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PIMFEC - 4/8/2020 - Shared screen with speaker view
Steve Bonoff
40:18
please chat in questions
bturbeville
42:01
question(s) on FTE loan forgiveness
krein
43:50
If a company receives this PPP loan, can they just use it for the forgiveness items and put the rest on the side to return to the government when the timers are up?
Dan Neuger
44:41
If you apply for PPP can you still get the $10,000 forgivable bridge loan?
Jay McEvoy
44:53
Question RE: SBA size standards - Do the typical affiliation rules of SBA apply for eligibility for these loans? If you are a subsidiary of a larger organization, do you need to include all the affiliated subsidiaries in your determination of employee count?
bturbeville
45:25
we applied over a week ago for the 10k, has anyone received that loan?
Kevin Finley
45:43
Does the 8 week period start when the loan is funded?
Rick Riesgraf
46:10
Steve has anyone received funds
Brendan Kurvers - CLA
46:40
We have not yet seen any of our clients get the $10k from EIDL
Brendan Kurvers - CLA
47:27
Affiliates rules are complex. Generally the determination of a small business is made at the affiliatedgroup level. So if companies A, B and C are controlled by a PE firm you must aggregate the headcountfor all four entities (PE, A, B and C) and determine if they are still under 500 employees. Generallyaffiliation gets measured based on control, so if PE/VC has a non-controlling interest, no aggregationrequired. Also, while ownership % is a key indicator of control, you may need to look at the operatingagreement or other governing docs that provide control through another means (i.e. voting rights). Thisis a known issue that may significantly limit participation in the PPP and many organizations are lobbyingTreasury to lax the affiliates rules. However, I don't think they have the ability to do that because it isexplicitly stated in the CARES Act, so the Act itself would need to be amended. See compliance guidancefrom SBA on Size and Affiliation Rules (https://www.sba.gov/sites/default/files/2018-09/
krein
47:53
Our bank approved our application, but we are waiting on their paperwork to get the loan going.
Jay McEvoy
48:31
Great explanation on affiliation. Thank you!
Christine Omann
48:32
How long does it take to receive the PPP funds after the application has been submitted?
Brendan Kurvers - CLA
48:40
Dan - we believe so, the only thing to be careful about is that the EIDL funding and PPP cannot be used for the same cost pools.
bturbeville
01:00:23
what are the other parts of that bill that allow for funding of new equipment and other growth opportunities?
Brendan Kurvers - CLA
01:02:01
What are allowable uses of EIDL loan proceeds?Loans are for working capital needs.Permitted:• To support capital needs• Accounts payable• Rents• Payroll• Related BenefitsNot Permitted:• Refinancing long term debt• Pay other SBA Loans• Capital Purchases• Repairs of property• Pay dividends or Distributions to owners or partners
Brendan Kurvers - CLA
01:03:43
PPP restrictions are a bit tougher...
Jan Furcron
01:09:45
Does internet & phone count as utilities
Brendan Kurvers - CLA
01:11:15
That is a good question... the definition is "covered utilities" I am searching to see if I can find some guidance on this
Dan Neuger
01:19:21
Brendan and Rick seem to have a different opinion on applying for both the eidl and ppp. Is there a clear instruction on that?
Brendan Kurvers - CLA
01:21:57
Dan - we have been advising clients to confirm with the lending partners on this.
Dan Neuger
01:22:04
Thank you
beslick
01:25:33
We are going to try to model how to use funds from PPP and EIDL so we use them correctly and maximize the PPP which is forgivable. We have all kinds of questions for example (what are utilities defined as). Do you think anyone will build this kind of a template for doing this along with defining all things to the letter that qualify?
Brendan Kurvers - CLA
01:32:42
Follow up on covered utilities... no definition yet available, we expect to see that this week yet
beslick
01:33:35
We thought the State unemployment office would put the 600 on top of State unemployment by that office if they qualify for it.
Tom Revnew
01:38:16
You are correct. I may have been unclear The $600 is federally funded, but checks coming from the State unemployment.
krein
01:41:39
Thanks to all the presenters. It was very informative.
JasonJ
01:41:53
Thanks to all. Very much appreciated.
bturbeville
01:42:01
great call, thanks to PIM
beslick
01:42:04
Thank you all!!!!
Bill Hedahl
01:42:20
Yeah, Thanks RIck!