AgGrad99 said:

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When this is over, I owe you a steak dinner.

Thanks for the summary.

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When this is over I owe Mrs. LOYAL AG a steak dinner! She's a teacher so while she's having meetings and send out worksheets and such to her kids this is much closer to summer than school year for her and here I am working 12-14 hours a day trying to take care of my clients and decipher this bill for them.

Really I'm just glad to help. This thing is a mess and the law is mindnumbingly convoluted and I'm certain I'm not 100% correct on it but I'm at least 95% and that's a lot of progress right now. Once it passes people much smarter than me with this stuff will send out summaries to the accounting community and that will be a better source than me but for now those are few and far between.

LOYAL AG said:

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You're basically proving you have a business and employees and you can't pay them because of this mess and that this loan will allow you to pay them while things sort themselves out.

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Say I have a company and I've continued to operate (WFH) and receive income consistent with historical income, and I've not experienced any obstacles in making payroll during this time, and continued to meet all debt obligations and costs of operation. But the future is uncertain. Am I eligible for a loan (?) and could that loan turn into a grant?

What kind of relief is there for a business that hasn't really had payment or employee lay-off issues because they had cash to float it? Profits are down 35% and if cash wasn't available we would be in an uncomfortable position.

Just an Ag and Premium asked similar questions. This is from my notes on the process and what you're attesting to:

Quote:

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• Process
• Borrower will apply to bank and bank will verify and fund
• Borrower will certify that the uncertainty of conditions makes the loan necessary to support ongoing operations
• Acknowledge that funds will be used to retain workers, maintain payroll, mortgage/lease payments and utility payments
• That the application does not have an application pending for a loan under this subsection for the same purpose and duplicative of amounts applied for or received under a covered loan.
• During the period 2/15/20 to 12/31/20 the recipient has not received amounts under this subsection for the same purpose and duplicative or amounts applied for and received.

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IMO the attestation that the uncertainty is a threat and whether it's manifested itself or not isn't relevant.

The details are going to be interesting. For example there's a provision where nobody that makes over $100K/year can be counted for this. How do I support that either in or out? Will i have to provide a payroll summary by employee that ties to a P&L for that period of time? I guess that's what the 15 days will give them time to do, figure out how to take a process that's supposed to be quick and slow it down with documentation requirements that weren't envisioned in the bill.

Can you tell me if 1099 employees count toward payroll and are eligible under the new House Bill?

And I really appreciate this and offer any free skin advice you desire.

dermdoc said:

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Can you tell me if 1099 employees count toward payroll and are eligible under the new House Bill?

And I really appreciate this and offer any free skin advice you desire.

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Gig workers are supposed to qualify, but since they aren't part of payroll, they handle this on their own (normally wouldn't qualify for UI, but will under this exception). I am an independent contractor medical worker who does locum work at clinics all over and do the whole 1099 thing as I am technically self employed, and I intend to pursue this. Not sure about details beyond that or even how to go about doing this, but everything I've read says that contractors will be able to get something.

Nevermind, I see what you're asking. I don't know the answer, apologize for answering the wrong question.

Do we think a lot of employees who've recently been laid off will be offered their jobs back because of this?

According to this, yes they are included in payroll:

https://www.hsccpa.com/cares-act-passes-senate-tentative-sba-loan-program-changes/

Some highlights:

• 12 Month look back at payroll costs. The average of those 12 months is important. Multiply that by 2.5 and there's your amount.
• EE Benefits are included as are state taxes. SS/Medicare are not.
• Includes employees and 1099 contractors.
• $100K cap on who can be counted.
• Maybe used for payroll related, interest expense (loan has to predate event), rent and utilities
• Borrower will apply at bank, sign some certifications and be approved. Should fund very quickly.
• Borrower must apply for forgiveness within EIGHT WEEKS of loan date. So if you get it on April 1 you have to apply for forgiveness before the end of May.
• SBA will have 15 days to set up program before we see activity.

Yeah I employ two physicians as 1099 employees so I am trying to figure out if they are covered.

dermdoc said:

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Can you tell me if 1099 employees count toward payroll and are eligible under the new House Bill?

And I really appreciate this and offer any free skin advice you desire.

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Just talked to financial advisor. Can use for 1099 employees.

WoMD said:

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dermdoc said:

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Can you tell me if 1099 employees count toward payroll and are eligible under the new House Bill?

And I really appreciate this and offer any free skin advice you desire.

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Just talked to financial advisor. Can use for 1099 employees.

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Thanks

1099 for contractors is a very nice add.
Thanks to everyone.

