After over a year of tireless negotiations and advocacy work, the Professional Beauty Federation saw their sponsored legislation, AB 1514, signed into law by Governor Gavin Newsom.  The bill extends the sunset date on manicurists being able to operate as independent contractors in nail salons for another 3 years.

As our followers and members are aware, nail techs lost their legal right to operate as booth renters when a small provision buried in the now infamous “AB 5” law in California was triggered at the beginning of 2025.  In short, the Legislature inserted a “sunset clause” for the right of manicurists to operate independently in a nail salon for only a specified time, due to concerns about lax labor law compliance that was unearthed in a disturbing NY Times article that ran before AB 5’s passage.

While the PBF consistently requested the sunset be removed from the AB 5 law altogether, thereby providing this legal right forever, we had to work with powerful interest groups and policymakers who remain dubious about booth rental, generally, and the labor practices in the nail segment, more particularly.  AB 1514 represented the culmination of those negotiations, and with the Governor’s signature, is a significant victory for nail techs up and down the state of California.

Now the burden is on us, and specifically nail establishments and techs, to show to the world that they honor California’s labor laws.  That’s because AB 1514 calls upon labor regulators to report back to the Legislature on the rates of compliance and complaints received during this 3-year period, which will help policymakers  determine the ultimate fate of booth rental in nail salons.

It is no small feat to get legislation drafted, supported, passed through the Legislature and then signed by a Governor in the largest, most influential state in the union.  And AB 1514 was no exception.  In fact, it required all of the PBFs considerable influence, network and advocacy abilities in Sacramento to bring this (temporary) victory home.  Our work is only possible thanks to our dues-paying members and contributors … HINT!

This warning is particularly pronounced in California, where we are now seeing the Department of Industrial Affairs and other state and local agencies levying heavy fines (routinely in excess of $20,000!) for misclassifying workers in beauty/barbering establishments.

So it’s a good time to brush up on the current state of the law.  To aid you in that endeavor, we will focus on California, although its statutes follow generally accepted common law principles that apply in many states.  So establishments across all 50 states should review and weigh these principles against their current booth rental contracts and practices.

For suite rental businesses, these concerns are largely mitigated by the structure of their rental relationships (particularly the separate addresses of the independently licensed suite renters within their buildings), but they too should pay close attention to and comply with  the legal separations explained below.

This column isn’t meant to provide legal counsel to any particular beauty or barbering establishment, since the operations of every business is unique.  Government agencies —  or courts in the case of private claims — will follow the relevant practices in the establishment, not just the written contract, so having a well written booth rental contract ins’t necessarily a “get out of jail free” card.  

And since we cannot answer all the “what if’s” of every individual salon, shop or spa, all we can do in this column is outline the legal elements necessary to establish an independent relationship, again focusing on California law, specifically.  Without this legal structure in place, salon/spa/shop owners risk a costly misclassification finding by a government agency or civil lawsuit verdict by a disgruntled booth renter.

Bluntly stated, most booth rental establishments have been playing fast-and-loose when it comes to the necessary degree of separation between renters and their landlords.  Beyond poorly drafted rental contracts that fail to properly delineate roles, many also practice slipshod day-to-day operations that undermine the independent relationship.  So the legal summary here will come as quite a shock to many, no doubt.  But we’ve been sharing these legal principles for many years, so nobody following the PBF should be surprised.

The legal classification of independent booth renters will still be governed by the so-called Borello “right to control” test that was previously in place before the bombshell California Supreme Court ruling called Dynamex, with some added requirements spelled out in statute via AB 5.  If a beauty/barbering business utilizing booth renters doesn’t meet those enumerated requirements, there will be no need for regulators or the plaintiff bar to weigh the various “right to control” criteria; the establishment owner will be found to have misclassified their salon workers.

Here are the general requirements of independent workers across California, not just beauty/barbering industry, as stated in AB 5:

“(A) The individual maintains a business location, which may include the individual’s residence, that is separate from the hiring entity. Nothing in this subdivision prohibits an individual from choosing to perform services at the location of the hiring entity.

