 Hey, good afternoon everybody Tom Stewart here with my partner loose drawer. Hey, Liz And we got a special guest with us today Chad Henry out of out of Houston Chad and his wife Diana run a cleaning business You guys have been at it for for you like the rest of us. You guys have been doing this for a long time, right? Yeah, nothing years quite a while and you've diversified You guys are in pest control as well Yeah, we picked up a pistol about three years ago and loving it Chad has spent a lot of time studying how some of the SBA money's work in the PPP particular and Is built a rather elaborate Spreadsheet that that he's going to be sharing with us today Um, we've got a few people jumping on Give them just all the regulars before we we jump into the to the meaty good stuff I'm so distracted by Chad's hat Did you notice that you can read it perfectly? Yeah That's so bizarre. Normally it would be um backwards because like when I touch the right side of my head When I look at what's on the screen. It's my left side of my head Look, I've reached it on the wrong side, but it does correctly Yeah, isn't that weird though But it's just on the wrong side because I was like going Wait, what's that? It's so weird. Yeah Anyway, so I'm like wow, but I do love your I love your logo Anyway, so I mean it looks nice on your hat too. Thank you. Thank you Exactly Anyway, sorry Tom go ahead you guys were talking No We're talking a little bit about the ppp funds and We actually received Uh, not pp. Excuse me the eidl the idle funds. We actually receive those for For several companies over the last last couple of days and The maximum amount was 150,000 So it does indeed look like that that is is capped at the moment. It was as high as a half a million. I believe All right People that got uh got the half a million They snatched it up pretty quick Yeah They took all the other people's money but 150 is better than nothing right if I'd have told you six months ago that the government was gonna loan you $150,000 and let you pay it off over 30 years at 3.75 interest I don't I don't think any of us would have complained With no collateral and almost no conversation I got the money before I ever even signed anything like this is odd You got the money before you signed the documents Yeah, I sure did it was in my account already. I was like I wouldn't have signed the documents Good point jad you're probably wealthier than I am or Are we guaranteeing those funds in any way personally? That's a that's a point on there that I'm not really sure I mean there's a lot of guaranteed on there as far as your any property or any You know equipment you have You know That's what I saw. I feel like there's I mean you're signing it personally I feel like there is some sort of personal guarantee, but You know, I think the same rules apply that they they can't come take your house Right where you live or maybe even a car So if it gets down to it, you know, what can they take of yours? You know if you go to sell your house, then maybe they can collect from it like If they put a lien on it like the IRS does But I'm not that's a that's a little confusing point. It's not real clear on there And I haven't got any good information But if your business ever got to the point where it couldn't serve us $150,000 alone with a 30 year am what is that like a car note? If it ever got to the point where it couldn't cover that There probably wouldn't be anything there to worry about from a business standpoint anyway Yeah, I mean you're only talking like $750 Yeah, only it's $750 Because that tells you kind of where we are with things doesn't it right? It's true, it's true Yep, great. You're right 10,000 advance required. No signature But I had a I had an hour and a half long meeting today with a An HR expert that gave a lot of clarity to you know, just some of those those sticky questions that are like Yeah, but what if You know, what if this really bizarre scenario or what if this bizarre scenario and the thing I walked away with was listen Don't knowingly break the law Do your best to follow the parameters Note everything that you do and why just have a good reason for what you're doing And if you want to reference any information that's currently available Copy and paste that and save that because it might change So you want to show why you made your decision? I was like, well, that's pretty good. I like that So there is some businesses and bigger businesses that have taken the PPE that they're asking for the money back And they're actually suing going based on the conditions you laid out I mean, we were valid to take it now you're changing the rules after After we've gotten the loan which is kind of my big fear of taking the ppp and the eidl Is you know, can they change the rules on this in the middle of the game? And they're like, oh now we're stuck, you know Now we we've done this thing based on one set of rules now We have another set of rules that you know, we're going to lose out on So I'm being very careful with how I'm using those funds or trying to be anyways What's your spreadsheet proof? Yeah, right We believe you Well, I know a lot of people are trying to add You know add positions and add jobs and stuff and and we're doing that a little bit that we're comfortable with You know, it's kind of like loaning your family members money, you know, you consider it a gift not alone So, you know, we're not adding any people on that we can't afford to add on or what normally do Um anybody doing this billable that we're normally making money with anyways I'm happy to do it, you know, because I don't at the end I don't want to like give everybody a bonus and hire a bunch of people and spend it all and they're like Okay, you have to pay that back. I'm like, oh, I didn't count on that. I thought I was going to be forgiven So I'm hopeful that it will be Me too I feel I feel confident That it will be if we, you know, follow the basis and the spirit of of the loans I was really questioning. I think everybody struggled in the beginning You know getting the loans, you know, I immediately went out and tried to get loans everywhere Um, because I didn't trust my bank and then I went to chase and I went all these places Of course, they all had restrictions that you already had to have an account Um, so it kind of stopped me and then we found out later, you know The bigger banks were actually more difficult. It seemed like to get the loans at least initially and then my bank actually came through So, uh, what I'm hearing now is that, you know, when it