been taking this time to develop a protocol to overhaul our menu, marketing materials, and website. this break is kind of refreshing in ways. can really sit back and analyze without the distraction of the normal day to day and make some changes that are both necessary and long overdue
I think some will look back and have serious regrets if they don’t use this downtime productively. To Do lists, either personal or business, should be getting annihilated right now
I have a couple entities I’ve worked up estimates on and will test the spreadsheet to see how it works. Talked to one client today who is looking at $7mm in ppp
This takes the opposite position of what I posted above re: comp in excess of $100k. Above I quoted Coolley’s interpretation as being $8,333/mo for $100k or more in salary, and on top of that you could include benefits. This spreadsheet takes the opposite and says someone who has total comp (salary plus benefits) in excess is capped at $8,333/mo for whole comp package. Both interpretations are reasonable and I expect the SBA application process will decide one way or the other. Looking at the language of the independent contractor rules, they are also capped at $100k ($8333/mo) and don’t get benefits, so it’s fair to say the employees’ total comp amount (salary plus benefits) is also limited to $100k ($8,333/mo)
Have heard of clients who own medical practices asking whether they should fire themselves and collect unemployment. For PPP, it’s interesting what business owners who are paid via draws or K-1 will do. Statute doesn’t really address that in defining payroll costs, so they may be left out absent amendment
I think both are reasonable. $100k makes most sense, but if I had an aggressive client and didn’t have to deal with a gatekeeper banker I think a fair position is that it says $100k cap only applies to salary and not bennies
This will all be for nothing once SBA says so. That’s something I’m trying to keep in mind as I have multiple partners asking me these questions and I have potential long term clients that keep getting put off because I can’t ignore the guy paying my salary. This PPP shit is temporary
Alright gents, think I'm going to knock out the EIDL today and then PPP whenver that comes available....for the EIDL is it better to apply directly with SBA or work with our local banker who is SBA approved? Any tips on the EIDL? Best way to showcase economic injury?
Just do the form on the SBA site. It takes 5 minutes. All you really need is your sales and COGS. I underestimated a little on our sales since I don't have all of our events and stuff in our system yet but still ended up like +215k so should get something. There is a grant that is part of EIDL. So basically the first 10k of the loan is a grant and they are apparently giving everyone that 10k that applies even if you don't get the loan and it pays out in 3 days.
And we're sure that applying for EIDL doesn't exclude you from applying for PPP? Our banker seemed hazy on it, but others seem pretty sure.
this is what keeps tripping me up. check out that spreadsheet NYGator posted yesterday, it has a section where you input the balance of any other disaster note. of course that may not be 100% accurate so it would be nice if there was a clear answer as to how they affect one another
Just had another meeting and I’m going to start moving away from tax returns and moving 100% to doing calcs and getting supporting info for the bank applications. I was wrong before on the forgiveness amount, the only cap is the amount of the loan. For the contractors amounts, we’re only including 1099 people. I can send a copy of our spreadsheet after I get off work this evening if anyone would like a copy or needs some help putting together a calc. We’ve been actively reaching out to our clients to see if they want our assistance on this and I think every one has said yes so far.
All the small projects are getting done. Like you I’m redoing all literature. We’re still somewhat busy. Going to be down approximately 15% from March last year
nothing like getting alerted to check fraud on your payroll account during a pandemic how’s everyone else’s day going
Pretty good - just agonizing whether to press send on the EIDL or wait for PPP. Leaning towards waiting
Working on quarterly planning, which can suck under the best of circumstances. On top of that I have a splitting headache and the chills, and in times like this those things make you second guess even if they are nothing.
Good luck brother. Most annoying thing ever. I literally just spent 45 minutes placing an order for 2 chemicals. Their working from home but the systems aren’t working well. I wanted to smash my head in the concrete waiting that long. I finally went outside and lit a cigar
They are clearly encompassed by the spirit of the law but not the statutory text. Like a lot of this, I imagine the SBA will address it when the program launches
My SBA approved bank just sent out a memo saying two weeks before they even provide guidance. Of course they may be setting worst case expectations in order to keep the daily inundation of requests at bay.
i was on hold for an hour, got transferred, then the line got cut off called the cops, they said talk to your bank first called back, on hold another hour. finally talk to someone, and they transferred me to claims. now i’m on hold “at least 50 minutes” beer? scotch? bowl? edible? can’t decide
i am filling out our EIDL applications while on hold with the bank. i think i’m going to apply for those regardless. i can’t wait much longer than a week for some funding, especially if i can’t get this $10k in check fraud refunded quickly
Curious if that's their estimate or if that timeline was handed down directly from the SBA. Several of our clients are Community banks and SBA lenders - specific to Senior Housing assets.
FWIW it doesn't sounds like they are going get the 10k advance grant out in 3 days like it says in the CARES law.
Posted 25 mins ago https://home.treasury.gov/system/files/136/Borrower Paycheck Protection Program Application (v1).pdf ETA Fact Sheet: https://home.treasury.gov/system/files/136/PPP Borrower Information Fact Sheet.pdf
My understanding is the amount you can get is based on your payroll, but you can also use it for rent, mortgage, utilities and it still be forgivable.
If you applied for the eidl (super easy btw) then you can roll that loan into the sba-7 per an official FAQ I saw yesterday.
Can you post it? I've seen it in various publications but not from an official source. I couldn't find it today on the SBA website
I know it's extremely nuanced, but as I understand it, if you apply for PPP, are approved, and use it according to federal guidelines...it's forgiven outright? Seems a bit too good to be true (but admittedly I'm not as well educated with it as I should be).
https://home.treasury.gov/system/files/136/PPP Borrower Information Fact Sheet.pdf pump the brakes (notice the dates)
Loan Terms & Conditions Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries Maximum loan amount up to $10 million Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs) All loans under this program will have the following identical features: Interest rate of 0.5% Maturity of 2 years First payment deferred for six months 100% guarantee by SBA No collateral No personal guarantees No borrower or lender fees payable to SBA
I would not use PPP for rent and rather go to your landlord and ask for separate relief. I've heard 3 month forbearance with payback interest free spread over 2021 was the first offer from the Irvine company here in Orange County. Just as an FYI.