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by mattbeckman 2172 days ago
You can get a $5-10 Million loan for 14 employees at a nail salon?

https://pppreport.org/company/snappy+nails+s+p+a+9+inc

Damn.

3 comments

Even more ridiculous, they reported it was for "Investment Advice" on the claim: https://www.naics.com/code-search/?naicstrms=523930
According to D&B they have 10 employees and an annual revenue of ~$183,858, although I do not know how accurate that is.
Worth noting that they will owe this back unless they can show it was used for payroll purposes.

How they got that much money in the first place is a definite mystery though.

What if they go bankrupt after generously paying employees?
That would be considered "mala fides" and the court would likely hold the officers/directors liable for the loan amount. Also, prior to filing for bankruptcy any attorney worth his spit will advise his client to fully repay or continue paying obligations to the US government. US government-backed loans are very difficult to completely discharge in a bankruptcy.
perhaps it encoded in the PPP law, but I wonder if this could be sidetracked by bookeeping, using PPP money to pay people, and investing that money you would have used toward R&D or something.
Of course. That's what the huge scandal is about. $Billions going to wealthy political insiders who don't need it to pay furloughed employees.
How does this actually work? Is this effectively "Free Payroll" for a few months or is it more complicated than that?
It is, yes. If you keep the same headcount and use at least 60% of it for payroll (not exactly clear how you prove that since money is fungible), it is essentially a stimulus check
It shouldn't be too hard to prove. Every time a company writes a payroll check the government knows exactly how much it was for and who got it. Seems like simple math.
Yes, but an entirely different branch of government is who knows about it. Don't overestimate the ability of two disparate departments of an extremely large organization to communicate with one another.
Simple math, except it might take years for them to compute it... That's why you generally want to keep your tax records for at least 3 years.
It depends on the salary levels from last year.
So... last year's average salary was $357,142 per employee? :)
That must be what they claimed I guess
Salaries are capped at 100k