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  1. #1
    Join Date
    Aug 2007
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    5,864

    Small Biz Support 2020

    I know a bunch of us owners are a wee bit worried right now but help is coming for some but: not for all. I don't exactly the details until the Big Bill is passed, but when it is passed this thread could be a good resource for exact details. And there are other options for help out there, let us know what you know.

    Meanwhile if you are in SLC, here are details for an interest free loan from the city. My business is across the street from the SLC boundary, as close as you can without being in SLC. Fack me! Hope it helps someone else though.

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    They are now accepting Round 2 apps: Application deadline for the 2nd round is Thursday, April 2nd at 11:59pm. Get it before it's gone.

    Any non-biz owners with advice and opinions are welcome of course.

  2. #2
    Join Date
    Aug 2007
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    5,864
    This bill is passed, i didn't read too deep but it says the government gives a refundable tax credit of your employee has to leave for childcare or if they test positive for COVID
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  3. #3
    Join Date
    Oct 2015
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    2,125
    I’ve got a handful of clients who have made it through the sba emergency loan program this week. Sounds like a cumbersome bitch though. No approvals yet.

    Sounds like the new SBA payroll loans will be administered through financial institutions with 100% sba guarantees. As I get info I’ll gladly post it here.

  4. #4
    Join Date
    Aug 2007
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    5,864
    Quote Originally Posted by alias_rice View Post
    I’ve got a handful of clients who have made it through the sba emergency loan program this week. Sounds like a cumbersome bitch though. No approvals yet.

    Sounds like the new SBA payroll loans will be administered through financial institutions with 100% sba guarantees. As I get info I’ll gladly post it here.
    Awesome thanks! Please do post here. So to get a SBA loan, owners go through an independent broker like you, and not deal directly with SBA? I've never needed a loan before. I'm thinking of getting one mostly because if it's low interest and no penalty for early payback, why not? It would be nice to have way before I will need it, as I don't know how long this storm is going to last. I would guess my clients budgets for what they hire for me are severely reduced or non-existent for a long time, so that may be a bit past Easter?

    Edit: found my answer below

  5. #5
    Join Date
    Aug 2007
    Posts
    5,864
    And I'm trying to find specifics on the package passed last night....not passed by the house yet...I suppose articles are being written and research being done by journalists right now on it. Sounds promising but waiting for the 'gotcha' details.

    "generous zero-interest loans for firms with fewer than 500 employees — loans that could be forgiven if the firms follow certain conditions, such as not firing their workers."

    And to answer my naive question above: "loans made available through lenders certified by the Small Business Administration, such as banks and credit unions."

    "The loans convert to grants if used for covering employee salaries, rent, paid leave, utility payments, health insurance premiums or other necessities or worker protections. The legislation includes guardrails aimed at preventing business owners from pocketing the money being lent. Loans given to firms with tipped employees, such as bars and restaurants, could be forgiven if they are used to provide additional wages to their employees. Nonprofits can also apply for these funds.

    Because these are loans, some of this spending may be paid back"

    Shit my accountant will tell me about:


    "The Republican tax law of 2017 limited to 30 percent the amount firms could deduct off their interest. In a move to improve business liquidity, the coronavirus package increases that number to 50 percent. It also gives firms greater ability to deduct losses against taxable income, which proponents say will primarily help unprofitable firms weather the downturn."

    Payroll tax delayed:
    "The package also delays the payroll taxes typically paid by employers on wages, a cut intended to help firms survive a liquidity crunch. The 6.2 percent tax on wages businesses normally pay would instead have to be paid over the following two years, with the first half due Dec. 31, 2021, and the second half due at the end of 2022."

    Other taxes delayed, not sure what though
    "It also offers numerous delays on corporate and business taxes"

  6. #6
    Join Date
    Mar 2005
    Location
    land of the free
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    I was hoping their would be a malox or tums provision

    My gut hurts
    “Life has become immeasurably better since I have been forced to stop taking it seriously.”
    Hunter S. Thompson

  7. #7
    Join Date
    Aug 2007
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    5,864
    Quote Originally Posted by Core Shot View Post
    I was hoping their would be a malox or tums provision

    My gut hurts
    Sorry man. I can't say I foresaw someone liking grilled exotic meats in China would bring our companies to its knees. Everything changed so quickly.

  8. #8
    Join Date
    Oct 2015
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    2,125
    Still not a ton of info on how these new payroll loans will work, but here are the basics.

    The stimulus bill provides an authorization level of $349 billion for the SBA 7(a) program through December 31, 2020. The bill has passed the House, and will shortly go to the President’s desk for signature. Here is what we know so far about the Payroll Protection program:

    Loan Attributes

    · These loans will be guaranteed 100% by the US Government.
    · The covered loan period will be your anticipated operating expenses beginning on February 15, 2020 and ending on June 30, 2020.
    · They will be 10-year term loans from the date of application for forgiveness.
    · The maximum interest rate will be 4%.
    · There will be no borrower fees for participating in the program.
    · There are no credit elsewhere tests for funds provided under this program.
    · There will not be any personal guarantees necessary or collateral requirements for these loans.
    · Any loan amount that is not forgiven by June 30, 2020 will amortize over 10 years.
    · Loan payments will be deferred between 6 months to 1 year.
    · There will be no prepayment penalties.

    Who is Eligible?

    1. If your business or Non-Profit has fewer than 500 employees (full time, part time or any other basis), you are eligible for this program.

    2. Lenders will have to determine if the business was in operations on February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or paid an independent contractor.

    3. Borrowers must make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19.

    Specific allowable uses of the loan include:

    1. Payroll support

    2. Mortgage, rent, and utility payments

    3. EXCLUSIONS:
    · Any individual whose salary exceeds $100,000 during the covered period is excluded for the portion of salary above $100,000
    · Compensation for any employee outside of the United States

    
    Loan Forgiveness

    · There will be a portion of the loan that can be forgiven. That amount is likely to be determined by the number of employees that are retained through the downturn.
    · Your wage expense will be compared to the prior year – to ensure that you have maintained employees

    Loan Payments

    · We expect the SBA to cover 6 months of payments for all current 7(a) borrowers in regular servicing. The details about how they will pay and report has yet to be determined, but the bill does allocate funding for this purpose.

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