6 ms·

I’ve been wondering if something will act as a catalyst for social unrest, starting on a small scale, and wonder if the PPP could be a tipping point. There hav

I’ve been wondering if something will act as a catalyst for social unrest, starting on a small scale, and wonder if the PPP could be a tipping point. There have already been reports of LLCs formed just to get free money for the wealthy and well-connected: https://www.nbcnews.com/business/economy/how-stop-business-loan-program-benefiting-rich-n1185811 https://www.nbcnews.com/business/economy/how-stop-business-l... I hope the above article is either wrong or misleading, but I do worry a tipping point could be hit that gets people out in the streets in numbers far larger than what was seen in Michigan. I sense a growing distress at how bleak the situation is in places like here in Austin where relatively few deaths have been reported but countless people with livelihoods ruined. Hopefully I’m wrong, but even having started prepping earlier than most for this lockdown, I’m still surprised every day how much worse things are getting than I imagined.

jedberg 6y ago
I'm not sure how one could form an LLC and get the loan. One of the requirements is that your business had to exist before they started writing the law. I think February 25th was the cutoff but I'm not sure.
- jonathankoren 6y ago
  I imagine that they’re really talking about shell LLCs that people have to do personal things for various reasons, that have no payroll, and perhaps no assets, apply for a PPP, because they’re legally a company.
  - deleted 6y ago
    [deleted]
  - manigandham 6y ago
    If you don't have payroll then you don't qualify for this program. Even if you get the loan, it's not forgiven unless it's used for qualified expenses and at least 75% has to go to payroll costs.
wyxuan 6y ago
Yep. If you invested money into the stock market via an s Corp you can also apply for the money and I've heard the loans go through
- brightball 6y ago
  An s-Corp can invest money in the stock market? I thought only a C-Corp could do that?
  - wyxuan 6y ago
    Oops s & c corps. I know someone who did it using their s Corp

jedberg 6y ago

I'm not sure how one could form an LLC and get the loan. One of the requirements is that your business had to exist before they started writing the law. I think February 25th was the cutoff but I'm not sure.

jonathankoren 6y ago
I imagine that they’re really talking about shell LLCs that people have to do personal things for various reasons, that have no payroll, and perhaps no assets, apply for a PPP, because they’re legally a company.
- deleted 6y ago
  [deleted]
- manigandham 6y ago
  If you don't have payroll then you don't qualify for this program. Even if you get the loan, it's not forgiven unless it's used for qualified expenses and at least 75% has to go to payroll costs.

wyxuan 6y ago

Yep. If you invested money into the stock market via an s Corp you can also apply for the money and I've heard the loans go through

brightball 6y ago
An s-Corp can invest money in the stock market? I thought only a C-Corp could do that?
- wyxuan 6y ago
  Oops s & c corps. I know someone who did it using their s Corp