Paycheck Protection Program Loans

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Thread: Paycheck Protection Program Loans

  1. #1
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    Paycheck Protection Program Loans

    To all of you that are business owners, have you read the guidelines around this program? It is intended to keep people on the job/payroll through the crisis. It implies that if employers are able to due this under the determined criteria, that the loans will be forgiven. I am not sure exactly how that could happen, as somebody has to pay for it- it would no longer be a loan but a gift. I am interested in helping employees but curious about the thoughts of others contemplating this program.


  2. #2
    Senior Member dank's Avatar
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    Not a business owner anymore but this is what I got from my Boss.. (I have erased the company's name) not sure if this even helps..

    March 30, 2020

    To all Employees:

    I want you to know that Iím doing all I can to keep our company a viable business, and to keep all of you as employees. I hope you hang in there as I work hard to find ways to make that happen. Please talk to me first if you are thinking of looking for another job that would make it impossible for you to continue working here. And as I told each of you last week, call me if you need an advance to pay your bills.

    Iíve combed through the huge Coronavirus Relief Bill and found a part that provides forgivable loans to help offset payroll costs. Its goal is to help employers retain employees and maintain payroll at no less than 75% of the regular wages before the crisis hit. The more employees that remain employed at IM through June 30, 2020 the more loan money we will qualify for. That could make the difference in keeping the business going through this very tough time. As you probably know, payroll is our biggest expense, and thereís not much money coming in.

    This means I M could increase your hours from the current 50% to 75%, and possible back to 100%! It may be retroactive, so youíd wind up getting back pay, too.

    I hope to know more soon. The SBA has up to 30 days from Friday March 27th to publish the rules and application process. It may not take that long; a bank Iím working with is already preparing to issue these loans. As soon as I get more information, Iíll pass it along to you. Iíll be ready to submit an application the moment theyíre available, to help minimize any delays.

    With this in mind Iím asking you to hold tight. We donít want to jeopardize a deal that could help us maximize your pay.
    akitainu, Rizza32, LESTER and 2 others thanked this.

  3. #3
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    The same people that are paying for the $1200 checks to every tax payer would be paying for those "loans" as well (future generations). Essentially it would turn into a grant to the small business to cover payroll (and I heard that other expenses like utilities and rent may be included), but the details are still being finalized, or at least made public. It will be done through your local bank. The date being mentioned is June 15th for the date as which you must keep your employees on the payroll to qualify for the loan turning into a grant. Pretty sure it is being done so that businesses can keep their staff on payroll so that it is fast to get up to speed when things reopen. If folks can get 4 months of 100% salary unemployment there would be no rush for them to come back when things open up in May or June. Food service industry would be the hardest hit as staff retention was already tough before this all hit.

    I know my boss has said basically the same thing that dank said, but it seems the details/process is still in process. It is being done by your local bank, so that is where I would point you to get started, or at least updates of when the process will be in place.

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  5. #4
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    Its borrowed money from our kids and grandkids and now our great grand kids. Nothing is free regardless of how they word it.
    cdiamond, SpikerAdams, Mntsnow and 1 others thanked this.

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    Our country was screwed before this bill. This bill is only going to spend up the inevitable, long term.

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    Just wait till they pass Covid19 phase 4. Two trillion more borrowing for infrastructure.

  8. #7
    Senior Member 1KPerDay's Avatar
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    Hereís a pretty good overview with FAQs for any interested.

    https://www.womply.com/blog/how-to-g...ction-program/
    Smurky and cdiamond thanked this.
    My hovercraft is full of eels.

  9. #8
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    If only this was true... so hard to keep all the employees

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