresentation or fraud.” Employees who believe they have been misclassified can file complaints with the Nevada Labor Commissioner and can recover lost wages, benefits or other economic damages. In addition, SB 493 creates a task force on misclassification issues and re-quires multiple agencies, including the Office of the Labor Commissioner and the Division of Industrial Relations to share infor-mation regarding suspected misclassification collected in the course of performing their official duties. Effective July 1, 2019.For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6952/Text.Prohibition on disqualifying employment based on positive marijuana testAssembly Bill 132 addresses pre-employment marijuana screening of job applicants. Subject to certain exceptions such as pub-lic safety and transportation workers, it is unlawful for any employer in Nevada to “fail or refuse to hire a prospective employ-ee because the prospective employee submitted to a screening test and the results of the screening test indicate the presenceof marijuana.” The bill also provides that if an employer requires an employee to submit to a screening test within the initial 30 days of employment, the employee has the right to submit to an additional test at the employee’s expense to rebut the results of the initial test. The employer is required to accept and give appropriate consideration to the results of the second test.The new law becomes effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6191/Text.In addition to the Nevada Labor Commissioner’s bulletins mentioned throughout the article, an updated Rules to Be Observed by Employers bulletin—required by law to be posted in a conspicuous location—is available at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Rules%20to%20be%20Observed%20by%20Employers%20June%202019.pdf.Information on Nevada’s labor laws, required postings, and bulletins and guides can be located on the Nevada Labor Commis-sioner’s website at www.labor.nv.gov. In addition, the Office of the Labor Commissioner conducts regular training and out-reach about Nevada’s labor laws and changes made during the 2019 Legislative session. For more information or to request a training on these topics, you can email their office at mail1@labor.nv.gov. Q: Why do I need a business continuity of operations plan? A: I’m often asked what kind of plans are essential to a community to increase its resiliency and ability to recover from a natural or human caused disaster. The answer is simple: Business Continuity of Operations (COOP) Plans. The fastest way to recovery is not through state or federal assistance. The key is the quick recovery of businesses to bring vital services to the public.According to FEMA, up to 80% of small businesses do not recover from catastrophic disasters. In fact, many businesses may not re-cover from a small localized fire in their building or a loss of data. COOP planning can make the difference for a business’ ability to recover after a short delay versus shutting its doors forever.The good news -COOP planning is fairly simple and there are a lot of resources on the internet. My favorite website is the FEMA Business Continuity page: www.fema.gov/media-library/assets/documents/89510. It has simple COOP plan templates and step by step instructions. Most plans can be developed in a few days and most contain the following steps:• Identify your business’ essential functions. What are the key elements of your business? Is it sales, manufacturing, consulting or service based? Identify all the processes that are absolutely essen-tial to making your business minimally viable.• Determine your business’ risks to natural or technological risks and develop mitigation strategies to lessen the impact. For exam-ple, establish priority need contracts for generators if the business is dependent on electricity. Ensure product shelves are bolted to the wall in case of an earthquake.• Identify essential staff positions or functions. An emergency or disaster could limit your access to your staff. Key personnel may not be available, so it is important to cross-train staff. Establish poli-cies for key staff to work off-site performing essential functions while the business is recovering.• Identify essential processes, data and equipment. If data and databases are essential to your business, it is important to have a system to back up that data off-site. Fires are the #1 hazard for businesses and while insurance may restore business equipment and servers to your company, it cannot restore your data.• Identify temporary alternate sites for your business. Some busi-nesses are developing “mutual aid” agreements with like businesses for warehouse space or office space in the event one or the other space is damaged by an event. Like business insurance, a simple COOP plan that is trained and oc-casionally exercised can be the difference between a swift recovery providing services to your community, or seeing your hard work become part of the tragedy.3Bill Elliott, MSMLNevada Emergency Management PlannerDivision of Emergency Managementwelliott@dps.state.nv.us775-697-0308When you match employee contributions into your employee’s Nevada sponsored 529 College Savings Plan, you are eligible for a modified business tax credit, equal to 25% of all matching contribu-tions, up to $500 per employee each year. College debt is at an all-time high.Nationwide, American families currently owe a staggering $1.56 trillion dollars in student loan debt.* To help families save for col-lege and lower their reliance on borrowing, Nevada is paving the way for the nation by offering this innovative tax benefit to employ-ers. Be a leader in your industry as an early adopter of this pro-gram established during the 2015 Legislative Session (Senate Bill 412). Attract new talent with no new administrative burden.With little effort and no cost to implement, this important benefit can be a key differentiator in attracting and retaining top talent in a competitive job market. Plus, the new tax credit allows complete flexibility in design, so you can create a unique program tailored to your specific business needs and employee demographics. Customize to fit your needs.Do you want to offer a dollar for dollar match? Do you want to allow all parents and grandparents to save? The impact you make on your employees’ 529 college savings plan as well as on your business’ Nevada modified business tax liability is up to you. For more information on the modified business tax and this exciting new Nevada tax credit visit: https://tax.nv.gov/Forms/Modified_Business_Tax_Forms/. Questions about the modified business tax credit should be directed to the Nevada Department of Taxation at 775-684-2052.For more information on the Nevada 529 College Savings Plans and how to assist employees contribute through payroll deposit, please visit: http://NV529.orgQuestions about the Nevada 529 College Savings Plan should be directed to the Nevada Treasurer’s office at 702-486-3817 or by email at NevadaCollegeSavings@nevadatreasurer.gov. *Forbes, Student Loan Debt Statistics in 2019:A $1.5 Trillion Crisis, February 25, 2019.Nevada values a well-educated workforce as much as you do!Resource Organization Spotlight: Nevada Legal Services4Nevada Legal Services is Nevada’s only statewide non-profit legal aid organ-ization,providingfreelegalrepresentation,briefservices,advice,educa-tion, ask-a-lawyer sessions, and self-help clinics to low-income Nevadans since 1981. The majority of Nevada Legal Services’ approximately 50-person staff is split between the organi-zation’s two main offices located in Reno and Las Vegas, with the remainder divided among sat-ellite offices in Carson