A letter to my clients

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I don't think that's necessary, but it doesn't hurt. If there's an issue about "tracking" what the funds were used for, that will help. But I haven't seen anything that references "tracking", they just want you to spend


I agree. But i'm sure there will be a point to see how eligible you are. For example the money used for utilities and rent cannot exceed 25% of the loan or forgiveness % decreases. I believe same for workforce retention.

Just afraid I'm going to get f'd on stuff.
 

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I agree. But i'm sure there will be a point to see how eligible you are. For example the money used for utilities and rent cannot exceed 25% of the loan or forgiveness % decreases. I believe same for workforce retention.

Just afraid I'm going to get f'd on stuff.

any money you spend on payroll is applied to that category first, then you use the backup categories

make somebody work overtime, or prepay somebody, or do something else to make sure you spend enough on payroll

if you can't. then save some cash to send it back :)
 

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Your name
SMALL BUSINESS INTERRUPTION LOANS
Paycheck Protection Program
Estimated Maximum Loan Availability and Forgiveness Amount
Maximum Loan Amount
Represents the maximum amount a qualified borrower may apply for.
Last 12 Months Average Monthly
Maximium Loan Amount:
Payroll Costs:*
Calender Year Payroll $ 200,000 $ 16,667
Less P/R 1/1/2019 - 2/28/2019 $ (30,000) $ (2,500)
Plus Payroll 1/1/2020 - 2/29/2020 $ 35,000 $ 2,917
Group Health Insurance 3/1/2019 - 2/29/2020 $ - $ -
Retirement Benefit Costs 3/1/2019 - 2/29/2020 $ - $ -
State/Local Taxes on Employee Compensation (i.e., employer U.C. tax) $ 4,000 $ 333
Self-Employed Income (and subcontractors) not to exceed $100K per year
per self-employed prorated for the period February 15, 2020 to June 30, 2020 $ - $ -
$ 17,417
2.5
Subtotal a) $ 43,542
MAXIMUM LOAN AMOUNT [Lesser of a) or $10 million] b) $ 43,542
Allowable Uses of Funds During the Period February 15, 2020 to June 30, 2020:
1) Payroll costs (defined above)
2) Health care benefits (including group health insurance)
3) Interest on mortgages (not principal)
4) Rent (including rent under a lease agreement)
5) Utilities
6) Interest on any other debt obligations that were incurred before the covered period (February 15, 2020).
Loan Forgiveness Amount
Represents the maximum amount a qualifed borrower may have forgiven.
Costs Incurred During the "Covered" Period (8 weeks following loan origination):
Payroll Costs (defined above) $ -
Earnings from Self-Employment (if applicable) $ -
Rent -
Utiltities -
Interest on Covered Mortgages (on real or personal property) -
Tentative Loan Forgiveness (before required reductions) $ -
LESS: Required Reductions in Loan Forgiveness:
Number of Employees:
Monthly Average Full Time Equivalent ("FTE") Employees for the
Covered Period (8 weeks following origination of the covered loan)** -
Lesser of (at borrower's choice):
Monthly Average FTE's for the period February 15 to June 30, 2019 -
Monthly Average FTE's for the period January 1 to February 29, 2020** - -
% Reduction #DIV/0!#DIV/0!
Compensation Reduction:
Individual Employee Compensation Reduction in Excess of 25%
Compared to the Most Recent Full Quarter Before Origination of Loan*** -
Tentative Loan Forgiveness c) #DIV/0!
TOTAL LOAN FORGIVENESS [lesser of b) or c) above] d) #DIV/0!
BALANCE OF LOAN NOT FORGIVEN (if any) #DIV/0!
* For seasonal businesses, use the costs incurred during the period February 15, 2019 or, at the election of borrower, March 1 to June, 30, 2019.
** A reduction in FTE's between February 15th and April 27th, 2020 is disregarded if the reduction is eliminated by June 30, 2020 for purposes of the reduction in number of employees and/or compensation.
*** Compensation Reduction does not apply to any employee who, during any pay period in 2019, wages or salary at an annualized rate of pay in an amount of more than $100,000.
NOTE: Yellow highlighted cells represent variables that should be completed with final client data. Filled in amounts are for illustation purposes only.