comes comes to the end The bank's the one's going to review it and they're going to either approve it or deny it So now I'm still kind of worried, you know, based on what how are they going to respond? How are they going to evaluate things? So, um But I got a pretty good amount based on the numbers I gave and so I think if I laid everything out nicely for them um and listed it in such a way that it's just Like almost tells them how to how to solve that problem Like how much did I qualify for and they're like this all looks clean? You know, they'll just check me off and I'll move on So I really want to keep everything clean for so I you know all my stuff my eid ls in one account My ppp is in another account And all my transactions from my ppe are coming out that one account So I can just reference it. It's all, you know, classified in my quickbooks And then of course I've got all my receipt documentation for everything Well keeping peace Later this year, I guess we're all going to have to go through the The paperwork to settle that out to figure out how much is going to be treated as a grant and how much of it is Alone that we're going to have to pay back um on the Idol funds, I mean, it's just a 30 year note um Have you heard anything about the reporting requirements on that? I'm I'm just assuming that I'm going to start making a payment Was it six months or a year out six months a year 12 so I'm going to get a bill from uh The sba of the federal government that I need to make some $700 payment every month for the next 360 months Right And I don't you know, I can't I don't know what more They're going to be asking in terms of paperwork on how it's going to be How we're using it or not but at that point You know, I'm just not sure practically what What they'd be looking for they just wants to pay it back, right? Right. Well, I'm specifically says no expansion. So I think if you went out and bought property or bought another business Okay, for the next year 10 years from now. I mean at some point, you know 10 years from now. Are they going to really know or care? No, they're not going to come back 30 years from now. It's okay. Tell me what you're doing with every one of those $150,000 we loaned you Right 30 years ago. Well, you know the calculation of it is based on your gross revenue for six months so um, you know, I'm just going to use it for the next six months and it's going to be gone basically I mean, obviously my profit will be a lot higher because I'm not using Other funds. So my my revenue will keep coming in and I'm using those funds. So it'll be Kind of cleaned up as well my thought there's another word. I don't want to use Not nothing nothing underhanded But I mean, I'll use it for the things I need to run the business and then And then I think the funds will be free and clear, you know But I'll definitely have to check that in six months when it's we have more information Yeah, the rules and we've pulled them up in the past are rather Generous for the for the idle funds. Do you use it for Expenses that you normally have in your business, right? If you got PPP funds, you can use But if you don't you can use your idle funds Seems like you can use your idle from anything if you could use your PPP funds for Plus a lot of other things if you had Or we did this Part of the COVID-19 thing Then the way that we had been interpreting the rules that would be A legit use of those from you Right, you said that but I thought you could not use the EIDL with the ppp At the same time if you didn't get it if you didn't get it You could use it for payroll or whatever My way I write it was you could get both you just can't use it for the same purposes So if you get the ppe that can only be used for payroll, you can't use the idl But that's just that's just how I read it at the time Well before I mean you you you might be right on that We just talking about the idle funds in in and of themselves. It doesn't And again, it's a 30 year note. So If you pay Totally can you guys Eight weeks of the the ppp money you can spend your idle money on payroll. Yeah, I believe so. Yeah In as long as you are, you know, taking a You know buying a ferrari or You know Going to Yeah, you know, I I really just have a hard time managing from a practical standpoint There being any issues with the idle funds given as a 30 year aim. I mean, it's just Five years from now nobody's gonna know those monies are just gonna be part of What we don't Can run your business Right, right. Probably it's the people that don't When start getting critical, you know, if they don't pay that back then they'll start looking into you Yeah, so Pay your bill and and and You're gonna go to anybody Yeah, but now that is not the case With the ppp. So the idle easy peasy, you know, spend your money keep your normal Transactions keep your records. You're good to go but your ppp. No, no, no, you need to keep a really really accurate record It's which actually I think is Why chad you created this awesome spreadsheet that you're going to share with us We have quite a few people on tom too. We probably can have chad chair Let's just jump on Yeah, let me see if I can do that When i'm going to share I have to share the app. I can't share just my screen There should be a bottom that's got like a control bar and one of the options is sheer screen Yeah You see that Not yet Do you have two screens? No, just one Okay If you click on it, it might ask you to select the screen and you might have to click on that. Here you go There we go See that? Yeah, I'm gonna blow it out That's as big as I can make it I'll zoom in too. Okay. Yeah, that's good. Now y'all can't see me. I can eat now, right? Yeah, go ahead and eat So you just walk you through this kind of what I did All right, so I'll kind of back out a little bit. So this is the this is the entire sheet for the eight week period Really zoomed out, but I'll zoom in here to kind of go over each thing Um everything in green basically is I think I need to input Everything in orange is things I need to kind of watch out for And then over here everything in blue is kind of the final final numbers. I need to keep my eye on Well, as some people might know, you know, the the PPE one of the main requirements is you got to spend 75 of it On payroll I think that's just the minimum you could definitely spend 100 of it on payroll But at least 75 percent and then the other 25 percent can be spent on Now I'm calling rue here, which is you know rent utilities interests and some other things So what I basically does is crazy