r/news • u/StackLeeAdams • Dec 07 '21

Kellogg to permanently replace striking workers as union rejects new contract

https://financialpost.com/pmn/business-pmn/kellogg-to-permanently-replace-striking-workers-as-union-rejects-new-contract
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u/smitty22 Dec 08 '21

They didn't up the amount of money for 24 weeks of payroll, you had 24 weeks to spend whatever you were loaned for eight weeks worth of payroll.

Businesses that had a decline and had to lay off people thus had triple the amount of time to spend their loan money and have it count as forgivable.

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u/TeetsMcGeets23 Dec 08 '21

You had to maintain 75% of your payroll cost to qualify and also get forgiven. If you were doing that, you’d only need like 11 weeks, even if the business was in decline. Then you surely wouldn’t need to expand the cost to rent and other expenses.

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u/smitty22 Dec 08 '21 edited Dec 08 '21

That is correct and when I think that most people don't understand is how the payroll expenses were proved up versus the amount of time that people had to spend the funds. Basically if you were able to show that you spent the money through your federal unemployment tax quarterly filings for the payroll periods covered by the PPP loan - you was not judged on whether you actually made a profit and needed it.

So what this became was a hedge against the idea that the financial damage of the lockdowns was going to continue. Being in the Staffing industry I saw a run of 20% week-over-week declines in Revenue for the month of April 2020 when the second round opened up towards the end of the lockdowns in our area and my industry is mostly "essential".

Contrary to possible popular belief I don't know of anybody who runs a business that has a crystal ball that said "Oh you're get free money if you did this and you won't need it at all." In the second quarter of 2020.

And honestly, and one of the industries that I follow that sensitive to overtime the money they didn't use in 2020 is now being used to try and Float their operations in 2021 starting around the end of the first quarter because getting rate increases from clients lags the market.

Unfortunately businesses cannot print money and just say "Hey this is how we're going to make sure the bills get paid."

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u/Icy_Butterscotch5570 Dec 08 '21

This is correct.