- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
PPP Question
Posted on 4/2/20 at 5:13 pm
Posted on 4/2/20 at 5:13 pm
I have been trying to find an answer to this and I can’t anywhere...I own a company that does work in residential construction...Our schedules are full for the next 2 months...Most builders are finishing what they have on the ground now, but aren’t starting any new construction until this blows over...Is there any sort of drop in business required to get on this payroll forgiveness program? I am good now...I have saved a lot in the bank where I don’t need the loan right now...But I am greatly concerned about what we look like 2-3 months down the road once we get through all of the work now...Is absolutely everyone approved to get a loan regardless of how much money you have in the bank as long as you use it for utilities/payroll/rent and don’t lay anyone off? Thanks in advance!
2
Posted on 4/2/20 at 5:33 pm to dallaslsufan
No there is no drop in business required. You should apply.
Posted on 4/2/20 at 5:34 pm to dallaslsufan
My limited understanding is that the purpose of the program is to reward employers for retaining employees during this time, and that no proof of a decrease in your business is required.
As long as you use the loan for payroll and your people, then that fits with the requirements.
Somebody please correct if i’m wrong here
I think 75% of the loan must be for payroll and not rent/utilities
As long as you use the loan for payroll and your people, then that fits with the requirements.
Somebody please correct if i’m wrong here
I think 75% of the loan must be for payroll and not rent/utilities
This post was edited on 4/2/20 at 5:35 pm
Posted on 4/2/20 at 5:56 pm to Boh
quote:
My limited understanding is that the purpose of the program is to reward employers for retaining employees during this time,
Come on dude. The purpose is to help businesses keep paying their employees. If you’re lucky enough to not need help with that, thats your reward.
Posted on 4/2/20 at 5:58 pm to Murray
That’s what i meant for this guy’s situation, maybe didn’t come across that way
This post was edited on 4/2/20 at 5:58 pm
Posted on 4/2/20 at 6:27 pm to Boh
You're correct. It has been specifically stated this is intended to be a stimulus and a cash influx for small businesses.
Posted on 4/2/20 at 6:31 pm to BamaAlum02
Thanks everyone! I am having my office staff work on this in the morning. They said apply early...I am curious as to how quickly they will run out? Anybody know who is doing the lending in Lafayette? Also, how will they have a clue what you used it for...It is going into the bank with other funds...I definetiely don’t get that part?
Posted on 4/2/20 at 6:31 pm to Boh
quote:
I think 75% of the loan must be for payroll and not rent/utilities
I don't think that the 75% of the loan must be for payroll expenses, it's just that not more than 25% of the forgiven amount may be for non-payroll costs. So you can take out the loan and spend it on qualified expenses, you may just not have it all forgiven.
This post was edited on 4/2/20 at 6:32 pm
Posted on 4/3/20 at 7:24 pm to dallaslsufan
quote:
Also, how will they have a clue what you used it for...It is going into the bank with other funds...I definetiely don’t get that part?
You will have to produce an audit trail proving you spent x amount on the approved expenditures. If not you will be paying that money back.
Posted on 4/3/20 at 8:09 pm to dallaslsufan
quote:
Thanks everyone! I am having my office staff work on this in the morning. They said apply early...I am curious as to how quickly they will run out? Anybody know who is doing the lending in Lafayette? Also, how will they have a clue what you used it for...It is going into the bank with other funds...I definetiely don’t get that part?
We pulled all the data down for PPP this past week and submitted our application this morning as we were told the money would run out quickly.
For FY 2019 we had to provide 940s, 941s, W2s, W3s, 1099s, gross payroll by month by employee, health premiums, health deductions by employee, contract labor expenses, legal & accounting expenses. We then summarized all the data for the bank and referenced all of the relevant backup. Getting this information was a giant bitch.
We did this through our bank. Check with your bank to see if they are a participating lender.
It is also recommended the funds are kept in a separate account. The idea is that all of this shite can and will be audited at some point.
Good luck.
Posted on 4/4/20 at 10:38 am to mastersoftext
quote:
No there is no drop in business required. You should apply.
You do not have to show a drop in business BUT you do have to certify that you have been affected by the COVID-19 situation. I don't if that is defined further in any guidance.