City, Yerington, and Elko. As Nevada Legal Services provides legal aid to Nevadans in all seventeen counties, attorneys also regularly travel to outlying areas to provide outreach services, and low-income Nevadans who require more extensive services are eligible to request assistance regardless of their location.As a traditional legal aid organization, Nevada Legal Services dedicates the majority of its re-sources to assisting veterans, seniors, Native Americans, and low-income individuals with civil legal problems affecting their ability to obtain or maintain stability for themselves and their fami-lies. Common problems include poor living conditions in rental housing, illegal eviction actions, wrongful denials of public benefits (such as unemployment or social security), predatory con-sumer practices, and so many other issues that make it difficult—if not impossible—to break the cycle of poverty. In 2016, Nevada Legal Services received a grant specifically directed toward supporting commu-nity development and economic growth as Nevada communities continued to work toward a sustainable recovery in the wake of the recession. With that grant, Nevada Legal Services creat-ed a new department and expanded its services to include what is now known as the Community Economic Development Program. The goal of the Community Economic Development Program is to support community-based efforts to improve conditions and economic stability throughout Nevada. Accordingly, through its Community Economic Development Program, Nevada Legal Services provides legal support for entrepreneurs, freelancers/independent contractors, micro-businesses, local non-profit organizations, individuals seeking to remove barriers to employment or housing, and community groups working to increase the number and quality of affordable housing units and living wage jobs available in our communities.As relevant to the small business sector, Nevada Legal Services provides a range of transactional legal services to those whootherwise cannot afford to retain private counsel. Most often, business clients seek assistance with start-up matters (e.g. business entity selection and formation, preparing an operating agreement, determining what business licenses are required, whether to file a fictitious firm name certificate, and advice regarding legal issues that can arise in the course of operating the business), advice on commercial leases, review-ing or drafting business contracts, and advice regarding hiring employees and independent contractors; however, Nevada Legal Services has also assisted clients with trademarks, copyright, website terms of service, advertising compliance, and legal advice concerning a varie-ty of other issues. Clients who are determined eligible and accepted for assistance receive these services free of charge, withthe client being responsible for any out-of-pocket costs associated with the work (e.g. Secretary of State filing fees, business license fees, etc.). By way of example, Nevada Legal Services recently assisted a woman-owned, minority-owned business with forming a Nevada limited liability company, drafting an operating agreement, preparing fictitious firm name filings, drafting a form service agreement, and providing legal advice regarding matters relevant to the business, allowing the owner to move forward with bidding on jobs and pursuingcustomers confident in the knowledge that she has taken steps to protect herself and her business. If not for Nevada Legal Services, thisclient would not have been able to get the legal help she needed. Even if an individual or business does not qualify for direct services, all are welcome to take advantage of Nevada Legal Services’ free legal education opportunities. Throughout the year, Nevada Legal Services partners with organizations like the Nevada Small Business Develop-ment Center, SCORE, University of Nevada Cooperative Extension, and UNLV’s William S. Boyd School of Law to offer classes on topics rel-evanttosmallbusinesses,suchasbasicemploymentlaw,intellectualproperty,andtaxes,bothin-personandviawebinar.Inaddition, Nevada Legal Services invites entrepreneurs, small business owners, and members of the business community to attend the firstannual Small Business Institute, a free two-day conference taking place on July 25-26, 2019, in Reno. The conference will include seminars on popular small business topics, ask-a-lawyer sessions, and networking.Web: www.nlslaw.netFacebook: www.facebook.com/nevadalegalservicesMorgan F. Shah, Esq.Community Development Attorney530 S. 6th StreetLas Vegas, NV 89101(702) 386-0404Serving Clark, Lincoln, Nye and Esmeralda CountiesStephanie Little, Esq.Community Development Attorney 204 Marsh Avenue, Suite 101Reno, NV 89509(775) 284-3491Serving Washoe, Carson City, Churchill, Douglas, Elko, Eureka, Humboldt, Lander, Lyon, Mineral, Pershing, Storey, and White Pine Counties5Nonprofit business incubator launches investment fund, announces angel investment conference in Las VegasStartUpNV is a Nevada-based nonprofit business incuba-tor dedicated to identifying, supporting and promoting the commercialization of innovative ideas and technolo-gies. With offices located throughout Nevada and a lead-ership team with proven experience in the startup world, StartUpNV has launched many businesses that might otherwise have languished for lack of support. Today, this nonprofit is working with entities such as the U.S. Small Business Administration, Nevada Department of Business and Industry, Governor’s Office of Economic Development, Economic Development Authority of Western Nevada (EDAWN), and both of our state univer-sities to grow a more polished and robust startup culture in all parts of our state.Earlier this year, StartUpNV received a $300,000 grant from the U.S. Economic Development Administration (EDA) to help promote and facilitate angel investing in southern Nevada. The award was part of EDA’s FY19 Seed Fund Support (SFS) Grant Competition, which fo-cuses on “unlocking risk cap-italforentrepreneursandstartups to grow” and pro-vides funding for projects that “create, launch, or ex-pand equity-based seed funds or that create net-works and tools that enable capital to flow into high-growth startups.”StartUpNV’s goal under the grant is to raise at least $4 million in early stage capital, invest in at least 24 compa-nies, and support the creation of at least 300 jobs in the five years following grant receipt. As part of this commit-ment, StartUpNV will execute training events and pitch sessions to help entrepreneurs better develop their skills and understand what angel investors are looking for. It will also organize a yearly Southern Nevada Angel Con-ference (SNAC) to attract and educate current and po-tential angel investors in Nevada and from throughout the western United States. The intent is to identify quali-fied local early-stage companies, particularly women-and Hispanic-led startups, for increased investment and support.The first of the training events –a Fundamentals of An-gel Investing workshop –took place on April 11, 2019, at the U.S. Air Force’s AFWERX incubator space at the Howard Hughes Center in Las Vegas. The workshop was conducted by Bill Payne, a noted angel investor and member of the Angel Capital Association, a national trade group representing the interests of angel inves-tors and various angel investing syndicates. The event attracted about 70 attendees, including investors as well as entrepreneurs seeking both to understand the angel funding process and the chance to network with pro-spective investors.At the end of the event, StartUpNV announced the launch of FundNV, its new startup funding vehicle. FundNV (www.FundNV.com) is