QB Winery Solutions

PPP Loan with Jeanette and Tyler, Part 4

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If you have received your PPP Loan funds and are now freaking out because you are faced with even more questions than you had during the application phase, then check out the latest conversation that Tyler Willis, CPA and I recorded on Monday, April 18th, the same day that the SBA began accepting applications for the second round of the PPP Program.

  • How do I maximize the forgivable portion?
  • The tasting room is still closed, should I pay my crew anyway?
  • What documents do I need to provide to my bank?

 

 

 USCC PPP Program for Independent Contractors

 

 USCC PPP Program for Independent Contractors

 

Tracking the PPP Funds

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Congratulations on getting this loan. Sadly, many people were squeezed out. The next step is to track the use of the funds so that you maximize the forgivable portion.

Stay tuned for more details, because we are still waiting for clarification of some rules.

Tyler and I had another conversation on Monday, April 27th. You can find it HERE

Also I will post a worksheet to help you track the use of the PPP funds.

In the meantime here are some things to think about:

  1. The 8 weeks will go by quickly, so plan now how you will use the funds
  2. Reach out to your lender to find out what they will be looking for. As we have seen throughout this process, every lender is interpreting the rules a little differently.
  3. Make copies of all bills and checks IRL and put them in a PPP Forgiveness folder. This will save you a giant headache later
  4. Open a separate bank account for these funds and document every transfer out.

PPP & EIDL Updates from the News

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If you have submitted an application and haven’t heard from your bank, congratulations you are now in the Black Box Phase. I have collected and curated articles about the Payroll Protection Program to keep you updated. Read on to find out why you are not alone.

4/23/20 The bill to re-fund the PPP program passed Congress today, and is expected to be official at noon on Friday. Hopefully you have more than one application already submitted, because this round of funding will go very quickly.

4/15/20 Here are the long awaited guidelines for the non-employee businesses (still no updates about the LLCs, however)

4/14/20 Are you looking for a bank to submit your application? Here are some places to look

4/13/20 Treasury.gov

  • PPP FAQ 4/13/20 Update with #22 to #25
  • Nothing useful for the small businesses
  • Nothing yet to clarify the Sole Proprietors, LLCs, and Independent Contractors

4/11/20 Treasury.gov

  • PPP FAQ 4/10/20 Update with #19 to #21
  • The 8-week forgiveness period begins with the disbursement of the loan
  • The loan must be disbursed within 10 days of SBA approval
  •   Treasury.gov 4/7/20 FAQs

4/11/20 US Chamber of Commerce Town Hall on 4/10

  • Town Hall meeting moderator from Inc.com said they are trying to provide help “through this ridiculously difficult time”
  • Listen to the 18 min mark
  • No new information about sole proprietors and independent contractors at this time
  • Submit your applications anyway and get in the queue

4/10/20 8:00 AM PDT North Bay Business Journal

  • A banker (with a smallish bank) describes their frustrations

4/10/20 5:30 AM ET Wall St Journal

  • “Very few business owners have successfully gotten the money”
  • The SBA loan portal is inadequate: “some banks [are] inputting borrower information manually” into the SBA loan portal which takes 25 to 75 minutes per application. The system crashes, and there was along outage last Tuesday.
  • As of Thursday, 550,000 loans worth $141 billion have been approved, but only a small portion has been disbursed to businesses
  • The EIDL program has had 4 million businesses apply, totaling $383 billion, but only $17 billion was allocated by Congress
  • Banks are reluctant to disburse funds because of the confusion over the format of the promissory note. This applies to “all but a handful of banks”

4/10/20 9:59 AM ET Forbes

  • 70% of the 30 million small businesses in the US have applied to the PPP
  • A little over 50% of the small businesses have applied for the EIDL but just 4% have been approved

4/10/20 7:52 am CBS News

  • Interview with owners of a micro-brewery in Maine with production and tasting room who got funded with PPP funds
  • Cautionary tale: Their loan was approved April 6th (the Monday after the rollout) but the bank was forced by the SBA to close all approved loans within 5 days. Unfortunately most of their staff works in the tasting room, which is still closed.
  • The owners had hoped to pick the 8 weeks after the tasting room opened. So most of the funds will not be forgiven.

