$10,000 EIDL GRANT

Discussion in 'Ask An Owner Operator' started by Scooter Jones, Apr 3, 2020.

  1. Linte_Loco

    Linte_Loco Road Train Member

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    If used for payroll, then ones payroll can be used for anything that one would use it for such as bills imo.

    That’s what I’m doing. I have a separate account labeled payroll and business. I’m transferring 1/8 every week and using it as I would any pay. Not sure what else I can do
     
    nikmirbre Thanks this.
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

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    My banker said that we will need to prove how the funds were used in the future. I assume there will be extra accounting stuff to be done at tax time as well.

    You can pay the credit card off with money you pay yourself for payroll. But not directly pay it off with the PPP money. The average weekly amount you paid yourself for Jan and Feb is the guideline far as I know.
     
  4. Scooter Jones

    Scooter Jones Road Train Member

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    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.
     
  5. DUNE-T

    DUNE-T Road Train Member

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    You will definitely need to prove if you want the loan forgiven, which is gonna be the case with absolutely majority of the borrowers. But if you don't want it forgiven and just gonna use that cheap money for some time?
     
  6. Midwest Trucker

    Midwest Trucker Road Train Member

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    This isn’t from my bank, but a bank that a friend uses.

    2DB32E54-D9AA-4E07-B7A6-F05DD34C66C9.jpeg 4B1ECE69-ABB7-4AE0-81EB-9372AD88D1E3.jpeg
     
  7. DUNE-T

    DUNE-T Road Train Member

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  8. Midwest Trucker

    Midwest Trucker Road Train Member

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    If that’s the case, I’m under the impression it just defaults to a loan and you have a couple years to pay it off at the 1% interest. I see what your saying now. I had posted the images before reading your latest reply.
     
    DUNE-T Thanks this.
  9. Linte_Loco

    Linte_Loco Road Train Member

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    I highlighted the relevant section in bold. Hopefully a loophole for the sole proprietor. It seems the eligibility is the forgiveness


     
    DUNE-T Thanks this.
  10. Scooter Jones

    Scooter Jones Road Train Member

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    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.
     
  11. Linte_Loco

    Linte_Loco Road Train Member

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    Im certainly not stupid enough to file for unemployment while still working. But I may be keeping my revenue down some by accident. I should say I’m not chasing every dollar. Just being picky
     
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