not a 501(c)(3) like StartUpNV, but a for-profit investment vehicle focused on Nevada startup opportunities. With initial capital of $1 million, FundNV plans to invest in approximately 20 companies over the next two years. Investments will be in the range of $25K to $50K each. Companies become eligible to pitch for FundNV invest-ment after gaining acceptance and spending 90-180 days in the StartUpNV incubation program, suc-cessfully achieving agreed goals, and gaining the support of their mentors and coaches.StartUpNV strongly believes this initial round of pre-seed funding, together with participation in the incubation program and the due diligence the program provides, will attract addi-tional investment to the target firms, thereby helping them better position themselves to scale and achieve successful exits. The larger goal is to catalyze communi-ty interest in establishing three to five pre-seed and seed angel funds in southern Nevada over the next sev-eral years.Along this line, StartUpNV announced it will hold the first Southern Nevada Angel Conference (SNAC) on Oc-tober 9-10 in Las Vegas. The event will be held in the City Council Chambers at Las Vegas City Hall with the cooperation and support of the City of Las Vegas. Check the StartUpNV website (www.startupnv.org) for details on the two-day SNAC program.Southern Nevada Angel ConferenceOctober 9-10, 2019Las Vegas City Hall: Council ChambersEARLY BIRD tickets available now! Details and ticketing: http://startupnv.org/snacACCESSABILITYAdditional tax credits to be made available through Nevada New Market Jobs Act programThe Nevada New Markets Jobs Act (NMJA) was modeled after the federal New Markets Tax Credit (NMTC) program. Signed into law in 2013 (codified as Chapter 231A of Nevada Revised Statutes), the Nevada program authorizes the Department of Business and Industry to administer the allocation of tax cred-its against insurance premium tax equal to 58%, or $116 mil-lion in tax credits spread across a 7-year period. These credits are distributed to federally certified Community Development Entities (CDEs) to raise capital for investment into low-income communities across the state.Assembly Bill 446 of the 80th(2019) session of the Nevada Leg-islature authorized an additional amount of investment to con-tinue the success of the state program for 7 more years. The purpose of the state and federal tax credits is to drive in-vestments into businesses and development in distressed communities, creating jobs and economic growth. The Nevada NMJA achieved these goals and more, including attracting three times the amount of federal tax credits being invested in the state. Further, results of the initial round of investments include:$11 of economic impact for each $1 of tax credit$1.29 billion total economic impact24 businesses participating in the program2,000 jobs created4,000 Nevadans supported193 million invested including $88 million of federal tax credits brought to NevadaPeople moving off state assistance programs How will the newly authorized credits be allocated? To facilitate the additional tax credit investments, the pro-gram will follow similar steps taken in 2013. Community De-velopment Entities (CDEs) approved by the U.S. Department of the Treasury may apply for a portion of the state tax credit allocation. Upon receipt of an allocation, the CDEs sell the tax credits to insurance companies. Using the funds raised, the CDEs evaluate funding proposals and make loans to business-es located in low-income census tracts based on the merits of the business and its community impact. Nonprofit businesses may also be eligible.What is the nature of the CDE’s investments? These loans are considered gap funding that addresses the “if not for” statement. That is, “if not for the NMJA funding the business would not be able to provide the jobs or services in that location.” Each CDE has unique structures and require-ments for these loans. Some of the loans function as a tradi-tional loan structure with more favorable terms to help the business succeed. Other CDEs structure the loans such that the funds are released at the end of the 7 years and become equity to the business. When will the additional funds be available? The allocation process is projected to take at least 4 to 6 months, which means that the funds will likely become avail-ablestartingin2020.What is required for a business to qualify to receive this funding?For an organization to receive these funds, first it must be located in a low-income census tract. These tracts can be found through several mapping tools on the internet includ-ing the U.S. Department of the Treasury Community Develop-ment Financial Institutions Fund: www.cdfifund.go. The busi-ness must also be considered a small business as defined by the Small Business Administration. Visit www.SBA.govand search “small business size standards.” The dollar amount of the loans can range from $300,000 to over $5 million and ad-ditional funds must be brought to the table by the business to complete the capital stack. There are types of businesses that cannot receive NMJA funds including, but not limited to: liquor stores, golf courses, gambling facilities, massage parlors, bath houses or hot tub facilities, tanning salons, country clubs, and rental income properties. How can I learn more? Although going through the vetting process to receive NMJA investments can be complicated and time consuming, Depart-ment of Business & Industry staff is available to answer ques-tions and facilitate introductions to the CDEs. In addition, the CDEs will also guide qualifying businesses through the process. Starting in the fall of 2019, B&I will offer educational programs on the NMJA for businesses that may qualify. Please email Karen Schnog at kschong@business.nv.govwith questions or to receive an NMJA Referral Form. 67The remarkable impact of minority-owned businesses in NevadaBy Marcel Schaerer, Deputy Director, Department of Business and IndustryTravel anywhere in Nevada and you will see and experience the strong presence of minority businesses. Their growth in re-cent years has been no small feat. Not only have the numbers been quite phenomenal, but also these minority entrepreneurs have seized all sorts of significant opportunities for themselves across our great state. According to the Minority Business Development Agency, a branch of the U.S. Department of Commerce, there are eight mil-lion minority-owned businesses in the United States today, a 38% increase from 2007. These firms generate about $1.4 tril-lion in annual sales, which is a sizeable contribution to our nation’s economic activity. Consider the following statistics to understand the remarkable growth and impact of minority-owned businesses in Nevada: In just 10 years, Nevada saw a three-fold increase in the number of businesses, sales were tripled, and job creation doubled. In fact, the number of minority-owned firms in Nevada increased by 38% between 2007 and 2012 during the depths of the greatest economic downturn since the Great Depression. The fact that these firms also increased payrolls by 22% (directly creating almost 3,500 new jobs) and saw an increase in sales of 40% (a $3.4 billion boost to economic activity) is indicativeofa strong, healthy trend. This is good news for minority owners and the state.This data comes from the U.S. Economic Census, which is collected every five years. Data from the most recent U.S. Economic Census in 2017 survey will not be released until September 2019, but if we take the past trends in minority business growth and project them out, I think the 2017 U.S. Economic Census will show anywhere from 93,000 to well over 100,000 minority firms