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PPP Loans-All small businesses must read

J Burleson

Well-Known Member
The PPP is also "untaxed income", which means you cannot make deductions on it. Meaning your tax liability for next year will be significantly higher. They will get their(our) money back one way or another. Its forecasted that they will also make the paper work to prove "proper use" of the funds very strict and complicated so as to fail as many recipients as possible and require repayment.
According to what Ive heard from higher ups at Wells Fargo, the banks are running out of money(that they are willing to loan) and they have not seen any funding from Washington. Maybe bs, maybe not.

 

Robin Hood

Well-Known Member
According to the article I posted, you have 8 weeks to spend it properly from the time it hit your account. You may want to verify this.
If they don't need it and "all is good" they are most likely operating as usual and it will just cover their normal payroll and business expense which qualifies them for forgiveness. In other words the American taxpayer picks up his payroll bill for the next two months even though THEY didn't NEED IT.
 

43mod

Well-Known Member
So i am going to pay for it w plenty of interest but should not take it because we are not broke or broke yet ? Most likely we will not get it and mega corp will and we will still pay. No guilt here if we do get it.
 

Bricoop

Well-Known Member
As a small company we have no no employees and don't pay ourselves so PPP is out and heard nothing back on the forgivable distress loan/grant. And since I drained accounts to pay for tooling last year..well it appears as if my income is way high in 2019. So in spite of making almost nothing with the race season cancelled/delayed this so-called CARES program is leaving me out. It's just really bad timing for us and a lot of others. Good news is that my youngest son (23) got $1200. It's working for some. Not to get Purple section on this, but I was disappointed to learn that less than half the 2.5 trillion dollars came down to people and most to pet projects and pet entities.
Did you take bonus depreciation (Sec 179) on your tooling last year?
 

MTPyle

Well-Known Member
I am not a fan of how they did the program. But I am not sure a better way to do it. They wanted to make it simple and fast, remember it was supposed to be out in 2 weeks. It took way longer and if they would have planned a month they might have came up with a better system. But any subjective system would have taken a lot of management and process.

So while I am not a fan I don't know exactly what they could have done better. Given the speed at which they wanted to get it done there were limited options.

Disclaimer- I am no expert in this and I do not watch the news, So i know less than the average guy about this subject. But that never stops me Hehe

Mike
 

Robin Hood

Well-Known Member
I am not a fan of how they did the program. But I am not sure a better way to do it. They wanted to make it simple and fast, remember it was supposed to be out in 2 weeks. It took way longer and if they would have planned a month they might have came up with a better system. But any subjective system would have taken a lot of management and process.

So while I am not a fan I don't know exactly what they could have done better. Given the speed at which they wanted to get it done there were limited options.

Disclaimer- I am no expert in this and I do not watch the news, So i know less than the average guy about this subject. But that never stops me Hehe

Mike
They could have funded just as quick with the same guidelines for funding, but tied the forgiveness to proof of hardship criteria specified and to be proven with documents submitted at a later date. It could have been as simple as tying the forgiveness or hardship to a percentage loss in revenue or some other method that I am sure they could have come up with instead of spending the time adding pork and debating it.

IMO this is a bipartisan blunder made in an effort to come across as helping those in need.
 

TwistyItch

Well-Known Member
Did you take bonus depreciation (Sec 179) on your tooling last year?
This year. Tooling was paid for last year. We hit production running and really started selling late 2019.
 

johnnyweb

Well-Known Member
MG, while I appreciate your optimism, no one in DC gives a rat‘s behind about the little guy at this point.

What they were successful at, was creating some sort of false hope that small business would get some help.
Once again, trust no one, especially the US government, when they say they are here to help you.
The Dems are reportedly working on Round 2.....not holding my breath on this one.
I personally know multiple small businesses that received the loans less than 10 employees's. The program has worked do we need more yes. Ask Nancy to make it happen she is the problem she and Schummer want pork to get it.

Just for the record I applied and have not received an approval. I received conformation or my application and that all my documents were received from my local community bank that I have been with for years.
 

johnnyweb

Well-Known Member
I applied for the PPP from Chase Bank and got nothing but "your application has been submitted". I also applied for the Grant funds for another company and got nothing. And no stimulus check. Guess I am on my own for this.
Pretty much same for me but I do know people who received the loans.
 

frozenh2o

Well-Known Member
No mention here of the Employee Retention Credit as an alternative for the PPP. You can get up to $5,000 per employee as a tax credit. No application required. Unlimited funding, with no budget to run out. You simply take the credit against a variety of federal employer taxes, like social security. You simply don't pay the taxes, so it puts cash in your pocket immediately. You can even apply for a cash advance against anticipated credits. Not a loan, it's free money. Cannot take both the PPP and the ERC, only one is allowed.
It is "means" based, in that it requires your business income to fall 50% in a calendar quarter compared to last year. The program ends the quarter following the quarter that your business recovers to 80% of the prior year's income, or Jan 2021, whichever comes first.
IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19 | Internal Revenue Service
 

43mod

Well-Known Member
my banker lady called today and said check your email and get your butt busy. Both office girls dropped their home improvement projects and got through the application and turned it in. Not a great time to be between firing our outside payroll company and taking it in house. Saturday aint the best day to get info but getting it done ASAP may make the difference.
 

desertspeed

Well-Known Member
Just an FYI. In this second round of funding, the number of loans processed so far has been close to round 1, but the average loan size is about half. Therefore, there are still funds available.
 

tltony

Well-Known Member
I applied the day the program started accepting applications. It was pretty simple. I missed the first round but have received notice that the SBA has my application and I am awaiting an SBA application number which I think reserves funds. I seem to get email notices after 10:00 PM and on weekends. They loan/give you 2.5 months of your payroll. We've stayed open but are doing about 50% of normal although I've kept everyone on and on full time. Good help is too hard to find and I'm not willing to take the chance that my good people will move on.
 
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