[NEMDF]

I believe there was no need for repayment, if you used the loan for the purpose specified. Sounds like maybe she didn’t do that. I would guess that, in this type of business, most of her “employees” were actually independent contractors, not on a payroll, and not receiving benefits.

??

[Jane Long]

I was wondering when this carp would start happening, with these PPP loans.

Hopefully, this lady...with the help of the investigative reporter/reporting....will stop this nonsense, stat.

[thesligoduffyflynns]

for sure now the larger institutions who greedily hitched onto the PPE bandwagon will never re-pay one damn dime and most if not all didnt really need it

[McGavin999]

She should have read the requirements before she applied. She doesn’t have to pay back the money immediately, she can get some pretty decent terms at a low interest rate.

[EBH]

A contractor is not an employee. They were not eligible to get a ‘paycheck’ from her.

They were eligible to apply for a PPP loan of their own or file PUA.

[Fido969]

The payback is 5 years at 1% interest. I’m sure she can manage that.

[kingu]

Obviously they were employees and not independent contractors, so forgive the loan, but collect unemployment contributions for all payments she's made to the employees she incorrectly assigned as independent contractors as well as whatever penalties she owes for not offering employee health coverage, workmans comp coverage, etc.

[Red Badger]

Who didn’t see this coming?.....................

[dfwgator]

The Government giveth, and the Government taketh away.

[redgolum]

Small shop owners are typically not the type to know the in and outs of these loans.

We got one for our church, and it worked because a retired group of accountants guarded that money like a a bunch of penny pinching mad men. We even paid some back that we didn’t use.

[StAnDeliver]

"In those instances, the loan continues at the SBA-established interest rate of 1 percent.”

Pay off your nearly-free money, mooch.

[blackdog]

Schadenfreude. Get used to it democrats. The only thing a government can do to help you is to leave you alone.

[unixfox]

I would be willing to bet she spent the majority of money on designer clothes and handbags and other worthless crap that women buy.

[newfreep]

The lovely Amy Yassinger.

Not guilty...but really guilty.

[Bernard]

From the selected FAQ: " Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs."

That is pretty clear to me, but I am a retired accountant and working through employee/contractor issues is second nature. If the business owner asked a bank employee how to sort out which is which, the bank employee should have been well versed in what the difference is.

On the other hand, a lot of small business owners wade through the government forms and make mistakes. The FAQ answer could have stated (as an example) " If you pay somebody on a W-2, that counts as payroll. If you pay them on a 1099, that does not count." That would explain it to more business owners, but probably not every one of them who applied for a loan. If the business owner in the article had called my office, we would have used the 1099 or W-2 example.

Ultimately, the business owner is responsible for the loan and complying with the requirements. Not a pleasant answer, but this time of year accountants with small business clients have to hand out a lot of bad news.

[zek157]

She can always declare bankruptcy and re-start fresh.

[OrangeHoof]

“Just give her the money. The bank can afford it.” < eyeroll >

[Honest Nigerian]

A lot of you posters here are speculating out your a-holes. I will speculate that she broke the law on the PPP. Only distinction is that she didn’t buy a Lamborghini.
Hard luck stories everywhere. Sad, but true.