4 ms·
You don't get forgiveness for wages you don't pay.
by ksdale 6y ago
You don't get forgiveness for wages you don't pay.
- fullstop 6y agoIs there any penalty for increasing wages after receiving the "loan" ?
- ksdale 6y agoIncreasing whose wages?
- fullstop 6y agoThose who are having their Paycheck Protected.
- digitaltrees 6y agoIt was unclear originally but the SBA issued guidance that this was acceptable. Think about it, isn’t hazard pay for employees coming back to work at risk of Covid exposure ok? Shouldn’t we applaud companies willing to pass PPP to employees? Let’s not be so quick to label everything fraud, or greed. Sure some people will misuse funds. But most wont. Most people are good.
- xrd 6y agoWhat happens if that happens? What recourse, if any, does an employee have in that case? Is anyone looking out for those cases?
- ksdale 6y agoI'm not sure what you mean about recourse. If the employee isn't paid, the employer has to pay the money back, they don't get to keep it.
- xrd 6y agoLet's say the employee was furloughed. But, the company applied and got PPP funds by saying they wouldn't furlough anyone. The employee was told one thing, but the reality was another. This could be a fraudulent form of a bridge loan, right? Easier to get in a crisis, the banks will only figure it out later. Financing for startups has probably totally dried up. I bet a lot of VCs said: "We don't have any more funding for you, but try this approach..." And, they recommended going after PPP and at the same time recommended firing people to slim down the salary burden, but only after the PPP loan was safely in place. That extra time could be a lifeline for a startup. I think this is what happened to me.