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Started By
Message
re: SBA loans in stimulus---basically give aways for any business with less than 500 employees
Posted on 3/29/20 at 6:37 pm to BamaCoaster
Posted on 3/29/20 at 6:37 pm to BamaCoaster
quote:
These businesses have to show there have been hardships, like layoffs and loss of sales.
It’s not a fricking free for all.
That's not accurate. They just have to prove that their payroll costs did not decline by more than 25%, and they maintain similar FTEs.
And if they don't, it only reduces the amount that can be forgiven.
intent is to keep as many employees on payroll regardless of revenue. Ironically, you are suppose to only have essential personnel in office and maintain less than 10 people
0
Posted on 3/29/20 at 6:41 pm to Zahrim
so what?
It is easy to prove payroll and utilities and interest
It is easy to prove payroll and utilities and interest
Posted on 3/29/20 at 6:43 pm to tigerfoot
quote:
These businesses have to show there have been hardships, like layoffs and loss of sales.
It’s not a fricking free for all.
Wrong
Posted on 3/29/20 at 6:45 pm to blowmeauburn
You are such an idiot posting before you know what you are talking about. That is so tiring and old.
Posted on 3/29/20 at 6:46 pm to I B Freeman
quote:
Wrong
Uh... right.
Posted on 3/29/20 at 6:48 pm to SSpaniel
quote:
The SBA's paycheck protection loan program is "really more of a loan that converts to a grant," Bradley said. Small businesses with fewer than 500 employees qualify, as will some larger companies. The program is aimed at helping businesses maintain their payroll during the significant business disruption caused by the coronavirus crisis.
Here's how the loan forgiveness works:
Your company's expenses for the eight-week period after the origination of the loan will be analyzed.
Every dollar your company spent on payroll, utilities, rent, or interest on mortgage debt will be added together. That amount will be forgiven, up to the total amount your company borrowed through the program.
There is one caveat, however. The amount that is forgiven will be reduced for businesses that lay off employees during the first eight weeks following the loan. Companies that reduce wages of employees who make less than $100,000 per year by 25 percent or more will also have the forgivable amount reduced.
The good news is that businesses that have already let employees go before accepting the loan will not be subject to such penalties. And if those businesses rehire employees after accepting the loan, they'll receive additional credit to cover their wages.
Posted on 3/29/20 at 6:49 pm to SSpaniel
quote:
Uh... right.
IBF is correct. You have to make a good faith certification the loan is needed for payroll due to uncertainties created by the Chinese Virus....that’s it
Posted on 3/29/20 at 6:49 pm to I B Freeman
quote:
stimulus---basically give aways for any business
You do realize what a stimulus is, right? You can disagree with the policy, but to be surprised that a stimulus is a give away is silly. Millions of individuals are also getting give aways.
They want you to get money for nothing because they’re trying to jump start spending. This is like a defibrillator. They don’t want the money going into a savings account. Money for nothing tends to be the easiest kind to spend, and they want you to spend freely.
Posted on 3/29/20 at 6:51 pm to ThisWayChad
quote:
ou have to make a good faith certification the loan is needed for payroll due to uncertainties created by the Chinese Virus....that’s it
You have to demonstrate that you business was adversely affected by the Chinese Virus.
I would assume you can't simply declare that it was.
Posted on 3/29/20 at 6:51 pm to I B Freeman
Thanks... I know exactly what it is.
Posted on 3/29/20 at 6:53 pm to ThisWayChad
What business does not have "uncertainty" given the government actions related to the virus??
Posted on 3/29/20 at 6:53 pm to SSpaniel
quote:
There's a specific payroll protection program in place now. Strict requirements to keep employees on the books and what not.
Right.
My understanding is if you keep people on payroll for the 8 week period, the loan amount for those costs, plus other overhead (rent utilities) WILL be forgiven. Whether you suffered a loss or would have fired them otherwise is irrelevant.
So, if you were going to be business as usual for the next 2 months, you can get a loan for that amount and essentially pocket that money.
Posted on 3/29/20 at 6:54 pm to SSpaniel
quote:
You have to demonstrate that you business was adversely affected by the Chinese Virus.
Nope. It’s forward-looking, not where you’re at today necessarily. They’re trying to encourage businesses to retain employees through the end of June. Maybe some guidance will go farther but the text of the legislation clearly does not require what you suggest
Posted on 3/29/20 at 6:55 pm to I B Freeman
quote:
What business does not have "uncertainty" given the government actions related to the virus??
Exactly. I mean even a grocery store could say it’s uncertain that supply chains will keep up at current rates lol
Posted on 3/29/20 at 6:57 pm to YF12
quote:
You would have millions of people shooting down the door of your government office if you let millions of small businesses completely fail because of direct orders that you forced upon them That aint free market or any other kind of market but totalitarian market
So you’d rather the federal government step in due to the state or local government’s failures, to offer magic money that will later cripple that business because of the significant interest they will pay and the impending consequences of inflation? No, what we should be doing is eliminating more regulations and cutting income taxes and payroll taxes by a significant amount. Get government out of it and restore economic liberty; let the market respond. Some companies may have to go through bankruptcy, but that’s the cost of freedom. You take risks and you win and you lose, and hopefully come out better if you lose. But what we should be doing is making it easier for companies to run their business, not ensnaring them to the federal government.
Posted on 3/29/20 at 6:59 pm to ThisWayChad
What does a small business usually have to submit/prove in order to acquire an SBA loan? Because I'm sure the process here will closely mirror that. Except the loan is through regular banks.
Posted on 3/29/20 at 6:59 pm to ThisWayChad
quote:
Nope. It’s forward-looking, not where you’re at today necessarily. They’re trying to encourage businesses to retain employees through the end of June. Maybe some guidance will go farther but the text of the legislation clearly does not require what you suggest
You are correct.
But still... one would assume that they would put in some sort of guidance so that a business that is clearly not affected would not be eligible.
Posted on 3/29/20 at 7:02 pm to SSpaniel
quote:
You have to demonstrate that you business was adversely affected by the Chinese Virus.
I would assume you can't simply declare that it was.
You could probably count the business that haven't been adversely affected on one hand. So I'll just go ahead and declare everybody affected
Posted on 3/29/20 at 7:04 pm to Captain Crackysack
quote:
You could probably count the business that haven't been adversely affected on one hand.
And not use all fingers.
Posted on 3/29/20 at 7:07 pm to SSpaniel
Every grocery store, hardware store, home improvement store and their suppliers are booming as people stay home.
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