[capaxess]

SBA made it clear that funds that are used correctly are forgiven, and any funds used outside of the intended use will convert to a loan.

If 75% of the funds are used correctly, they’d be able to get that 75% forgiven. The remainder would be converted to a loan. The question is whether they’d be ineligible on the next tranche.

I'm wondering how the "forgiven" capital be funded back to the lending banks. I mean, they'll be out the capital and won't be able to fill the gap until SBA covers them, right? Has the procedure for reimbursement of forgiven capital been described anywhere? I can't find it.

[WestCoastFunding]

There is no oversight on this and I doubt there will be anytime soon. Ruth Chris steakhouse received $20 million, when I thought the cap was $10m? Plus they have like 6,000 employees, how did they qualify?

Another individual who was expecting his $1200 stimulus check, received $8.2 million in his account.

Anything the govt touches is a joke, always has been and always will.

I think Ruth Chris is a franchise. So that’s probably cumulative.

[WestCoastFunding]

I'm wondering how the "forgiven" capital be funded back to the lending banks. I mean, they'll be out the capital and won't be able to fill the gap until SBA covers them, right? Has the procedure for reimbursement of forgiven capital been described anywhere? I can't find it.

The SBA reimburses the bank up to 90 days after the lender provides borrower with forgiveness.

[fundingsmbs]

"section 1102(a) of the Act applies to any business concern, nonprofit organization, veterans’ organization, or Tribal business having the greater of:

1) 500 employees or

2) the “size standard in number of employees established by the [Small Business] Administration for the industry” in which the business operates.

These “size standards” are contained in a list maintained by the Small Business Administration, organized by North American Industry Classification System (“NAICS”) code, which establishes the maximum number of employees that a particular entity operating in certain industries can have and still qualify under the Paycheck Protection Program. Depending on the applicable NAICS code, a business with significantly greater than 500 employees may still qualify. For example, petroleum refineries (with capacity of less than 200,000 barrels per calendar day) and turbine manufacturers with up to 1,500 employees could qualify, businesses in the crude petroleum extraction, natural gas extraction and coal mining industries could qualify if they have up to 1,250 employees, and entities in the electric power distribution and natural gas distribution industries may have up to 1,000 employees and still qualify. These are only a handful of examples of hundreds of industries contained on the size standards list. Given the Act’s “greater of” language referenced above, the 500 employee maximum will apply even if the SBA’s size standard table indicates a lower number for a particular industry.1 Bear in mind that the SBA generally considers both the actual business concern, as well as all of its affiliates, in determining whether an entity qualifies as small.

Second, businesses must count “employees” as that term is defined under Title I of the CARES Act, i.e., an individual retained on a full-time, part-time, or “other basis.” While the SBA previously had not expressly defined the term “employee,” the CARES Act has adopted preexisting SBA guidance from the SBA’s HUBZone Program to provide an explicit definition. As a result, it is likely that the full SBA guidance will be used to calculate the number of employees under section 1102(a) of the CARES Act. Under that guidance, an “employee” is an individual who works a minimum of 40 hours per month, including any employees obtained through temporary employee agencies. Independent contractors may also be considered an “employee” where there is evidence of an employee-employer relationship, which is assessed under a multi-factor test. On the other hand, independent contractors who are not considered employees would not count toward the entity’s employee count for purposes of determining eligibility under the Paycheck Protection Program.

1 The SBA’s size standard list also provides standards for certain industries expressed in annual receipts. These are not relevant under the stimulus package. If an industry’s NAICS code reflects a dollar figure, but does not include a number of employees, the 500 employee limit will apply."

[Franklin]

Letter I just got from SBA. There seems to be a disconnect somewhere:
--


Today, U.S. Small Business Administration Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement regarding the success of the Paycheck Protection Program (PPP):

“The Treasury Department and SBA launched the unprecedented Paycheck Protection Program in just one week. Following its launch, the SBA processed more than 14 years’ worth of loans in less than 14 days, which will protect a vast number of American jobs.

“The PPP enjoyed broad-based participation across the country from lenders of all sizes and a wide array of industries and businesses. From its start on April 3, PPP provided payroll assistance to more than 1.6 million small businesses in all 50 states and territories. Nearly 5,000 lenders participated in this critical program, including significant lending by community banks and credit unions. Nearly 20% of the amount approved was processed by lenders with less than $1 billion in assets, and approximately 60% of the loans were approved by banks with $10 billion of assets or less. No lender accounted for more than 5% of the total dollar amount of the program.