excel sheet where I could put in the date. I got it my understanding is The date the funds hit the account is the kind of the The clock starts ticking for your eight weeks to To use it up Then you put your loan amount in here and for this example, I put 100 000 in and as you can see it kind of breaks up What the payroll should be and the rent utilities if if you were wanting to try to hit the minimum Uh, the last thing I did was this uh EFT, which is your uh effective full-time employment So again, the way my understanding is is they're going to use how many effective full-time employees you have So for example, if you had um 10 employees and I come over here because I actually had a little calculator um if you have Right here, so And I'm going to base this on 40 hours a week, which is again another little mystery I've been reading where a full-time employee is considered 40 and then I've read a full-time employee is considered 30 So with this you could actually put both in and run the numbers But for the day, I'll just say a full-time employee is 40 hours You know say we had 10 full-time employees that were um 40 hours and then we had uh 10 part-time employees And you know, they ran 20 hours. So basically the equivalent would be 15 employees. So even though I have 20 Because of those 10 part-time they are the equivalent of five full-time. So And you do this for two different periods. You do it for um February 15th to june 30th of last year and you do it again from january 1st to february 29th of this year And you put those numbers in and which one everyone's better for you is the one you're going to use You want to find the one with the lowest effective full-time employees? And that's the date range you want to use and all your reporting numbers will be based On that range. So when you file your reports, you know, you want to pull that one I wouldn't even show the other one. I would just show the one that's that's better for you But on this example, it's 15. So I'll come back over here and I entered my 15 in And then basically it's just broken out per week week one through week eight And what's what you see here is again, you're looking at the orange Just kind of tells you what you need to do at minimum to my goal is to spend it all and Kind of maximize my forgiveness. Um, that's kind of why I based it on this So my minimum I have to spend on payroll would be 90 about $9,300 to $9,400 The maximum if I was trying to spend it all would be $12,005 But if I came through here and you know, the just first week, you know, it started off a little rough say we only had $5,000 I'll put that in for my salary my wages my commissions I listed everything that I thought was Acceptable in here and that includes the salary wages commissions cash tips vacations rental and family medical leave that I don't think it does not include the You know the covid medical leave. I don't know the acronym for that. Um, tom. Do you remember that ffcra or something like that? Yep, that's it ffcra Yeah, so I don't think it includes that, you know, if you've got group health care insurance payments retirement State and local taxes. That's all included. I wasn't sure about workers comp. So I put that in there and I'll just put that line in Um, but you know for the keep it simple, I'll just put in that the wages this the first week was $5,000 Because you know, we're just not back up to speed yet. We're not rolling And if you come down here Based on the $5,000 You know, we didn't we didn't really spend as much as I'd hoped So it's going to limit my maximum Payback for or maximum I can use for rent utilities So you can see it's reduced here. So this is actually based on on my $5,000 And you know, I can come in and maybe my rent was 1650 and that's really all I can pay Because I didn't didn't spend as much. I didn't spend this 9,000 here Um, and down further I've listed everything. I think that could be huge. You know, you have your rent water electric gas internet mortgage interest You know, can you use your rent and your mortgage interest? I don't know. I'm going to put it in Because we do claim our home Partial on our taxes. So I'll put that number in Supposedly you'd claim other interests To me, that's you know, any loans you have car payments, maybe Interest on car loans, you know, of course all this all these loans and all this rent has to be dated prior to February 15th of this year So you couldn't have gotten the car or signed a rent agreement after that and include it They didn't want you trying to, you know abuse the system Um telephone mobile phones Here's one that's I'm also questioning. There's a line for transportation And you know, if you go to the irs transportation includes a lot of different things, you know, maybe your car gas insurance maintenance I was reading that, you know, they might just include gas for transportation I have yet to read anything on what that's going to include But I put this in here and I'm going to put these values in and then if I have to adjust it You know the end if you get some more guidance from the sba, you know, I can quickly take those out um, but just just keep going I'll put my My my numbers here for what I spent on You know my I'm calling again. I'm calling it my r ui But if you come back up here to week two The way I built the calculator again, I'm still trying to maximize, you know, maybe I can do some marketing Maybe I can do something to get more jobs and and Use all my funds But since I wasn't able to spend all of it, I'm short about $4,000 on the low ends You can see 9,000 minus 5,000 it's about $4,000 Basically, I recalculated What I have to spend weekly that 4,000 divided by the next seven weeks So you can see them now between 10,000 and 13 five So it's getting a little harder for me to you know, maximize this Because I didn't spend it all But I keep going on week two here And you know, maybe I did good and I you know had some big jobs. You got some covid jobs and I I kind of 15,000 if you come down here you can see um Based on that 15,000 I can spend 5,000 on my rent utilities all this other stuff For me, I'm not going to be able to spend 25 on this stuff Um, I'm just not going to I don't have enough In all of this other expenses to cover it So I'm not really worried about it, but I have the calculation here You know what I can actually spend And you can see going forward a week three My numbers are dropping, you know, because I'm actually doing pretty good Um, you know, I'll just kind of play this out a little further here So the kind of the end just so you