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DizRotus

CARES Act PPP abuse?

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Today was supposed to be the day for my small business to apply for funds under the Payroll Protection Package (PPP), part of CARES Act, to continue to pay our three employees so they would not be unemployed and not need to claim unemployment compensation.  Despite my diligent efforts and those of our accountant and business banker, we were unable to submit an application.

 

Our accountant has heard from her colleagues that financially sophisticated clients, doctors, lawyers, hedge fund managers, etc. are abusing the spirit of PPP.  Rather than needing funds to prevent employee layoffs, PPP is seen as a low interest loan.

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your heart was in the right place Neil.

I was definitely in the minority when I wrote a couple of weeks ago that people suck ... my opinion hasn't changed. (for clarification, not every single person sucks all the time),

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35 minutes ago, sunburnwilly said:

Hopefully they will be prosecuted accordingly

 

Nope! Very naive.

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Today, I did what any responsible business owner should do.

I roll out a pair of La Scala and played music all day in the shop.

We are deemed essential so about 65 out of 75 employees are working, many from home.

We have several seeking unemployment and a few on the the extended FMLA getting 2/3 of their normal pay while they are stuck home with their kids. I still paid 100% of everyone's health insurance for April to ease the burden.

Will help oLSS.thumb.jpg.b176e8944606290d666fbdc77936b101.jpgut more if the system fails to deliver. It is going to get interesting.

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5 minutes ago, rplace said:

Because white collar crime is ignored in this country. 

 

Get caught selling drugs a few times if you skin is dark and go to jail for life.

 

Make 10s of  billions poisoning millions, meh. Pay a few million in fines (if you get caught) and jump in your private jet laughing at the rubes that voted for the guys you bought off for pennies on the dollar.

If accused of a crime, it is better to be rich and guilty than poor and innocent. 

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13 minutes ago, rplace said:

Because white collar crime is ignored in this country. 

 

Get caught selling drugs a few times if you skin is dark and go to jail for life.

 

Make 10s of  billions poisoning millions, meh. Pay a few million in fines (if you get caught) and jump in your private jet laughing at the rubes that voted for the guys you bought off for pennies on the dollar.

So you are saying corrupt?

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3 hours ago, DizRotus said:

Out accountant has heard from her colleagues that financially sophisticated clients, doctors, lawyers, hedge fund managers, etc. are abusing the spirit of PPP.  Rather than needing funds to prevent employee layoffs, PPP is seen as a low interest loan.

Very common, sadly, even down to the ticket scalpers for music events to hand sanitizer hoarders hoping to make money, regardless of who it might hurt. 

  

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IMHO, a lot of people are running on the thought that if they don't rape the victim, someone else will, so.... 

 

Sorry to hear about this Neil. Hopefully something (someone) will right the system's problems. 

 

 

 

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7 minutes ago, rplace said:

 

And some are unwilling to acknowledge what is blatantly obvious because it doesn't enforce their narrative or bias.

Like you said, it's been going on for 50 years. I contend that 50 years doesn't cover it. 

 

None of that has to do with the ones, wrongfully, taking advantage of the PPP, or any of the other schemes. Any race, political person, gender, or national origin can and will do this.  

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There is always a bell curve.  It always amazes me to be reminded that all people are somewhere on the curve.  At the extremes of the curve are shameless people who think nothing of lying and cheating their fellow humans.  Dictators, gangsters, unscrupulous politicians are at the extremes.  The real crime is when the majority of the good people at the middle of the curve tolerate, enable, or worst of all, elect those at the extremes.

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7 minutes ago, rplace said:

Neil, I too tried to find a way to apply for my business and came up empty

 

Rich-

 

Be persistent.  I hope we can get applications filed before the fund is siphoned off by the shameless crooks.

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I paid a commissioned salesperson today who can make no sales, therefore, has earned no commission.  She asked if the check was due to the CARES Act.  I replied, “sort of.”  She was paid on a leap of faith that the fund survives unworthy vultures long enough so my three employees can avoid unemployment.

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12 minutes ago, DizRotus said:

The real crime is when the majority of the good people at the middle of the curve tolerate, enable, or worst of all, elect those at the extremes.

 

Well said. Without the above most at the extremes could not do what they do.

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There's a lot of weirdness because there really never has been an attempt like this to throw money around almost willy-nilly after a bill was passed into law with such haste.  This is a totally new thing.  

 

Maybe it will gen-up a whole new market for consultants to figure this out and help the less savvy to navigate through it.  I could certainly see how.

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Clearly OT, but as the OP, if you have a problem with this thread drift, sue me.

 

Am I the only one who has received countless emails to a business email address selling thermometers?

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1 minute ago, rplace said:

 

You are smarter than that, Jeff. This is the same old song and dance. Nothing to do with helping truly small businesses. All about talking points.

Nope!  They're seriously sloshing around money like there's no tomorrow.  They are genuinely afraid it is all going to tank if it doesn't happen.  Rather than dump it out of helicopters, they want you to pay it back.  But you can borrow real cheaply...

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1 minute ago, Jeff Matthews said:

they want you to pay it back

 

Not true.

 

The Paycheck Protection Program is meant to encourage businesses to keep their workers employed or quickly rehire them, so the SBA will forgive loans if all employees remain on payroll for eight weeks and the money is used for covered expenses.

 

 

 

 

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