in Nevada. The numbers could be even greater –the trendline of minority business growth has been that strong here in the state. The impact of minority business owners on the economy will continue to grow in the coming years. The future for them is bright and our call for action is simple: no matter where we are in Nevada, let us continue to wholeheartedly support the suc-cess of these minority entrepreneurs.An Inc.com article titled Minority-Owned Businesses1, sheds light on the factors that contribute to the growth and success of minority-owned businesses. In addition to mentioning a shift in population demographics, affirmative action programs, and general growth opportunities, the report reveals the following important reasons for the explosive growth in minority-owned business in the United States. Here are a few of the factors mentioned (Note: all reasons are excerpted directly from the arti-cle):Community Support—Many entrepreneurial ethnic minorities benefit by instituting businesses within their communities that meet needs of that community. When these businesses succeed, the individual communities gain a greater measure of auton-omy and financial health, thus laying the groundwork for additional businesses. Programs—In addition to federal set-aside programs, a variety of local, state, and federal agencies have extended help—whether in the form of legal expertise, grants, loans, or some other type of assistance—to encourage the establishment of minority-owned businesses.FACTORS CONTRIBUTING TO THE GROWTH OF MINORITY BUSINESS(continued)1) https://www.inc.com/encyclopedia/minority-owned-businesses.htmlThe Business Advocate is a free publication of the Nevada Department of Business and Industry. The Business Advocate welcomes ideas and suggestions. Questions or concerns about content of this publication may be addressed to: Teri Williams, Department of Business and Industry, 3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 89102. Subscription requests can be made to: twilliams@business.nv.govMichael Brown, DirectorTerry Reynolds, Deputy DirectorMarcel F. Schaerer, Deputy Director3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 891021830 College Parkway, Suite 100, Carson City, NV 89706biinfo@business.nv.govNewsletter Production Team Carrie Foley, Program OfficerKaren Schnog, Management AnalystChris Weiss, Management AnalystTeri Williams, Public Information Officer 8Increased Networking—As the number of minority entrepreneurs has grown, so too has the number of organizations, associ-ations,andothergroupsthathaveformedtoprovideassistanceandinformationtominority-ownedbusinesses.Corporate Acceptance—Observers point to increased corporate acceptance of minority-owned businesses as a key factor in the successes that minority-owned enterprises have registered over the past two decades. Corporations and large firms are buying from minority businesses in greater and greater numbers.Urban Revitalization—Many minority entrepreneurs have established themselves as business owners in urban areas at a time when several large cities have experienced heartening signs of rebirth. Moreover, state and federal agencies have shown in-creased willingness to provide greater assistance to business owners and others who are intent on reversing declines in urbanareas, which typically contain large minority populations.Access to Financing—Minority-owned businesses have benefited from several economic trends. Perhaps most importantly, minority businesspeople have benefited from the financial community’s belated recognition that small businesses are power-ing much of the nation’s current economic growth Moreover, the emergence of alternative financing sources friendly to mi-nority entrepreneurs has made it easier for minority-owned businesses to secure funds for start-up costs or expansions. Final-ly, agencies such as the U.S. Small Business Administration (SBA) have increased the volume of loans to minorities (for exam-ple, minority business owners received a record $8.65 billion in approved SBA lending in fiscal year 2016).Expansion into Emerging Industries—Increasing numbers of minority entrepreneurs have successfully ventured out into realms where minority owners had previously been less commonplace, such as manufacturing and high-technology indus-tries.Factors contributing to the growth of minority business, continuedThe Department of Business and Industry’s Division of Industrial Relations and the International Workers’ Compensation Founda-tion are jointly sponsoring a conference to educate participants in Nevada’s workers’ compensation system regarding current law, rules, procedures/policies and forms. Who should attend? The program focuses on topics of importance to employers, occupational health physicians and nurses, insurance adjusters, claimant’s defense attorneys, and anyone with an interest in learning more about Nevada’s workers compensation system.What is the conference format? This two-day conference includes exhibits open throughout the conference and a full schedule of general and breakout sessions covering a wide variety of topics including: Do’s and Don’t of Subsequent Injury, Compliance and You: A Success Story, 2019 Legislative Update and much more.Registration$400 per person, which includes special functions, continental breakfast, lun
P3 / Ask an Expert: Business Continuity of OperationsP5/ Nevada nonprofit launch-es investment fundP4 / Resource Organization Spotlight: Nevada Legal ServicesDuring the 80th Legislative Session, Nevada lawmakers passed a sub-stantial number of laws that impact Nevada’s employers and employ-ees. Bills were passed that raise the minimum wage, provide addition-al rights for employees, prohibit denial of employment due to a posi-tive result for marijuana along with many industry specific measures. The information contained in this article provides a brief synopsis of a select number of bills. For a comprehensive list of all bills passed, visit the Nevada NELIS website at www.leg.state.nv.us/Session/80th2019/Reports/AllBillsThatBecameLaw.cfm.Minimum wage increaseWith the passage of Assembly Bill 456, the minimum wage must be increased by 75 cents on July 1 of each year until 2024 when themini-mum wage reaches 1) $12 per hour worked if the employer does not offer health benefits to the employee in the manner described in Sec-tion 16 of Article 15 of the Nevada Constitution; or 2) $11 per hour worked if the employer does offer health benefits. The billalso removed certain exceptions to the minimum wage requirement which have been held to be unconstitutional by the Nevada Supreme Court. