Small Biz Support 2020

[Core Shot]

Something I would recommend to any PPP recipient, do a spreadsheet to plan your expected expenses.
Then you will be ready to puke bonus cash in the last payroll

After doing this, I find myself not having enough expenses to meet the 25%.
Does anyone know what happens then? From reading the SBA regs in 13 CFR 120, it seems that the amount not spent will not be forgivable.

But if I puke more bonuses for my team, and go to 85% spent on payroll, all is forgiven? Interesting.

Moral of the story, track your numbers as you go, and be ready to puke payroll cash in week eight.

[::: :::]

the 75% is a minimum for payroll

take a deep breath -- it's going to be fine

maybe give your employees a bump of $600

[concretejungle]

maybe give your employees a bump of $600

Good one.

[GoldMember]

Something I would recommend to any PPP recipient, do a spreadsheet to plan your expected expenses.
Then you will be ready to puke bonus cash in the last payroll

After doing this, I find myself not having enough expenses to meet the 25%.
Does anyone know what happens then? From reading the SBA regs in 13 CFR 120, it seems that the amount not spent will not be forgivable.

But if I puke more bonuses for my team, and go to 85% spent on payroll, all is forgiven? Interesting.

Moral of the story, track your numbers as you go, and be ready to puke payroll cash in week eight.

For argument's sake, let's say the PPP loan is $100k. You need to spend at least 75% of whatever you spend on payroll. So, if your total non-payroll expenses for the period are $15k then you can spend all the way to $85k on payroll and maximize the loan as forgivable. Or, you could max your payroll expenses to $45k to meet the 75% of total, have a total expenditure of $60k with $40k left over. You could get forgiveness on the $60k and pay the $40k back to the bank and close the loan. Or, you could hang onto it and use it as a cheap 1% loan for future business needs. There's no reason to just give it away in bonuses just to maximize the forgiveness. It would be nice for your employees and wouldn't cost you anything. But you don't have to do it.

[Core Shot]

For argument's sake, let's say the PPP loan is $100k. You need to spend at least 75% of whatever you spend on payroll. So, if your total non-payroll expenses for the period are $15k then you can spend all the way to $85k on payroll and maximize the loan as forgivable. Or, you could max your payroll expenses to $45k to meet the 75% of total, have a total expenditure of $60k with $40k left over. You could get forgiveness on the $60k and pay the $40k back to the bank and close the loan. Or, you could hang onto it and use it as a cheap 1% loan for future business needs. There's no reason to just give it away in bonuses just to maximize the forgiveness. It would be nice for your employees and wouldn't cost you anything. But you don't have to do it.

Yeah good point on the unspent portion of the 25% just being a loan.
Could always pay it back in October if it’s not needed.
Thx.

Been lost in pro forma spreadsheet land today. It’s good to know where I need to be for PPP.

But the $600 snarks are spot on. Rather than give the money back to the feds I would rather bonus the team.

[GoldMember]

Yeah good point on the unspent portion of the 25% just being a loan.
Could always pay it back in October if it’s not needed.
Thx.

Been lost in pro forma spreadsheet land today. It’s good to know where I need to be for PPP.

But the $600 snarks are spot on. Rather than give the money back to the feds I would rather bonus the team.

If you have the excess out of the funds to do it, why not? Your employees would appreciate it, it would be forgiven, and it would take away the sting for them of missing out on the unemployment funds.

[::: :::]

Remember you can still use forgivable money for utilities, rent & interest on mortgage too

[Flyoverland Captive]

The non-forgivable portion becomes a loan at 1%; just use it to pay off other loans with higher interest.

[Core Shot]

Remember you can still use forgivable money for utilities, rent & interest on mortgage too

Yeah. I did the pro forma on that. Hence my post about what to do.

I don’t think I’ll need the loan.
So I’m gonna Santa Claus my team

[GoldMember]

Yes but if he exhausts those expenses and doesn't hit 25% of the total with those, he can cut the use of funds short OR bonus his payroll to maximize. Or some combination thereof. The key metrics are payroll expenses => 75% of money used, no. of FTEE => what he starts with, and no pay reductions. Outside of that, it's pretty much do what you want with the money.

[::: :::]

as noted by others, there's always the actual loan part...board meeting at CMH next year?
1% is better than anything else available

[Core Shot]

as noted by others, there's always the actual loan part...board meeting at CMH next year?
1% is better than anything else available

The loan could be good.
The CARES act said up to ten years amortization.
The SBA Regs said two years

Two year amortization is $9k a month for me.
Fuck that. I ain’t digging a hole I can’t get out of.

