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      03-30-2020, 07:46 PM   #52
Mr Pete
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Originally Posted by RickFLM4 View Post
Quote:
Originally Posted by Mr Pete View Post
Yes, it is. At least it appears to be. Anyone has questions on this, let me know. When I get a chance, I can post links with good info.
Yes, please post some good links. I have read it can benefit sole proprietors but am unclear on exactly how it can turn into a grant if there is no payroll other than the sole proprietor's own income.
Well, my understanding, there are 2 parts. One is the economic disaster loan, which is a $10k advance that can be a grant. You can apply for this on the sba.gov site.

What I am waiting for is the Payroll Protection Plan as part of the CARES act of the stimulus bill. It will cover whatever your average operating costs were from 12 months prior to when you closed your business/your business was impacted by the covid outbreak.

It will cover payroll costs (up to $8333/month per employee, based on a max annual reimbursement of $100k/year. So if you made $150k last year, the PPP will only cover up to $100k), rent, utilities, and possibly interest on debt you had (mortgage, business loans, etc). You will essentially have overhead cost protection for 8 weeks.

This is through the sba, but you will have to apply through whatever financial institution you bank with. You should contact your bank and speak to your small business banker.

I don't think you being a sole proprietor should matter, as long as you are incurring payroll costs. You'll most likely have to show 941 documents to show payroll costs incurred, and possibly profit/loss and balance sheet. My banker mentioned this today, as he thinks this isn't your typical business loan that goes through 3-4 levels of underwriting.

I think the main goal of all this is to get money back into your employees, so they can continue to waste their money on iPhones, yoga pants for selfies and social media posts, eating out, buying 4K tv's because it's much cheaper now than 3 years ago, and lots of amazon 'today is a lazy Sunday type of day' spending, vs saving it.

I'll pm you some webinar links I've watched.
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