(B) …[T]he individual has a business license, in addition to any required professional licenses or permits for the individual to practice in their profession.

(C) The individual has the ability to set or negotiate their own rates for the services performed.

(D) Outside of project completion dates and reasonable business hours, the individual has the ability to set the individual’s own hours.

(E) The individual is customarily engaged in the same type of work performed under contract with another hiring entity or holds themselves out to other potential customers as available to perform the same type of work.

(F) The individual customarily and regularly exercises discretion and independent judgment in the performance of the services.”

Beyond these general requirements, AB 5 has specific elements that apply only to our industry, requiring each booth renter to show specific ways in which independence from the salon/spa/shop owner is further established.  Again, straight from AB 5:   

“(I) Sets their own rates, processes their own payments, and is paid directly by clients.

(II) Sets their own hours of work and has sole discretion to decide the number of clients and which clients for whom they will provide services.

(III) Has their own book of business and schedules their own appointments.

(IV) Maintains their own business license for the services offered to clients.

(V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space.”

So there you have it, the statutory requirements laid out in black-and-white in California Labor Code Section 2778 . One important aside is the ongoing situation in California in which manicurists are specifically barred from booth rental, altogether — a problem the Professional Beauty Federation is working hard to rectify in Sacramento … you can read more about this unique challenge in prior  Hot Topics columns.

Creative salons, shops and spas will no doubt find some work-arounds, for example: utilizing a shared calendar of appointments that each individual booth renter must ultimately approve.  But unless California beauty/barbering establishments can show they meet these explicit standards, their booth renters will be determined to be employees.

With clarity comes responsibility.  All of our establishments must raise their professional practices, particularly those utilizing booth renters.  The consequences of violating these labor laws are steep, just ask those being served very expensive fines.

As Professional Beauty Federation followers are aware, manicurists in California recently lost their legal right to operate independently as beauty professionals in salons and spas in which they aren’t the establishment owner. While we successfully lobbied in 2019 for our industry’s exemption from the infamous “AB 5” law — which essentially outlawed independent contractor relationships throughout California, the author of that bill inserted a sunset date for nail techs.  That meant that unless the original law was altered, manicurists were destined to lose that exemption, and with it their right to operate independently within an establishment. 

California Legislators were convinced that violations of labor and worker classification laws were being ignored by this particular sector of our beauty/ barbering industry — thanks in no small part to an unflattering NY Times series about Korean nail salons and massage parlors that ran shortly before AB 5’s passage. Sacramento policymakers believed that hard-working manicurists were the most vulnerable to these labor law violations, particularly if they were stripped of the legal and regulatory protections that come with being bona fide W-2 employees.

While their intentions were to protect nail workers, the result was to inequitably isolate this particular sector of our industry from everyone else making a living in beauty/barbering.

As everyone is aware, the nail segment is dominated by first-generation immigrant professionals employing their skills to beautify the world, while economically lifting themselves and their families onto the economic rungs of the American dream. Protecting their legal interests is noble, but treating them differently is disrespectful.

How dare anyone — let alone our own elected representatives — tell these industrious workers that they can’t responsibly handle the same employment options as the other sectors of our industry! There seemed to be an implicit assumption that nail techs were too naive to protect their own interests if given the same flexibilities afforded barbers, cosmetologists, lash/brow artists, skin care professionals and others who enjoy broader worker classification options.

Just picture the lunacy of the current situation: California law now allows an independent (booth rental) cosmetologist to perform nail services in a salon, but a licensed manicurists working in that same salon cannot, at least not as an independent operator (only as a W-2 employee of the establishment).

The Professional Beauty Federation has been fighting in the policy trenches to defend nail techs and ensure the equitable treatment of all hard-working professionals across every segment of barbering/beauty. While we successfully extended the sunset on manicurists a few years back, and despite a series of Republican-authored bills (including another recently introduced), we simply haven’t been able to generate the needed grassroots support to continue to preserve their right to operate independently. 

