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UNFORGIVEABLE PPP Loans

newmisty

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Been getting bombarded by ads on YouTube talking up the so-called unforgivable PPP loans. Yall seen this?
 

the_shootist

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Been getting bombarded by ads on YouTube talking up the so-called unforgivable PPP loans. Yall seen this?
I don't get to see ads on Youtube

Adblock Plus...worth every penny
 

BeefJerky

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whats a PPP loan

The loans the government made businesses to keep people employed during the pandemic. Paycheck Protection Program. They are mostly forgivable if they were used for payroll and rent.
 

Fatrat

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Fairs is fair, you take a loan, you pay it back...
 

hammerhead

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I know someone whose business got $700,000. Not sure how much he's used so far but he's not worried at all about paying it back. He'll pay the interest until he dies and if the business carries on, the business will continue to make the payments.
 
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newmisty

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Paycheck Protection Program​



The Paycheck Protection Program (PPP) is a $953-billion business loan program established by the United States federal government in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers.
The Paycheck Protection Program allows entities to apply for low-interest private loans to pay for their payroll and certain other costs. The amount of a PPP loan is approximately equal to 2.5 times the applicant's average monthly payroll costs. In some cases, an applicant may receive a second draw typically equal to the first. The loan proceeds may be used to cover payroll costs, rent, interest, and utilities. The loan may be partially or fully forgiven if the business keeps its employee counts and employee wages stable. The program is implemented by the U.S. Small Business Administration. The deadline to apply for a PPP loan was initially June 30, 2020, and was later extended to August 8. The Paycheck Protection Program was reopened on January 11, 2021.
Economists have found that the PPP did not save many jobs and primarily aided businesses that were not at risk of going under.[1] They noted that other programs would have been more efficient at strengthening the economy.[1]

CARES ActEdit

Main article: Coronavirus Aid, Relief, and Economic Security Act
The Paycheck Protection Program was enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). All of the Paycheck Protection Program's original $349 billion was allocated between April 3 and April 16, 2020. The Small Business Administration stopped accepting new PPP applications on April 16, 2020.[64][102] $342.3 billion was for PPP loans, and $6.7 billion was for lender reimbursements for processing loan applications that were approved.[be][102] Between April 3 and April 16, 2020, there were 1.7 million loans made, and 4,975 lenders approved loans. The average loan amount was $206,000. Of all loans, 74 percent were for $150,000 or less.[102] Businesses in the construction industry received 13.12 percent of the total of loan amounts, the largest percentage of any classification. The next four highest classifications were professional, scientific, and technical services with 12.65 percent; manufacturing with 11.96 percent; health care and social assistance with 11.65 percent; and accommodation and food services with 8.91 percent.[102]

Paycheck Protection Program and Health Care Enhancement ActEdit

Main article: Paycheck Protection Program and Health Care Enhancement Act
On April 21 and 23, respectively, the Senate and House passed the Paycheck Protection Program and Health Care Enhancement Act to add $320 billion of funding to the PPP.[104][105] President Trump signed the bill into law on April 24, 2020, which allowed the Small Business Administration to accept applications again on April 27.[65][106]

Paycheck Protection Program Flexibility Act of 2020Edit

The Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) amended the Paycheck Protection Program.[107] Loan forgiveness was expanded from eight weeks of eligible costs to the 24 weeks or December 31, 2020, whichever is earlier; alternatively, a business whose PPP loan was made before June 5 may opt to use the eight-week period instead.[82] PPP loans made on or after June 5 must have a minimum term of five years, rather than two years.[82] At least 60% of the loan forgiveness amount must be for payroll costs, rather than 75%. The safe harbor provision that loan forgiveness will not decrease if the business rehires employees and restores wage reductions by June 30 is extended to December 31.[82] Loan forgiveness will not decrease if the business was unable to rehire its employees on February 15 and is unable to hire similarly qualified employees by December 31.[82] Loan forgiveness will not decrease if the business is unable to return to its previous level of business activity due to compliance with requirements or guidance from the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration between March 1 and December 31, involving COVID-19-related standards for worker safety or customer safety.[7] The deferral of principal and interest payments was extended to the date that loan forgiveness is remitted to the lender or, if the borrower does not apply for loan forgiveness, ten months after the end of the covered period.[8] Employer payroll tax deferral is allowed even after loan forgiveness is approved. PPP loan proceeds are required to be spent only on allowable costs during the eight- or 24-week covered period.[9] Rep. Dean Phillips (D MN) introduced the bill on May 26. The House of Representatives passed the bill by a vote of 417–1 on May 28.[108] The Senate passed the bill by voice vote on June 3.[109] President Trump signed the bill into law on June 5, 2020.[110]