guys can see I have to talk about it every week But when you get close, you know, when you get close to the week, you can start looking Uh at your numbers here and like I said in the blue It tells you the amount of total payroll you spent and then you can actually put in Yeah, you know your average forgiveness Once I put that value in and it'll tell you, you know, how much of it will be forgiven and how much Will be forgiven based on that. So that's pretty much it. So I don't know if you have any questions I know I went through it pretty quickly Hey chat how The percent that is forgiven that's based upon the Let's say what what calculation are you using for that? The percent up here. Yeah So it's all based on From 75 to 100 so on a hundred thousand dollars, you know, that's at the minimum 75 of it is 75,000 And I divided that over eight weeks, which ends up being about 90 400. That's the low end And then the high end the most you could spend is, you know, 12,500 over eight weeks Which would be the total 100,000 dollars So that's that's calculating how much money you need to spend in order to Spend all your money The amount of it's forgiven would be a function of How many people you Right, I thank you for pointing that out I actually forgot to mention that so we went through this calculation for your Effective full-time employees in the past was 15 So every week when you put these numbers in and I'm sorry. I have to scroll over here You know, I'd come back to this and every week you have to kind of resfigure out your numbers So maybe maybe I only had five full-time employees and five part-time employees And that we're running 20 hours. So my effective full-time employees was seven and a half So it's half right if I come back over here. I can enter that in here We put these values in and what it's going to do is it's going it's supposed to be averaged over every month But I'm averaging every week. So it should be about the same You put this in every week I'll do that real quick too just to show you All say I never really grew I I was still at half-staff if you come here In my scenario, uh, I spent 110,000 You know, maybe I gave everybody bonuses and and just gave all the money away But I still didn't have the staff I used to have right? So I spent 110,000. I've actually overspent Uh, but based on this and the way this calculation works is it's basically The average of your effective full-time employees for the eight weeks If you could create seven and a half every week Average is this one and a half you divide that by the 15 I had before this all started So I'm only You know, my effective full-time employees are only 50 percent what they were And that's kind of the point of the ppe or the ppp. They want you to bring back everybody So if you don't, uh, the amount of forgiveness gets taken down in this example 50 percent So and that's kind of why I got that close sheet because here like I've already overspent And then since I didn't bring everybody back my forgiveness is 55 percent So or 50 percent. So that only makes the 55,000 So let let's me know really quickly how much I can expect to get back and make sure I'm not overspending Unless we know, okay. Hey, I need to get some more people hired somehow You know, because like I said if I was if I was a little short The first week and the second week then I'm like, you know what I need to get I need to get to 15 Right, that's that's my number But my average is going to be low because these first few weeks So, you know, maybe I need to be getting 16 or 18 people You know, maybe I need to hire some some friends to come in and do some cleaning for me Right. Um, one new piece of information that sounds like it just came out Is how they are figuring out the FTE number or I guess you're calling it the EFT number chat The information I received today is that the You will only do the calculation on your part-time employees So let's say you have 10 employees And seven of them are what you would consider full-time employees working anywhere between whatever is written up right for you anywhere between 30 and 40 It's pretty regularly Agreed on that anything less than 30 is not going to be considered Full-time even though they have not Determined exactly what is full-time at this point. So The recommendation is going by your own manual and what do you consider full-time who gets benefits, etc In your company anybody that is over that you would not add those people into the calculation you would only take the part-time people and figure out What the full-time equivalent is of those people which is very different than what we've been doing in the past And that's taking all the employees. So you're saying if you have 10 employees and seven are full-time That doesn't count for anything They're just going to take the part-time employees and figure out what their full-time equivalent is on three people Yeah, and then those would be added to the So let's say you have seven full-time like we just said and then you have the three part-time employees And let's say that they're each working 12 hours a week That those three people together would equal one full-time equivalent So you would have now a total of eight seven plus the one Okay, yeah, that's what I did Okay, I thought you took the average of all the employees not just the part-times No, no if you look here and again I made it so if we want to adjust it you can to 30 hour weeks full-time But uh, you know in my example I said 40 hour a week And if we have 10 full-time employees And then we had one that was part-time and let's say two that would work 20 hours So you can see it's going to be 11 So it does it takes it takes the full-time employees rich attend and then adds it to the Part-time once I once I've adjusted the full-time. Yes, that's what it does Yeah, oh, that's perfect. Yeah, it didn't I couldn't see that for some reason The way it was before but now it's real clear. Yep. That's awesome And last week we learned that if you have a former employee and you offer them their job back in a decline that then you can count them as I guess a person towards your You know if they were part-time person Previously, can you treat them as a full-time person? I mean, I guess there's still a lot of Fuzzy math and some of that I think that's what makes it hard. I mean especially with the higher turnover You know business like ours where you've got people that come in and they train for one day Or maybe a week, you know, and their hours are all Going to be jacked up, you know versus somebody that like a company