3 ms·

Those things only frustrate me if they aren't loans, which they would be, right?

by pkulak 6y ago

dave5104 6y ago
Kinda sorta loans. They're made to be forgiven if: > The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program https://www.sba.gov/funding-programs/loans/coronavirus-relie...
stefan_ 6y ago
They are forgiven if you use them to fund payroll, rent, mortgage interest, or utilities.
- baby 6y ago
  They're also forgiven if your company goes bankrupt IIUC.
verall 6y ago
But there's still not enough of those loans to go round, so it is still very meaningful who gets them.
- pkulak 6y ago
  The second round still has funding available.
bananabreakfast 6y ago
No, they're not really loans, they are basically free money. They only have to be paid back if you end up firing the workers you were supposed to keep employed with the loan. If they stay employed then your "loan" is fully forgiven.
- pkulak 6y ago
  That's what I mean. You have to explicitly use them for payroll within 2 months of acceptance, and retain 75% of your staff, and a lot of companies are not bothering with that and just taking the low-interest loan. A loan is still something, but it's not even in the same area code as a grant.
- digitaltrees 6y ago
  That’s not really free money. It’s money earmarked for employees or to maintain some basic infrastructure so employees have a place to work.
Frost1x 6y ago
To add to what some others said, the interest rates are also at a massive 1%, assuming they for some reason do have to pay them back. Seems like even if you didn't need a PPP loan for staff, there are opportunities to create a scenario where it appears justified you need to loan to cover employees salaries, then divert the previous capital for your labor to an opportunistic expansion while others are scraping by. You got a large loan, with low interest, during a time period many were struggling. Great way to accumulate wealth.

Those things only frustrate me if they aren't loans, which they would be, right?

by pkulak 6y ago

Those things only frustrate me if they aren't loans, which they would be, right?

Kinda sorta loans. They're made to be forgiven if: > The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program https://www.sba.gov/funding-programs/loans/coronavirus-relie...

stefan_ 6y ago

They are forgiven if you use them to fund payroll, rent, mortgage interest, or utilities.

baby 6y ago
They're also forgiven if your company goes bankrupt IIUC.

verall 6y ago

But there's still not enough of those loans to go round, so it is still very meaningful who gets them.

pkulak 6y ago
The second round still has funding available.

bananabreakfast 6y ago

No, they're not really loans, they are basically free money. They only have to be paid back if you end up firing the workers you were supposed to keep employed with the loan. If they stay employed then your "loan" is fully forgiven.

pkulak 6y ago
That's what I mean. You have to explicitly use them for payroll within 2 months of acceptance, and retain 75% of your staff, and a lot of companies are not bothering with that and just taking the low-interest loan. A loan is still something, but it's not even in the same area code as a grant.
digitaltrees 6y ago
That’s not really free money. It’s money earmarked for employees or to maintain some basic infrastructure so employees have a place to work.

Frost1x 6y ago

To add to what some others said, the interest rates are also at a massive 1%, assuming they for some reason do have to pay them back. Seems like even if you didn't need a PPP loan for staff, there are opportunities to create a scenario where it appears justified you need to loan to cover employees salaries, then divert the previous capital for your labor to an opportunistic expansion while others are scraping by. You got a large loan, with low interest, during a time period many were struggling. Great way to accumulate wealth.