My world: Everyone at the software companies are working remotely. The chocolate factory shut down yesterday due to not be considered an essential business. The chocolate elve had already left due to health concerns. I handle all the commercial rentals myself so no impact:
I don't intend to lay-off anybody...if this stretches into June or July...then we may look at cutting salaries by 25 to 50%. With the $1,200 everyone is getting already from the gov, and the 4 month unemployment (+$600/week additional), if we have to do layoffs, then the Team will not be totally without funds.
Counting on PPP loan to allow us to keep everyone paid and come out ok in about 6 weeks. Thankfully we were in pretty good shape when it started.
Edit: A complication is that we use Paychex for payroll services and a few months ago we switched to using Paychex HR services. Unfortunately that turned us into two different Paychex accounts and I'm still waiting on infor for the old one.
It appears Bank of America reversed their policy and is allowing any business accounts to now apply after getting a lot of backlash yesterday. I'm going to start getting my application in now.
Had a quick question and was going to see if anyone was in similar situation or could link to any guidance. I'm an S-corp...I pay myself and employees a set salary and then I take a distribution at end of year with profit after expenses/overhead. Is K-1 money allowed to be used in your "monthly payroll x 2.5" calculation? I haven't seen anything specifically in my research...read a lot about salary, commisions, vacation/sick benefits, retirement contrib, etc. But I haven't seen anything specific about distributions. I know overall is capped at 100k, but I only pay myself a regularly small salary and take an amount equal to or larger as distribution every year. [Reply]
I believe I've answered my own question in that any distribution is NOT able to be calculated. But if someone knows different, feel free to chime in. [Reply]
Originally Posted by Papachief:
Mililo,
Do you think the big banks will not be interested if the loans are under 100k since they get 5%?
I run 3 golf courses in Southern California for 3 different cities. Two of my contracts are pass through expenses. The employees work for me however I get reimbursed by the city for the cost of their payroll. I only applied for the 3rd course which is a completely different contract that is based on revenue share and I pay everyone with no reimbursement.
Just curious if it’s better or worse to have a smaller amount requested?
They get 5%, but if they get the government money in 90 days, that's a 20% annualized return. They'll be all over that like stink on shit. I'm betting the layers are getting ALL the t's crossed and i's dotted to make sure asses are sufficiently covered. [Reply]
Originally Posted by blake5676:
It appears Bank of America reversed their policy and is allowing any business accounts to now apply after getting a lot of backlash yesterday. I'm going to start getting my application in now.
Had a quick question and was going to see if anyone was in similar situation or could link to any guidance. I'm an S-corp...I pay myself and employees a set salary and then I take a distribution at end of year with profit after expenses/overhead. Is K-1 money allowed to be used in your "monthly payroll x 2.5" calculation? I haven't seen anything specifically in my research...read a lot about salary, commisions, vacation/sick benefits, retirement contrib, etc. But I haven't seen anything specific about distributions. I know overall is capped at 100k, but I only pay myself a regularly small salary and take an amount equal to or larger as distribution every year.
No, K1 distributions are profits. Not payroll. This is the "paycheck protection program". Not "Profit Protection Program."
All of the SE taxes you've been saving over the years keeping your salary low and taking distributions should have helped you stuff cash reserves away to help prepare for things like this on your own.
I'm in the same boat. On one hand, it'd be nice if it was included. On the other, it makes perfect sense why it's not. [Reply]
Originally Posted by O.city:
Mililo, I talked to a buddy who's a banker about my issue with the other office. He is gonna talk to his SBA guy, he said he coudl go ahead and apply it and see what they say.
that's great news....I think one lesson to take out of this is to keep being the aggressor....many people, including the bankers, don't seem to know, and I think the more you ask and press, the more likely you'll get things that you need.... [Reply]
Originally Posted by IA_Chiefs_fan:
Approved but not funded. I'll update once it is.
From what I've heard, there are additional problems with feeding the apps from the banks to the SBA through whatever system they are using.
So, my question that I've been asking is "how do I know that it truly is first come / first serve" if none of the applications are going through? And just because you have the application in, doesn't mean it's been processed.
I'm not really sure there will be any way to stop these loan applications at $349B....not like this. [Reply]
Hey, anybody applying for the COVID-19 ECONOMIC INJURY DISASTER LOAN (EIDL) GRANT??
$10,000 each.
We are doing 5 applications. We outsource a great deal; so going for the fullEIDL made the most sense for four after if/when we receive any grants. One, with the most people, we are doing after the PPP $$ is received. We submitted two today. And the other two by Tuesday. One site stated they were funding in 3 days. Another stated 5 to 7 days. [Reply]
Originally Posted by Trivers:
Hey, anybody applying for the COVID-19 ECONOMIC INJURY DISASTER LOAN (EIDL) GRANT??
$10,000 each.
We are doing 5 applications. We outsource a great deal; so going for the fullEIDL made the most sense for four after if/when we receive any grants. One, with the most people, we are doing after the PPP $$ is received. We submitted two today. And the other two by Tuesday. One site stated they were funding in 3 days. Another stated 5 to 7 days.