SBA loans in stimulus package.

[Highmark]

Been researching this quite a bit and had a long meeting with my accountant this morning.   Most of you small business owners likely already know this from your own research but I'll post it anyway.

Note its really fucked up and causing a lot of confusion because of how broad the aspects have been written.  

 

Amount of loan available:   2.5 times last month’s payroll.   Some other fixed expenses are also put in the application.

Loan duration: 2 years at .5% interest.

Before and after 8 weeks both a headcount and payroll total will be evaluated.   Up to 100% of the loan can be forgiven.   75% based on payroll/headcount levels remaining similar, 25% based on rent and some other fixed costs needed to stay in operation.   Basically if you lay people off and don't keep them on the payroll 25% of the loan might be forgiven based off before and after fixed costs.  

Here’s the kicker.   The end of the eight weeks totals are compared to a previous quarter (need to figure out which).   Comparing 8 weeks to 12 and you automatically will show a drop in total payroll and fixed costs as well as its not an apples to apples comparison.   If it’s the 4^th quarter of 2019 it could be a huge benefit to those with an end of year bonus occurring at that time.  They could show very similar payroll.   If you meet the qualifications up to 100% of the loan is forgiven.  

Edited April 2, 2020 by Highmark

[Anler]

2 minutes ago, Highmark said:

Been researching this quite a bit and had a long meeting with my accountant this morning.   Most of you small business owners likely already know this from your own research but I'll post it anyway.

Amount of loan available:   2.5 times last month’s payroll.   Some other fixed expenses are also put in the application.

Loan duration: 2 years at .5% interest.

Before and after 8 weeks both a headcount and payroll total will be evaluated.   Up to 100% of the loan can be forgiven.   75% based on payroll/headcount levels remaining similar, 25% based on rent and some other fixed costs needed to stay in operation.   Basically if you lay people off and don't keep them on the payroll 25% of the loan might be forgiven based off before and after fixed costs.  

Here’s the kicker.   The end of the eight weeks totals are compared to a previous quarter (need to figure out which).   Comparing 8 weeks to 12 and you automatically will show a drop in total payroll and fixed costs as well as its not an apples to apples comparison.   If it’s the 4^th quarter of 2019 it could be a huge benefit to those with an end of year bonus occurring at that time.  They could show very similar payroll.   If you meet the qualifications up to 100% of the loan is forgiven.  

I knew about that but if you arent doing business because of a shut down, are you just supposed to pay employees to sit at home? 

[Mileage Psycho]

My CFO is on this.

[racer254]

So the businesses that stay at full capacity will get the loan forgiven yet you and your employees have to follow social distancing, and stay home etc etc etc.  Sure does seem that one doesn't promote the other.

[Highmark]

7 minutes ago, Anler said:

I knew about that but if you arent doing business because of a shut down, are you just supposed to pay employees to sit at home? 

That's the idea if you so choose and it should be forgiven if you meet the requirements.  Will be tough to completely meet them comparing a quarter to 8 weeks. 

Edited April 2, 2020 by Highmark

[Anler]

1 minute ago, Highmark said:

That's the idea if you so choose and it should be forgiven if you meet the requirements.  

I guess it would be nice but we are actually getting busier now that all of these buildings are shut down. Owners are looking to get a head start on projects. 

[Highmark]

3 minutes ago, Anler said:

I guess it would be nice but we are actually getting busier now that all of these buildings are shut down. Owners are looking to get a head start on projects. 

Just depends on how bad this snowballs.   We are very busy and expected to be thru the summer.

[racer254]

9 minutes ago, Highmark said:

That's the idea if you so choose and it should be forgiven if you meet the requirements.  Will be tough to completely meet them comparing a quarter to 8 weeks. 

Public school referendums didn't just dry up.  Those places are still going to build the projects that caused the referendum.

[Im4snow]

39 minutes ago, Anler said:

I knew about that but if you arent doing business because of a shut down, are you just supposed to pay employees to sit at home? 

With the application and processing time, we should be back up and running by the time you actually receive the funds.  The 8 week clock starts from when you get the funds.  

[1jkw]

39 minutes ago, Mileage Psycho said:

My CFO is on this.

Does he have a helicopter and a mahogany  paneled office?