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6870/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Minimum%20Wage%20AB%20456.pdf.Qualifying health benefits defined for lower tier minimum wage The Nevada Constitution establishes a two-tier minimum wage allowing an employer who provides qualifying health benefits to pay $1 per hour less than those that do not offer heath benefits. Senate Bill 192 reintroduces substantive requirements that a health plan must meet to qualify for the payment of the lower tier minimum wage effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6334/Text.Mandatory paid leave Senate Bill 312 provides that every private employer in Nevada with 50 or more employees is obligated to provide paid leave to each em-ployee of at least 0.01923 hours of paid leave for each hour of work performed. Employers are allowed to limit paid leave use to 40 hours per benefit year and limit the amount of any unused leave carried over from one benefit year to the next to 40 hours. Employees can begin using accumulated leave beginning on the 90th calendar day of employment and may do so without providing a reason for using the leave. Additional provisions apply and the bill allows for some exceptions such as seasonal or on-call employees. The bill becomes effective Janu-ary 1, 2020. For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6553/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/SB%20312%20Paid%20Leave%20English.pdf.2019 LEGISLATIVE SESSION BRINGS NEW LAWS, SIGNIFICANT CHANGES TO EXISTING EMPLOYMENT LAW(continued)P7 / Additional NMJA tax credits to be made available Effective DateLower TierHigher TierJuly 1, 2019$7.25$8.25July 1, 2020$8.00$9.00July 1, 2021$8.75$9.75July 1, 2022$9.50$10.50July 1, 2023$10.25$11.25July 1, 2024$11.00$12.0022019 Legislative session brings new laws, significant changes to existing employment law, continuedNotice to employer that employee is sick or sustained injuryAssembly Bill 181, which became effective May 15, 2019, makes it unlawful for an employer to require an employee to be physically present at his or her place of work in order to notify the employer that he or she is sick or has sustained an injurythat is not work-related and cannot work. However, an employer may require the employee to notify the employer that he or she is sick or injured and cannot report for work. For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6284/Text.A copy of the Nevada Labor Commissioner’s bulletin can be downloaded at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Notice%20of%20Sick%20or%20Injury%20613.pdf.Penalties for misclassifying employees as independent contractorsSenate Bill 493 addresses employers that misclassify employees as inde-pendent contractors. The bill defines “employee misclassification” as the practice by an employer of improperly classifying employees as independ-ent contractors to avoid any legal obligation under state labor, employ-ment and tax laws, including, without limitation, the laws governing mini-mum wage, overtime, unemployment insurance, workers compensation insurance, temporary disability insurance, wage payment and payroll tax-es. Employers are prohibited from willfully misclassifying or willfully fail-ing to properly classify a person as an independent contractor and from requiring a person to be classified as an independent contractor “through means of coercion, misrepresentation or fraud.” Employees who believe they have been misclassified can file complaints with the Nevada Labor Commissioner and can recover lost wages, benefits or other economic damages. In addition, SB 493 creates a task force on misclassification issues and re-quires multiple agencies, including the Office of the Labor Commissioner and the Division of Industrial Relations to share infor-mation regarding suspected misclassification collected in the course of performing their official duties. Effective July 1, 2019.For a full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6952/Text.Prohibition on disqualifying employment based on positive marijuana testAssembly Bill 132 addresses pre-employment marijuana screening of job applicants. Subject to certain exceptions such as pub-lic safety and transportation workers, it is unlawful for any employer in Nevada to “fail or refuse to hire a prospective employ-ee because the prospective employee submitted to a screening test and the results of the screening test indicate the presenceof marijuana.” The bill also provides that if an employer requires an employee to submit to a screening test within the initial 30 days of employment, the employee has the right to submit to an additional test at the employee’s expense to rebut the results of the initial test. The employer is required to accept and give appropriate consideration to the results of the second test.The new law becomes effective January 1, 2020.For the full text of the bill, visit www.leg.state.nv.us/App/NELIS/REL/80th2019/Bill/6191/Text.In addition to the Nevada Labor Commissioner’s bulletins mentioned throughout the article, an updated Rules to Be Observed by Employers bulletin—required by law to be posted in a conspicuous location—is available at http://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/Rules%20to%20be%20Observed%20by%20Employers%20June%202019.pdf.Information on Nevada’s labor laws, required postings, and bulletins and guides can be located on the Nevada Labor Commis-sioner’s website at www.labor.nv.gov. In addition, the Office of the Labor Commissioner conducts regular training and out-reach about Nevada’s labor laws and changes made during the 2019 Legislative session. For more information or to request a training on these topics, you can email their office at mail1@labor.nv.gov. Q: Why do I need a business continuity of operations plan? A: I’m often asked what kind of plans are essential to a community to increase its resiliency and ability to recover from a natural or human caused disaster. The answer is simple: Business Continuity of Operations (COOP) Plans. The fastest way to recovery is not through state or federal assistance. The key is the quick recovery of businesses to bring vital services to the public.According to FEMA, up to 80% of small businesses do not recover from catastrophic disasters. In fact, many businesses may not re-cover from a small localized fire in their building or a loss of data. COOP planning can make the difference for a business’ ability to recover after a short delay versus shutting its doors forever.The good news -COOP planning is fairly simple and there are a lot of resources on the internet. My favorite website is the FEMA Business Continuity page: www.fema.gov/media-library/assets/documents/89510. It has simple COOP plan templates and step by step instructions. Most plans can be developed in a few days and most contain the following steps:• Identify your business’ essential functions. What are the key elements of your business? Is it sales, manufacturing, consulting or service based? Identify all the processes that are absolutely essen-tial to making your business minimally viable.• Determine your business’ risks to natural or technological risks and develop mitigation strategies to lessen the impact. For exam-ple, establish priority need contracts for generators if the business is dependent on electricity. Ensure product shelves are bolted to the wall in case of an earthquake.• Identify essential staff positions or functions. An emergency or disaster could limit your access to your staff. Key personnel may not be available, so it is important to cross-train staff. Establish poli-cies for key staff to work off-site performing essential functions while the business is recovering.• Identify essential processes, data and equipment. If data and databases are essential to your business, it is important to have a system to back up that data off-site. Fires are the #1 hazard for businesses and while insurance may restore business equipment and servers to your company, it cannot restore your data.• Identify temporary alternate sites for your business. Some busi-nesses are developing “mutual aid” agreements with like businesses for warehouse space or office space in the event one or the other space is damaged by an event. Like business insurance, a simple COOP plan that is trained and oc-casionally exercised can be the difference between a swift recovery providing services to your community, or seeing your hard work become part of the tragedy.3Bill Elliott, MSMLNevada Emergency Management PlannerDivision of Emergency Managementwelliott@dps.state.nv.us775-697-0308When you match employee contributions into your employee’s Nevada sponsored 529 College Savings Plan, you are eligible for a modified business tax credit, equal to 25% of all matching contribu-tions, up to $500 per employee each year. College debt is at an all-time high.Nationwide, American families currently owe a staggering $1.56 trillion dollars in student loan debt.