AuthorTopic: PPP Loan Round Two  (Read 839 times)

Offline Eddie

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PPP Loan Round Two
« on: January 20, 2021, 09:10:30 AM »
Under the bill Congress just passed, the new PPP amount (which is forgivable) will be 2.5 months of payroll expense.

Your business qualifies if you were down 25% or more y.o.y. in any quarter of 2020 (compared to 2019). They do not require proof of that for the smaller size loans, but they will ask for proof when you ask for forgiveness.

Iím always behind on accounting so I had to check....but no problem..we were down 57% on the 2nd quarter and 46% on the 3rd quarter, compared to the same quarters in 2019. Kinda made my stomach lurch....the bailouts made it fairly painless while it was going on....and the debt service hasnít started yet...so weíre still in Wile E. Coyote territory....off the cliff, but not falling yet.

On the up side, I probably overpaid my income tax, even with the PPP forgiveness tax issue.

What makes the desert beautiful is that somewhere it hides a well.

Offline Nearingsfault

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Re: PPP Loan Round Two
« Reply #1 on: January 20, 2021, 09:36:51 AM »
Under the bill Congress just passed, the new PPP amount (which is forgivable) will be 2.5 months of payroll expense.

Your business qualifies if you were down 25% or more y.o.y. in any quarter of 2020 (compared to 2019). They do not require proof of that for the smaller size loans, but they will ask for proof when you ask for forgiveness.

Iím always behind on accounting so I had to check....but no problem..we were down 57% on the 2nd quarter and 46% on the 3rd quarter, compared to the same quarters in 2019. Kinda made my stomach lurch....the bailouts made it fairly painless while it was going on....and the debt service hasnít started yet...so weíre still in Wile E. Coyote territory....off the cliff, but not falling yet.

On the up side, I probably overpaid my income tax, even with the PPP forgiveness tax issue.
nothing new payment wise for me. As a self employed person I was eligible for CERB which was 2000 a month for 7 months but that expired last august. There might be another round but since I've moved and am only working on the house probably nothing else... hard to complain. There are still a lit of wage replacement incentives and they lowered the requirements for employment insurance. Still a lot of pain out there.
If its important then try something, fail, disect, learn from it, try again, and again and again until it kills you or you succeed.

Offline K-Dog

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Re: PPP Loan Round Two
« Reply #2 on: January 20, 2021, 11:01:42 AM »
As a not employed person.



I'm hoping 2022 will be a good year.
Under ideal conditions of temperature and pressure the organism will grow without limit.

Offline Nearingsfault

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Re: PPP Loan Round Two
« Reply #3 on: January 20, 2021, 12:00:28 PM »
As a not employed person.



I'm hoping 2022 will be a good year.
I wish you a good 2021... Does it taste like velveta? Food banks are very busy here as well.
If its important then try something, fail, disect, learn from it, try again, and again and again until it kills you or you succeed.

Offline Eddie

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Re: PPP Loan Round Two
« Reply #4 on: January 20, 2021, 01:32:16 PM »
As a not employed person.



I'm hoping 2022 will be a good year.
I wish you a good 2021... Does it taste like velveta? Food banks are very busy here as well.


Likewise.....I know youíd rather be working, but if life hands you government cheese, at least you can make nachos. Hopefully you guys are collecting SS too. Canít remember if youíre at the age where you can work and draw the bennies too. Looking forward to that myself.
What makes the desert beautiful is that somewhere it hides a well.

Offline Eddie

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Re: PPP Loan Round Two
« Reply #5 on: January 20, 2021, 01:34:32 PM »
I did get the app in for the PPP loan. It should be another 100K. As Ashvin mentioned, it will be a way of maybe carving of a lot of the EIDL Loan, which is nothing but long term debt.....no forgiveness on that one.
What makes the desert beautiful is that somewhere it hides a well.

Offline Ashvin

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Re: PPP Loan Round Two
« Reply #6 on: January 20, 2021, 01:45:16 PM »
I did get the app in for the PPP loan. It should be another 100K. As Ashvin mentioned, it will be a way of maybe carving of a lot of the EIDL Loan, which is nothing but long term debt.....no forgiveness on that one.

As usual, I doubt the government has any idea what they are getting themselves into here. Not only do they not have the resources to monitor and enforce the conditions of these loans, many businesses will end up discharging them through bankruptcy regardless of whether they qualified or not, especially if any additional "bankruptcy reform" measures are passed for small businesses. The cost of bringing non-dischargeability actions for fraud in all but the most egregious cases will be prohibitively high. There are no personal guarantees attached to the PPP loans. So yeah, I see no reason to advise business owners against taking them while they are still available, as long as their books are reasonably in order.

 

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