Any clarity - does the forgiveable loan amount cover salary only for employees

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Mar 27, 2020
12:59:38pm

BYUfan92 Truly Addicted User

Any clarity - does the forgiveable loan amount cover salary only for employees

or does it also cover the monthly draw/salary of the business owner? Meaning, could I biz owner also apply for the loan, and include their own 8K a month compensation and have that amount be forgiven? (I assume not and that it is only for covering the cost of employees)

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BYUfan92

Previous username: BlueMan
Bio page: BYUfan92
Joined: Jul 17, 2002
Last login: May 2, 2024
Total posts: 35,264 (409 FO)

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Messages

Author

Time

Updated terms for Small Business Assistance from CARES Act

boogers

3/27/20 12:18pm

Thanks, good info. I dont currently need it, but might be wise to apply

BYUfan92

3/27/20 12:21pm

The company I work at doesn't need it, but with the forgiveness I will apply.

RealComfortableJeans

3/27/20 12:24pm

One requirement is that you can't obtain financing elsewhere.

Plato

3/27/20 12:39pm

thats not how it works. You can get a loan for 2.5 X...but only 8 weeks

boogers

3/27/20 12:41pm

So a small biz can get 2 months of payroll costs forgiven? If so, won't every

BYUfan92

3/27/20 12:45pm

I am assuming so.

boogers

3/27/20 12:47pm

That’s the whole idea behind the bill

BYUCLA

3/27/20 12:49pm

Any clarity - does the forgiveable loan amount cover salary only for employees

BYUfan92

3/27/20 12:59pm

I assume owners salary is part of gross company payroll, so that part of the

boogers

3/27/20 1:19pm

Thank you for the info, much, much appreciated.

BYUfan92

3/27/20 1:28pm

Thats what I wondered - why not apply if it is free money?

BYUfan92

3/27/20 12:41pm

Do you know how they determine eligibility for the loan?

Bar7h

3/27/20 12:22pm

transcribing that now (done)

boogers

3/27/20 12:28pm

Also, a significant concern includes how soon funds can be made available

boogers

3/27/20 12:23pm

I thought I saw or heard somewhere that if you took the money you couldn't

RealComfortableJeans

3/27/20 12:26pm

It appears to be only under the "8 week" covered period. WE are waiting for

boogers

3/27/20 12:29pm

That portion would just no longer be forgiven, but you can still get the loan.

JohnnyGJR

3/27/20 12:29pm

That's how it appears to be worded.

boogers

3/27/20 12:42pm

Healthcare not included? So if our PT clinic is extremely slow, to point of

byu1

3/27/20 12:30pm

I believe he was referring to employee healthcare insurance costs

BYUCLA

3/27/20 12:38pm

That makes more sense. Duh

byu1

3/27/20 12:39pm

that contradicts what I just heard on a National Restaurant Association call

run26

3/27/20 2:32pm

American Dental Association also said healthcare insurance premiums are covered

BYUCLA

3/27/20 3:04pm

Boogers, could I have my staff collect unemployment while I’m closed, then

BYUCLA

3/27/20 12:42pm

I don't know. I *think* that is not how it is intended to work. I will dig

boogers

3/27/20 12:44pm

I appreciate your help with this!

BYUCLA

3/27/20 12:47pm

As of yesterday, Bank of America at the Regional level had rec'd no

boogers

3/27/20 12:50pm

Just got off a call with our accountant and some of his attorney associates

boogers

3/27/20 1:47pm

The ADA recommended furloughing all employees until we begin paying on May 1st

BYUCLA

3/27/20 3:23pm

Also I am very interested in confirming that we do not need to continue paying

BYUCLA

3/27/20 12:45pm

That's one we looked at pretty closely. There does not appear to be any

boogers

3/27/20 12:46pm

Also...only wages up to $100k are included in calculations

boogers

3/27/20 12:48pm

100k for the 8 week period for a single employee?

BYUCLA

3/27/20 12:52pm

The portion of the salary >$100k annually prorated over 8 weeks is not

boogers

3/27/20 12:54pm

*answered in response to sibling post*

TwinsRight

3/27/20 12:53pm

Following - Thanks, Boogers (did I just type that?); CB is the greatest!

scottpete

3/27/20 12:59pm

Do you know if the 10,000 advance/grant will be deducted from SBA7A forgiveness?

BYUCLA

3/27/20 3:10pm

My understanding is that the $10k grant would be deducted from the PPP.

JohnnyGJR

3/27/20 5:31pm

Question - so businesses that aren't impacted much can essentially get a loan

BluebloodOR

3/27/20 4:02pm

Yes, I believe so

BYUCLA

3/27/20 4:12pm

I guess it's par for government assistance programs

BluebloodOR

3/27/20 4:32pm

How do sole proprietors fit into all of this?

1984coug

3/27/20 8:17pm

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