I had an interesting conversation with a young attorney involved in PPP Loan Litigation. Those are three words that I never thought I would hear together. Think about it.
You have a company that received a PPP Loan. You send in the 3508, get it forgiven, and are on your way. Easy right?
But his law firm has set up an entire division doing nothing but litigation on these loans. So where is the conflict, and who is suing whom for what?
The litigation tends to come in two different categories.
1 – You are a partner in a company and the managing partner mispent the funds so that it now can’t be forgiven. You then sue the managing partner for malfeasance because you don’t want to be on the hook for the loan.
2 – The IRS or the SBA come after the managing partner who misspent the funds on Lamborghinis or whatever . You, as a partner in the company, sue the managing partner because you are now on the hook to the IRS or the SBA as well.
I never thought in a million years with the government passing out free money, that it would turn into manna from heaven for the attorneys.
Let me leave you with this.
Thirty years ago when I started this place, I would see six figure balances in corporate checking accounts about 20% of the time. A couple of years ago, that number had dwindled down to maybe 5%. Now, with all of this stimulus money out on the street, that number is closer to 30% or 40%.
My question is, “What are you doing with it?”
Money has a time value. Many of you may be uneasy with investments, but the dollar you have today is worth less than a dollar a year from now.
Put it in something and make it grow. Find the most boring, broad based bond fund imaginable and turn that dollar into $1.05 in a year. If you’re uncomfortable doing it yourself, pay a money manager to do it for you.
Having your money sit in a non-interest bearing corporate checking account may be doing you a disservice.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
Note that the only professional services provide by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.