So are there any protections in this “Paycheck Protection” provision so that someone doesn’t start up an LLC, hire all their family and friends at say $50k salary, take a loan to pay them all and then have the loan forgiven?
Asking on behalf of taxpayers everywhere.
The business had to be in operation on February 15 of this year. They also have to provide documentation of employees, payroll costs, etc. for the past 8 weeks.
Another cool note, one of the requirements is "To the extent feasible, I will purchase only American-made equipment and products."
Source of all this and the whole document: https://www.sba.gov/sites/default/files/2020-04/PPP%20Borrower%20Application%20Form.pdf
Yes there are protections.
https://files.catbox.moe/vkyahp.jpeg
plenty of people will cheat that program, and if they're not greedy they'll get away with it by just padding people's hours or taking kickbacks
Had to be in business on Feb 15th, The app is then run thru banking approval process. Not sure if it is same approval process as regular loan. Banks and SBA are still working out liability and accountability issues. All this as of this morning. Still changing.
Supposedly have to have prior payroll records. Year previous.
Appreciate all the factual answers.