If you’re reading this and you know the ins-and-outs of the PPP program in the United States.
What were the rules towards qualifications?
It was for small businesses right?
Did you have to have a certain amount of employees to take part?
Were there any stipulations about businesses having to be a part of an industry direction affected by COVID? (Like personal services) Or could a business have been from any industry?
Also, did I read it right that businesses approved could have their loans forgiven if they could prove they paid 60% or more to payroll?
I’m asking because it’s recently come to light that a lot of exceptionally wealthy influencers, who’s businesses exist only on social media, managed to take PPP Loans last year. Did they discover a legal loophole in the system?
Influencers often set up LLC’s for their YouTube channels and Instagram pages as a means to be able to write off expenses – like clothes shopping – as business expenses. If they’re the sole employee of their LLC, technically speaking they could have taken the $50,000 they got in PPP, paid themselves as their only employee, and the loan will be completely forgiven because they paid payroll with it. Or could they potentially have to pay it back?
Essentially, for Influencers (people who make 6 and 7 figures already and exist in a digital sphere that wasn’t affected by COVID at all), the PPP was just free money in their pocket?
I’m just really curious about how this system worked. If they made $800,000 in 2019 and their income stayed the same, or grew in 2020 thanks to the pandemic, would they have to pay it back?
Thanks to anyone who’s able to help with clarification!