And so the sunsetting of manicure’s right to booth rent went into effect this past January. And absent a concerted effort on all of our part, another minority-Party bill won’t solve the problem and likely not even get a policy committee hearing.  We need to generate sufficient political will among a majority of California lawmakers and powerful interest groups to correct this unfair, two-tiered legal framework. 

This task is daunting. We need to shepherd a legislative bill through both the California State Assembly and Senate (dominated by a Democratic super-majority who embraced AB 5 at the urging of labor unions) and then signed by the Democratic Governor. And there are powerful stakeholder interests in Sacramento who are closely aligned with the majority Party who look askance at any effort to side-step AB 5’s so-called “ABC Test” — which places a high legal bar on businesses utilizing independent contractors, and all but eviscerates independent workers in a salon setting.

Our recent conversations with such stakeholders and legislative leaders have been productive.  But we need grassroots air cover and a united front among all industry stakeholders to push our worthy mission across the finish line.

We are therefore calling upon anyone and everyone in our beloved industry, but most especially the nail sector professionals and businesses, to join our campaign.  If we fail here, California’s over-sized influence could eventually impact other state’s legal stance in this arena, possibly reaching beyond just nail salons — potentially undermining the independence of cosmetologists, estheticians, and barbers.  It’s time everyone in the barbering/beauty world unite in defense of our California manicurists because all of us could be next!

This means all nail techs in California will have to be transitioned into W-2 employees, else the establishment owner will face not only regulatory fines but be prey to private litigation by “AB 5” head-hunting law firms specializing in these harassing lawsuits.

The PBF have been witness to dozens of such private-action lawsuits, in which small businesses have been financially strapped — and in some cases ruined — by these costly legal threats.  And because of the stacked law against them under the provisions of the now infamous “AB 5” law, there’s no winning these challenges in court (and they are further insulted by having to pay the plaintiff’s legal expenses … meaning the greedy law firms who’ve been profiting off this new law since it was passed in 2020).  

Fortunately until now, our industry has been shielded from AB 5, because we worked to get a legal carve-out for hair, skin and nail workers and barbers when that law was working it’s way through the Legislature in 2019.  Unfortunately, due to the Legislators’ concern about one segment of our industry, manicurists and their establishment owners were only given a temporary exception that is set to expire this coming January.

The PBF have been lobbying California lawmakers and powerful lobbying interests — including labor unions (the primary defenders of AB 5 and ending all forms of independent contracting) — to allow the manicurist sunset date exception to be extended, but to no avail.  To illustrate our challenge, the author of AB 5 is now the President of the most powerful union organization in Sacramento, the Labor Federation, so any wonder why this has been an uphill battle?!  And with only one month left in this year’s legislative session, we’re not hopeful we’re going to be successful.

This means on January 1, 2025, any nail technician may be lured into filing legal action against their establishment owner for misclassifying them as an independent worker and not an employee, demanding back pay and other legal entitlements.  And the considerable state labor regulatory apparatus could also come crashing down on those same salon owners, requiring withholding taxes and Workers’ Comp premiums retroactive to January 1, 2025.

This could spell disaster for this segment of our industry, which overwhelming relies upon the booth rental model and who won’t be able to absorb the additional costs of transitioning all of their manicurists into W-2 employees, including payroll taxes and Workers’ Comp premiums.  And that doesn’t include the considerable costs of potential lawsuits for non-compliance post-January. 