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</tbody>
 

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Sorry, trying to copy and paste a worksheet here, having trouble
 

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How can I paste an excel spreadsheet here?

If somebody wants the spreadsheet I'm using for my PPP applications, PM your e-mail to me and I'll send it to you
 
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SBA.gov is where you apply for the 10k loan and it's a very streamlined process

You apply for the payroll loan with your bank.

The 10k is available to self employed individuals and landlords

For the payroll based loan, you obviously need to have payroll


These are the two easy processing loans

Have you heard back yet?

I applied last Wednesday and havent heard anything
 

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any money you spend on payroll is applied to that category first, then you use the backup categories

make somebody work overtime, or prepay somebody, or do something else to make sure you spend enough on payroll

if you can't. then save some cash to send it back :)

you think prepay will work? Or a "bonus"?
 

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you think prepay will work? Or a "bonus"?

I wouldn't do anything that draws attention, but I'd find a way to spend the money justifiably

They can't get out of their own way at this point, banks and the SBA and business owners and especially accountants during tax season (my personal favorite) are all overwhelmed and spread thin

I don't think there's a chance in hell anyone is auditing this stuff, just be reasonable

If you can't spend the money, give what you can't spend back
 

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Willie that is good stuff.....last question (for now...hahaha)

What is the formula for FTE based on SBA guidelines?
 

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You're business is eligible, they don't even ask you about other jobs.

On the PPP, they ask you about related businesses, but they don't even ask about on disaster relief applications

Today is the 6th straight day that this stuff is all I'm working on

On a sidebar, there's a new program to help businesses that don't have employees coming out this Friday, something similar to the PPP

Willie, thank you very much. Thought I was eligible just wanted to double check with you
 

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Willie that is good stuff.....last question (for now...hahaha)

What is the formula for FTE based on SBA guidelines?
For example. Let's say FTE is employees working 35 hours. Do 3 EE's working 25 hours equal 2 FTEs? Does 8 salaried workers (320 hours) and 1 part time with 30 hours = 10 FTEs
 

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Thank you Willie99! That was very special and thoughtful of you. You rock man! cheersgifcheersgifcheersgif
 

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That happened to me on one client

for an application that was submitted before the new law was signed and before this new process was initiated


All my applications starting last Tuesday night were using the new streamlined process
 

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Nobody has received any money yet, very discouraging. I understand why, it's an overwhelming task, but don't make promises you can't keep. MONEY IS NOT BEING RELEASED QUICKLY, bureaucrats at the SBA can't get shit done.

Now the SBA is talking about changing the program because of "a lot of interest". Do you fucking think? one rumor is suggesting that they're going to limit the grant to $ 1,000 per employee. That can't work, that defeats the intent, that's just fucking stupid.

That would also mean i wasted at least three full days of my time.

It also means a lot more people should submit PPP applications, but those take more time and require more documentation

How the fuck are they going to pay landlords who they're telling tenants to stiff?

Another example of why government sucks, they just suck at their job.
 
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Someone told me today (who i 100% trust) that he knows someone who received over 50 and the funds were directly deposited in his account. He saw the deposit with his own eyes. Again, this person I 100% trust and would have NO reason to lie to me about something like that.

However, he is the only 1 that i have heard of who has received either the PPP or the EIDL
 

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Nobody has received any money yet, very discouraging. I understand why, it's an overwhelming task, but don't make promises you can't keep. MONEY IS NOT BEING RELEASED QUICKLY, bureaucrats at the SBA can't get shit done.

Now the SBA is talking about changing the program because of "a lot of interest". Do you fucking think? one rumor is suggesting that they're going to limit the grant to $ 1,000 per employee. That can't work, that defeats the intent, that's just fucking stupid.

That would also mean i wasted at least three full days of my time.

It also means a lot more people should submit PPP applications, but those take more time and require more documentation

How the fuck are they going to pay landlords who they're telling tenants to stiff?

Another example of why government sucks, they just suck at their job.

Thanks for this update. I was going to ask you if any of your clients recieved the funds yet. I applied on the day you started this thread, I have heard nothing yet.
 

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