[Mileage Psycho]

6 minutes ago, 1jkw said:

Does he have a helicopter and a mahogany  paneled office?

Oh no, you have to be a special kind of liar to have those kinds of perks.

[steve from amherst]

2 hours ago, 1jkw said:

Does he have a helicopter and a mahogany  paneled office?

What , no classic cars? white trash.

[1jkw]

11 minutes ago, steve from amherst said:

What , no classic cars? white trash.

Probably sues snowmobile clubs too.

[Guest]

I don't get this:

If you keep your employees, the loan is forgiven. How the fukk do you keep them working if 90% of Americans are sitting in their fukkin houses, and don't leave?????   

[JEFF]

1 hour ago, Polaris 550 said:

I don't get this:

If you keep your employees, the loan is forgiven. How the fukk do you keep them working if 90% of Americans are sitting in their fukkin houses, and don't leave?????   

I’m scheduled through June, Virtually no cancellations.  I think I’ll partake after talking to my accountant.  
as an aside, you know who keeps coming in for estimates? Old people. It’s absolutely insane. Old people either aren’t scared of death, or just plain stupid. My office is locked so no interaction with them but damn... they just keep on coming. 

[Big Crappie]

So if a small business, say a contractor has plenty of work and would be keeping the employees on the job anyway they can apply for this loan and in the end not have to pay it back because they kept their workers employed? I hope I'm missing something here.

[Guest]

1 hour ago, JEFF said:

I’m scheduled through June, Virtually no cancellations.  I think I’ll partake after talking to my accountant.  
as an aside, you know who keeps coming in for estimates? Old people. It’s absolutely insane. Old people either aren’t scared of death, or just plain stupid. My office is locked so no interaction with them but damn... they just keep on coming. 

I think a lot of really old people are not on-line, and don't realize the lethality of this virus.

Me personally, I'm scared shitless of it. 

Instacart is down, so I have to find someone to do my shopping for me.

I was thinking, I'll give them $30.00 cash, and I'll wait in the parking lot for them to come out with my order. 

If 30 won't do it, I bet 50 will!!!

I'm trying to buy TIME. 

[Guest]

Hey Gravano!!

If I give ya' some money, and my shopping list will you run inta' Shaw's or MB for me? 

How much cash???

MB is no good now, they are limiting people in the store.

Maybe Trader Joes or Whole Foods, or Aldis????

[steve from amherst]

19 minutes ago, Polaris 550 said:

Hey Gravano!!

If I give ya' some money, and my shopping list will you run inta' Shaw's or MB for me? 

How much cash???

MB is no good now, they are limiting people in the store.

Maybe Trader Joes or Whole Foods, or Aldis????

$100

[Guest]

3 minutes ago, steve from amherst said:

$100

LMAO!!! For a hunnert bucks, I'll take my chances on croakin'!!!

[ford_428cj]

Employers get the workers for a 50% off sale basically right?

[ford_428cj]

Holy shit - up to 500 people in companies get the free money

[Big Crappie]

1 hour ago, Polaris 550 said:

Hey Gravano!!

If I give ya' some money, and my shopping list will you run inta' Shaw's or MB for me? 

How much cash???

MB is no good now, they are limiting people in the store.

Maybe Trader Joes or Whole Foods, or Aldis????

Go direct to the stores website. Most of the stores are doing it through one of the services like Instacart. It may be a couple of days but they'll get it done.

[Guest]

2 hours ago, Big Crappie said:

Go direct to the stores website. Most of the stores are doing it through one of the services like Instacart. It may be a couple of days but they'll get it done.

Instacart has a strike, and none of the stores in our area are offering delivery. 

I used Instacart last week, and it was ok. 

I would rather go to the store myself. I'm gettin' sick of this bullshit, Instacart etc.   

[racer254]

12 hours ago, Big Crappie said:

So if a small business, say a contractor has plenty of work and would be keeping the employees on the job anyway they can apply for this loan and in the end not have to pay it back because they kept their workers employed? I hope I'm missing something here.

I think you nailed it.   The only places still spending money are .....PUBLIC Taxpayer Funded entities.  If you got a gig with a school, township, village, county,  you should be doing well.    Another perfect time for building bigger government.  Just think of how that would have possibly changed if we would have had a TAX HOLIDAY for the rest of the year.

Edited April 3, 2020 by racer254