In this webinar, Nate discusses updates on the PPP Loans and answers commonly asked questions, including those mentioned below.
You can access the full recording of the webinar here:
Webinar Recording – PPP Loan Update and Q&A with Nate Williams – 4.7.2020
Q&A Slide Deck – COVID-19 Webinar (4.7.20)
If I get the PPP loan now, should I bring all my employees back for 2 months?
There are still a lot of unanswered questions about the forgiveness of the PPP Loan. Typically when a new law is passed, many months are built into the law giving lawmakers and government agencies time to work out the “bugs” in the new legislation – not this time, everyone is learning as we go. Having said that, here are some things to consider when deciding on when and how to use the funds:
- Consider the “collateral damage” of paying your employees and having them lose their unemployment benefits, or at least experience a disruption.
- What if you spend through the full PPP loan now, but the Coronavirus shut down continues a lot longer than 2 months? There are many circumstances easily imagined where you could want/need this money when you open your doors again, regardless of forgiveness. Remember, the most important goal is to stay solvent and be financially prepared to open your doors again; this is a higher priority than a forgiven loan.
- What are you going to pay your employees to do if your office is closed? If nothing, how are you better off here than just leaving everyone on unemployment? (paying yourself, perhaps)
What should I do now?
Let this principle guide the decision: borrow money when you need cash that you don’t have. If you need a loan now, borrow the money. If you don’t, then we would wait. And if the well dries up, so be it; we didn’t need a loan anyways.
Beware of email scams!! This environment has created a cybercriminal playground. Beware of email scams from fraudulent senders sending you to fraudulent links, illicitly asking for your financial info. If you get an email from an unknown source, do not click on any hyperlinks. If you do click on the hyperlinks and they take you to a phony website, do not enter financial info.
You can tell the email is fraudulent by paying attention to the email address of the sender. You can tell a website is phony by paying attention to the URL.
Good luck! Until next time…