* To help families save for col-lege and lower their reliance on borrowing, Nevada is paving the way for the nation by offering this innovative tax benefit to employ-ers. Be a leader in your industry as an early adopter of this pro-gram established during the 2015 Legislative Session (Senate Bill 412). Attract new talent with no new administrative burden.With little effort and no cost to implement, this important benefit can be a key differentiator in attracting and retaining top talent in a competitive job market. Plus, the new tax credit allows complete flexibility in design, so you can create a unique program tailored to your specific business needs and employee demographics. Customize to fit your needs.Do you want to offer a dollar for dollar match? Do you want to allow all parents and grandparents to save? The impact you make on your employees’ 529 college savings plan as well as on your business’ Nevada modified business tax liability is up to you. For more information on the modified business tax and this exciting new Nevada tax credit visit: https://tax.nv.gov/Forms/Modified_Business_Tax_Forms/. Questions about the modified business tax credit should be directed to the Nevada Department of Taxation at 775-684-2052.For more information on the Nevada 529 College Savings Plans and how to assist employees contribute through payroll deposit, please visit: http://NV529.orgQuestions about the Nevada 529 College Savings Plan should be directed to the Nevada Treasurer’s office at 702-486-3817 or by email at NevadaCollegeSavings@nevadatreasurer.gov. *Forbes, Student Loan Debt Statistics in 2019:A $1.5 Trillion Crisis, February 25, 2019.Nevada values a well-educated workforce as much as you do!Resource Organization Spotlight: Nevada Legal Services4Nevada Legal Services is Nevada’s only statewide non-profit legal aid organ-ization,providingfreelegalrepresentation,briefservices,advice,educa-tion, ask-a-lawyer sessions, and self-help clinics to low-income Nevadans since 1981. The majority of Nevada Legal Services’ approximately 50-person staff is split between the organi-zation’s two main offices located in Reno and Las Vegas, with the remainder divided among sat-ellite offices in Carson City, Yerington, and Elko. As Nevada Legal Services provides legal aid to Nevadans in all seventeen counties, attorneys also regularly travel to outlying areas to provide outreach services, and low-income Nevadans who require more extensive services are eligible to request assistance regardless of their location.As a traditional legal aid organization, Nevada Legal Services dedicates the majority of its re-sources to assisting veterans, seniors, Native Americans, and low-income individuals with civil legal problems affecting their ability to obtain or maintain stability for themselves and their fami-lies. Common problems include poor living conditions in rental housing, illegal eviction actions, wrongful denials of public benefits (such as unemployment or social security), predatory con-sumer practices, and so many other issues that make it difficult—if not impossible—to break the cycle of poverty. In 2016, Nevada Legal Services received a grant specifically directed toward supporting commu-nity development and economic growth as Nevada communities continued to work toward a sustainable recovery in the wake of the recession. With that grant, Nevada Legal Services creat-ed a new department and expanded its services to include what is now known as the Community Economic Development Program. The goal of the Community Economic Development Program is to support community-based efforts to improve conditions and economic stability throughout Nevada. Accordingly, through its Community Economic Development Program, Nevada Legal Services provides legal support for entrepreneurs, freelancers/independent contractors, micro-businesses, local non-profit organizations, individuals seeking to remove barriers to employment or housing, and community groups working to increase the number and quality of affordable housing units and living wage jobs available in our communities.As relevant to the small business sector, Nevada Legal Services provides a range of transactional legal services to those whootherwise cannot afford to retain private counsel. Most often, business clients seek assistance with start-up matters (e.g. business entity selection and formation, preparing an operating agreement, determining what business licenses are required, whether to file a fictitious firm name certificate, and advice regarding legal issues that can arise in the course of operating the business), advice on commercial leases, review-ing or drafting business contracts, and advice regarding hiring employees and independent contractors; however, Nevada Legal Services has also assisted clients with trademarks, copyright, website terms of service, advertising compliance, and legal advice concerning a varie-ty of other issues. Clients who are determined eligible and accepted for assistance receive these services free of charge, withthe client being responsible for any out-of-pocket costs associated with the work (e.g. Secretary of State filing fees, business license fees, etc.). By way of example, Nevada Legal Services recently assisted a woman-owned, minority-owned business with forming a Nevada limited liability company, drafting an operating agreement, preparing fictitious firm name filings, drafting a form service agreement, and providing legal advice regarding matters relevant to the business, allowing the owner to move forward with bidding on jobs and pursuingcustomers confident in the knowledge that she has taken steps to protect herself and her business. If not for Nevada Legal Services, thisclient would not have been able to get the legal help she needed. Even if an individual or business does not qualify for direct services, all are welcome to take advantage of Nevada Legal Services’ free legal education opportunities. Throughout the year, Nevada Legal Services partners with organizations like the Nevada Small Business Develop-ment Center, SCORE, University of Nevada Cooperative Extension, and UNLV’s William S. Boyd School of Law to offer classes on topics rel-evanttosmallbusinesses,suchasbasicemploymentlaw,intellectualproperty,andtaxes,bothin-personandviawebinar.Inaddition, Nevada Legal Services invites entrepreneurs, small business owners, and members of the business community to attend the firstannual Small Business Institute, a free two-day conference taking place on July 25-26, 2019, in Reno. The conference will include seminars on popular small business topics, ask-a-lawyer sessions, and networking.Web: www.nlslaw.netFacebook: www.facebook.com/nevadalegalservicesMorgan F. Shah, Esq.Community Development Attorney530 S. 6th StreetLas Vegas, NV 89101(702) 386-0404Serving Clark, Lincoln, Nye and Esmeralda CountiesStephanie Little, Esq.Community Development Attorney 204 Marsh Avenue, Suite 101Reno, NV 89509(775) 284-3491Serving Washoe, Carson City, Churchill, Douglas, Elko, Eureka, Humboldt, Lander, Lyon, Mineral, Pershing, Storey, and White Pine Counties5Nonprofit business incubator launches investment fund, announces angel investment conference in Las VegasStartUpNV is a Nevada-based nonprofit business incuba-tor dedicated to identifying, supporting and promoting the commercialization of innovative ideas and technolo-gies. With offices located throughout Nevada and a lead-ership team with proven experience in the startup world, StartUpNV has launched many businesses that