Jump to content
CHEFF

Paycheck Protection Program

Recommended Posts

Today it started. How many people are filling out the Application? It's free money you don't have to pay back! I've heard a lot of different scenarios as to how it works. My wife works at a bank so "YES"......Da chEFFF has a connection. My application gores in First! We'll see how soon this check gets deposited into my acct. They say it can only cover payroll  / rent and utilities. AND...……. it's for the next 8 weeks. IF you don't spend the amount given you can return it to the govt or the remaining balance turns into an interest loan. How is the govt going to audit this program? One of many questions. Peace

Share this post


Link to post
Share on other sites

We have had this filled out and ready to send since Wednesday. The banks have been scrambling on how they will be handling the SBA loans. Going to the bank today!!!!

Share this post


Link to post
Share on other sites

I don't believe the fed has any concrete  ideas how this is going to work which is leaving the banks hung out on there own. I feel banks are going to need clarification prior to putting there assets on the line. We shall see.

Share this post


Link to post
Share on other sites

I had a GC come in yesterday and said he is not taking on any more work and is going to apply and shut down his business to collect.

So is this only for businesses that are closed?  here is the rub.  The GC shuts down his business and gets a check to cover expenses,  I work and don't get a check to cover my expenses....tell me something, why would I not shut my doors for 8 weeks and not work? and still pay my guys and pay rent..?  I like option 2

what if you work during this time?   I feel like the government is forcing me to accept the Bernie plan already.  If everyone else is doing it then why wouldn't all businesses do it.  even if you are essential why wouldn't a business owner not take advantage of what they are offering?

Share this post


Link to post
Share on other sites

I just read up on this for someone who thought they were getting a bunch of free money that can be forgiven. This is how I understand it as described by a CPA

1) The SBA loan program which is supposedly forgivable
They are calling it PPP for paycheck protection plan.
 
This is basically a loan where a small business owner can look at their average monthly payroll from March 2019 through February 2020 and they can get a loan for up to two and a half months of their average payroll in order to keep paychecks going out. 
 
 If they can prove that they used all that money to continue paying out weekly paychecks to their W-2 employees and even their 1099 contractors and their business still fails then that loan would be forgiven. It sounds like you will need to prove prior payroll and and also be audited in the end in order to have the loan forgiven. 
Otherwise everyone will just take the money spend it and go BK.
 
I sure hope they make these like student loans where they can't be tossed into a BK otherwise the abuse and fraud will 10x worse. 

Share this post


Link to post
Share on other sites

@cheff What bank is taking applications? Chase sent out notification today that they are not taking applications yet. Where did you get the application?

Share this post


Link to post
Share on other sites
19 minutes ago, John@Outfront Mtrsprts said:

I had a GC come in yesterday and said he is not taking on any more work and is going to apply and shut down his business to collect.

So is this only for businesses that are closed?  here is the rub.  The GC shuts down his business and gets a check to cover expenses,  I work and don't get a check to cover my expenses....tell me something, why would I not shut my doors for 8 weeks and not work? and still pay my guys and pay rent..?  I like option 2

what if you work during this time?   I feel like the government is forcing me to accept the Bernie plan already.  If everyone else is doing it then why wouldn't all businesses do it.  even if you are essential why wouldn't a business owner not take advantage of what they are offering?

I kind of have the same question. So we have a little work still going on. Why would some employees come in to work while others are being paid to sit home? 

As for shutting down, you have to have the same payroll after this mess as you had before the loan. If you don't have the same payroll, you have to pay the loan back. 

Share this post


Link to post
Share on other sites
21 minutes ago, badgas said:

I just read up on this for someone who thought they were getting a bunch of free money that can be forgiven. This is how I understand it as described by a CPA

1) The SBA loan program which is supposedly forgivable
They are calling it PPP for paycheck protection plan.
 
This is basically a loan where a small business owner can look at their average monthly payroll from March 2019 through February 2020 and they can get a loan for up to two and a half months of their average payroll in order to keep paychecks going out. 
 
 If they can prove that they used all that money to continue paying out weekly paychecks to their W-2 employees and even their 1099 contractors and their business still fails then that loan would be forgiven. It sounds like you will need to prove prior payroll and and also be audited in the end in order to have the loan forgiven. 
Otherwise everyone will just take the money spend it and go BK.
 