Deadline extensionEdit

On July 4, 2020, S. 4116 was passed, extending the application deadline from June 30 to August 8, 2020.[111]

It was introduced on June 30 by Sen. Benjamin Cardin (DMD), and the Senate unanimously passed it.[112][113] The House of Representatives passed the bill by unanimous consent the following day.[114] President Trump signed the bill into law on July 3.[57] As of June 27, $519 billion had been allocated to PPP loans, and $140 billion remained available.[115]

On March 30, 2021, President Biden signed a bill to extend the deadline to apply for a PPP loan to May 31, 2021.[116] The bill also stated that the Small Business Administration would have 30 days from the application deadline to process PPP loan applications.[116] As of March 30, 2021, $82 billion of unallocated funds remained.[116]

Proposed amendmentsEdit

Rep. Pramila Jayapal (DWA) proposed the Paycheck Guarantee Act. Rather than having businesses take a private loan that may be forgiven after the fact under certain circumstances, the Treasury Department would reimburse businesses for employee salaries and benefits for three months or until consumer demand increases.[117]

Rep. Nita Lowey (DNY) introduced the Heroes Act, which would extend the period that PPP loans can be made from June 30 to December 31, 2020.[118] It would expand loan forgiveness from eight weeks of eligible costs to the 24 weeks or December 31, 2020, whichever is earlier.[118] The bill would include eligible interest costs in the debt forgiveness calculation. It would lift the requirement that at least 75% of the loan forgiveness amount must be for payroll costs.[119] Employers would be allowed to use PPP loan proceeds for personal protective equipment and other safety items for its employees, and those costs would be part of loan forgiveness.[118][120] Each local television, radio, and newspaper company would be eligible to apply separately, rather than together as an affiliated group, if they are otherwise eligible.[121] It would expand eligibility from 501(c)(3) and 501(c)(19) nonprofit organizations to all nonprofit organizations that are tax-exempt under Section 501(c), although certain politically active 501(c)(4) organizations would be ineligible and compensation of registered lobbyist employees would not be allowable payroll costs.[122] PPP loans would have a minimum term of five years, rather than two years, allowing businesses additional time to repay the loan. It would make a business ineligible for a PPP loan if an owners has been convicted of a felony of financial fraud or deception within the previous five years. The bill was passed by the House of Representatives in a vote of 208–199.[123]

The Prioritized Paycheck Protection Program Act would allow some businesses to be eligible for a second PPP loan. Eligibility would be limited to self-employed individuals and businesses with 100 or fewer employees, and who have experienced a greater than a 50% decrease in revenue compared to recent quarter. Publicly traded companies would not be eligible for a second PPP loan. Businesses with multiple locations that are in the hospitality and lodging industries would have a limit of $2 million for all locations. A portion of the appropriation would be for businesses with fewer than 10 employees and businesses in underserved and rural communities. On June 18, Sens. Benjamin Cardin (DMD), Chris Coons (DDE), and Jeanne Shaheen (DNH) introduced the Prioritized Paycheck Protection Program Act in the Senate, and Reps. Angie Craig (DMN) and Antonio Delgado (DNY) introduced the bill in the House of Representatives.[124][125]

In June 2020, U.S. Senators Rob Portman (R–OH), Ben Cardin (D–MD), James Lankford (R–OK), and Cory Booker (D–NJ) introduced the PPP Second Chance Act to allow people with criminal records to apply for PPP loans for their small businesses.[126] Under existing PPP rules, the business owner cannot have been convicted of a felony within the past year.[127]