  • Then we were required to close immediately. If things stay the way they are, we anticipate we will be eligible for very little forgiveness — if any. And that’s pretty upsetting….Before this crisis, we had about 25 people working at Rising Tide. We have laid off all but four of our employees. They are on furlough and we hope to hire them back, but it wouldn’t make sense for us to bring them back at this point because our operations are so dramatically curtailed

 

Office Hours 4-16-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. One-step, Two-step Bottling (3 minute mark)
  2. Online bill pay – QuickBooks Online Vs QuickBooks Desktop (9 minute mark)
  3. QBox Plus – securing a file to specific people & sharing files (10 minute mark)
  4. Bill.com for bill pay (12 minute mark)
  5. Will the PPP be increased? (15 minute mark)
  6. Grapes bills – How do they come out of your checking account (21 minute mark)

 

Silver Club members, please log in to view the recording

Office Hours 4-14-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Virtual tastings – How to turn your events to an online environment (3 minute mark)
  2. PPP & the black box (12 minute mark)
  3. Websites that allow you to submit your PPP application (16 minute mark)
  4. Verification phase of the PPP & medical payments (23 minute mark)
  5. Paypal as a payment processor in addition to Square (30 minute mark)
  6. Costing book & Bottle Runs (32 minute mark)
  7. Cash Flow projections, discounted wines & club runs (38 minute mark)

 

Silver Club members, please log in to view the recording

Office Hours 4-9-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. How to track giving a client a case of wine (2 minute mark)
  2. Final review of Sync with Commerce Review & Square (5 minute mark)
  3. Using Square for a data dump and getting net sales (13 minute mark)
  4. Transaction Pro Importer – push in the data into QuickBooks (15 minute mark)
  5. Quick review of the PPP (24 minute mark)

 

Silver Club members, please log in to view the recording

PPP Application and EIDL with Jeanette & Tyler, part 3

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Tyler (Tyler Willis CPA) and I had our third discussion about the Paycheck Protection Program (PPP).  Listen in to find out why the application phase is the Wild West, and then the next phase, after submitting the application, is a Black Box. Last week there wasn’t enough time to handle all the phone calls and requests for information about the program. And this week we have had to hurry up and wait because the SBA and the banks were overwhelmed with applications.

We discuss:

  • What we learned about the PPP application process (It’s the Wild West)
  • What to expect in Phase 2 (It’s a Black Box)
  • What we know about the PPP for non-payroll businesses (For step-by step details Go Here)
  • Why you also want to apply for the EIDL (For details about filling this out see Part 2)

** Check out this post where I curate articles to keep you updated during the Black Box Phase UPDATES

 

  Treasury.gov 4/7/20 FAQs

  EIDL by US Chamber of Commerce

 

How to calculate Full-Time Equivalent Employees

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To complete the Paycheck Protection Program (PPP) application and to verify that you have retained enough employees, you need to calculate the “full-time equivalent employee.” Here is a quickie video to show you:

 

Here are the steps:

  1. Find the report with the hours for the date range
  2. Count the number of paydays in that date range
  3. Assuming your paydays are every other week, multiply the paydays by 60. Reminder: A full time-employee is 30 or more hours per week. For twice a month paydays, use 65 hours.
  4. Anyone who is salaried or works over the number of hours in Step #3 counts a a full-time employee.
  5. For everyone else, divide the actual hours by the number of hours in Step #3, then add these up. This is the full-time equivalent of all of your part-time crew.
  6. Add Steps #4 and #5 for your total full-time equivalent employees.

Paycheck Protection Program, part 2

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Tyler (Tyler Willis, CPA) and I met again to discuss the evolving Paycheck Protection Program (PPP) and other programs available during this unprecedented period. Here’s what we cover:

  • Why apply for both the PPP and EIDL
  • How to get the applications started
  • Locating a bank that handles SBA loans

Please navigate to these points in the video if you would like to jump straight to these topics:

1:30 PPP – Paycheck Protection Program

18:00 PPP application

28:00 EIDA – Economic Injury Disaster Loan Emergency Advance

31:00 EIDA application (We forgot to mention, on page 3 it asks for your industry. Your answer should match your NAICS from your tax return. A winery would be a “manufacturer”)

37:00 Other programs and options

SBA Website

 Paycheck Protection Program by USCC, April 1 version

 Paycheck Protection Program Application

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