re: PPP Loan Forgiveness App is finally out

I may be making a broad interpretation of payroll and utility expenses forgivable.
I have to carry a lot of commercial insurance as I own a heavy construction company. Is liability insurance covered under payroll expenses? Also, under utilities, transportation is mentioned, can I apply my vehicles’ commercial premiums against the forgivable portion? I’m not trying to get a handout but also don’t want to leave money on the table. Those costS accrue whether myself and my employees get out of bed or not.
Lastly, I’m assuming workman’s comp insurance is covered in forgiveness as it is a direct payroll cost.

FYI, furloughed employees have a reduced WC rate. Don’t pay your normal higher rates.

Good luck to all of you.

If you read the interim rules regarding the sole prop forgiveness they rounded it off to 75%. Therefore, I will be rounding it off to 75% as well for all sole props to get the full 75% forgiven. The certification is on the business owner. Rounding seems appropriate considering it’s in their guidance.

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There’s been a lot of rumors that any loan under $500,000 will not be audited. I don’t know the truth to it, but the SBA isn’t the IRS I don’t see how they can audit this many items?

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If the SBA has 90 days to review and decision the forgiveness, there's only one way to do this and it's basically rubber stamp any forgiveness applications under a certain amount. There's no way they can spend the time on a $20k or under loan to a sole proprietor and keep that 90 day turnaround time.

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That’s another question. How will this affect our unemployment rates since in my case my employees went on unemployment for three weeks?

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Not suppose to, early on they said that any UE claims during this time would not affect the employers rating?

The only insurance that counts against forgiveness is group health insurance. Period.

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cell phone and internet part of utilities

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I’m going with yes but what do I know?

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(c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”).

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I'm a sole proprietor so my bank got me the largest loan available ($100k/12 months x 2.5 months) = $20,833.

But I can only pay myself $100k/52 weeks x 8 weeks = $15,385.

$15,385/20,833 = 73.85%. It sounds like the rule requires that 75% be used for payroll - but since I'm prohibited from paying myself 75% of the loan, might I have to pay back the whole thing?

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Sounds like a lot of us will have a low interest loan

Got funded May 1. Paid my May 1st rent on April 29th. Do I get to include that or just June and early pay July for two months worth of rent.

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If the SBA has 90 days to review and decision the forgiveness, there's only one way to do this and it's basically rubber stamp any forgiveness applications under a certain amount. There's no way they can spend the time on a $20k or under loan to a sole proprietor and keep that 90 day turnaround time.

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SBA has up to 10 years to audit. Forgiveness is initially determined by the lender.

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SBA has up to 10 years to audit. Forgiveness is initially determined by the lender.

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I’m a banker. 60 days for the bank to review and submit to sba. Then sba has 90 days to approve and forgive.

No bank wants any amount of the loan to NOT be forgiven as there’s zero incentive for us to carry a balance forward. Sba has to ultimately approve the forgiveness. Otherwise it truly would be a rubber stamp for each loan.