Senators Marco Rubio (RFL) and Susan Collins (RME) introduced the Continuing Small Business Recovery and Paycheck Protection Program Act on July 27. Under the Act, a business would be eligible for another PPP loan under certain circumstances. The business would need to demonstrate that it experienced at least a 50% decrease in gross receipts either between January 1 and March 31 or between April 1 and June 30, 2020, compared to the same days in 2019. The borrower would need to employ no more than 300 employees or meet certain alternative size standards. The second PPP loan would be limited to $2,000,000, and the total amount of PPP and other SBA loans received could not exceed $10,000,000 during the previous 90 days. Publicly traded businesses and businesses incorporated in, affiliated with, or with certain ties to the People’s Republic of China would not be eligible for a second PPP loan. Businesses in bankruptcy would be eligible only under certain circumstances. For each new PPP loan, the Small Business Administration would pay each lender an amount equal to 3 percent of the first $350,000 plus 1% of the amount exceeding $350,000. Businesses with PPP loans of less than $150,000 would be able to attest to compliance with PPP loan regulations in order to receive full loan forgiveness. Other businesses that receive PPP loans of up to $2,000,000 would be able to apply for loan forgiveness by certifying they have documentation of their forgiveness eligibility and will retain them for three years after the applying for loan forgiveness. All businesses would be able to use existing and new PPP loan proceeds for software, cloud computing costs, human resources costs, and accounting costs; out-of-pocket costs from property damage related to public disturbances in 2020; supplies that are essential to the business' operations and purchased based on contract made before February 15, 2020; personal protective equipment and other costs so the business can adhere to the federal government's health and safety recommendations for the coronavirus issued between March 1 and December 31, 2020.[128] In addition, all group insurance costs would be considered eligible payroll costs. It would also expand eligibility for PPP loans to 501(c)(6) nonprofit organizations and destination marketing organizations that employ 300 or fewer employees, that do not receive more than 10 percent of its revenue from lobbying activities, whose lobbying activities do not consist of more than 10 percent of its activities overall, that is not a professional football league, and whose purpose is not to promote or participate in political campaigns.[129] The Act would require a business to disclose to the Small Business Administration if a controlling interest in the business is held by the President, the Vice President, an Executive department head, a member of Congress, or their families. The Act would also appropriate an additional $190 billion for PPP loans.[130]

Consolidated Appropriations Act, 2021Edit

Main article: Consolidated Appropriations Act, 2021
On December 21, 2020, the House and the Senate passed the Consolidated Appropriations Act, 2021, which includes $284 billion in forgivable loans to small businesses via the Paycheck Protection Program.[131]

The Act restarted the period to apply for PPP loans, added $284.5 billion in funding for PPP loans, and it allowed certain entities to apply for a second draw of a PPP loan.[132] The Act also opened eligibility to certain 501(c)(6) nonprofit organizations.[133]

The Act also added to the types of allowable expenses of PPP loan proceeds. Allowable expenses now include operating expenses, defined as business software or cloud-computing service that helps business operations; product delivery; service delivery; payroll; human resources; sales; billing; or accounting or tracking of supplies, inventory, records, and expenses.[133] Allowable expenses also include out-of-pocket costs from property damage, vandalism, or looting resulting from public disturbances that occurred in 2020 that were not otherwise covered from other sources.[133] Allowable expenses also include expenses to protect workers, such as air-pressure ventilation systems, filtration systems, physical barriers to ensure social distancing, a drive-through window, an expansion of business space, health screening, the purchase of personal protective equipment, or any other expenditures to adapt the entities' activities in order to comply with government-issued COVID-19 safety guidelines.[133] Allowable expenses also include the cost of essential supplies for its operating activities, made pursuant to a contract in effect prior to the beginning of the loan period.[bf][133]

The Act stated that entities that received a PPP loan of less than $150,000, rather than $50,000, would be eligible to use a simplified one-page loan forgivess application.[134][92]

The Act expanded the definition of allowable payroll costs to employer-sponsored group life insurance benefits, group disability insurance benefits, group vision insurance benefits, and group dental insurance benefits.[134]

PPP Extension Act of 2021Edit

On March 11, 2021 the bill, H.R. 1799 PPP Extension Act of 2021, was introduced in House of Representatives during the 117th Congress. The bill extends the covered period of the Paycheck Protection Program from March 31, 2021 to June 30, 2021, by amending the Small Business Act and CARES Act. It passed the House on March 16, 2021 in a bipartisan vote (415–3).[135] It passed the Senate on March 25, 2021 in an also bipartisan vote (92–7).[136] The following day on March 26, it was signed into law by President Joe Biden.

Criticism of recipientsEdit

By June, 4.5 million businesses had received over $500 billion of taxpayer money, but the exact identities of the recipients were unknown, as Steve Mnuchin said that this was "proprietary" and "confidential." Additionally, although the Government Accountability Office had requested information about the loans for oversight purposes, the Small Business Administration was withholding the information.[137]

On June 11, Treasury Secretary Steve Mnuchin told the Senate Committee on Small Business and Entrepreneurship that PPP loan recipients' names and loan amounts were confidential and would not be publicly released.[138] Eight days later, the Small Business Administration and the Department of the Treasury said that it would release the names, addresses, and other information about recipients of PPP loans exceeding $150,000 each. Each recipient would be listed with a dollar range of the loan amount. PPP loans of $150,000 and less would be disclosed in the aggregate.[139] On July 6, the Department of Treasury posted the data to its web site.[140][141]

