All of our employees applied for unemployment. We applied for a PPP loan. Should we rehire everyone by April 26 and start paying them even if the shelter in place order is still in effect to take advantage of this loan and have it forgiven.
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Apr 7, 2020
According to the SBA Website, here are the guidelines to follow to obtain loan forgiveness. I suggest you complete the application, let it take its course and follow the guidelines. This way, you will know the answer to your questions from the SBA which will administer your loan. It appears the federal government will guarantee the loan if you follow the script with respect to your employees maintaining employment through the crisis.
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Apr 14, 2020
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender."
Steve Mooney
Attorney at Law
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Apr 15, 2020
If my organization was approved for the PPP and we have already laid off employees are we responsible for back pay since they were laid off? Or just rehire and maintain our reported levels of payroll, FTE count quickly? Also, how is the FTE number figured out? Our 941 showed 55 employees but not all those are FTE.
Thanks for the help!
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Apr 17, 2020
Hi, I recently received a ppp loan for my business. Most of my employees are laid off due to governor order. Question is part of our auto dealership is listed ESSENTIAL and the other half is NON essential. How do I rehire these non essential people so I can have the loan forgiveness? And what if some refuse to come back during the order while they are collecting unemployment.
Thanks mark
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Apr 18, 2020
My employer laid us off when Pa shut down, he has been approved for ppp funding, and I would like to know if this means we will be paid our normal paychecks while we are laid off
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Apr 19, 2020
My questions are does my staff have the right to choose PPP or Unemployment?
Do I have to hire them back immediately? What happens if they choose to stay on unemployment?
Most of my staff is tipped & with the additional $600, they're making more on unemployment than what I can offer them.
Thank you for your time!
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Apr 20, 2020
The above is the exact same scenario at my work. What are the options?