facook
Footballguy
Myself and 2 buddies who own similar businesses are still waiting on Chase - have been since 4/6. We are all fairly pessimistic at this point. None of us will have to close but all of us will have to let go of staff.
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Small Business Support Group (1 Viewer)
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Bossman
Footballguy
Well this would be perfect. He's a long time employee that I would not want to lose.
Not sure how this will sit with the rest of the employees soon to be working 40 hours a week for the same pay ...hopefully THEY don't suddenly find qualifying reasons to stay home.
Bossman
Footballguy
This has probably already been discussed in here ... but it's just now sinking into my puny brain;
With this unemployment stimulus "bonus $600", there doesn't seem to be much incentive for someone to return to work ... then add in the Covid risk.
Seems most unemployed workers are making more money collecting than if they were working.
In my state:
Massachusetts has the highest maximum weekly unemployment compensation at $1,192 (the state provides extra funding for people with dependents)
Source: Unemployment $600 weekly bonus
Add in the $600 weekly bonus ... almost $1800 a week? Can this be right? That's $45 an hour .... TO STAY HOME!
I'm so confused. How do we as employers compete with that?
With this unemployment stimulus "bonus $600", there doesn't seem to be much incentive for someone to return to work ... then add in the Covid risk.
Seems most unemployed workers are making more money collecting than if they were working.
In my state:
Massachusetts has the highest maximum weekly unemployment compensation at $1,192 (the state provides extra funding for people with dependents)
Source: Unemployment $600 weekly bonus
Add in the $600 weekly bonus ... almost $1800 a week? Can this be right? That's $45 an hour .... TO STAY HOME!
I'm so confused. How do we as employers compete with that?
Last edited by a moderator:
glvsav37
Footballguy
They can't esp in jobs like restaurants where waitstaff income fluctuates and with reduced density regulations there will simply be not enough patrons to keep the tips up.
I have a feeling they will remove the extra $600 at some point, they have to.
The other cluster fudge (from what I understand) is IF you got the PPP, you need to start paying your employees immediately. But what happens if your business is non-essential and cannot open? So you take the risk with the loan, just tp pay your team to stay home? They come off the unemployment system, still not work, but what happens if things last past 8 weeks? You stop paying them again and now they have to go back through the unemployment process??
The assistance is great if you can get it, just seems like a bunch of dudes on a message board can find holes big enough to drive trucks through, yet our business and political leadership didnt even seem to take into account.
Warrior
Footballguy
That's been the problem literally since they passed it. Republicans were blocking it because many sitting at home would make more by NOT working.
My wife is one of those. The people laid off at her company are making significantly more (MUCH more) than those who stayed, especially since they received a 25% pay cut. But she's happy to still have a job.
Bossman
Footballguy
As I digest this I become more and more frustrated .... to the point of just leaving the store closed.
What is the point of the PPP loan? Should have just laid off everyone, including myself, from day one.
Everybody stay home, collect your unemployment, get rich, fat, and happy. See you when unemployment runs out and kids go back to school in September.
I don't need the revenue. I could stay closed all summer and be fine. It's not "fun" for me to run the store. I'm reopening next week because I feel a sense of responsibility to my customers who are depending on me and my staff to provide for them.
jwb
Footballguy
You don't. Because technically, they don't get unemployment if they are offered a job.
Grahamburn
Footballguy
I'd hope people would prioritize the long lasting security employment provides versus the short term gains in weekly pay they're receiving now. They probably won't though. If any of my employees decide not to return there isn't going to be a job waiting for them if/when they do.
We received funding through the PPP last week and will be compensating our employees for the last two weeks of April where they did not work. I also plan to run a payroll earlier than normal toward the end of my 8 weeks to get it in as part of the forgiveness calculation.
We re-open tomorrow! Thanks, Governor DeSantis!
We received funding through the PPP last week and will be compensating our employees for the last two weeks of April where they did not work. I also plan to run a payroll earlier than normal toward the end of my 8 weeks to get it in as part of the forgiveness calculation.
