If you received Paycheck Protection Program funds, how did it affect your business?
Please share specifics of what it might have been like had you not gotten those funds, or if you'd gotten more or less.
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Please share specifics of what it might have been like had you not gotten those funds, or if you'd gotten more or less.
Answers (1-10)
PPP can be a trap. If you are currently using the funds to pay your employees, what will happen if the business does not pick up enough for sales to cover payroll? If you are a manufacturer and you were using your receivables to cover expenses in the down time before PPP, how long will it take for your receivables to cycle out so your cash flow can continue to cover payroll and payables? If PPP only covers 8 weeks, what happens when it runs out and sales did not bounce back? There will be an eventual gap between the end of PPP and when sales builds past break even. This is the short sighted problem everyone will face. At this point, many businesses will suffer and go down if you are forced to use PPP for an eight week period. Now that they changed the PPP to 24 weeks, 4 weeks are now wasted because you could have rationed the money to stretch out payroll for a longer period of time. PPP seems to be making the death of businesses to be slower and more painful.
Thank God our President and the Secretary of the Treasurer helped small business like ours. I paid my employees the whole time they were out for six weeks. I asked them not to file unemployment and they had faith in a potential PPP program. Although it took a month to get the PPP loan I covered their salaries. We are back up and running again with the original team and the demand for eye care services is up.
It has been a godsend for the Travel Industry. We lost all business for most of March, all of April and May and most of June. With out this assistance Travel Agencies would have had to close and probably not reopen. We can pay our rent and agents. REMEMBER, use a small business Travel Agency. We are here for you.
I was approved for Paycheck Protection Program funding....however the rules are changing constantly. Some of it will be forgiven for payback and some of it will not. So far, it did not affect my business a lot, but it did give me some comfortable room to bring back two of my employees. I will have to see the forgiveness area and what I was allowed to help with Payroll, rent, etc.
This money came from heaven and really save my business no to file for bankruptcy
PPP s a fabulous thing, and now with the time period for forgiveness going 24 weeks from issuance it is a life saver. It is a dilemma for those who got it too early because the entire month of April and mostly May was wasted time because we were all closed. But that is precisely why the change has been made to allow 24 weeks.I am paying my employees with 60% of the funds and that will not take 24 weeks to deplete. I am paying my utilities with the other 40% of the funds ( this split is the new rule)I am counting on following all the rules so that the loan will be forgiven and becomes a grant.
This is a gift.
The PPP funds enabled us to bring back all of our full time employees.
I kept all of my staff working at 100% capacity. Receiving the PPP funds helped with the cash flow as many of my clients were closed and were not able to pay my bill. Once the clients received their PPP funds, I was paid. Essentially, the PPP funds bridged the gap.
Yes my company was able to get a Payroll protection Loan. We weren't in the first run but we did get into the second run.
My firm is more affected, because so many people needed help with the application and the explanation of the rules.
I have a public tax practice, and we help people and businesses. So we spent more time in helping others get the loan, than I was able to get tax work done. Hopefully in the long run, all the help we provided will help people remember us, when they need tax or bookkeeping done.
But we helped, because they needed it, mostly.
Patty Scott
xxx-xxx-xxxx PS Tax Specialist, LLC
It's been great for us. We just needed to gap the loss due to the volume we lost due to the pandemic. We've recovered nicely and whatever we owe after the forgiveness will be easily be paid off without much trouble. I honestly am glad our small practice applied for it.