that has, you know solid regular employees that have been with them for five years Um, you know, are they going to look at each line item and you know, where's you know, where's jessica at where she Okay, so she's a part-time, you know, how are you classifying her now? And that's that's a lot of detail to look into so I hope I hope not Especially with the number of of loans that are out there Right. That's and that's why I keep thinking and I think uh Megan had mentioned this before as you keep everything really clean You know, these people that are reviewing it. They may not be loan officers I don't know maybe they are but maybe they're you know, maybe they have some guidance on what they need to be looking for And if you can show them really clean looking books that all make sense You know and it doesn't raise any flags that maybe they just like, okay, this this one's forgiven and they just keep keep moving, right? Think about all of the companies that kind of jumped on the You know bandwagon so to speak of processing PPP loans all these You know digital, you know companies from PayPal to cabbage, uh, you know square You know, they don't really You know, they're not like local banks. They're not used to to doing that level of of review and audit and the banks Have real businesses run. I mean, I have a friend who Is with a small with a with a with a regional bank a local bank. I guess you could say And this is killing them. I mean they're processing these SBA loans But they don't have anybody to do real banking the stuff that they wouldn't make their money on On the back end of this this is going to be this is going to be really interesting Yeah, I'm not sure You know, I'm trying to think about what the benefit of the bank is to air on the side of Not forgiveness, right? It's a 1% loan And a lot of times they resell loans anyways, right? They're repackaging and resell them Uh, you know, I don't know if there's much value here, you know So I get like is it better just to get get it off the books instead of how to try to maintain something like this. I don't know Well in two years, it's all going to be gone. Anyway, I don't know I don't even know what the rules are in terms of what they can't do with them but we we are of the understanding that The SBA may challenge some of their assumptions in which case The bank is the one that's going to be losing out Like if the bank says, yeah, it's a grant go ahead You don't have to pay us back and then the SBA comes along and says, hey, wait a minute These guys should Because they don't pull it back. So basically the SBA is the one that's going to be given the bank the money The bank's going to get the money from somewhere, right? So If they the bank says it's forgiven SBA It's not then the bank is the one that loses So the information we got today tom was the opposite That if the if there is a mistake that the all the mistakes go back on the The owner of the company and that's why it's so important to keep your records straight because the banks are pretty much going to be Approving everything that comes along unless they see some kind of a problem that is going to have it kicked back and that's The information we got today was that it just becomes too much of a hassle. They have to manage it But the the monies don't come back on them Okay, well, that's good to know. I mean if you remember a few weeks ago We had we had some articles that were we're speaking to They're actually letters from the bank saying that you know, they're gonna have to be really diligent because they didn't want To say it was forgiven in the SBA and say it Right So this is you know the information changes tomorrow might be something else, but it sounds like this is the newest information coming out as Thursday I mean we're the ones that have to take care of it so but I tell you I I'm sure all the banks are the same but on my bank account They actually created a new account that says loan And would be a loan amount. So it's pretty real that it's a loan at this point Yeah So this is very cool chat I think it would be in all of our benefits if everybody used this exact form All right, I would love it if everybody at bank of america had this form Because that's going to make Everything smooth. They're easier for for the bank as well. It's going to be like, oh, okay They're using the standard form. Awesome. We can trust this information Uh, it's in a better way so I love this form. I think it's great Yes, this is this is an awesome awesome tool Yeah, really is so And where's it going to be tom? Where's this tool going to going to be located? We'll uh, we'll put a link in the cleaning business today Coronavirus dash downloads page. It's not there. Give me give me a day Chad's gonna gonna share this with me. I'll I'll stick it up there for download Okay, so yes, sarah Uh, that's what tom is saying right now that he will be making it available. Chad made it available to all of us Thank you so much chad. I know it was not easy to build A quick video to walk walk you through it so I could give uh, tom that because there's because just sitting I mean I try to make it pretty simple, but I mean there's so many moving pieces It's hard to simplify it more than I have so I have a video that walks you through each piece of what you need to be doing I'm looking for Yeah, perfect. I love the video the video was super helpful too when I first got the spreadsheet. I was like um But then the video made it super easy Yeah, totally simplified it Yeah, everybody's saying thank you. I don't know if you can see the screen, but thank you. Thank you And I think Greg knows you too. You know Greg's fader. Yeah Yeah He was saying the no that was shawndaze was saying be man in the house Liz last friday's call there were a couple of questions that we were going to That you were going to take to your your special guest in your mma group today Mm-hmm. I think one of them was pertaining to calculating the full-time equivalence and How did the June 30 day date tie into that or or does it? Yep, so the June 30th date right now There are two things one is the average over the eight weeks And then also the June 30th date. So they're using both of these. They're not exclusive of each other also because so many businesses were closed and I haven't even been able to open again. It looks like that date's going to be kicked out with the Conversations that they're having right now One thing that is does not look like it's going to change is remember we had talked about You're having conversations about how long you're