I sure hope they make these like student loans where they can't be tossed into a BK otherwise the abuse and fraud will 10x worse. 

so you are saying the loan is only forgiven if the business fails?  that doesn't make sense

Share this post


Link to post
Share on other sites

chase, and wells fargo still not taking applications yet.  I assume the banks taking any apps yet are just collecting info, but can't really submit anything yet

Share this post


Link to post
Share on other sites

Problem is the varied interpretation. Why banks want clarification. I have my thought of how this is to work, but that's all it is, my thought. What is really a question for me is if you do all they say, and after say 6 months back at work you find a loss of business and have to terminate employees are you then on the hook for entire loan?   

Share this post


Link to post
Share on other sites
55 minutes ago, John@Outfront Mtrsprts said:

I had a GC come in yesterday and said he is not taking on any more work and is going to apply and shut down his business to collect.

So is this only for businesses that are closed?  here is the rub.  The GC shuts down his business and gets a check to cover expenses,  I work and don't get a check to cover my expenses....tell me something, why would I not shut my doors for 8 weeks and not work? and still pay my guys and pay rent..?  I like option 2

what if you work during this time?   I feel like the government is forcing me to accept the Bernie plan already.  If everyone else is doing it then why wouldn't all businesses do it.  even if you are essential why wouldn't a business owner not take advantage of what they are offering?

we are applying for the loan at our business as well, but if we were to shut down for 8 weeks we would not have any customers when we came back, I do print and mailing for healthcare mainly medical bills and insurance appeals, everything is time sensitive. I would love a paid 8 week vacation, been 6 years since I had more than 4 days off in a row. but then I would not have a company to run when I got back. 

Share this post


Link to post
Share on other sites

Famous worst words a business owner can hear, I'm from the government and I'm here to help! 

Share this post


Link to post
Share on other sites
Posted (edited)

Farmers and merchants bank just sent an email today with forms to fill out and return

 

Farmers and Merchants Bank shares your concern over the COVID-19 impact and as such, are prepared to begin to process your application for the SBA’s Paycheck Protection Program (PPP). Attached above is SBA Form 2483 for your use in applying for this program. Please complete and return it to us as soon as possible. The SBA will open up on April 3rd for small business and sole proprietorships and starting April 10th for independent contractors and self-employed individuals. We have also supplied you with a borrowers Information sheet which may answer your additional questions please read carefully.

 

It should be noted that SBA has not issued its final guidance and may require additional documents. However please be prepared to supply “source documents” for calculating the eligible borrowing amount. We are suggesting that you connect with your payroll company (ADP), Payroll Tax, CPA’s, tax returns, etc., for these source documents.

 

Most importantly, we want to reiterate that we are here to support you. For 113 years, F&M Bank has served our clients through earthquakes, wars, depressions, recessions and countless other challenges and we remain entirely committed to you, our valued customer.

 

Thank you, we look forward to hearing from you shortly.

 

Edited by indianjoe

Share this post


Link to post
Share on other sites
3 hours ago, Punchdrunk Monkey said:

@cheff What bank is taking applications? Chase sent out notification today that they are not taking applications yet. Where did you get the application?

Chase opened their window this morning.  I'm in que waiting for their rep to call me.

Share this post


Link to post
Share on other sites
4 hours ago, John@Outfront Mtrsprts said:

why would I not shut my doors for 8 weeks and not work?

For the same reason you're so fast in the dunes. When it's time to put up, you put up. Didn't you walk out of the operating room after hip replacement? "I don't need no stinkin' walker."

Share this post


Link to post
Share on other sites

Pretty certain we can't apply yet 

Share this post


Link to post
Share on other sites
2 hours ago, SofaKing said:

For the same reason you're so fast in the dunes. When it's time to put up, you put up. Didn't you walk out of the operating room after hip replacement? "I don't need no stinkin' walker."

haha   I had both hips done last year  one in may and one in august.  out patient operation, cut the top of my femur off.  started the surgery at 7am and I walked out of the hospital at 4pm.  while driving to my home we stopped at my favorite Italian restaurant and had dinner with another couple--then went home :) 

my favorite line, I aint got time to bleed!

Share this post


Link to post
Share on other sites
20 minutes ago, John@Outfront Mtrsprts said:

haha   I had both hips done last year  one in may and one in august.  out patient operation, cut the top of my femur off.  started the surgery at 7am and I walked out of the hospital at 4pm.  while driving to my home we stopped at my favorite Italian restaurant and had dinner with another couple--then went home  back to work.

And that's why you build Subarus like no other!

Share this post


Link to post
Share on other sites
9 hours ago, John@Outfront Mtrsprts said:

I had a GC come in yesterday and said he is not taking on any more work and is going to apply and shut down his business to collect.