Also be careful. If you get the loan and during that 8 -week period you slow down work (and let go of workers) you will have to pay back some of the loan.
The forgiveness formula is the (number of Full-time Equivalents you had during 8-week loan period)/(number of Full-time Equivalents you had before*)
So if you had 50 employees and dropped to 25 during the loan you will only have 50% of your loan forgiven.
Now that still may be a good deal, but just be aware.
*there are set time periods you have to use
Posted on 4/4/20 at 1:04 pm to BigJim
quote:
*there are set time periods you have to use
I’ve seen a couple different examples of the calculations, but the most recent release from treasury.gov says SBA will provide guidance. I haven’t seen anything concrete yet from SBA regarding the calculation. I want to know this before I apply. Do you have a link to this?
Posted on 4/4/20 at 1:54 pm to rlp
PPP Interim Final Rule
Actual PDF
The SBA page that takes you to the PDF in case the above link doesn't work
There are also like a million different guides online. Most are dated because they came out before these guidelines, but they are still helpful.
I happen to like this one
I hope that helps
Actual PDF
The SBA page that takes you to the PDF in case the above link doesn't work
There are also like a million different guides online. Most are dated because they came out before these guidelines, but they are still helpful.
I happen to like this one
I hope that helps
Posted on 4/4/20 at 3:01 pm to BigJim
quote:
I hope that helps
Thanks. I had read the .pdf and some of the older guidance. The older guidance showed a calculation of reduction of loan forgiveness based on a ratio of number of FTE during the 8 week period/2019 avg FTE. If this is still accurate, in my case it hurts me as last year I averaged 50 employees, but a big job completed in Oct and for 2020 I’ve been back to a normal staffing level of around 30. This recent .pdf doesn’t mention this reduction calculation but does state loan will be forgiven if used for allowable expenses and staffing is maintained. It doesn’t define “maintained” or the period it will compare staffing levels to. Am I missing something here or is it ambiguous?
Posted on 4/4/20 at 3:57 pm to rlp
Yeah given your description I was afraid of that.
Here I quote the other website (which is pretty much quoting the law):
So you have two look back periods (aa) or (bb) maybe that helps some.
OR find another job to work on and get your payroll numbers up. That's what they really want you to do. Even if you lose a little money on the job, the fact that your labor is essentially free (or at 1% interest) should help.
Here I quote the other website (which is pretty much quoting the law):
quote:
(A) IN GENERAL.—The amount of loan forgiveness under this section shall be reduced, but not increased, by multiplying the amount described in subsection (b) by the quotient obtained by dividing—
(i) the average number of full-time equivalent employees per month employed by the eligible recipient during the covered period; by
(ii) (I) at the election of the borrower—
(aa) the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019; or
(bb) the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on January 1, 2020 and ending on February 29, 2020; or
So you have two look back periods (aa) or (bb) maybe that helps some.
OR find another job to work on and get your payroll numbers up. That's what they really want you to do. Even if you lose a little money on the job, the fact that your labor is essentially free (or at 1% interest) should help.
Posted on 4/4/20 at 4:20 pm to BigJim
Thanks. That was my interpretation as well. My decision is apply for PPP now with smaller staff, or hope a job that’s been postponed starts, then apply. Risk is the $350B running out. And if that happens, hope they fund it some more.
Posted on 4/4/20 at 5:19 pm to BigJim
quote:
You do not have to show a drop in business BUT you do have to certify that you have been affected by the COVID-19 situation. I don't if that is defined further in any guidance.
Don’t remember the exact certification but paraphrasing it was “loan is necessary due to economic uncertainty”.
Except for hospitals, I don’t know anyone who believes they have economic certainty.
Posted on 4/4/20 at 5:40 pm to BamaAlum02
FYI.
1 billion was reported book by SBA sources at 2pm cst Friday.
Wells has yet to start submitting apps. Chase has some weird computer que for theirs. I know of smaller community banks looking for applications to process.
You have time. Not much but at least a week. Government sucks at implementation but decent data and good statisticians. Not everyone is submitting a $10 million app. Plus, team that with SBA limitations to process so many, there is time.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News