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03-29-2020, 06:40 AM | #1 |
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Join Date: Mar 2013
Posts: 595
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CARES Act | Paycheck Protection Program
Hello everyone --
I am sure many of our business have been impacted by the COVID-19 outbreak. We are located just a few miles west of the Detroit city limit, which on a per-capital level will have it about as bad as anywhere in country. We have shuttered our operation until at least April 14th, but likely later, due to the severity of this. We are considering keeping everyone on payroll and using a CARES Act loan to cover payroll, with the understanding that the debt is canceled if we retain employees and pay them between 75%-100% of the earnings they had in the window of time between March 1 - June 30, 2019. Here are my takeaways and some thoughts I put together last night -- can anyone else share their opinions on this?
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04-01-2020, 04:29 PM | #2 |
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Join Date: Sep 2009
Posts: 554
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So I understand, u do not self fund this. U have money in hand in advance of payroll. All standard deductions from payroll apply, you pay employer social security tax and Medicare tax as normal and all employer payroll payments are reduced from the gross loan. In other words, your exposure is limited to following the rules (or are they “guidelines” ), and if you do so, all will be forgiven without interest.
Sounds like “cash for clunkers” on steroids. Wish I was still in business to face another trial by fire. GOOD LUCK, in a most positive sense that will save your employees and u become a hero. |
04-02-2020, 06:28 AM | #3 |
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Join Date: Jan 2009
Posts: 1,122
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Good read, lots of good info, and it sounds like you are really on top of things.
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08-29-2020, 04:40 PM | #4 |
Senior Member
Join Date: May 2009
Posts: 548
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Possum, you know our esteemed State Representative from Weatherford (Roger Williams), received "somewhere between $1 and $2 million" in PPP loan (free money) from the government in the first 2 week window of the program. Before most applicants could even get the application form started. He declined to give a specific amount. I'd be willing to bet if Roger said between one and two it was probably a lot closer to two. He is listed as one of the wealthiest members of Congress with a net worth of $67 million. That really chaps my ass.
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