How did this happened PPP

[ILLMAS]

 

https://chicago.cbslocal.com/video/5412047-music-business-owner-on-the-hook-for-36000-she-cant-afford-after-mixup-with-ppp-loan-i-feel-that-i-was-misled/

 

[jklcpa]

One of the problems I had with the whole process was that a business had to take the full amount it qualified to borrow according to the data in the application and didn't have the option to borrow a lesser amount.  I had only one client call to ask what the monthly payment would be if borrowing the eligible amount. I'm sure many borrowers didn't consider that and assumed the forgiveness would be an easier process. 

[ILLMAS]

Agree, but just don’t understand how “contractors” status slipped through the cracks, I heard of people getting busted for submitting fake payroll documents, so I am thinking something along the line might of happened.

[ILLMAS]

As I was driving to the office, I am now thinking they applied for the EIDL (received $2,000 forgiven) and the rest was a loan.  Cry me a river, their payment is going to be like $60 a month for 30yrs.

[Lion EA]

I worked with a client very, very early in the PPP process. At that time, the application asked for employees and ICs paid. I think he applied on a Thursday. That Friday the SBA and BoA "clarified" that by employees and ICs, they meant employees only. (The SBA was opening PPP Loans to the self-employed, so they applied for their own loans instead of being included in the people paid by their clients' loans.) For my client, it was no problem as he had lots of eligible nonpayroll costs; and ultimately the 24 weeks instead of 8 meant his payroll costs alone got him total forgiveness.

For that Chicago person, if she had no employees, only ICs, then it's a big problem. And, the PPP loan is not 1% for 30 years like the EIDL. It's only 2 years if before 5 June or 5 years if after; don't remember the interest rate. Payments were deferred for 6 months, but interest continued to accrue.