The New and Improved Payroll Protection Program
Shaila Chamberlain is a local Riverside CPA. If you are a business professional, you want to know that your accountant has the expertise required to get the job done.
Shaila is part of Executive TEAM Referral, which SERVPRO of West Riverside is also a member of. She has a bachelor’s in accounting from Texas Tech University and a master’s in business administration from Pepperdine University. She has been working with small businesses for over 25 years and understand the unique challenges you face.
We wanted to spotlight Shaila and her newsletter. In a newsletter sent on June, 4, she discussed the topic, "The New and Improved Payroll Protection Program". The information was very informative, and she gave SERVPRO the okay to share it in our blog. In the same newsletter she highlighted SERVPRO of West Riverside City and our Certified: SERVPRO Cleaned service. Take a look:
Payroll Protection Program News (and a little personal commentary thrown in for good measure) – Many small businesses have taken on PPP loans – those SBA loans that were issued in a hurry over the last couple of months that were intended to ease the financial pain of government-mandated COVID-19 restrictions.
The hook of the PPP, was that businesses could receive 2.5 times their average 2019 payroll in the form of an SBA loan, and would have that loan forgiven if they spent at least 75% of the money on payroll and no more than 25% on rent and a few other small expenses during an 8 week period beginning one day after the loan was received. Like any major undertaking that is ill-conceived and poorly managed, it should come as no surprise that many business owners are finding the stipulations of the loan quite problematic.
For starters, the loans were issued based on 2.5 times an average monthly payroll. For our math-challenged friends in Congress, 2.5 times a monthly average payroll equates to about 10 weeks of payroll – Hard to spend 10 weeks of payroll in 8 weeks without some kind of “tweaking” along the way. Hence, the 25% that currently may go towards rent and utilities This is helpful for some businesses with high rent, low employee costs, but not all.
Secondly and more importantly, the loans are intended to keep people working. But this is at odds with near nation-wide orders to close businesses and shelter in place. How do you keep employees working, when business is closed?
Shut down, shelter-in-place and by the way, pay your employees at least as much as they made last year.
And just to keep things interesting, give said employees a big, fat bonus of $600 per week to take unemployment instead, requiring business owners to compete with the state and federal government to see how much we can pay people not to work. But I digress…
Certified: SERVPRO Cleaned
Can We Ever Be Clean Enough?
The good news -- business is slowly coming back! The bad news -- Covid-19 is still out there.
Getting back to business relies on getting customers back through your doors. And that only happens if customers feel safe and secure in your space.
Are you ready to help your customers and employees feel safe and communicate that you've chosen a higher standard of clean?
My friends at SERVPRO of West Riverside City are offering a defensive cleaning program that goes beyond janitorial - A proactive viral pathogen cleaning.
They will not only customize a cleaning plan to your specifications, they provide window emblems and signage to show your customers that you care about their health and safety. Click now to find out more.
Stay healthy. Stay safe. Stay positive.
The content herein is for informational purposes and does not constitute legal, financial or tax advice.
If you would like more information or to be added to her email distribution for her informative newsletters, feel free to reach out to her:
Shaila Chamberlain, CPA, CMA, MBA