We re-open tomorrow! Thanks, Governor DeSantis!
fruity pebbles
Footballguy
Kinda what I worry about mid term. Going to be a fair amount of people who are going to decide to just stay home and collect unemployment. But when the extra $600 runs out, there’s going to be no job to go back to.
Chemical X
Footballguy
Chemical X
Footballguy
THE SALARY/WAGE REDUCTION. Whatever forgiveness is left after the headcount reduction math can be further reduced, dollar-for-dollar, for major reductions in wages. To calculate this you first need to identify all employees during the eight-week period whom you employed at any point during 2019 and “who did not receive, during any single pay period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000." Call these the below-100 people. For each such employee, determine her average salary/wage rate for the first quarter of 2020. If 1/8th of the total amount of salary/wages paid to her for the eight-week period is at least 75% of her average weekly rate during Q1 of 2020, then there is no further reduction in loan forgiveness. But if she suffered such a major reduction in salary/wages that her pay for the eight-week period went down by more than 25%, then the dollar amount of the portion beyond 25% reduces, dollar-for-dollar, the amount of loan forgiveness.
A COUPLE OF HAIL MARYS. But wait, there’s more.
The statute includes a “fix” for the headcount-related reduction in forgiveness. If by June 30, 2020 you bring your FTE levels back up to where they were at February 15, 2020, then that excuses whatever reduction in forgiveness was attributable to a drop in headcount between February 15, 2020 and April 26, 2020. (The CARES Act wording is that the employer by June 30 “has eliminated” that reduction in the number of FTEs. We await guidance from the SBA on precisely what this means.)
The statute also includes a separate “fix” for the salary/wage-related reduction in forgiveness. If by June 30, 2020 you have restored the salary/wage levels of the below-100 people to at least the level existing on February 15, 2020, then that excuses any salary/wage level reductions which occurred between February 15, 2020 and April 26, 2020. (Again, the statutory wording is that the employer “has eliminated” the reduction in salary/wage.)
DA RAIDERS
Footballguy
fmla won't be full pay. been awhile, but i think it's 55% pretaxWell this would be perfect. He's a long time employee that I would not want to lose.
Not sure how this will sit with the rest of the employees soon to be working 40 hours a week for the same pay ...hopefully THEY don't suddenly find qualifying reasons to stay home.
DA RAIDERS
Footballguy
i'm not clear on MA, but here in CA, the max is 450 a week. but that is based the highest 2 quarters of earnings, off of last years W2. not everyone qualifies for the max. and there's no bonus for kids.
DA RAIDERS
Footballguy
jwb
Footballguy
Let's hope that goes away fast. I'm all for helping people. I'm not for sitting around collecting $ when the job you had (or comparable) comes calling.
facook
Footballguy
From a fellow small business owner, not sure how accurate:
"I just got off the phone with my bookkeeper who has a very big book of business. From what he experiencing, most all the big banks (especially Chase) are not funding their small loans…banks are getting 5% on any loans that get approved and funded…small banks are getting approved in with hours because the personal bankers can go straight to SBA and move up the que to get funded instantly. so it appears banks have the power to get funding fast for any one client if you know the right people…
He did say that if you got that email that your loan has been sent to the SBA for approval, that’s a very good sign. He has yet to see anyone from Chase get any funding..."
"I just got off the phone with my bookkeeper who has a very big book of business. From what he experiencing, most all the big banks (especially Chase) are not funding their small loans…banks are getting 5% on any loans that get approved and funded…small banks are getting approved in with hours because the personal bankers can go straight to SBA and move up the que to get funded instantly. so it appears banks have the power to get funding fast for any one client if you know the right people…
He did say that if you got that email that your loan has been sent to the SBA for approval, that’s a very good sign. He has yet to see anyone from Chase get any funding..."
DA RAIDERS
Footballguy
Summerofgeorge
Footballguy
You don’t have to compete with it. If you have work available employees must report or lose eligibility for unemployment
ChiefD
Footballguy
That's how I understand it here in Kansas. If we call a worker back because we have employment for them, we can then deny their unemployment benefits since we actually need them to work.
