alphonso
Titanium
- Joined
- Feb 15, 2006
- Location
- Republic of Texas
Does this mean I can borrow money to cover my payroll for the next 2 months and if I retain all employees for a year, I don't have to pay back anything???????.
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Does this mean I can borrow money to cover my payroll for the next 2 months and if I retain all employees for a year, I don't have to pay back anything???????.
I almost posted the same thing....reading more into it, your business classification has to be food service or other really hit hard classifications basically.
But you only have to affirm that the money will be for rent, utilities and/or payroll.
But money is fungible so what's to keep someone who is doing ok to take the money, buy a piece of equipment, and have it forgiven...all while making payroll.
In America, all loopholes will be exploited.
What I understand from reading some paperwork:
Your loan amount is defined by your payroll [with some limitations]
monthly payrollx2.5
You can spend it on payroll, rent, business mortgage, utilities
the forgiveness is based on whether you continue to employ people or not according to a formula
Great...spammers alreadyThis isn't correct. All manufacturers are eligible if they're under 500 employees.
We're a technology company working solely with small business manufacturers that are doing high mix, low volume work. We don't have any customers in food manufacturing. We've spent the last few days helping our customers determine if they qualify for the loan, and also walking them through how to apply. Most of them have already been approved.
I'll post some quick bullet points below that should hopefully be helpful for you guys to take away, but also wanted to offer our service to anybody interested. Our team has become very familiar with the process, and we want to do our part to help the manufacturing community. If you would like some help applying for the loan, you can reach out to us at [email protected]. We'd be happy to speak to anybody domestic manufacturers that may be struggling to keep the lights on and the people employed. Again, this is not a situation we're trying to monetize - only trying to do what we think is right for the community at large.
CARES Takeaways
No SBA fees
No credit availability checks (typically these are required to see if you have access to credit elsewhere, but have been waived in this bill)
No personal guarantee
Loan proceeds NOT FORGIVEN have a 10-year max term at no greater than 4%. However, it will likely be lower (3.25% - 3.75%)
Payment on these loans are DEFERRED, and no interest accrual for six (6) months to one (1) year
SOME EXPENSES will be forgiven
Payroll costs include most fringe benefits, mortgage interest, rent and lease payments, utility (including internet and phone) ONLY IF the agreement was signed before 2/15
Any employee who receives $100k or more in wages is disallowed
You may be limited to what you can have forgiven if you reduce staff from what it was in the calculation period
We've spent the last few days helping our customers determine if they qualify for the loan, and also walking them through how to apply. Most of them have already been approved.
Great...spammers already
Go away
You will have to go through an SBA banker. My bank (Chase) sent me an email the other day, they are setting up an online application process....Not sure how you actually apply. SBA loans are new to me, but I'm going to apply if I can.
Can you tell us how sole proprietors with no employees are treated under this program?...If trying to help manufacturers run their business isn't the point of the Practical Machinist forum, then I'm in the wrong here. Either way, best of luck to everybody navigating through these tough times, stay safe.
Can you tell us how sole proprietors with no employees are treated under this program?
No payroll, not eligible?
No payroll, still eligible for operating costs like rents and utilities?
Can you tell us how sole proprietors with no employees are treated under this program?
No payroll, not eligible?
No payroll, still eligible for operating costs like rents and utilities?
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