Notarealsignguy
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Has anyone filled out the forgiveness app yet? Any news on the latest changes to it?
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Did you file for PPP?
- Thread starter Texas_Signmaker
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Stacey K
I like making signs
Did you apply through your bank? If so you should call them. I applied through my bank and I heard back about a week later and the money was in my account within a couple days.
Our bank has been sending us the updated documents from SBA as they are still changing the requirements daily. It hasn't been 8 weeks since the PPP started sending out funds and the countdown for forgiveness starts with the beginning of the first pay period after you received funds. The only real change that has affected us has been that although we applied by emailing a scan of our application, we have to take the original signed application to the bank now. They still will only forgive 100% is you spend at least 75% on payroll in the 8 week time frame, and the other 25% goes to approved expenses like rent or mortgage interest. And you can't pay yourself over $150,000 in the 8 weeks or something like that.
Notarealsignguy
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From my understanding, you have to pay back whatever remains if it is not all used on payroll and qualified expense? Also, how do they figure the amount on 2.5 months but the period is only 8 weeks? News was that they were allowing more time or allowing more expenses but didn't look into it much.
That is correct. If you don't spend it all within the 8 weeks on allowable categories, the remainder is not forgivable and becomes a low interest loan, which I think has a delayed payback period.
The reason they gave you 2.5 times your monthly payroll as a loan amount is so that you have the 25% extra to spend on rent, utilities, and mortgage interest.
Currently there are some in Congress trying to get some kind of extension or delay on the 8 week time period because there are many businesses located in Nazi Democrat states which as yet are still not allowed to resume operations, although they received the funds almost 2 months ago. That has yet to be passed right now.
Notarealsignguy
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I thought that was the point of it, to funnel unemployment through employers so there werent mass layoffs and it would be a quicker restart? The whole thing was/is stupid but thats another discussion.
For us it worked out perfectly. We got the money right when we needed it, when our saved money for emergencies was about to run out at the end of March. We didn't close, even though the amount of work coming in wouldn't have been enough to keep things going without borrowing. For us, early to mid-March is how long we usually have to rely on what we made the previous year before the "season" begins to ramp up enough to support everything. The PPP money took us through our state's "Stay at Home" time, which ended the first week of May. Since then our work has picked up rapidly, and is at a near-normal level now, though from a somewhat different mix of customers than normal. Next week will be the end of our 8 weeks for PPP.
I think the problem has come in areas where they have unnecessarily kept things shut down far too long. There, businesses just straight up closed, laying everyone off. And they are still closed. There are a few problems with that. Their employees are on enhanced unemployment, receiving far more from unemployment than they would if they were working and there had never been a pandemic. And, the money their business owners have received wasn't enough to keep paying the employees if they stayed at home. And, when the stay at home orders last longer than a quarantine (40 days), which is what it appears the PPP was designed around, it doesn't work. For them, the EIDL probably was the better answer, but at the beginning too many people were just applying for and receiving whatever money they could get their hands on, and not really thinking about what they should be doing--and I don't think anyone would have predicted that governors would try to keep their states entirely shut down until Trump was voted out of office, which appears to be the primary driving force of everything going on.
We have also been approved for the EIDL, up to an amount that would be about 30% of our annual gross. Although we don't need the money right now, I may still go ahead with a smaller amount to make up for the lost business in March-May, as we may need that money next winter when business drops off again.
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