DA RAIDERS
Footballguy
in CA, there is currently a covid exemption from having to do any of the usual, mandatory job searches, etc., in order to keep your unemployment rolling. we haven't come up against the reopening yet. we'll see if the leniency continues.
Summerofgeorge
Footballguy
Pretty sure the job search exemptions are nationwide.in CA, there is currently a covid exemption from having to do any of the usual, mandatory job searches, etc., in order to keep your unemployment rolling. we haven't come up against the reopening yet. we'll see if the leniency continues.
But if your employer calls you back and you refuse he can deny your claim. Then if you want , it will go to “unemployment court” for a decision
Chemical X
Footballguy
Main Street Lending Program
The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions can be found below.
Structure. To implement the Program, the Federal Reserve Bank of Boston will set up a special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders. Lenders will retain a percentage of the loans. As detailed further in the term sheets, U.S. businesses may be eligible for loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans issued under the Program would have a four year maturity, and principal and interest payments on the loans will be deferred for one year. Eligible lenders may originate new loans (under MSNLF and MSPLF) or increase the size of (or “upsize”) existing loans (under MSELF) made to eligible businesses.
Operational Status. The Federal Reserve is currently working to create the infrastructure necessary to operationalize the Program. More information will be posted here as it becomes available regarding Program terms and how eligible lenders can sell eligible loan participations to the SPV. Once the Program is operational, small and medium-sized businesses interested in the Program should seek to apply for Program loans from an eligible lender.
The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions can be found below.
Structure. To implement the Program, the Federal Reserve Bank of Boston will set up a special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders. Lenders will retain a percentage of the loans. As detailed further in the term sheets, U.S. businesses may be eligible for loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans issued under the Program would have a four year maturity, and principal and interest payments on the loans will be deferred for one year. Eligible lenders may originate new loans (under MSNLF and MSPLF) or increase the size of (or “upsize”) existing loans (under MSELF) made to eligible businesses.
Operational Status. The Federal Reserve is currently working to create the infrastructure necessary to operationalize the Program. More information will be posted here as it becomes available regarding Program terms and how eligible lenders can sell eligible loan participations to the SPV. Once the Program is operational, small and medium-sized businesses interested in the Program should seek to apply for Program loans from an eligible lender.
DA RAIDERS
Footballguy
take this for what it's worth...........
had a chat with my buddy, who is processing ppp loans for bofa. he told me, that people who cancel their loan apps with bofa, to go with a smaller bank, are often funded by the smaller bank, before he can officially cancel their bofa loan app.
good times
had a chat with my buddy, who is processing ppp loans for bofa. he told me, that people who cancel their loan apps with bofa, to go with a smaller bank, are often funded by the smaller bank, before he can officially cancel their bofa loan app.
good times
cheese
Footballguy
I have a family member who declined to go back to his job when called back due to COVID fears. They told him that because they wanted him back and were allowed to reopen he would lose his job and they’d decline unemployment. So maybe businesses do have that choice. He decided he didn’t want to risk getting sick and no longer has a job to go back to. TBD if the employment really drops to 0.jwb said:
Grahamburn
Footballguy
His pay would be 2/3rds what it normally is. Then when you submit your payroll to the IRS you take what you paid him, dollar for dollar, and deduct that amount from your taxes.Bossman said:Well this would be perfect. He's a long time employee that I would not want to lose.
Not sure how this will sit with the rest of the employees soon to be working 40 hours a week for the same pay ...hopefully THEY don't suddenly find qualifying reasons to stay home.
He’ll need to fill out a form and provide documentation of why he can’t work.
Google the “Families First Coronavirus Response Act.” There’s all kinds of information on it. Good luck!
Got my ppp funds last night. Plan to bring back everyone starting Monday. Shoutout to @E-Z Glider for his advice to wait for 2nd ppp funding as this could be a huge windfall.
fruity pebbles
Footballguy
cheese
Footballguy
fruity pebbles
Footballguy
This intrigues me because I think it’s going to be somewhat common. Is he in a high risk group? What he is going to do when his unemployment runs out?
cheese
Footballguy
Ya I brought it up mainly because I think it’s an extra variable and I’m a little curious how many will do it and how companies will handle it.
