Scruffy887
Titanium
- Joined
- Dec 17, 2012
- Location
- Se Ma USA
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Give out the money and say it is free. Then change the rules.
So if you got funded early, and paid your people to stay home? That amount may not be forgiven if your business was financially able to continue on without it.
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31. Question: Do businesses owned by large companies with adequate sources of liquidity
to support the business’s ongoing operations qualify for a PPP loan?
Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all
borrowers must assess their economic need for a PPP loan under the standard established
by the CARES Act and the PPP regulations at the time of the loan application. Although
the CARES Act suspends the ordinary requirement that borrowers must be unable to
obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers
still must certify in good faith that their PPP loan request is necessary. Specifically,
before submitting a PPP application, all borrowers should review carefully the required
certification that “[c]urrent economic uncertainty makes this loan request necessary to
support the ongoing operations of the Applicant.” Borrowers must make this certification
in good faith, taking into account their current business activity and their ability to access
other sources of liquidity sufficient to support their ongoing operations in a manner that is
not significantly detrimental to the business. For example, it is unlikely that a public
company with substantial market value and access to capital markets will be able to make
the required certification in good faith, and such a company should be prepared to
demonstrate to SBA, upon request, the basis for its certification.
Lenders may rely on a borrower’s certification regarding the necessity of the loan
request. Any borrower that applied for a PPP loan prior to the issuance of this guidance
and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the
required certification in good faith.
YouTube
Give out the money and say it is free. Then change the rules.
So if you got funded early, and paid your people to stay home? That amount may not be forgiven if your business was financially able to continue on without it.
Scruffy,
If you are not deep in debt and have good credit, and the banker told you forget about it for a loan to keep going, when this is over i would be finding a better bank to deal with.
I have been lucky with my bank, but i have dealt with them for 28 years myself and family for over 43 years, and i know almost everybody that works there by name, but if they told me forget about it in these times for a small loan to help me cover expenses if i needed it i would be finding another bank. Banks are there to help there customers grow and to help them through tough patches, and needless to say this is a tough patch. Yes they make money for these services, but if they are not doing what i expect i find a better source, just as i would if a company i sent my black oxide finishing to did'nt do the quality i expected from them. Later Jason
Worst case scenario—you borrowed $100K thru the PPP, and even though you used it scrupulously, with documentation, to make payroll, they decide not to forgive it. If by some miracle you earned enough revenue during the shutdown not to have actually needed the money to survive, then you've ended up with an absurdly cheap loan and are that much better capitalized for the upswing.
No matter how much I might rail against government handouts, the realistic approach is to take advantage. If you don't your competitors will.
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