So my boss has been working on getting SBA loan and he just texted me to call him. He may be just checking in, we talk weekly. I'm thinking he may have gotten the funding, this is where my question leads to.

I'm interviewing for a new job, I don't want to accept a new job and take money from him if it's not going to be forgiven. A quick Google search says that in order for it to be forgiven the business needs to keep same head count as they had during a look back period.

I don't want to cost him money as I also consider him a friend, nor do I want to repay any money he pays me. He's also a hot head and I'm afraid I'll burn a bridge if I leave during these times, I'm one of his key employees and my skill set is extremely hard to replace, it could take months.

Normally I wouldn't care and do whatever is best for me, but this is a very small business (~15 people) and I don't want to harm him or burn a bridge.

Anyone have any idea how someone resigning would affect the business, or the employee?

quote:

Anyone have any idea how someone resigning would affect the business, or the employee?

It could touch on rules related to:

1 minimum employment level/rehiring
2 how the business meets the req that 75% of their loan forgiveness must be from payroll

But there’s nothing directly related to resignations in the rules and there’s also no requirement that you have to spend payroll on the same people during the covered period that you had before. So you could fire your whole staff (or they could all resign) and if you rehired within the rules and spent 75% of your money in the covered period on payroll you could still have it forgiven.

Agree. he can always hire another employee to wash his car in the worst case.

quote:

Originally posted by esdunbar:
Agree. he can always hire another employee to wash his car in the worst case.

They will not earn what I do, would that matter at all I'm one of his, if not the highest paid employees.

You would be doing him a favor.
He would get a substantial amount based on your salary and then only have to pay a portion of it back at 1% interest.
I think you would be doing him a favor as to the PPP program if you left.
That is totally aside from anything else you guys do for each other which is not being considered.

quote:

Originally posted by Timdogg6:
You would be doing him a favor.
He would get a substantial amount based on your salary and then only have to pay a portion of it back at 1% interest.
I think you would be doing him a favor as to the PPP program if you left.
That is totally aside from anything else you guys do for each other which is not being considered.

Are you saying if I left and he replaced me with someone getting $10-15k less per year he'd be better off since he keeps the head count and either gets 'free' government money or negative net rate loan for other expenses?

Chances of him replacing me with a comparable person are next to zero, I know, because I train all the new guys. I'm not trying to toot my own horn, but money aside he's losing a giant asset. Either way he'd take it personally, both as a friend and as a loss to the company.

Good news was he didn't mention and I didn't ask about it. I am not really comfortable taking 'free' money. I'm not destitute and it sickens me the money we are printing/borrowing to pay for these programs. It should only go to those that need it to keep their house/car. It's silly for me to think that when everyone else is out there with an outstretched hand, but I don't need a safety net, at the same time I hate burning through savings.

Goes against all my principles but at the same time I want to take advantage and not put my self behind on my goals I've been saving for.

Right now, he gets to borrow 2.5x your salary over the next 8 weeks at a very low interest rate. He can spend it however he wants.

If he wants it forgiven, he's got to spend 75% of the money on payroll.

If you walk away, he can either a) return the money later at pretty much a negative interest rate (he's got the money because he didn't spend it on your payroll), or b) replace your headcount with one or more employees and spend the money on their payroll to have it forgiven.

There is no downside for him.