The PBF will continue to push lawmakers to extend the January 1 deadline before they adjourn in September, but if we are unsuccessful, we will need to martial this segment of our industry to rise up and demand that their elected representatives treat them justly and equally as the other two segments of our industry — which enjoy a permanent exception from AB 5.  This grassroots campaign will need to begin in earnest come the new legislative session that begins next year.  So stay tuned for your marching orders!  [Hint: get to know your locally elected State Assembly member and Senator, now]

If you’d like to read more about this legal quagmire, you may see the relevant sections of the law here:

Business & Professions Code Section 2778 (b)(2)(L):

AB 5 Beauty/Barbering Law

And to find out who represents you in Sacramento, go here:

Find Your CA Rep

If you’re an employer or self-employed pro in any of the 50 states who hasn’t yet claimed Covid-related federal tax credits, you can skip the following background info and go directly to www.ProBeautyRelief.com to claim these funds … for  those who’d appreciate some context to these federal assistance credits and our totally revamped process for self-employed pros, here’s a recap of that story:

After unjustifiably prolonged lockdowns kept our safe establishments closed (in states like California that amounted to 8 months during 2020-21!), we spearheaded grassroots and media campaigns to explain to the public and government officials how safe our procedures were, and in two instances actually filed federal lawsuits against a Governor and health officials to get our industry reopened (both lawsuits resulted in our industry being reopened within 5 days of filing, so success!).

Once all 50 states were finally reopened, we pivoted to helping our beloved industry pros and employers recover from their financial losses.  We stood up ProBeautyRelief to help guide self-employed professionals and establishment employers to federal tax credits that were designed to assist industries like ours recover from devastating Covid lockdowns of our salons/shops/spas and even our children’s schools.

In the case of employer credits, the ERC didn’t become a household term until a year after the PBF began leading our industry employers to these federal tax credits (one can no longer listen to the radio, a podcast or watch TV without being bombarded by ERC ad’s).  But very few have been helping self-employed professionals recoup similar tax credits for Covid disruptions (via FFCRA: self-employed tax credits).  The PBF trail-blazed the way for our industry employers to receive ERC and we’re doing similar for self-employed pros.

And while the IRS placed a temporary suspension on processing ERC applications, they are continuing to approve FFCRA (which we’ve renamed “SETC” to make these “self-employed tax credits” more sensible) and they’re sending out payments … although processing times have been extensive, given the IRS has been so overwhelmed with ERC claims.

Employers Can Still Apply for ERC

If you’re an employer who hasn’t yet pulled the trigger on ERC, go to our ProBeautyRelief page to learn more about this tax credit and how Congress tailored it specifically for industries like beauty & barbering employers.  While the IRS has temporarily suspended making payments, Congressional law requires them to eventually honor all valid ERC applications before this statutory program expires at the end of this year.

You should have no fear in retroactively claiming your legally entitled share of these credits that are based on the taxes you already paid.  These tax credits are designed to reward you for keeping employees on the payroll during those dark days of Covid lockdowns and restrictions (you know, when we were labeled “non-essential”!).  But time is running out, so you can no longer afford to hesitate.

Self-Employed Pros Can Also Claim Retroactive Tax Credits

Even though everyone has heard of ERC for employers, we have found that most independent beauty/barbering pros still haven’t heard of FFCRA, which again we’ve re-named “SETC” for simplicity sake.

And among those few we’ve been able to reach with this message, far too many have been hesitant about our initial approach to guiding you through the application process with the IRS.  So we have some exciting new developments we’d like to share.

We’ve completely revamped the application process and established a new partner with the CPA’s and tax professionals necessary to maximize your legally entitled share of SETC via a seamless new application. And here are the key changes: there is no out of pocket expense until you’ve been paid by the IRS; No refundable upfront fees; And you can get paid in 20 days!

Our new streamlined process is simple and hassle-free. If you have your past tax returns readily available, the entire application should take less than 20 minutes. However, if you had previously started an application prior to April 1, 2024, but did not finish, you must start over with our new system and partner.

Go to ProBeautyRelief  to learn more and apply now, before the entire program expires.

Qualifications:

To utilize the platform, you must have reported self-employed income on your Schedule C (of your 1040 Tax Return) in either 2020 or 2021 and had your income impacted by COVID in one of these ways:
‍
– You had Covid and/or quarantined
– You took time off to be tested or get vaccinated
– You missed work due to a reaction from the vaccination
– You were subjected to a Government lockdown
– You had a child home due to school closures
– You cared for someone else

If you meet any of these qualifications, don’t delay claiming your share of these retroactive tax credits.  And let us reiterate: our new partners are willing to advance the money, so you don’t have to wait for the delays with the IRS!

