Is it just me or does anyone else feel like this SBA loan / paycheck protection program is going to be scammed to death by everyone and their brother? It just doesn't make sense. What if I (purely hypothetical) had a business that employs 40 people and I have not yet laid anyone off? I don't really need to because the business still generates ample money to pay them and I have some extra personal money (a bank account with 7 million in profits I've made) to keep paying them. Would I (being completely hypothetical) qualify to get some "relief" from the government? I'm thinking about laying them off but this way, I can get all the money to pay them and then some and I don't have to dip into any of my savings or anything and I can pay for other things with the money I get like interest on loans etc. The money is damn near free and I don't have to make a payment for 6 months and I don't have to pay for any money that was used for all those salaries of my 40 employees. This is all hypothetical but someone tell me how this program will ever work? The intentions were good but in practically, this will result in one big piggy oink fest with everyone glomming onto the "free" money. This government has people so scared right now, they will be overinflating all estimates of revenue, etc. to get the max amount. Nobody will be able to verify the need. I fear this will be the last wallow up to the trough for people thinking this is free money before the absolute collapse of our financial system.
@Tom Murphy the intent of the program is to incentivize business owners Not to lay off their employees. The government is basically saying, keep them hired and we will give you the money to make that happen. The payroll associated loaned funds will then become a grant at some point in the future.
The thing to keep in mind is that this starts off as a loan, Even if you have the hypothetical 7 million in the bank and your monthly expenses are 30K, chances are you will still apply for the loan if you're a good business man.
The program also comes with tax incentives as well when it comes to tax reporting time, would you not choose to use that incentive as well?
Look at it this way, The Fed is going to pay your employee one way or another, either through the $600 a week unemployment stimulus on top of the State check, or giving you the $600 a week money, plus a tax incentive, plus a little cushion to cover, insurance, healthcare, etc..
Since the Treasury Secretary said they looked at the fraud components of this program, I'm assuming there will be some sort of political litmus test as a part of this process.
In regards to people overinflating numbers, this is a loan document and if they are lying, they are committing bank fraud, which I'm sure the criminals will be doing.
I am working this SBA - Paycheck protection program for our bank. There are minimal qualifications. If you can prove the loan amount by providing actual payroll data; then up to this point you qualify. If I were you I would apply for the loan and utilize it the correct way. This will leave your company in even better shape after this assuming things bounce back like everyone is expecting. I for one don’t think we bounce back, back that is for another conversation.
Originally posted by @Kevin Mitchell :
I am working this SBA - Paycheck protection program for our bank. There are minimal qualifications. If you can prove the loan amount by providing actual payroll data; then up to this point you qualify. If I were you I would apply for the loan and utilize it the correct way. This will leave your company in even better shape after this assuming things bounce back like everyone is expecting. I for one don’t think we bounce back, back that is for another conversation. Private message me if you want more details on the program.
Name of your bank ?
First National Bank of Hutchinson