A lawsuit was filed by several press organizations within the United States District Court for the District of Columbia in May 2020 seeking exact details of the PPP loan applicants beyond the information posted by the Small Business Administration. In November 2020, Judge James E. Boasberg ordered a preliminary injunction in favor of the press, requiring the SBA to publish the full names, addresses, and precise loan amounts of the PPP recipients by November 19, 2020.[142] The data was released to the public on December 1, 2020.[143] According to data from November 2020, 87 percent of PPP loans were for less than $150,000.[144]

Racial disparities have been reported among recipients. In July 2020, a National Geographic article, citing the Center for Responsible Lending, reported that 95% of Black-owned businesses and 91% of Latino-owned businesses were unlikely to receive loans because they were very small businesses with few employees and because they did not have existing relationships with banks. The article also said that 41% of Black-owned businesses had already closed permanently while only 17 percent of white-owned businesses met this fate.[145]

At least 100 PPP loans were made to businesses without business names.[143]

Loans made to politicians and their familiesEdit

Some PPP loans were received by businesses owned or run by members of Congress or their spouses.[146] On 16, Politico reported that this included Reps. Susie Lee (DNV), Debbie Mucarsel-Powell (DFL), Roger Williams (RTX), and Vicky Hartzler (RMO).[146] Three weeks prior, Dean Phillips (DMN) had introduced legislation to require public release of the name of many of the recipients of PPP loans, but enough Republicans voted against it that the bill did not pass.[146] Lee and Muarsel-Powell had voted in favor of public disclosures while Williams and Hartzler had voted against public disclosures.[146] Ordinarily, an application for a Small Business Administration by a business owned or run by a member of Congress or their immediate family must be reviewed by the Standards of Conduct Commissions before the loan may be approved, but the Small Business Administration had waived that requirement for all PPP loans on April 13.[147]

The parents of White House Press Secretary Kayleigh McEnany received $1–2 million for their business, McEnany Roofing, which has 141 employees. The press secretary told Fox News in April 2020 that most loans had gone to "companies with 10 or fewer employees. That is what this program is designed to do, that is who it is helping.”[148]

Businesses with addresses at properties owned by President Trump and advisor Jared Kushner received at least 25 PPP loans totaling over $3.65 million. Of these businesses, 15 reported having no more than one employee each, or they did not self-report how many employees they had. Triomphe Restaurant Corp., at the Trump International Hotel and Tower in New York City, received a PPP loan of $2,164,543, and it reported having zero employees. The business later closed.[143]

Loans made to churchesEdit

LifeWay Christian Resources surveyed Protestant pastors and found that 40% said their church had applied for government assistance through the CARES Act or through the Small Business Administration, and, of those who applied, 59% said they had been approved.[149] The Diocesan Fiscal Management Conference estimated that 9,000 Catholic parishes had received PPP loans, roughly half of the Catholic parishes in the country. Jon Costas wrote in Christianity Today that churches should consider the "socio-economic and social justice issues" of applying for PPP loans, and whether following the rules for the loan proceeds are consistent with religious texts.[150] Through June 30, 2020, over 88,000 loans totaling $7.3 billion were approved to churches.[151] At least 60 churches in Texas received over $1 million each. They included Lakewood Church, a Houston megachurch led by televangelist Joel Osteen, which received $4.4 million; the Archdiocese of Galveston-Houston, which received about $4 million; and the Catholic Charities of the Archdiocese, which received about $4.5 million.[152] A Florida-based company called ASLAN International Ministry received $8.4 million; it appeared that the company never did anything religious, and it was subsequently revealed as no longer maintaining a website nor a physical address.[153]

Loans made to anti-vaccination organizationsEdit

A total of $850,000 in loans was granted to some of the country's most prominent anti-vaccination groups, as well as the medical clinic of an anti-vaccination osteopath. While vaccines are generally considered safe and effective, these groups have been spreading misinformation and conspiracy theories that increase vaccine hesitancy, especially in the context on COVID-19.[154]

The Center for Countering Digital Hate identified PPP loans made to the National Vaccine Information Center, to Joseph Mercola's online business group, to the Informed Consent Action Network, as well as to Robert F. Kennedy Jr.'s Children's Health Defense.[154][155][156][157]

The Tenpenny Integrative Medical Center, which is the osteopathy clinic of anti-vaccination activist Sherri Tenpenny, received a $72,000 loan.[154]