might otherwise have languished for lack of support. Today, this nonprofit is working with entities such as the U.S. Small Business Administration, Nevada Department of Business and Industry, Governor’s Office of Economic Development, Economic Development Authority of Western Nevada (EDAWN), and both of our state univer-sities to grow a more polished and robust startup culture in all parts of our state.Earlier this year, StartUpNV received a $300,000 grant from the U.S. Economic Development Administration (EDA) to help promote and facilitate angel investing in southern Nevada. The award was part of EDA’s FY19 Seed Fund Support (SFS) Grant Competition, which fo-cuses on “unlocking risk cap-italforentrepreneursandstartups to grow” and pro-vides funding for projects that “create, launch, or ex-pand equity-based seed funds or that create net-works and tools that enable capital to flow into high-growth startups.”StartUpNV’s goal under the grant is to raise at least $4 million in early stage capital, invest in at least 24 compa-nies, and support the creation of at least 300 jobs in the five years following grant receipt. As part of this commit-ment, StartUpNV will execute training events and pitch sessions to help entrepreneurs better develop their skills and understand what angel investors are looking for. It will also organize a yearly Southern Nevada Angel Con-ference (SNAC) to attract and educate current and po-tential angel investors in Nevada and from throughout the western United States. The intent is to identify quali-fied local early-stage companies, particularly women-and Hispanic-led startups, for increased investment and support.The first of the training events –a Fundamentals of An-gel Investing workshop –took place on April 11, 2019, at the U.S. Air Force’s AFWERX incubator space at the Howard Hughes Center in Las Vegas. The workshop was conducted by Bill Payne, a noted angel investor and member of the Angel Capital Association, a national trade group representing the interests of angel inves-tors and various angel investing syndicates. The event attracted about 70 attendees, including investors as well as entrepreneurs seeking both to understand the angel funding process and the chance to network with pro-spective investors.At the end of the event, StartUpNV announced the launch of FundNV, its new startup funding vehicle. FundNV (www.FundNV.com) is not a 501(c)(3) like StartUpNV, but a for-profit investment vehicle focused on Nevada startup opportunities. With initial capital of $1 million, FundNV plans to invest in approximately 20 companies over the next two years. Investments will be in the range of $25K to $50K each. Companies become eligible to pitch for FundNV invest-ment after gaining acceptance and spending 90-180 days in the StartUpNV incubation program, suc-cessfully achieving agreed goals, and gaining the support of their mentors and coaches.StartUpNV strongly believes this initial round of pre-seed funding, together with participation in the incubation program and the due diligence the program provides, will attract addi-tional investment to the target firms, thereby helping them better position themselves to scale and achieve successful exits. The larger goal is to catalyze communi-ty interest in establishing three to five pre-seed and seed angel funds in southern Nevada over the next sev-eral years.Along this line, StartUpNV announced it will hold the first Southern Nevada Angel Conference (SNAC) on Oc-tober 9-10 in Las Vegas. The event will be held in the City Council Chambers at Las Vegas City Hall with the cooperation and support of the City of Las Vegas. Check the StartUpNV website (www.startupnv.org) for details on the two-day SNAC program.Southern Nevada Angel ConferenceOctober 9-10, 2019Las Vegas City Hall: Council ChambersEARLY BIRD tickets available now! Details and ticketing: http://startupnv.org/snacACCESSABILITYAdditional tax credits to be made available through Nevada New Market Jobs Act programThe Nevada New Markets Jobs Act (NMJA) was modeled after the federal New Markets Tax Credit (NMTC) program. Signed into law in 2013 (codified as Chapter 231A of Nevada Revised Statutes), the Nevada program authorizes the Department of Business and Industry to administer the allocation of tax cred-its against insurance premium tax equal to 58%, or $116 mil-lion in tax credits spread across a 7-year period. These credits are distributed to federally certified Community Development Entities (CDEs) to raise capital for investment into low-income communities across the state.Assembly Bill 446 of the 80th(2019) session of the Nevada Leg-islature authorized an additional amount of investment to con-tinue the success of the state program for 7 more years. The purpose of the state and federal tax credits is to drive in-vestments into businesses and development in distressed communities, creating jobs and economic growth. The Nevada NMJA achieved these goals and more, including attracting three times the amount of federal tax credits being invested in the state. Further, results of the initial round of investments include:$11 of economic impact for each $1 of tax credit$1.29 billion total economic impact24 businesses participating in the program2,000 jobs created4,000 Nevadans supported193 million invested including $88 million of federal tax credits brought to NevadaPeople moving off state assistance programs How will the newly authorized credits be allocated? To facilitate the additional tax credit investments, the pro-gram will follow similar steps taken in 2013. Community De-velopment Entities (CDEs) approved by the U.S. Department of the Treasury may apply for a portion of the state tax credit allocation. Upon receipt of an allocation, the CDEs sell the tax credits to insurance companies. Using the funds raised, the CDEs evaluate funding proposals and make loans to business-es located in low-income census tracts based on the merits of the business and its community impact. Nonprofit businesses may also be eligible.What is the nature of the CDE’s investments? These loans are considered gap funding that addresses the “if not for” statement. That is, “if not for the NMJA funding the business would not be able to provide the jobs or services in that location.” Each CDE has unique structures and require-ments for these loans. Some of the loans function as a tradi-tional loan structure with more favorable terms to help the business succeed. Other CDEs structure the loans such that the funds are released at the end of the 7 years and become equity to the business. When will the additional funds be available? The allocation process is projected to take at least 4 to 6 months, which means that the funds will likely become avail-ablestartingin2020.What is required for a business to qualify to receive this funding?For an organization to receive these funds, first it must be located in a low-income census tract. These tracts can be found through several mapping tools on the internet includ-ing the U.S. Department of the Treasury Community Develop-ment Financial Institutions Fund: www.cdfifund.go. The busi-ness must also be considered a small business as defined by the Small Business Administration. Visit www.SBA.govand search “small business size standards.” The dollar amount of the loans can range from $300,000 to over $5 million and ad-ditional funds must be brought to the table by the business to complete the capital stack. There are types of businesses that cannot receive NMJA funds including, but not limited to: liquor stores, golf courses, gambling facilities, massage parlors, bath houses or hot tub facilities, tanning salons, country clubs, and rental income properties. How can