There’s no catch… you can now claim your Self-Employed Tax Credit (SETC) to get the money you’re owed within 20 days.  With the SETC Advance, you will skip the IRS’s long wait (5+ months) and receive your money right away.

This federal tax credit was designed to reimburse you for lost work due to Covid during 2020 and 2021. Our independent pros were among the hardest hit from that dreaded pandemic and the most deserving of this financial assistance, now.  Don’t let these retroactive Covid relief funds expire without claiming them. The PBF is here to help every qualified industry pro get their legally entitled share before it’s too late.

The Professional Beauty Federation has been fighting for this industry since 1999.  We represent you … we hope you will trust us, now, in helping you financially recover for Covid.

FINALLY there is Covid Relief $ for you! 

You’ve probably heard all the adds aimed at employers for “ERC” relief funds.  We at the PBF led the way over a year ago in this regard and have successfully been helping thousands of salon/spa/shop/school employers receive these federal tax credits  … and we’re continuing to do so, so if you are an employer with at least two W-2 employees, go to this link and get your share before it’s too late!

But we have been hearing the cries of our independents wondering “What about us?!”  

That’s why we’re so excited to finally be able to rollout our self-guided, online portal to help you access your own share of federal relief $$.  And it could mean as much as $32,200 — depending on your stated income in Schedule SE of your 2019, 2020 and 2021 tax returns … this is serious money!

Together with our long-time and trusted partners at Adesso Capital, we are preparing the final touches of our unprecedented online portal designed specifically for independent beauty professionals.  This online tool has been put together by industry experts, CPAs and tax attorneys to help our self-employed professionals access and maximize their share of these final Covid relief funds; and like it’s counterpart  for employers applying for ERC funds, it will also generate and deliver all of the necessary paperwork for our hard-working hair/skin/nails professionals.  

This little known federal program seeks to replace income that 1099, self-employed and independent salon, spa, and barbershop workers lost during the Covid years — as a result of lockdowns, worksite capacity limits, Covid illness or vaccine reactions, medical or self-imposed quarantines, children stuck at home doing virtual/remote learning, etc..  Consider it “ERC” for independent professionals.  

As long as you had filed a Schedule SE as part of your annual tax returns in 2020 and 2021, and you missed work due to Covid-related matters, you’re likely qualified.

With our successful history of helping over 10,000 beauty professionals receive PPP funds two years ago, followed by the past year of getting thousands of beauty/barbering employers ERC funds (which we continue to do), we are now ready to help our independent professionals receive their fair share of these final federal funds.

The Covid pandemic was devastating to our industry, most especially our self-employed beauty and barbering professionals.  We know you deserve these dollars, and that’s why we have been working very hard behind the scenes to deliver this final remaining Covid relief $ to you through our seamless, self-guided, online portal.

Go to ProBeautyRelief to secure your legally-entitled assistance before it’s too late!  

I decided to switch careers, and I became a licensed professional hairstylist. By age 30, my beautiful daughter was born, and I was also diagnosed with ovarian cancer. So, I was a single mom running my own hairstylist business, and my finances were clearly not in order. Moreover, I didn’t know how my mother was going to take care of my daughter if I passed away. I was still young and passionate but very naïve to managing my financial affairs.

I realized, here is my daughter, and I need to make some better financial decisions. As time went by, my business became the family business. My daughter later enrolled into a cosmetology program, studied and received her cosmetology license. She started working with me as she joined the family business. We grew to a 27-station salon, and we were very busy. She also blessed me with twin beautiful granddaughters. The money I made ten to fifteen years ago never made it to the bank. I clearly made it hard for myself. I was making good money in the beauty industry, which led to buying properties and fancy cars, traveling, and living the lifestyle. At the same time, I made a lot of bad financial decisions of not saving anything for my future.