He is not high risk in this particular case but has a pregnant wife which is playing a role in how much he cares if he catches it. All I know about “what is he going to do” is he says he will look for a job when it’s safe. As for unemployment, that may have ended for him already based on what his employer told him. He is essentially choosing to scrape by if it comes to that rather than work in current COVID situation.
I am not saying any of this to bash him or his employer or the system or anyone else. It’s simply a case study. All parties are acting in their own interest based on their own priorities. We’ll see.
Tom Hagen
Footballguy
The IRS clarified that expenses paid with forgiven PPP funds are not deductible. I knew this was possible, but since the CARES Act only specified that the forgiveness was not taxable I was hoping they would allow the expenses to still be deducted.
https://www.irs.gov/pub/irs-drop/n-20-32.pdf
https://www.irs.gov/pub/irs-drop/n-20-32.pdf
Bossman
Footballguy
I think people are naive if they think waiting a few more weeks to go back to work is going to make a difference.
I've come to the conclusion that THIS is the new normal ... face masks, sanitizing wipes, sneeze guards at checkout counters ...
It's time to get out from under our rock and deal with the hand we've been dealt.
facook
Footballguy
All three of us received the approval email overnight, and should be funded by Wednesday. I'm sure we were all about in the same place in the queue due to our loans being of similar size. Huge relief!
facook
Footballguy
Shula-holic
Footballguy
Still waiting here. My latest update states my bank has sent my loan to the SBA for approval and once they get approval they'll send over the documents.
facook
Footballguy
That's where I was for about a week. Then boom it happened (I didn't ever have to sign any more docs though).
Chemical X
Footballguy
I was reading that we may have had upwards of 70,000 applications registered by the SBA. A whole boatload were registered yesterday.
I spent the better part of the last 2 weeks actually calling customers, trying to obtain missing info and to clean up incorrect applications. Almost all of these customers appear to have been registered. Maybe i get a thanks somewhere. Highly doubtful. People like to complain about us big banks, but when something goes right, poof.
I spent the better part of the last 2 weeks actually calling customers, trying to obtain missing info and to clean up incorrect applications. Almost all of these customers appear to have been registered. Maybe i get a thanks somewhere. Highly doubtful. People like to complain about us big banks, but when something goes right, poof.
Mr Anonymous
Footballguy
You've got my thanks. I haven't even received word from the SBA that my loan has been approved but the only reason I have any hope of because of the advice you shared here. Led me to contact a smaller, local bank which led to actually having a PPP loan application ready to go and submitted on day one of round two. Hopefully a loan application submitted on day one is a good bet to be funded at some point.
facook
Footballguy
Sincerely, thank you. I can't imagine how hard you've been working. It's appreciated.
FWIW I emailed a thank you to my business banker, even though she wasn't personally involved, as a representative of my bank coming through. You all were thrown into a very complicated, tough situation. Thanks again for navigating.
Shula-holic
Footballguy
Got an email from my bank this morning stating my loan application has been processed and approved by the SBA. Supposedly in the next few days I'm to get a Docusign closing package then I would be added to the disbursement list. Hopefully I'm past the bottleneck part.
GoBirds
Footballguy
Good to hear they are finally getting you done, hope everyone is hanging in there! Hopefully we are trending towards opening up to the new normal in the next couple weeks.
Golf Guy 69
Footballguy
Be aware, the target is moving on forgiveness. I would like to tell you how but constantly changing.
GoBirds
Footballguy
That’s concerning, isn’t it mostly showing payroll hasn’t changed and up to 25% if it didn’t go to payroll could go to rent expense/mortgage interest?
Shula-holic
Footballguy
Yes. For us the 2 1/2 months PPP covers won't be near enough for our shutdown due to our industry. I hope I'm wrong but it could last into 2021.
DA RAIDERS
Footballguy
Grahamburn
Footballguy