going to have to keep people employed after June 30th What looks like that's not going to change that it's Once June 30th is done. They're going to stop any kind of Oversight recording as long as they keep that June 30th date again. They might kick it out to July 15th or even July 31st, but As long as we have a date we're not going to have to worry about keeping people employed past that date Can I ask you a question that way? So if you got the funds, I'll just say march 1st Yeah, and you were done with it by April 30th eight weeks That's the eight week period. So they're taking that Or the June 30th. So either or whichever benefits you Yep, they'll take your eight weeks But if you've done because that was so early if you if you got your people up by June 30th That can still be a win for you now They're saying maybe you might not get 100% forgiveness, but you still will get Forgiveness. Oh the language specifically says as long as you're up to 100% by June 30th They'll waive the reduction Is that I mean it says that so So the information this is just the information I got today And I don't know if it's because brand new information came out right because the information keeps changing As they had the solid June 30th, but there's also now a piece about Getting them up by the end of the eight week period So they're not And she she said Twice that they're not irrespective of each other. They don't they don't play in their own little Areas they're they're those two things are going to play together So If you did very poorly over the eight week period in terms of hiring people And then just hired a ton of people on June 30th. You still might not get Your you're 100% right you still might not get your 100 but on the flip side You might be in a better position because you did get all those people up by June 30th They really want you to have everybody employed by June 30th But example you get your money like early march So you go through march april and say you do really great on your fte's And then something happens say that there's a spike and you have to lay people off again And you've got no employees on June 30. You go back to zero I did not I did not hear so So this is a place where it was really she would not commit to anything This is the category You know the rules haven't been written yet We're waiting for guidance. You know guidance. I guess is the operative term for the government hasn't told us right They might just whatever benefits. Hopefully they'll choose whatever benefits you but keep the bonds If in my example if you've got your funds on march 1st, and then april 30th is the deadline for that Say you you know, you'll you hired one employee or two employees or whatever half your staff You can't spend all your money. You're not going to be able to spend it all anyways And so and it's the calculations based on whatever percentage So, you know, even if on june 30th, you go up to 100 percent I mean, okay, they give you 100 of what you spent which was still only 50 of your staff So you got too very kind of kind of fighting each other. So if you don't get your staff up now Um, you know, you're you're only going to be forgiven for what you can run payroll through eight weeks But at that point Theoretically though, you should have all of the monies that you didn't spend in your ppp bank account so you can just You know, right right I don't think anybody was arguing that you need to have a separate account of all the money in there And have it available to be able to give back if you need to be able to give it back for whatever reason and and Her message today was really strongly that yes, you're hiring other people. Yes, you're bringing on Um other jobs like like she's an hr expert. She's like, yes, you can absolutely put me on the payroll for eight weeks She was talking to me because I do one-on-one consulting. Yes, absolutely. Liz. You can get on people's payroll for one-on-one consulting. Absolutely But keep in mind you have to have good reasoning for why you brought these people on Like in her situation, obviously you're bringing on an hr expert because the laws are so hard They're so confusing same thing like with me a one-on-one consultant makes good sense But are you bringing on like a mechanic? Does that make good sense that you're bringing on a full-time mechanic at what's the number? 1923 dollars a week and the mechanics your brother You know, that's going to be a harder sell Even if you have a suite of cars now if you have a suite of 40 cars Maybe you're going to have complete run-through of them because right now you have downtime. You have availability Okay, you got good reasoning on that. All right 1923 a week You could do that for eight weeks for a total of $15,384 But make sure you have reasoning. So can you bring a plumber on your plumber brother-in-law? Can you bring him on a payroll? What's your reasoning? You know, do you have problems with your septic area that you think is going to close you down in six months and blah blah blah Maybe maybe you can then So I was like, okay Yeah, this is still really really tricky, but again her her best practices were Have good reasoning for everything that you do track everything that you spend keep it in a separate bank account and keep within the context of the The spirit of of the wall So the whole point of the loan is you're trying to get as many people Employed and off of unemployment as possible. So keep that in mind all right So I got she had really a lot of good information even though it was It's tricky. No Because there's so I like Leslie. That's right Leslie. What is this? It's unprecedented That's right Leslie We got a question here from sarah too. So mine ends june 8th I'll have to pay them all the average pay Even if my workflow is not high enough to support payroll from the time it ends until june 30th to get forgiveness Oh, the pay can't drop below 75 Yeah, right Is that the pay per hour or is that like weekly wages I think it's weekly wages or pay or hours So normal pay drops And there I thought it was pay period too. So right or whatever your normal pay period is. I thought it would Be based on that So maybe that's one that hasn't been written yet since we're all thinking it's A different thing and nobody's arguing any of those I think all of those would be legitimate reasoning Things to be able to go by. Oh, this was one thing that She talked about that I didn't like at all So let's say that you have to have 75 percent of your money spent on your ppp. We all know that But what if you spend 62 percent? What