Let’s fast forward to 2019. I got married. However, by 2021 I was filling for divorce. I again needed to pivot and make some necessary changes. It had to start with me and with my business. I fell into the trap of taking care of others but not myself. The problem is a lot of people in the beauty industry are looking for passive income, but we’re up on our feet all day cutting, blow drying, coloring, styling hair. We don’t realize that our greatest asset is our health and our ability to make money. Nobody talks to us about protecting ourselves financially and planning for when we no longer service clients. My overriding passion for being in the professional beauty business is that I love to make people feel good about their hair and themselves, I have the ability to make them feel more beautiful.

I finally looked for financial expertise help, and I found it in several mentors. Working with financial mentors changed my life for the better. I have upgraded my life insurance, and I am properly planning for my future retirement. I now budget and manage my business in the most savvy and responsible manner. I urge you to sit down with a financial services management company like Syncis so you could make your life a little easier. I now want to help people in our industry especially young individuals to not make the same mistakes the young Leonie made. I want to help young professionals prepare for retirement, not just dream about it. That is my “why”. I am grateful that my health is better, and I am cancer free. It feels good to know I have the living benefits if another life event happens again. Don’t be afraid to reach out to me. I am here for you!

Leonie Waite CEO/Franzine Beauty Management

C (714) 943-6678

F (714) 974-5076

www.FranzineBeauty.com

Give Virtual Care is a bundled Virtual Healthcare Membership, not insurance. The membership provides immediate or scheduled telehealth visits for general med diagnosis, discounts on prescriptions, expert second medical opinions, tele-mental health and immediate Crisis Care as a completely bundled service for one low monthly cost. The affordable non-insurance solution offers 24/7 care for non-emergency conditions like cold and flu, sinus infections, sore throat, allergies, dermatology, sexual health, pediatrics and more. The Give Virtual Care App is available for all mobile devices and iPads. The Cares Act allows for HSA funds to be used for telehealth.

This is being presented as a low cost $25 a month package (discounted from $30 as a Beauty Federation benefit) and includes spouses/partners and full family members up to 15 individuals. Even people with full insurance will be attracted to the offering as it presents an alternative to going to urgent care and having to be stuck with a co-pay. The convenience and mobile application should be particularly resonant with the beauty and barbering community, as smartphones are ubiquitous in our industry. Even salon owners may choose to offer this to their employees, booth/suite renters and commission professionals as a retention benefit as it is so affordable.

For more information, go to https://www.ProBeauty.health 

The Professional Beauty Federation (PBF) is pleased to announce a new credit card merchant services payment solution program called ProBeautyPay to all beauty and barbering professionals. There’s never been a better time to switch and save!

Why ProBeautyPro?
• Lowest fees in the beauty industry (lower than Square)
• Free equipment (multiple hardware and software options)
• No contract, no activation fee
• Accept all payments everywhere
• Simple, streamlined onboarding to get started immediately
• Easy to switch merchant platforms and from Venmo or Zelle
• Highest levels of customer support; 24/7 technical support
• Timely reporting dashboard and account management
• Give back to the barbering/beauty industry with each transaction

2.39% + $0.10 per transaction
$10.95 Monthly Fee
(Compare to Square at 2.60% + $0.10 + Equipment Cost)

Accept virtually every type of payment that comes your way — from chip and PIN to tap and pay, and mobile wallets. The PBF merchant service partner has customer representatives dedicated to our barbering/beauty industry that are ready to answer any questions and help you transition to our ProBeautyPay processor.

Unlike other card processors, a small portion of every ProBeautyPay transaction goes back to our industry at no cost to you.

For more information and to get started: www.probeautypay.com

Up to $33,000 Per Employee If You Qualify!