So with the employees over 100K our they 100% excluded? Or is this a clause, that you calculation would only include up the 99,999.99 of that employees making over 100K?

MD1993 said:

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So with the employees over 100K our they 100% excluded? Or is this a clause, that you calculation would only include up the 99,999.99 of that employees making over 100K?

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I have the same question. It sounds like a total exclusion from a "plain language" reading. However, the independent contractor language that is similar seems more like a $100K cap, prorated.

Hopefully (!) it's reasonable to assume the employee at $105K would not be excluded, but counted up to $100k. Otherwise there is a serious flaw in the language.

Just an Ag said:

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Hopefully (!) it's reasonable to assume the employee at $105K would not be excluded, but counted up to $100k. Otherwise there is a serious flaw in the language.

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Based on wording I'd say it's complete exclusion. If wrong, it will be a pleasant surprise, but there's nothing in there to indicate I can expect anything.

From one article:

"How do I know if I will get the full amount?


It depends on your income. Single adults with Social Security numbers who are United States residents and have an adjusted gross income of $75,000 or less would get the full amount. Married couples with no children earning $150,000 or less would receive a total of $2,400. And taxpayers filing as head of household would get the full payment if they earned $112,500 or less.

Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people who have no children and earn $198,000. According to the Senate Finance Committee, a family with two children would no longer be eligible for any payments if its income surpassed $218,000."

Which is a bit annoying since officially I think that in the Bay Area middle class doesn't start until well over $100k. Technically this should be based on location, but obviously from a logistical standpoint that isn't possible. Oh well. We choose to live in the most expensive place in the country, I guess we can deal with it.

H.E. Pennypacker said:

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MD1993 said:

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So with the employees over 100K our they 100% excluded? Or is this a clause, that you calculation would only include up the 99,999.99 of that employees making over 100K?

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I have the same question. It sounds like a total exclusion from a "plain language" reading. However, the independent contractor language that is similar seems more like a $100K cap, prorated.

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I just spoke to a Commercial Loan Office of a Texas Bank on this. He too is not 100% certain but feels that it excludes the full payroll of any employee making over 100K. He felt we will know here shortly, by Monday, on what the actual details in the law are. Waiting for full release and evaluation of the language.

Also a graph of how to interpret the different SBA loans.


https://imgur.com/a/ltwl8tH

Just an Ag said:

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WoMD, I think we are conflating programs. We were discussing the SBA loan programs available to employers which provides funds for payroll and other expenses. It seems you are talking about the stimulus checks to people in the work force. Those are two different programs.

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Hah apologies. I keep doing that...

So....dumb question, but who do we go through for this. I see nothing about it on the SBA website.

My initial impression was that we went through SBA, who placed us with a lender/bank. No?

Just about any bank will be able to make the loans, so if you already have a relationship then start there. Fountainhead is also a good online platform that is set up for SBA lending

Thanks. Makes sense.

We're already set up and do a lot of gov't stuff through SBA and related orgs, so I was hoping to go through them.


To the banks it is.

Appreciate it.

Thanks for info! I guess we will see what it ends up being.

AgGrad99 said:

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So....dumb question, but who do we go through for this. I see nothing about it on the SBA website.

My initial impression was that we went through SBA, who placed us with a lender/bank. No?

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Right now nobody knows. I've heard directly through your bank and I've heard the SBA will accept the application, give a near instant approval combined with a code you'll take to your bank to get funded. Both of came from different banks so again nobody knows for sure. The SBA has time to set this all up so we may not know for sure til then.

Not trying to suck of the government tit but.

If my business didn't really get hit by this in any substantial way (this entire situation may actually be a net positive for us) is there anything in this bill I should be looking into?

Understood, that's basically what I'm asking.

From what I've seen, which is admittedly not much, the main aspects that businesses could benefit from this is SBA loans for businesses that can show they were hurt by this in some way.

We didn't lay anybody off, our expenses have actually gone down, and revenue is now flat year over year instead of the 40% growth we were at during Jan-Feb.

Is there anything beyond SBA loans to this?

Absolutely. Hope it didn't sound like I was trying to do that, don't like to take on debt anyway.

I guess what I'm asking is if a small business doesn't need a loan, is there anything else in the bill it should be looking at?

edit:which going back and reading the title is a pretty stupid question to ask in this thread.

No worries, and it didn't come across bad. I was just giving my opinion on it. Pretty much everyone is affected somehow.

I've really appreciated this thread as I am in need in a big way and have been reading all the info that's been shared.

Also, I've always liked Texags for football stuff, but this Covid-19 forum has been a great resource for info.

-TK

Everything I've seen is capped at $100k and included in the average - so yes up to $100k in annual compensation can be included