I have zero experience with business loans but have a family friend in the restaurant industry.
I've read some info on CARES and some details on what the perimeters are in regards to the loan forgiveness but hoping someone could shed some light on some questions.
My understanding from reading what I have is that the company has to apply their loan to payroll up to 75%? But to get loan forgiveness, they have to "prove" what they're using the funds for?
Also, a number of employees are part-time, college kids, servers/waiters, etc. The company my friend works for is requiring those type of workers to agree to working at least 30 hours/week, even though many of those employees were not working that much before all this bc of school, other work, etc.
Would this be something required by the law in proving particulars for payroll? Because what seems to be happening here is:
1. Some of these employees don't want to work 30/hours a week (lazy? College kids? Maybe they're getting unemployment and using the system?) and they weren't working that much normally.
2. If these employees say "no" to the 30/hour a week requirement wouldn't that forgive the business from those employees being impacted in the loan forgiveness? Assuming they haven't been tested positive for COVID or live with someone who has or other ways been impacted by it?
Seems like it gets hairy with part-time workers making $2.13/hour before tips and don't intend to work 30 hours a week. Trying to get clarification on what the law says about situations like this and/or if the company is using best practices in this situation.
This doesn't really impact the person I know. He works well over 30 hours a week and has been grinding it out for a while now. But it's impacting him because folks are refusing to come back to work if they have to 30+ hours so now he's basically getting destroyed working each with a limited staff.
Any info is greatly appreciated!
I've read some info on CARES and some details on what the perimeters are in regards to the loan forgiveness but hoping someone could shed some light on some questions.
My understanding from reading what I have is that the company has to apply their loan to payroll up to 75%? But to get loan forgiveness, they have to "prove" what they're using the funds for?
Also, a number of employees are part-time, college kids, servers/waiters, etc. The company my friend works for is requiring those type of workers to agree to working at least 30 hours/week, even though many of those employees were not working that much before all this bc of school, other work, etc.
Would this be something required by the law in proving particulars for payroll? Because what seems to be happening here is:
1. Some of these employees don't want to work 30/hours a week (lazy? College kids? Maybe they're getting unemployment and using the system?) and they weren't working that much normally.
2. If these employees say "no" to the 30/hour a week requirement wouldn't that forgive the business from those employees being impacted in the loan forgiveness? Assuming they haven't been tested positive for COVID or live with someone who has or other ways been impacted by it?
Seems like it gets hairy with part-time workers making $2.13/hour before tips and don't intend to work 30 hours a week. Trying to get clarification on what the law says about situations like this and/or if the company is using best practices in this situation.
This doesn't really impact the person I know. He works well over 30 hours a week and has been grinding it out for a while now. But it's impacting him because folks are refusing to come back to work if they have to 30+ hours so now he's basically getting destroyed working each with a limited staff.
Any info is greatly appreciated!