is the percentage that will be forgiven? That hasn't been written yet So that and that's a scary thing Because you're 60 you've spent 62 percent of the funds not 75 percent of this fund. You might only be forgiven 10 percent I think the way I understand it anyways is the 75 percent is the minimum for forgiveness, right? Right, but that's based on It's based on your numbers So if you're trying to spend 25 000 of that on rent Right, then you have to spend 75 000 which is the minimum for payroll, but if you are only spending 67 000 Well, then that's that's your new hundred percent Right or and then whatever, you know, then you have to back that out 67 percent divided by 0.75 times 0.25 You know, then what percentage of that is your rent and utilities? That's your new total So, you know, so you're not you know the hundred thousand dollar loan There's already going to be a chunk of it three four five thousand That you has to be paid back. So it's going to be based on how much you're able to spend Yeah, out of your example the 62 that would mean that 38 percent was spent on non payroll things You would probably have to I guess on paper Pay that back to the ppp account to get that 38 percent down to 25 percent So you spent a smaller amount of money And that would be the amount of money that they would be And that's what my my excel sheet does if you're not able to spend enough on the bottom It tells you how much you can spend to the rent I love that it shrinks it It shrinks it You can't spend as much on your your 25 percent is smaller too. Right. Oh, yeah Uh, leslie, where do subs carpet window vct etc play into this? I also have a gig worker that I pay quite a bit to but she doesn't want to pay Employee taxes can't sell her on becoming an employee I don't think subs You know contractors none of that You can't use the ppp So if they will Yeah So You I guess You know, you might want to have a discussion Say that if well, I can't hurry. I'm gonna have to find, you know, if you're not one of the work for me as an employee I need to look for somebody else. Maybe that's an option If you have that discussion, maybe they'll change your mind and decide they're okay being an employee And you only need them to be an employee for eight weeks Yeah, it's very short and and I did ask would it be You know acceptable would this be something where you're trying to skirt the law or trying to Sneak Sneak something to take somebody that was initially and we talked about that earlier somebody that was a subcontract You're putting them on payroll for a limited amount of time and then, you know, taking them back off again She said absolutely that is a completely Okay thing to do as long as you have good reasoning which goes back to what I said before plumber Maybe not unless You know, you have a drainfield that you're not gonna be able to operate and blah blah blah blah blah you've got stuff backing up Maybe it makes good sense. So yeah, I have actually a developer that you know, I pay him He has his own business, but I said, hey, I'm gonna hire you for the next eight weeks. He's like, okay So he's he's on payroll right now Say it again chat I said he's work. I mean he's doing stuff legitimately for the business And it would have been in any ways, but I'm just brought him in as employees Yeah, and still playing i'm still doing and she she did say that whatever work that you hire them to do Document it you're documenting everything anyway. So just document why you have this person who wasn't on Anybody that's on your payroll in the eight week period that wasn't on especially that job scope of work Um didn't have them on your payroll before then just document why you're hired them How they're how they're useful to your business and if you get challenged you can always show them the work I was like, well, that's easy Um, there's something else too that was really interesting Okay, so this is interesting um So we all learned last thursday that If you have somebody that's not working Right now for whatever reason they're afraid they don't want to work You need to give them a um something in writing Saying that um you're requesting them come back to work and you have to give them the terms If they decline Then You have two options. You can Say, okay Thank you. Um, we will keep you on our we'll keep you on as a member of the company But we are furloughing you and then you can go hire other people or you can say Okay, excellent. We will accept that as your resignation So if it's somebody that you want to get rid of You can do that. It's a Completely legitimate way to do it. She also tied it to which was really interesting The um no call no show So if you send somebody because it has some writing, but it doesn't need to be certified So let's say you send an email to somebody And they don't respond. They just ghost you If you told them when they have to be back to work, etc And they don't show and it within three three days of that time So that you could go back to your manual of a no call no show I was like, how do you how can you prove that they got it? all you have to do is email is considered a She she gave the term for it But that is um an acceptable form of written communication So I was like, all right And get rid of c players go look for a players But can we bonus employees? Yes. Yep bonuses are Are acceptable. I know we've had a lot of questions about it bonuses I'm uh in our mma group today. We've probably had that question asked six different ways Yeah, but what if I bonus them like this? What if I bonus them in cash? What if I bonus them every week? What if I bonus them at the end? What if I don't call it a bonus? Don't care If you're paying them including in cash that all counts When you're saying cash, so we need to report that and pay taxes right? Yeah, yeah, yeah. Oh, absolutely. Yeah, absolutely But there are bonuses So there is and she explained it There is a type of bonus that you can give the whole amount as a bonus and it gets taxed in a different way Don't know what that is. We didn't get into that Oh We're getting down to uh the last several minutes here. Liz. Do we want to uh, it's late Yeah, time flies time flies All right, Chad, we're gonna just like be showing all of the really boring stuff which you're welcome to stay for but Okay, good So tom is going to show the link to clean business today If you're not a member be a member and oh first you're going to do modern cleaning. Okay. This is good So uh all of the different programs that are going on right now. You guys know there's a ton of