$10,000 EIDL GRANT

That’s not exactly how it works. If the dollar loses its value, that’s called inflation. If inflation goes above 3.75% you could “ benefit” by paying it back over time, with “ inflated” dollars. Even if that were to happen, you would have to have all the loan money in the bank, unspent to benefit. Hardly an investment strategy. I’ve read nothing about forgiveness, unless it’s used for a bridge loan and refinanced with the ppp loan. I may Due that myself. Depends if the date for applying for the ppp is extended beyond June 30th. Currently getting PUA, till July 25th, again it may be extended, I doubt it. I might apply for the ppp, and get back to work. Depends on Frieght volumes. Just have to play it by ear, see how things unfold. I may go get a Local Job. Most important thing to Me, is having choices. No choices, no freedom. Don’t want to paint myself into a corner. Easy to do.

 

Yeah, various reasons, meaning your wife said no.
From now on, every time when a new shiny reefer passes you, you'll be thinking that it could
be yours...

Anyway, I would like to thank you for the help with all of this complicated matter. It was very
valuable for me. I am sure for others too.

 

If you have the loan money in the bank, you'll have no benefit. If you invested it in your business like
you suppose to do, then you are going to win. Instead 100K, your truck value will rise to 200K.
The rates and your income will rise significantly as well. Only the loan amount and your payment
will stay the same.

 

I was chatting with my accountant this morning about various things, and the SBA loans came up in conversation. As of this morning. 60% of the amount of your loan MUST go toward payroll which means that if you're a one man operation, 60% of the loan goes to you personally. But, you'll need to hold enough aside to pay the taxes on whatever you take unless you use a payroll service or use payroll software that takes deductions for you. For what remains of the loan, you won't be allowed to deduct business expenditures on your taxes, even if the money is used on items that are normally deductible as a business expense, so you'll owe more taxes.

The good news is that he and most tax professionals feel that the loans will ultimately be forgiven and treated as a grant. So you won't have to pay them back, but still owe taxes on it. Personally, I don't need it or want it. Sounds like more of a headache than I want.

 

So much different information out there. For the EIDL, you sign a contract/loan agreement. You’re only able to be held to the terms of that agreement. Is everything that was stated by your accountant in the terms of the signed agreement? If not, then it doesn’t really matter in a court.

 

Sorry, I got my loans mixed up. It's the PPP loans that require 60% be used for payroll.

 

You sure? Everywhere else says 75%

 

The payroll requirement was reduced yesterday from 75% to 60%. That info wasn't second hand, I heard it yesterday on the news. Here is a link to confirm my well meaning statement.

The PPP Prescription — H.R. 7010 Is The Right Medicine, But Not For All

2. The 75% Test Now Becomes a 60% Cliff! The Bill would change the 75% test that was issued by the SBA which requires that at least 75% of the amounts forgiven have to be spent on payroll expenses, meaning that if otherwise countable interest, rent and utilities exceed 1/3 of what is spent on payroll, health insurance or retirement plans, then the forgiveness will be reduced. It is questionable whether the SBA had the authority to pass this rule, and years of litigation were certain to keep many lawyers busy and borrowers in doubt, so Congress is hopefully stepping in to clear this up.

To be eligible to receive loan forgiveness under this new legislation, an eligible recipient of a PPP loan will now be required to use at least 60% of the loan amount for payroll costs, and may use up to 40% for permitted rent, utilities, and interest on secured debt, as defined in the law.