PPP Loan for our firm

Technical topics regarding tax preparation.
#21
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seth88 wrote:People are finding out he took a pretty big PPP loan and there are some chuckles and eye rolls behind his back. Did he break the law? In my opinion no but does it look good? Is it a a little embarrassing for him?


I think the risk is there for those who took large PPP loans, or those who are truly prominent in the community. For small PPP loans, few people will hear about them and even fewer will even care. There are rumors about a large private employer in my area who received a near-maximum PPP and they may have a PR problem. I don't think almost anyone who gets a $25k loan has much to worry about.
 

#22
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novacpa wrote:
sjrcpa wrote:
swgordon wrote:Do I need the money? No, not at all.

Yet you certified for PPP that "current economic uncertainty makes this loan request necessary to support the ongoing operations"?


I agree - S Gordon swore under oath - the pandemic injured his business - thus he was entitled to a loan to survive.
Now, admitting publicly, it was not so - is -(in my view) - very damaging to you. Making statements that the real reason you got the Gov't money was to "learn" and to "get back taxes" makes a easy win for a prosecutor.


"swore under oath" ... they make you put your hand on a Bible for these things? Does it need to be a "wet" Bible or can you pull up the Bible app on your phone?
 

#23
IDCPA  
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Last edited by IDCPA on 19-May-2020 1:26pm, edited 1 time in total.
 

#24
swgordon  
novacpa, seriously? LOL. What a joke.
 

#25
ELKCPA  
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swgordon wrote:novacpa, seriously? LOL. What a joke.



Ha ha, yeah that was a little high handed.
 

#26
JAD  
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His post wasn't rude. I'm not sure the same could be said for you two. This isn't FB. He is entitled to his opinion and to post it here. I had a similar thought - he posted, I didn't. But I'll bet that we are not the only two who had that thought. There is no need to call him high handed or his comment a joke. Neither applies.
 

#27
swgordon  
Sorry but that is how I took it. Everyone has their own opinion I guess.
 

#28
novacpa  
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swgordon wrote:novacpa, seriously? LOL. What a joke.


What to Do if the SBA Finds You Did Not Meet the Necessity Element
Press reports have stated that organizations that cannot demonstrate they needed their PPP loan will not receive loan forgiveness. This would mean that they would simply have a 1% loan for two years.

Alternatively, the SBA could, in theory, conceivably demand immediate repayment if it determined a borrower was not eligible to receive a PPP loan in the first place. Finally, the first interim rule reminded loan applicants that “knowingly” making a false statement to obtain a PPP loan could result in criminal sanctions, including fines and imprisonment. Given the lack of authoritative guidance in this area, it is hard to imagine how anyone attempting to be compliant could meet the “knowing” standard for criminal sanctions to be realistically imposed.

You should consult your legal counsel regarding your risk that such sanctions could apply to your organization or its officers, or both.

The Burden of Compliance Is On the Borrower, Not the Lender
The PPP loan program is characterized by shifting the burden of compliance from the lender to the borrower. FAQ 31 specifically states that “[l]enders may rely on a borrower’s certification regarding the necessity of the loan request.” Thus, lender approval of the loan is not useful for the purpose of satisfying the good faith certification.
 

#29
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I've been quite busy this past week answering questions regarding applications for PPP and now recently the applications for the forgiveness of the PPP loans. I don't anticipate me billing clients for all the extra time spent while the banks got their 5% fees and telling my clients consult with their accountant. I do use this as another reason to help me justify taking the loan.

When helping a client obtain a PPP this week, the bank told me he did process loans for CPAs so now I don't feel to worried about having my name on a public list with the LA Lakers.

Yes as Kris mentioned, being in a place where we went from one of the lowest unemployment rate to one of the highest unemployment rate due to our tourist dependent economy, there definitely is uncertainty as the trickle down effect will be felt in the coming months as businesses my not come back at all.

I do recall thinking we had a pretty decent cash cushion but did not take into account that we did not pay our 4th quarter estimate; so, our tax due with the return ate into that cushion. That made the decision a little easier to make.

I appreciate those that shared their experience with getting the PPP or not.
 

#30
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#31
ELKCPA  
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swgordon wrote:Sorry but that is how I took it. Everyone has their own opinion I guess.


When I read it I thought it was a not so subtle attempt to make you fearful. I'm always on the lookout for manipulation and we may not be FB, but I see it here in these forums.
 

#32
novacpa  
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ELKCPA wrote:
swgordon wrote:Sorry but that is how I took it. Everyone has their own opinion I guess.


When I read it I thought it was a not so subtle attempt to make you fearful. I'm always on the lookout for manipulation and we may not be FB, but I see it here in these forums.


April 28, 2020

False Claims Act and Other Potential Liability for Misuse of Paycheck Protection Program Loans

https://www.nelsonmullins.com/idea_exch ... gram-loans
 

#33
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With the $2 million good faith “safe harbor”, I wouldn’t worry about it if you’re under that threshold. The government goal is to keep people off unemployment ; if you have any employees , I don’t see how anyone can fault a borrower (plenty of CPA firms laid off employees right away, shame on them).
 

#34
skassel  
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I don't get it, swgordon. In writing, on a public site, you admitted to committing loan fraud. Novacpa is 100% correct. If you actually received the loan(s), you have a problem.
Steve Kassel, EA
 

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