When did PPP 8 weeks start?

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Disbursement

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That’s what I assumed, which is BS.

Because I’m required to keep people on payroll weeks longer than others’ who got the money sooner. It should be your application date. I applied the first day.

Now a bunch of companies that got the PPP are going to be laying people off weeks before I am able to.

Eta: the government back dates tons of stuff like unemployment and social security.

I think what he’s saying is this:

Baldona Inc. and VABuckeye LLC both operate similar businesses that can’t reopen until Phase 3. Both companies have maintained payroll and other expenses during the shutdown.

VABLLC got PPP funded 3 weeks ago. So he has 5 weeks remaining of payroll and can then layoff his staff.

Baldona Inc. got PPP funded today. So he has 8 weeks remaining of payroll and can then layoff staff.

Because of Baldona’s processing delay, he will incur 3 weeks more of expenses when compared to VAB LLC

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I'm not sure I follow. You're bothered because other companies get to lay people off before you? My play is to lay off NO ONE.

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So is mine, obviously. But my business is mostly based on working with other businesses that are closed until phase 3 of reopening which is BS and only due to an absurd government bias.

My staff make under what they would with unemployment. The government shut us down so the government can deal with them as far as I’m concerned. Yes I’m salty. My business would be fine if not for the government closing us, oh and we don’t work with customers and neither do my customers so none of us are even remotely the cause of spreading Covid.

I’m in survival mode. If I applied for something the first day and didn’t get it, I shouldn’t have to wait 3 weeks due to a government cluster. That’s not how other government funding works.

It is what it is and I’ll make due. But other companies are soon to be able to make the decision to lay off or keep people by going into debt. I’m forced to delay the decision until July. While it’s not costing me currently thanks to PPP, it did in March and April before I got the funds and my company burn rate is still greater than PPP so if I didn’t have the employees I could save some money.

2020 is basically survival mode for me. The year is a loss. I’m just trying to be as strong as possible for 2021.

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.

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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.

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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.

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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This is a difficult situation. I hope you make it through okay. I know for us, one of the silver linings of all this is that it’s forced us to pull expenses back as much as possible given a sudden shock in demand. As a new business, that’s the first time we’ve done that, and it’s been a great experience to see those plans play out successfully in real time.

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I will survive, my business will be here in 2021. My question I'm asking myself right now and crunching numbers on, is how much business should I even try for in 2020.

What I'm saying, is I'm considering essentially shutting down outside of what I can personally handle until this is well over and on the upswing.

At this point its investing for 2021. Why bust my arse and keep people to still break even or possibly take a bigger loss for 2020, when I can instead go into basically hibernation mode and reenter 2021?

With no dates for the future, I'm worried if I continue to invest in 2020 I'll come out worse for 2021 with more debt and a harder time rebounding.

PPP loan fund my account on 5/1, but my business still closed due to Mr. "wonderful" JBE in commander. All 5 of my employees receiving unemployment benefit & I still have to pay rent. Should I use the PPP fund to pay my employees (even if the business still closed) to take advantage of the 25% fund to pay rent & utilities? Also, if My business allows to open on 5/22, that means I only have 5 weeks left and I can only use 50% of the PPP loan to pay my employees. Does that means I will qualify for 75% of the forgive loan amount? (25% rent + 50% payroll). Any help to clarify this mess is much appreciated. Clear as mud!