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Travo

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Posts posted by Travo

  1. 2 hours ago, Xian said:

    ...

    we furloughed two people last week for two weeks, it looks like we might still be able to apply for a loan if we back pay them?  

    Christian, I don't think furloughing the two people will make your company ineligible. Given a review of the CARES Act there might be some small limit on the amount forgiven, but it's hardly going to matter as long as you maintain pretty close to the same payroll 3/1/20 - 12/31/20 as the average for the previous 12 months.

     

    Question to anyone who has read the bill:

    Is anyone else surprised that the max loan amount is 4x the avg monthly payments for payroll, mortgage, rent, other debt? I thought it was expected to be 2.5x.

    Spoiler

    (c) Maximum Loan Amount.—During the covered period, with respect to any loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for which an application is approved or pending approval on or after the date of enactment of this Act, the maximum loan amount shall be the lesser of—

    (1) the product obtained by multiplying—

    (A) the average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the 1 year period before the date on which the loan is made, except that, in the case of an applicant that is seasonal employer, as determined by the Administrator, the average total monthly payments for payroll shall be for the period beginning March 1, 2019 and ending June 30, 2019; by

    (B) 4; or

    (2) $10,000,000.

    Link to the CARES Act

     

  2. 7 hours ago, closetojumping said:

    Great stuff. A few questions:

    1) Is it salary plus burden that gets to 2.5x or just the raw salary side? I’m talking about taxes and health benefits as part of the burden. 

    2) Are rent payments also forgivable? Seems like rent and utilities, with utilities unexplained. I assume that’s water, electricity and gas, if applicable, but not high speed or janitorial services. 

    3) I really don’t think I’ve seen a reference to the healthcare expense aspect as part of this for employers, so curious if you or anyone else has seen something different.

     

     

    RE: # 2

    I saw one blog/website (wish I could remember the site) that had utilities including electric, gas, water, transportation, and internet among others.

    Rent can be forgiven.

    • Like 1
  3. Figured I’d start a discussion on my favorite drummer who just passed away.

     

    Highly recommend the doc: “Beware of Mr. Baker”

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