July 15, 2021 — Sacramento, CA — The Professional Beauty Federation of California is pleased to announce the launch of a turn-key, full services platform to assist salon, barber and spa employers in filing for the Employment Retention Tax Credit (ERC).  This federal relief credit can be applied retroactively to 2020 and for each of the ongoing quarters of 2021, so this is an incredible opportunity for needed assistance to our industry employers.

This credit was established to assist businesses negatively impacted by government Covid orders, which of course applies to all of our shops and salons throughout 2020 and into 2021.  Depending on a number of factors (including use of other federal relief grants and forgiven PPP loans), employers may qualify for tax credits of up to $33,000 per employee by the end of this year.  Yes, you read that correctly: up to $33,000 for each of your salon/shop employees!

The Professional Beauty Federation, in partnership with Adesso Capital, has now established a portal, www.federationplans.com/erc, and a team of tax CPAs, experienced in filing ERCs, to assist employer-based salons, barbershops and spas to qualify for and access this federal relief program.  Industry employers can access these experts by calling the new Federation ERC Support Line at 888-600-7380.

Fred Jones, PBFC Legal Counsel and Advocate, stated, “we were surprised to learn that most barbering and beauty establishment owners, including even chain franchisees, either haven’t been informed or have been misinformed about this unprecedented ‘pot of gold.’  Our team of tax experts will ensure that our members get the relief they deserve after a very difficult year. Once again, the Professional Beauty Federation is stepping up to protect and promote our beloved industry.”

In addition, the Federation, in partnership with Adesso Capital, continues to inform and guide beauty professionals who received PPP payments in getting their loans fully forgiven.  We are sharing answers to the most common questions about PPP forgiveness to help industry professionals understand how this part of the program works.

A salient point to forgiveness includes spending at least 60% of the PPP relief funds on payroll, inclusive of benefits and taxes (e.g., did you pay yourself back for lost wages?). The balance can be spent on business rent or mortgage interest, utilities, PPE (masks, sanitary spray/wipes, etc.) and general supplies like hair and beauty products for client services. Independent professionals (booth/suite renters and sole proprietors) can also claim the automatic owner compensation replacement, equal to 2.5 months of 2019 or 2020 net profit, so their calculations are incredibly simple — as are the forgiveness applications that must be processed through the lender that submitted your original PPP application.

Damon Maletta, founder and CEO of Adesso Capital added, “We will not abandon any of those shop owners, independent hairstylists, estheticians, nail techs and other personal care professionals who received PPP.  Adesso and the Professional Beauty Federation will do everything we can to lead them to final forgiveness to ensure PPP doesn’t become a debt burden, even as we begin assisting salon employers qualify for this new ERC relief.”

The Beauty Federation has set up a website with useful PPP Forgiveness information at www.federationplans.com/ppp.  They have also set up a direct email and toll-free number to better assist beauty/barbering professionals at pbfcsupport@adessocapital.com or 888-600-7380.

Over 12,000 industry professionals and establishment owners accessed the Professional Beauty Federation’s online portal, with tens-of-millions of PPP dollars going to our hard-hit industry as a result of the PBFC’s unprecedented campaign. 

About PBFC

The PBFC is a nonprofit trade association that was formed in 1999 to give voice to the over 600,000 licensed barbering/beauty professionals in California to raise the professionalism of the beauty and barbering industry.  While their mission has never changed, their scope of representation has expanded in recent months, as they blazed the reopening trail for all Personal Care professionals through two successive federal lawsuits against the California Governor, a coordinated, statewide #OpenSalonsNow grassroots campaign and most recently with their nationwide PPP and now ERC assistance programs. For more information please visit www.beautyfederation.org 

About Adesso Capital

Adesso Capital provides financing solutions to small and medium-sized businesses. They have secured nearly $1 billion in financing and Paycheck Protection Program loans that have helped small businesses expand, manage cash flow, purchase new assets and inventory, and make improvements. They work with businesses across the US and offer an array of financing products, including term loans, lines of credit, SBA loans, accounts receivable financing, and equipment loans. For more information, please visit https://adessocapital.com