$10,000 EIDL GRANT

I assume there's nothing that would prevent someone from obtaining a PPP loan, then afterwards filing for a BK. People & businesses do that (File for bk) everyday, for various reasons, in this country.

One of the reasons banks were intially balking at making these loans on behalf of the SBA is because the banks were demanding to be removed from any losses or liability on a loan that goes bad.

They received that assurance...

That said, it ain't that easy to get off the hook in bankruptcy when dealing with the federal government.

As far as taking the money and using it for something else besides payroll related expenses, the docs I signed were explicit in outlining the terms for forgiveness.

If it can't be substantially shown that 75% of the money was used for payroll related costs for 2 months following receipt of the money, the loan is repayable @ 1% interest over a 2 year period.

It's not that hard to show in any accounting software money in and money out for said purpose.

Heck, my bank even provided a nifty spreadsheet that automatically populates the respective expenditures. He said to use it accordingly and send it back to him at the end of 2 months.

 

I assume someone could also argue that a sole proprietor, 1099 sub, gig worker who applies for and receives unemployment insurance with the $600 federal kicker included, better be prepared to prove they qualified for it too.

Because if after the fact it's shown they didn't qualify for it, for whatever reason the State or Feds come up with on an audit, that money will have to be paid back.

People figure out ways to game the system. You know, like getting $1,000 a week through the current unemployment with kicker deal, then going out at the same time and working for cash under the table, installing flooring, painting, laying concrete, cleaning houses, etc, etc, etc.