I learn more? Although going through the vetting process to receive NMJA investments can be complicated and time consuming, Depart-ment of Business & Industry staff is available to answer ques-tions and facilitate introductions to the CDEs. In addition, the CDEs will also guide qualifying businesses through the process. Starting in the fall of 2019, B&I will offer educational programs on the NMJA for businesses that may qualify. Please email Karen Schnog at kschong@business.nv.govwith questions or to receive an NMJA Referral Form. 67The remarkable impact of minority-owned businesses in NevadaBy Marcel Schaerer, Deputy Director, Department of Business and IndustryTravel anywhere in Nevada and you will see and experience the strong presence of minority businesses. Their growth in re-cent years has been no small feat. Not only have the numbers been quite phenomenal, but also these minority entrepreneurs have seized all sorts of significant opportunities for themselves across our great state. According to the Minority Business Development Agency, a branch of the U.S. Department of Commerce, there are eight mil-lion minority-owned businesses in the United States today, a 38% increase from 2007. These firms generate about $1.4 tril-lion in annual sales, which is a sizeable contribution to our nation’s economic activity. Consider the following statistics to understand the remarkable growth and impact of minority-owned businesses in Nevada: In just 10 years, Nevada saw a three-fold increase in the number of businesses, sales were tripled, and job creation doubled. In fact, the number of minority-owned firms in Nevada increased by 38% between 2007 and 2012 during the depths of the greatest economic downturn since the Great Depression. The fact that these firms also increased payrolls by 22% (directly creating almost 3,500 new jobs) and saw an increase in sales of 40% (a $3.4 billion boost to economic activity) is indicativeofa strong, healthy trend. This is good news for minority owners and the state.This data comes from the U.S. Economic Census, which is collected every five years. Data from the most recent U.S. Economic Census in 2017 survey will not be released until September 2019, but if we take the past trends in minority business growth and project them out, I think the 2017 U.S. Economic Census will show anywhere from 93,000 to well over 100,000 minority firms in Nevada. The numbers could be even greater –the trendline of minority business growth has been that strong here in the state. The impact of minority business owners on the economy will continue to grow in the coming years. The future for them is bright and our call for action is simple: no matter where we are in Nevada, let us continue to wholeheartedly support the suc-cess of these minority entrepreneurs.An Inc.com article titled Minority-Owned Businesses1, sheds light on the factors that contribute to the growth and success of minority-owned businesses. In addition to mentioning a shift in population demographics, affirmative action programs, and general growth opportunities, the report reveals the following important reasons for the explosive growth in minority-owned business in the United States. Here are a few of the factors mentioned (Note: all reasons are excerpted directly from the arti-cle):Community Support—Many entrepreneurial ethnic minorities benefit by instituting businesses within their communities that meet needs of that community. When these businesses succeed, the individual communities gain a greater measure of auton-omy and financial health, thus laying the groundwork for additional businesses. Programs—In addition to federal set-aside programs, a variety of local, state, and federal agencies have extended help—whether in the form of legal expertise, grants, loans, or some other type of assistance—to encourage the establishment of minority-owned businesses.FACTORS CONTRIBUTING TO THE GROWTH OF MINORITY BUSINESS(continued)1) https://www.inc.com/encyclopedia/minority-owned-businesses.htmlThe Business Advocate is a free publication of the Nevada Department of Business and Industry. The Business Advocate welcomes ideas and suggestions. Questions or concerns about content of this publication may be addressed to: Teri Williams, Department of Business and Industry, 3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 89102. Subscription requests can be made to: twilliams@business.nv.govMichael Brown, DirectorTerry Reynolds, Deputy DirectorMarcel F. Schaerer, Deputy Director3300 W. Sahara Avenue, Suite 425, Las Vegas, NV 891021830 College Parkway, Suite 100, Carson City, NV 89706biinfo@business.nv.govNewsletter Production Team Carrie Foley, Program OfficerKaren Schnog, Management AnalystChris Weiss, Management AnalystTeri Williams, Public Information Officer 8Increased Networking—As the number of minority entrepreneurs has grown, so too has the number of organizations, associ-ations,andothergroupsthathaveformedtoprovideassistanceandinformationtominority-ownedbusinesses.Corporate Acceptance—Observers point to increased corporate acceptance of minority-owned businesses as a key factor in the successes that minority-owned enterprises have registered over the past two decades. Corporations and large firms are buying from minority businesses in greater and greater numbers.Urban Revitalization—Many minority entrepreneurs have established themselves as business owners in urban areas at a time when several large cities have experienced heartening signs of rebirth. Moreover, state and federal agencies have shown in-creased willingness to provide greater assistance to business owners and others who are intent on reversing declines in urbanareas, which typically contain large minority populations.Access to Financing—Minority-owned businesses have benefited from several economic trends. Perhaps most importantly, minority businesspeople have benefited from the financial community’s belated recognition that small businesses are power-ing much of the nation’s current economic growth Moreover, the emergence of alternative financing sources friendly to mi-nority entrepreneurs has made it easier for minority-owned businesses to secure funds for start-up costs or expansions. Final-ly, agencies such as the U.S. Small Business Administration (SBA) have increased the volume of loans to minorities (for exam-ple, minority business owners received a record $8.65 billion in approved SBA lending in fiscal year 2016).Expansion into Emerging Industries—Increasing numbers of minority entrepreneurs have successfully ventured out into realms where minority owners had previously been less commonplace, such as manufacturing and high-technology indus-tries.Factors contributing to the growth of minority business, continuedThe Department of Business and Industry’s Division of Industrial Relations and the International Workers’ Compensation Founda-tion are jointly sponsoring a conference to educate participants in Nevada’s workers’ compensation system regarding current law, rules, procedures/policies and forms. Who should attend? The program focuses on topics of importance to employers, occupational health physicians and nurses, insurance adjusters, claimant’s defense attorneys, and anyone with an interest in learning more about Nevada’s workers compensation system.What is the conference format? This two-day conference includes exhibits open throughout the conference and a full schedule of general and breakout sessions covering a wide variety of topics including: Do’s and Don’t of Subsequent Injury, Compliance and You: A Success Story, 2019 Legislative Update and much more.Registration$400 per person, which includes special functions, continental breakfast, lun