“The vast majority of these loans—74% of them—were for under $150,000, demonstrating the accessibility of this program to even the smallest of small businesses.

“The PPP provided funds to a wide variety of industries in all sectors of the economy, including construction, manufacturing, food and hospitality services, health care, agriculture, and retail, among many others. This demonstrates the broad diversity of PPP and its support for American workers across the board.

“The Paycheck Protection program is saving millions of American jobs and helping small businesses get through this challenging time. We urge Congress to protect millions more American workers and their families by appropriating additional funding to support PPP.”

[fundingsmbs]

^ when the unemployment comes way down, we will know if the PPP served its purpose. As of today, its way too early to know as the #s look dismal on the UI side

[MCA]

I think Ruth Chris is a franchise. So that’s probably cumulative.

Nope, their 2 corporate entities received 10m each. https://www.restaurantbusinessonline...land-ppp-loans

This is starting to look like most transactions with the Govt, those connected or that have money will be first in line, while real small business (under 50 employees) will be at the end of the line.

[Winning]

^ when the unemployment comes way down, we will know if the PPP served its purpose. As of today, its way too early to know as the #s look dismal on the UI side

I think the Government sweetened the Unemployment deal to much!

Until the economy is back "open" and back to normal, why would a person want to receive the ppp salary, if the Unemployment benefit pays them more?

For Example..

You can use the unemployment calculator found at here.

Say for instance I worked a Job in Texas and made $50,000 per year ($12,500 per quarter or $4166 per month). I would qualify for $500 state UI + the new $600 Fed UI.

My job could pay me the $4166 per month through the PPP program. Also keep in mind I would not actually take home $4166. You have to deduct the various withholding amounts. Also I may be required to exchange some of my time to perform some type of job function.

Or they can decide to lay me off and Unemployment will pay me $4400 per month ($500 per week State Unemployment + $600 per week Federal Unemployment). I would get the entire $4400 plus I would have all my time to do whatever it is that I choose to do.

So it seems like in Texas, it may be better for employees making $50,000 per year or lower to not be hired back via the PPP program, but instead go the unemployment route..

Also that frees the business from any types of commitments required by the PPP program...


I see there are billion dollars companies here in Texas that has also came to the same conclusion I did.

Billionaire Tilman Fertitta (owns Houston Rockets, 44th wealthiest person in the world.) claims he laid off 45,000 workers quickly as a ‘favor’.
"I went through the '87 crisis, the 2000, the 2008," Fertitta said Saturday on FOX News' Ingraham Angle. "You’re doing the people a favor if you get them furloughed first, because you have them first to unemployment line after the severance that you give them. It’s a trick that I’ve learned many years ago.""

The funny thing is, is that he came to this conclusion before this new +$600 per week fed policy was enacted...

[Hedley Lamarr]

I think Ruth Chris is a franchise. So that’s probably cumulative.

Ruth's Chris has both corporate stores and franchises.

[Hedley Lamarr]

Federal Agency seized $1Mil masks that were to be sold to a Miami/Dade agency yesterday.
I would hate to be the person that financed that deal......

[Steven_O]

Federal Agency seized $1Mil masks that were to be sold to a Miami/Dade agency yesterday.
I would hate to be the person that financed that deal......

Why are they seizing masks? What is the logic?

[Hedley Lamarr]

Why are they seizing masks? What is the logic?

The Defense Act has been implemented. The Federal Government can and will seize needed supplies and redirect those supplies where they feel they are needed. They may or may not pay for such supplies. If they do, it will be cost or correct market value.

[WestCoastFunding]

Why are they seizing masks? What is the logic?

There isn’t any logic other than the Feds seizing PPEs and either redistributing them to states/governors that have a good relationship with the president. Other states have do secret deals and work our elaborate plans to sneak this stuff past the Feds. Massachusetts had to resort to making a deal with a foreign govt and used the NE Patriots plane to pick up and sneak the supplies to their state.

[Hedley Lamarr]

There isn’t any logic other than the Feds seizing PPEs and either redistributing them to states/governors that have a good relationship with the president. Other states have do secret deals and work our elaborate plans to sneak this stuff past the Feds. Massachusetts had to resort to making a deal with a foreign govt and used the NE Patriots plane to pick up and sneak the supplies to their state.

Larry Hogan, Governor of Maryland was able to get a large number of test kits from South Korea. He leveraged his Wife's relationships.