💥💥 SBA PPP Loan Update: Loan Funded💥💥
💰💰2 Free Stocks valued up to $1,400 👉 https://www.stevencarlson.show/@WeBull
📔📔 America Hijacked: How Deep State Actors from LBJ to Obama Killed for Power and Money
Just a quick video to give a little update on the PPP loan status.
Today my bank deposited the funds from our Paycheck Protection Program Loan, more commonly referred to as the SBA PPP Loan. This is all part of the COVID-19 Stimulus package, CARES Act passed by the US Congress. This is different from the Economic Injury Disaster Loan (EIDL) and grant, I cover that in another video, link in the description below.
The loan package provides US-based small businesses, with less than 500 employees a much-needed cash infusion to offset the cost of payroll while most of the country is shuttered because of the coronavirus.
This loan provides for a fully forgivable grant to help you pay your payroll.
To calculate the amount of the loan, you take your total monthly payroll costs which can include actual payroll, health insurance, and retirement plan contributions and multiple that by 2.5.
So for example, let’s say you have 10 employees that each get paid $15/hour and they all work exactly 40 hours per week. You also give each employee a $250 monthly contribution to their retirement accounts, such as a 401k or SIMPLE IRA, and you spend $250 per month for each employee’s health insurance.
That is a cost of $2,900 per employee, per month. Sadly, you cannot include your payroll taxes in this calculation.
Let’s multiple this by 10 to cover your 10 employees and this gives us a monthly payroll overhead cost of $29,000.
The PPP is designed to give you 2 1/2 months of payroll assistance, so we need to take our $29,000 and multiply this by 2.5, giving us a final number of $72,500.
If a business uses at least 75% of their loan to cover payroll expenses, which appears to also include company contributions for retirement and employee healthcare, then, in this case, the loan is converted to a grant and is fully forgiven. You can also use up to 25% to cover some business-related expenses like rent, utilities, and a few others.
Using our example that means you need to spend at least $54,375 of your loan on payroll costs and you can spend the other $18,125 on approved business expenses like rent, mortgage interest, and utilities.
As long as you stick to these numbers your loan is forgiven.
Worse case if you use some of the money for other non-approved business expenses, you only have to pay back that amount used. So for example, if you used $55,000 for payroll, $7,500 for rent & utilities, and $10,000 for other business expenses. You only need to pay back the $10,000 to your bank, plus, of course, the interest. The other $62,500 is forgiven.
Originally the PPP loans were supposed to be available on Friday, April 3, but many of the large national banks were unable to get things ready on time. It appears that the only national bank that was ready to handle PPP loans on April 3, was Bank of America, the rest of the big banks were telling their clients “we will accept loan applications soon.”
For small business owners, “taking loan applications soon” is completely inexcusable as they need this money to pay their employees. Even a delay of two or three days maybe just enough to cause some small businesses to not be able to cover their employee’s payroll.
It looks like Wells Fargo started accepting applications over the weekend, but Chase wasn’t able to until Tuesday afternoon.
From what I have read and heard from other small business owners, pretty much all banks both locally owned and large national banks are accepting applications for loans now.
Most PPP loans are being approved the same day or within a day or two, depending on the bank.
While you wait to make sure you check out webull at the link in the description below and get two free stocks for opening and funding your brokerage account. It is super simple and a great way to get stocks at today’s low prices so you can ride the upswing.
Of course, I am still waiting on the EIDL loan approval and cash-advance grant that I covered in my other video. When that finally comes in I will make a quick update video to let you all know.
Thanks for watching, I really hope you enjoyed the video. Please make sure you like & subscribe. Don’t forget to check out the webull link and grab your two free stocks today!
PPP #Payroll #SBA
⚠️ ⚠️ ⚖️⚖️
In closing a quick statement: I am not a lawyer, CPA, tax advisor, realtor, financial advisor, etc., etc., I have absolutely no licenses/certifications in anything related to these industries, I am just a dude on the internet. So, in full disclosure: the information I provide here is for “entertainment purposes only” and you should seek counsel from competent and certified individuals if you have questions.