The way I understand it, and as said above, it's still a moving target but, you take payroll total from this first quarter, divide by 3 for your average monthly payroll, times that number by 2.5 and that is the loan amount you qualify for.
Not my payroll just an example:
January payroll $123,468.00
feburary payroll $106,632.00
march payroll $76,543.00
$306,643.00 first quarter payroll
average monthly payroll $102,214.00
loan amount $255,535.00
This is how I understand it and how my controller is going to submit. Again, to be re-evaluated Monday morning to make sure this moving target is in our sights properly.
That said, it would be a great help, but this is not going to keep a lot of companies from going under. Employee payroll becomes free more or less, awesome, but for some it just won't be enough nor get to them quick enough.
One of my concerns is the bulk of our clientele is on Net 30, 60 & 90 days upon project completion. It's 5 months before we get paid on some of our stuff by the time the job is done, paperwork submitted, clears the 90 days and then they process, approve, mail a check etc.
Am I going to take a handout if we can? Absolutely. If we end up not needing it, we'll give it back. Simple enough sounding to me.
I will not let a false sense of pride be the nail in the BMM coffin.