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re: When did PPP 8 weeks start?

Posted on 5/8/20 at 8:34 am to
Posted by baldona
Florida
Member since Feb 2016
20535 posts
Posted on 5/8/20 at 8:34 am to
quote:

Yeah I understand better now. It makes sense, but your original statement made it seem like you just wanted to pocket all the PPP money and lay everyone off.




Poor wording. Sorry. No I just am trying to understand all of my dates. I’ve been in the hole on payroll for almost 2 months already. Which again, I can survive on my own for awhile. But my issue is I don’t have a clue when I can be profitable again with my current employees working due to not have any timeline from the government.

I’m contemplating shutting my office down to save on utilities and working from home until we are open again.

I can’t just pivot my business right now either.

Worst case pessimistic scenario is no profitable months until 2021. At what point do we start planning that? Many already have.

Eta: what’s starting to scare me is I plan for say August back to profitability and I’m wrong. At some point I have to prepare to be open in 2021 no matter what it takes.
This post was edited on 5/8/20 at 8:37 am
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37162 posts
Posted on 5/8/20 at 10:27 am to
I'm going to tell you what I am telling my clients, many of whom are in the same boat as you. I am not saying I agree or disagree with this, but it's just straight up truth.

The sole and entire purpose of PPP was to pay employees. It has ZERO to do with the health or a business, except for the incidental fact that if employees stay paid through this mess, you might not have to deal with re-hiring / hiring new employees and training them, once you re-open.

They only allowed the other expenses (rent, mortgage interest, utilities) as a last minute rule because they realized that some companies might not be able to spend every dime on payroll. But the whole reason the loan amount is based on prior payroll, is because the money is intended for payroll.

The 8 week period was established because the congress-critters thought we would all be on the other side after 8 weeks. Now that it appears that might not be the case for some businesses, I would not be surprised if we see additional programs come down the pike.

What I am guessing your issue is, is that you used other funds to pay 3 weeks of payroll, then would have 8 weeks of PPP funds. Other companies didn't have to fund 3 weeks with other sources, and only paid out the 8 weeks with PPP money, and then presumably will lay people off (we don't know yet because no one's 8 weeks has expired yet).

Anytime the government gets involved, there is going to be winners and losers, intentional or not. It's just the nature of government funding. I do think you have a point in that if you can show that you kept paying people while waiting on PPP money, that you should be able to "count" that towards your PPP allotment for the purposes of loan forgiveness.
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