Loans made to other entitiesEdit

Between April 3 and April 14, PPP loans included at least 94 loans made to publicly traded companies or their subsidiaries, totaling $365 million.[158]

On April 23, the Small Business Administration released guidance stating that it is unlikely that a publicly traded business with substantial market value and access to capital markets would be eligible for a PPP loan. Such a business would not be able to certify in good faith that the PPP loan is necessary to support its ongoing operations because of the current economic uncertainty. While a lender does not need to require a business to demonstrate the basis in its certification, the Small Business Administration may do so.[51][52] The Small Business Administration said it would not pursue action against any such business that applied for a PPP loan prior to April 23 and repays the loan proceeds by May 7, later extended to May 14 and then extended again to May 18.[52][159][53] On April 28, the guidance was extended to businesses owned by private companies with similar situations.[160][161]

Several businesses, including Potbelly, Ruth's Hospitality Group, Shake Shack, Nathan's Famous, and the Los Angeles Lakers, decided to repay the loan proceeds.[162][163][164][165][166] Chembio Diagnostics, a publicly traded company, received a $3 million PPP loan that is said it would use to increase its capacity to provide infectious-disease tests, including COVID-19 tests, due to increased demand.[167] On May 4, The New York Times reported that publicly traded companies had returned at least $375 million in PPP loans, based on securities filings and public announcements.[168]

On April 28, Treasury Secretary Steven Mnuchin said that the Small Business Administration would do a "full review" of each PPP loan exceeding $2 million.[169] Treasury Secretary Steven Mnuchin warned that businesses would held be "criminally liable" if they receive a loan exceeding $2 million and do not follow the rules.[170]

On May 13, the Small Business Administration said that any business that, together with its affiliates, received a total of less than $2 million of PPP loan proceeds will be assumed to have made the good-faith certification of need in good faith.[53] If the Small Business Administration determines that a business "lacked an adequate basis" for certifying the necessity of the PPP loan, the Small Business Administration will request business repay the outstanding PPP loan balance, and the business will become ineligible for PPP loan forgiveness.[53] If the business subsequently repays the loan, no further enforcement actions will be taken on the matter.[53]

On May 5, the Small Business Administration said that PPP loans received by nonprofit organizations are not considered federal financial assistance, are not subject to audit requirements under Uniform Guidance, and need not be included in the organization's Schedule of Expenditures of Federal Awards.[171][172][173]

After the riot at the U.S. Capitol on January 6, 2021, it was noted that at least one of the people who had stormed the building had been granted a PPP loan: Richard Barnett had been granted $9,300 on April 14, 2020.[174][175

OversightEdit

Acting Pentagon Inspector General Glenn Fine was named the chair of the committee that oversees how the PPP loans were administered as well as the rest of the funding from the CARES Act. On April 7, 2020, four days after PPP loans began to be made, President Donald Trump removed Fine as head of the committee.[176]

 

newmisty

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Dr. Rand Paul Questions Planned Parenthood Access to PPP - March 24, 2021​




“You Will Not Answer The Question”: Rand Paul Grills Biden Nominee In Tense Exchange
 

Dude

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The PPP saved a bunch of businesses, including ours. 30 million of billing was cut to 40% due to corona. 5 figure bonus and pay raise did not survive but I still have the job and the business is at 80% of normal billing last month.
 

anywoundedduck

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The PPP saved a bunch of businesses, including ours. 30 million of billing was cut to 40% due to corona. 5 figure bonus and pay raise did not survive but I still have the job and the business is at 80% of normal billing last month.
Still alive, but losing ground fast. Business is only 30% of what it was before the lockdown. Sucks!
 

gringott

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In case you haven't figured it out yet, what is going on with all this bullshit is what was promoted by Shalom Bernake back in the day.

HELICOPTER MONEY.

They have been throwing digits out there left and right and they obviously don't give a shit about fraud.

How could somebody collect unemployment in Ohio using my personal data, when I have exactly ZERO history in Ohio, work or otherwise?
OBVIOUS PERMITTED FRAUD.

I was on unemployment in 2003. The control measures were very strict, they didn't pay for over a month, their mistake, they admitted it, sorry no back pay. Had to go in all the time and also do a once a week telephone call from home phone, plus look for work and report where I looked.

But in Ohio you just need a name and SSN I guess, and an out of state address is fine. Seems no actual ID is needed.
 

newmisty

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Im being absolutely inundated with these ads
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newmisty

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