different stuff um The one that is going on right now that is kind of the big one is the phc program the professional house cleaning program I'm an air cloth One that we launched several weeks ago. We still have people signing up every day for this if you you really You really need to take this three hour course right now if you're out cleaning homes today and in a covid 19 world it's um, it's like I said, it's three hours. It's relatively quick to get through and It's everything that you need to know specifically about covid 19 as a professional house cleaner talks about the pp Proper bed painting techniques. It talks about how disinfectant work. It talks about how you keep yourself Keep your clients safe. It's kind of a condensed course specifically on on that um The other course that Elizabeth's mentioning that we just launched my friends day is a much more comprehensive broader It's a bigger investment. It's like it's going to be like an eight hour course But by the time we're done with it the first program the first class rather Is out there in this uh program through seven classes in total the other six will be Rolling out over the next several weeks. I'll all be out by the by the end of may so I'm giving you links to Because of my team class as well as the professional house cleaning program. We'll work on the phc program Oh, sorry Tom go ahead All of these are designed for house cleaning technicians So, I mean if you're a business owner It's stuff you need to know too But you know, we don't have a lot a lot a lot of programs have a lot of stuff in them that if you're not a business owner It really doesn't even make sense for you to hear it. That's not what this is This is made for the professionals that are cleaning homes every day Go ahead. What were you saying? So what I was going to say is you can't really see the pricing on here you guys on the covid 19 Course that's the two different courses 45 minutes each one or no hour and a half each one That is 39 dollars for One person and then there is both pricing that's on the right hand side that blue little You can get it for like half of that price if you buy a quantity up as much as 50 And that's the button on the right right and The price on the pac class is 99 dollars, but again, it's got discount pricing up to 50 percent off if you buy up to 50 Let's be clear that 99 dollars is for all of the classes you guys it's not for each individual class It's for the entire program No, linda each module doesn't get a separate certificate. There are Learning objectives. What are you calling them again tom knowledge knowledge checks? knowledge checks After each class But you don't receive the certificate of completion until you've actually completed the entire course That's an important point though because each class the covid class as well as the phc Has a certificate of completion at the end after you uh complete the Yeah Uh, and on this one tom. I see there's only One purchase now button when you open that up. Do you have the two options for one class or for bulk? Well, this is set up a little bit differently. All these purchases are through the shopping cart Okay, so you just plug in If you want one you can plug in one and do update Is the price 99 dollars if You plug in a tenon and do an update. I give a math for you Where It would be But you get Which is like a hundred and fifty something down to 841 Okay, awesome. I love that. I like that. It's easy. You don't have to put any discount codes in or anything That's super nice. Where's the first discount at five or six? Six, okay So if you have five employees by six because you have 90 days, is it tom? Yep 90 days to get them used to be able to Apply them to different people and and how those people take take the course Uh, okay, if you guys have any questions about that, let me know otherwise That's it tom already did show put the link up for cleaning business today But you're going to show us where we can find all of Chad's resources Yep Subscribe to cleaning business today and We've got a link. I will share with you here that If you don't You don't But these are all of the resources that we've shared since we've been doing the uh smart business And I will be I will be loading Chad's spreadsheet here for download And we can't really see where it's going. You're gonna post post that link as well It'll be it'll be it's chronological order So it'll be right down here below this This guide I mean the link to this page with all the all of the It's right here It's Right where oops Right there Okay, so Oh, I for some reason I thought it was in something that said corona virus Uh, oh This is weird Misfire on my part. Excuse me Okay, we've been doing this for how long and finally made a mistake First time you guys all know tom never makes mistakes, right? There we go. That's what I was looking for Because I don't want us to get off this call and we're gonna have four million people saying Chad's Information is not on there And and you guys give us a few minutes. Chad you haven't sent it over to tom yet, right? No, and there's two things look for both things one is the spreadsheet and then also He does an instructional video. You're going to want that instructional video After you get off this call, you're gonna be like, oh, it's so easy. I can do that Tomorrow you're gonna be like, oh, why didn't I get that video? You gotta give me a little bit of time to do this because I gotta get some help together get all this Set up so it'll it'll absolutely be out by this time tomorrow It'll be sooner than that. But you know, it's not it's not gonna be the next 10 minutes though Yeah, so if you're stressing because I'm already spending my ppp money, you're just gonna have to catch up Yeah, but you'll be able to catch up Thanks so much chad really appreciate it Is there anything else you think that we should know or share or pass on any other tools that Are making it easy for people or easier for people to To to get through this time Uh nothing you guys have been very comprehensive. So I really appreciate you guys's effort and putting all this out there for everybody to To navigate so I mean all the all the resources are amazing. So We're on the edge of that you're kind of leading the way We're just lucky to have a lot of smart friends That are willing to share Uh, yeah, so okay you guys we are up on our hour. We're two minutes over and that's our limit one hour and two minutes So we will be on you tomorrow. Thanks again chat chat So nice. This was great. See you tomorrow five o'clock. Easter. Bye. Bye