[alias_rice]

The loan could be good.
The CARES act said up to ten years amortization.
The SBA Regs said two years

Two year amortization is $9k a month for me.
Fuck that. I ain’t digging a hole I can’t get out of.

Pull a trump and file BK.

[Skidog]

Pull a trump and file BK.

This will happen either way en masse. Some will do it for the money and some just won't be able to restart, but I expect it to be a good time to be in the bankruptcy biz. Law, accounting, etc. I hope to hell I'm wrong though.

Sent from my Pixel 2 using TGR Forums mobile app

[smmokan]

I received my $1,000 from the EIDL yesterday (for my single-owner LLC / S-Corp). Gee thanks, SBA, that's really going to help me overcome absolutely no income for the first eight months of this year. If I'm lucky.

[Bunion 2020]

OR bonus his payroll to maximize.

Core Shot are you 100% certain you can dole out bonus's?

From what I have read the funding is for normal payroll expenses.

Thanks.

[NewYorkDirtBag]

Bonuses and commission income count as payroll costs. Off course all 'payroll' is Limited to $15,384.62 per person for the 8 weeks after you receive the funding if you want it counted towards the 75% to get the loan forgiven.

[Bunion 2020]

^^^ Thats the ceiling number I was looking for, thx.

[Core Shot]

^^^ Thats the ceiling number I was looking for, thx.

Yep. Can’t pay anyone more than $100k a year.
Other than that, bonus the peeps.
Particularly when the damn funemployment is more than their usual wage.

This is some crazy fucked up shit.
I feel like a politician. Giving shit away

[PowderHorse]

Nothing here. My credit union failed epically on the first round of PPP and I'm not holding my breath on round 2 but I've been hounding them this past week.

I'd even be happy with the $1k for the EIDL at this point or the stupid paper check if that ever arrives. At least I haven't paid any of my 2020 estimated taxes. I loathe the IRS.

I agree with Fred (the fast version) that they are going to have a hard time tracking the backside of this entire process for the PPP.

Sent from my Pixel 3a using Tapatalk

[fastfred]

shits looking good
day three of back and forth paper work and bs
since I'm an employee of my corporation I'm taking 50% on a W2 of the 75% needed spent on wages as a paycheck and buying skis bikes and rafts maybe a new truck
this is so awesome
then there is this dick head I pay to pay the bills and manage the money, talk about sucking all the fun out of bank money for nothing, asshole
he started explaining how the money is going to be spent and taken care of I started getting dizzy and feeling like one of my ex wives was taken me for a ride on the no fun train
think he's going to get fired as soon as the money is deposited

[fastfred]

how I feel about free money

[MakersTeleMark]

shits looking good
day three of back and forth paper work and bs
since I'm an employee of my corporation I'm taking 50% on a W2 of the 75% needed spent on wages as a paycheck and buying skis bikes and rafts maybe a new truck
this is so awesome
then there is this dick head I pay to pay the bills and manage the money, talk about sucking all the fun out of bank money for nothing, asshole
he started explaining how the money is going to be spent and taken care of I started getting dizzy and feeling like one of my ex wives was taken me for a ride on the no fun train
think he's going to get fired as soon as the money is deposited

Coming from the very same man who said receiving actual money was bullshit. You can be such a predictable tool sometimes.

[Core Shot]

shits looking good
day three of back and forth paper work and bs
since I'm an employee of my corporation I'm taking 50% on a W2 of the 75% needed spent on wages as a paycheck and buying skis bikes and rafts maybe a new truck
this is so awesome
then there is this dick head I pay to pay the bills and manage the money, talk about sucking all the fun out of bank money for nothing, asshole
he started explaining how the money is going to be spent and taken care of I started getting dizzy and feeling like one of my ex wives was taken me for a ride on the no fun train
think he's going to get fired as soon as the money is deposited

Coming from the very same man who said receiving actual money was bullshit. You can be such a predictable tool sometimes.

Yes! MTM. We might agree. Once.
Just once.

That’s some serious douchebaggery From fast Fred.
Fuck. These peeps work for you.
They got your back. If you’re not a douche
But if you’re a douche they should stab you in the back with a fucking screw driver

[fastfred]

^^^ hey bro I could really use a someone to come on over and braid my hair right now just washed and conditioned maybe a man bun will work instead
slightly irritated cause I had to work most of today the traffic to vail was slightly well there idiots on 70 today and I got out to ski on sloppy seconds fast slick greasy slut snow in the late afternoon
then got shit faced to celebrate
you honestly have no idea
when people offer you money take it, don't sit around being all alturlistic about shit, I can't belive how many contracts I sent in the past two weeks
life sucks and my life isn't any better than anyone elses and I know that got to make what I can of it