Q&A Thursday with SBDC Business Advisors - Shared screen with speaker view
Jennifer Boutin, Maine SBDC
Good afternoon everyone! Please use this chat feature to submit your questions as we go along.
Sheryl Peavey
so the EIDL advance isn’t a “grant”?
Jennifer Boutin, Maine SBDC
It is a grant! :)
Jen Elkins
My understanding is its a grant but if you also get the PPP then the EIDL amount you got will be deducted from the PPP amount that is forgiven... is that correct?
Benjamin Metzger
Scott Cowger
We applied right away and received an EIDL advance, and we are a non-agricultural business. Will we still be eligible for additional EIDL loan funds?
Catherine Bilodeau
Have the interim rules been updated to allow an increase in PPP loan amount for a seasonal business that was calculated based on payroll rules prior to April 30?
Benjamin Metzger
do part time employees count towards the head count for ppp forgiveness, separate from percentage of funds used for payroll? I'm on track to pay three same payroll, but we had one part timer who we aren't bringing back, vs 10 fulltimers.
Benjamin Metzger
typo, try again.
Benjamin Metzger
do part time employees count towards the head count for ppp forgiveness, separate from percentage of funds used for payroll? I'm on track to pay the same payroll, but we had one part timer who we aren't bringing back, vs 10 fulltimers.
Jen Elkins
For what its worth, when I applied for the PPP I counted a part timer in the head count because there was nothing specifying not to and I don't believe the "rule" had been made yet.
Benjamin Metzger
same here. but all literature I've seen since mentioned full time head count, but didn't specifically exclude part time. but some businesses are mostly part timers. and what if you replace two pt with one ft?
Summer Allen
So should we essentially subtract the EIDL amount from the total PPP and not spend that?
Sheryl Peavey
So, because we received no correspondence from EIDL, how on earth do we return it?
Benjamin Metzger
the eidl grant willl effectively be a 1% 2yr loan if you get ppp
Catherine Bilodeau
If we keep the grant in a separate account and don't spend it until after the 8 weeks ends for the PPP ends, so it is not spent on the same thing, does that still mean the PPP forgiveness will be reduced by the EIDL advance?
Summer Allen
Another aspect I am looking for some guidance on is FTE. In February, I began a big cost-cutting movement and part of that was a plan to cut payroll. So, after this, I laid off one person and they will not be coming back as it doesn’t make sense. I am very confused as to what I will not get forgiven since I don’t want to rehire someone if I needed to cut payroll.
Rayshelly Lizotte
we had someone leave the first week of March, not due to covid-19. that person was counted as one employee. we have hired a part time person to do some of that work but have not been able to find someone with the qualifications to replace them. I was told that it is head count and not FTE, because the hours/total of the PPP funds will still be at least the 75%
Sheryl Peavey
I am just confused about the EIDL/PPP forgiveness mess.
Alison Lane
Rayshelly, you would need to make sure that position has not experienced a reduction in payroll by more than 25%. So your new person needs to make at least 75% of what your old person was making.
rondi nelson
i am a seasonal business and will only start earning in july. i got PPP on May 5. will my wages paid after the 8 weeks not be considered in forgiveness?
Jennifer Templeton
have you heard or do you anticipate a change to using 25% of the PPP money for bills that were NOT incurred during the 8 weeks from when you received the money? meaning can it be used to pay bills owed for march/april
rondi nelson
PS i dont ramp up with employees until july 1~
Jennifer Boutin, Maine SBDC
I think I got through all the questions. Any I missed?
Jennifer Boutin, Maine SBDC
Any additional questions?
Summer Allen
Ok, looking forward to more guidance on forgiveness. Will check in with banker again tomorrow.
Summer Allen
Thank you!
Pauline Dion
Thank You!
Rayshelly Lizotte
we try to do owners draws consistently and for a specific amount. I have created a spreadsheet to keep track of the cost of employees paychecks and our owners draws so that I can know at any point what percentage has been spent on payroll
rondi nelson
thank you VERY much! you are doing a great job!
Sheryl Peavey
Thank you!
Jen Elkins
Yes, thank you!
Jen Elkins
How do we access the recording of this?
Rayshelly Lizotte
Susan Morrison
Nicholas Turner
Thank you!