My accountant had me fill the app out this morning. She deals with a lot of contractors and knows that even though many of us fell into the essential category we are operating at about 20% if that. She also had me fill out a payroll app with BofA that would provide payroll money to keep employees working. It is supposed to be used for payroll but can be used for certain other expenses if necessary. If used for payroll it is forgiven and not required to be repaid. If used for other expenses it is repaid at one percent interest. Those r the broad strokes
. It is supposed to be used for payroll but can be used for certain other expenses if necessary. If used for payroll it is forgiven and not required to be repaid
I had already laid off 2 guys when I found out about the payroll loan. From my understanding, that alone disqualifies me for the "forgivable" part. 1% is pretty good though (I hadn't heard that), even paying it back in full.
I'm not a huge fan of the government handing out "free" money. To me, that's not capitalism. I don't want to see anyone out of work or businesses fail, but sometimes that's the way things happen. There's my unpopular opinion for the day.
That said, I don't NOT write something off on my taxes just because I don't think it should be a write off. The game is meant to be played, I'm just not a big fan of the rule book
Some are already failing and will be lucky to re coop even with monies from the Government. I surely would not worry about laying off. Unemployed are certainly getting a gift.
Unemployment is close to what they get working and that is prevailing wage. A regular worker you pay $20.00 per hr is probably getting almost double of what they were making working after taxes.
My understanding is you can apply for an sba loan and $ 10000.00 does not have to be paid back. After $25000 they are going to line up your collateral for your loan. The whole (SETUP) reminds me of the movie WAR GAMES where at the end of the movie the computer comes up with the best solution... "The only way to win is NOT to play"
I think we could all use a little bone in times like this forgivable of course. Out of the 62 Yrs I been here I never got nothing for free. My Son got some free money for a tavern. City Money trying to boost tourism.
I'm like WTF Kid really got no established credit besides a car loan with my signature and gets 20K. I'm like if I can get $20K I will buy a building downtown. Went through the steps and was turned away. Years ago I tried to get a SBA loan suggested by my Doctor. Ya okay,
I been a stable 750 beacon score or around for over 30 years. I don't borrow much money but you got to pay on something or you become a ghost. I have no idea what you need to qualify for these forgivable or low interest Government loans.
I know one thing I never received a dime.. Oh also if you think your Veteran status for loans it won't work out to good for you unless you are disabled. The hard working good earning small businessman is going to get nothing for free.
Furthermore I'm not sure I want them looking at my books. Not that I'm doing anything wrong that I know of or my accountant. You could wake a sleeping bear or stir up a hornets nest. Good Luck
So my understanding of this grant (at least as my accountant explained to me today) is you have to get the PPP loan first, then you can apply for this grant as well.
Big GC in the City just got a letter from the Government he got all kind of Government funding forgivable without even applying for it. Laid off everybody cause he thinks he's double dipping. If he is it's over my head.
Don't ask me I'm just saying what one of his project managers told me. He employs over 100 people. He kept the salary guy it the office doing submitals etc and his office girls.
The 10 weeks/250%/2.5 times is an arbitrary figure designed to roughly cover 8 weeks of payroll plus 2 months of the other covered expenses (utilities, mortgage, the other stuff I dont remember) - if your actual expenses dont equal that 250% when they ask for the documentation at the end of the period, then they will only pay off what you can document
FWIW, the 2.5 times came within 4% of what we calculated using our rough numbers - if we have to pay back a few percent because we over guessed, who cares? The rest is all free money and it would have been expenses we had to pay anyway
The 10 weeks/250%/2.5 times is an arbitrary figured designed to roughly cover 8 weeks of payroll plus 2 months of the other covered expenses (utilities, mortgage, the other stuff I dont remember) - if your actual expenses dont equal that 250% when they ask for the documentation at the end of the period, then they will only pay off what you can document
FWIW, the 2.5 times came within 4% of what we calculated using our rough numbers - if we have to pay back a few percent because we over guessed, who cares? The rest is all free money and it would have been expenses we had to pay anyway
I didn't apply for anything because you can't believe any of it. Hope it works out for whoever did. Go down by NYC get hit by a bus you will be put in a trailer with a tag on your foot C 19 related.
Interview with an owner who got one of the first PPP loans
The too-long-didnt-read is: he got the money but doesnt expect any forgiveness, mostly because he doesnt intend to bring any employees back despite that being the purpose of the loan
The $1,200 is actually an advance of a credit on 2020 tax returns, so if your 2020 income is less, you could still get more (up to the $1,200 max, of course)
Shakeshack receives $10M from PPP program as "small business" but then generously returns it 1 day after CNN ran a story about how they had $112M in cash on hand. (Which, according to their filing, would only keep them afloat for 1.5 years)
So has anyone received and real "direction" for the PPP money?
I have asked my accountant and my banker if I don't have work for all my guys, am I supposed to keep them on, pay them with this money and HOPE it is forgiven? What if it is not? I just payed them to sit home and I am now on the hook for the money?
Honestly... since I am on the fence... not 100% sure it will be forgiven, my banker says that portion of the program has not been given to the banks by the SBA yet, it seems much easier to just lay them off and pay the money that you don't use back after the 8 weeks?
I just wish someone had a clue so I knew which way to go with this.
Yes....the direction is there is no direction, at least not officially.
It was recommended to us to take some of us off unemployment starting next week and use the money to cover payroll. Use as much as possible through normal payroll, benefits, bonuses, retention bonuses/raises, etc.
We haven't seen a dime - our accountant said the Bank of America basically screwed us by not filing in a timely fashion and it appears he's telling the truth because our banker just followed up yesterday to say that she needs another document. She hadn't even looked at them until now. She is working on it now in case they approve the next wave of money but I'm not holding my breath.
In any case, I've heard a lot of businesses, especially restaurants that are shut down indefinitely, raising the same concern you have. We are still going to chance it anyway though I have little hope we'll ever get anything regardless.
We just got the SBA Grant deposited into our bank account today. No warning nothing. Filled out there necessary stuff like 2 weeks ago, right when it came out
So I decided to apply at the end of last week...2hrs after applying, my banker called me and said I was approved. Told me I needed to come through the drive through this week,sign papers, and take my check....That was today.....worked out perfect, because today is the first day of our pay period (thurs-wed)
Well... I sent out the first round of Gooberment paychecks this morning...
I know my guys are honest when 2 of them have already called and said "Ah... something must have gone wrong with the payroll app. I did not have a 40 hour week last week." :laugh:
The old lady is supposed to get her PPP check at the end of the week. I hope its more than what she would have gotten from the state unemployment and $600 federal subsidy...
1099 people have to apply for themselves and business owner can only apply for employees that are on your annual payroll form 940 and 1st qtr 941. I'm a full time 1099 sub contractor as a mortgage broker and I received my PPP loan yesterday. So yes 1099 people can get. If your 1099 you need to provide your 1099-misc and a copy of the all the checks you received for 1st quarter 2020. Overall it was a very pain less process and I just had to provide a couple documents. I applied with paypal on 4-24 and received the deposit yesterday. Took about 5 mins and never talked to a person, Kind of crazy. My boss at the mortgage company has been given the run around and has been denied 3 times apply with banks, so I honestly think its best to apply online with a Fintech company like Paypal or Kabbage. If you have all the forms already, its a very simple process.
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