So is this only for businesses that are closed?  here is the rub.  The GC shuts down his business and gets a check to cover expenses,  I work and don't get a check to cover my expenses....tell me something, why would I not shut my doors for 8 weeks and not work? and still pay my guys and pay rent..?  I like option 2

what if you work during this time?   I feel like the government is forcing me to accept the Bernie plan already.  If everyone else is doing it then why wouldn't all businesses do it.  even if you are essential why wouldn't a business owner not take advantage of what they are offering?

Let me know before you do the Bernie plan. I still need you to tune the yellow school bus before my Idaho trip in June. 

Share this post


Link to post
Share on other sites

I am a small gc and I also have a small commercial/residential paint company. We in Arizona are told we can still go to work and that’s what I’m going to do until forced not to. As for taking “free money” I’ll pass. I feel like this is bait to end up owing a debt and/or trashing my credit which will ultimately destroy everything I’ve worked for. I would rather hang on/work/pay bills until further notice. Whatever the government “gives” you will not last long any way so what’s the point. Nothing in life is free. Good luck to everyone this world is messed up right now 

Share this post


Link to post
Share on other sites

Listen, a smart business would shut down, layoff all personnel, stop the bleeding. File BK and re engage as a new company. 

What they want us to do, is continue paying our employees, don't shut down and get thru this next 8 weeks.  I'm all for keeping my employees and providing a paycheck. I won't loose my business doing this so this grant should (fingers crossed) help businesses like mine work thru the tough time ahead. 

Now this grant seems to have some issues and one I'm seeing is some banks require the business to have an open credit line.  I do but most small businesses do not. I'm curious as to why. Must be some underlying reason.

Share this post


Link to post
Share on other sites
33 minutes ago, Grease Monkey said:

Now this grant seems to have some issues and one I'm seeing is some banks require the business to have an open credit line.  I do but most small businesses do not. I'm curious as to why. Must be some underlying reason.


Better chance you had/ have a viable solvent business, less potential for headache for them I would guess.

 

Share this post


Link to post
Share on other sites
47 minutes ago, Grease Monkey said:

Listen, a smart business would shut down, layoff all personnel, stop the bleeding. File BK and re engage as a new company. 

What they want us to do, is continue paying our employees, don't shut down and get thru this next 8 weeks.  I'm all for keeping my employees and providing a paycheck. I won't loose my business doing this so this grant should (fingers crossed) help businesses like mine work thru the tough time ahead. 

Now this grant seems to have some issues and one I'm seeing is some banks require the business to have an open credit line.  I do but most small businesses do not. I'm curious as to why. Must be some underlying reason.

B of A announced that policy yesterday due to the flood of applications, they have since rolled back that policy from the news reports today.

Share this post


Link to post
Share on other sites
39 minutes ago, Grease Monkey said:

Listen, a smart business would shut down, layoff all personnel, stop the bleeding. File BK and re engage as a new company. 

 

This idea may work for some but for others who have VERY specialized workers that we can't just pull newbies from a school, millions invested in equipment and a clientele list that will drop us like a bad habit and never use us again regardless what name we start up as  later, no way man, not possible.

It would cost us upwards of a 1/2 Mil to go BK and 6 months to do it. We have upwards of 30 year histories with our insurance companies and we'd have to start over with them at some very fugly rates as a new company, back to state fund at  $26.85 per $100.00 for workers comp etc. 

Talk about bleeding! Nope, BMM is going to just have to gut out whatever comes our way.

 

Share this post


Link to post
Share on other sites
11 hours ago, John@Outfront Mtrsprts said:

so you are saying the loan is only forgiven if the business fails?  that doesn't make sense

John 

 

 I don't know for sure. This is how it was explained to me by a CPA who was just starting to read over it. I think the point was if the business owner used it for a new sand rail or just shut the place down and went to Vegas then the loan would not be forgiven. If they used it for payroll then it would be forgiven. Maybe that is if they stay open or if they fail ?? either way I'm guessing an audit would in the picture to make sure someone didn't take his money and use it for something other than it was intended. 

I think we would all agree that if someone took the cash and did not use for payroll, rent , utilities etc. then it should NEVER be forgiven. This is put in place for business owners to keep paying people and keep the economy from completely stopping. 

As always consult a REAL Tax pro. This thing is fast moving and there is a LOT to learn. 

 

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Preview Post

More Links

©2001 GlamisDunes.com.
All rights reserved.

×
×
  • Create New...