EntreLeadership - Employees Not Coming to Work and Giving Back the PPP Loan

Episode Date: May 28, 2020

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It's an entree leadership theme hour. The panel is Executive Vice President of Entree Leadership, Daniel Tarty. Ramsey Personality, Ken Coleman, our co-hosts for the hour, the entree leadership hour. We're taking your small business questions at AAA 8255-225. Paul's with us in California. Hey, Paul. Welcome to Dave Ramsey Show.

Hey, what's going on, guys? This is my situation out in California. We got a bunch of convenience store owners out here. And, you know, we do what we can for our employees, you know, sneeze guards, face shields, everything. And now what's happening is that with $600 that Gavin Newsom decided to give to people each week, on top of whatever you would get on unemployment, we have employees that are not showing up to work. And we're not firing them. They just start choosing not to go to work, and then they're filing for unemployment.

And over here, there's just the unemployment, the way they're checking it, is so backed up. it's a mess, that what do we do to prevent this from, like, fraudulent unemployment? Because then that money comes out of our pool. Yeah, that's true. Well, it's not Gavin Newsom. It was the Feds. Gavin Newsom is their state. It's a state unemployment.

The Feds gave, came out of the CAR Act, $600 additional unemployment from the federal government until July 25th. And so, I don't know. I think you've got a clogged up bureaucracy. you reporting these folks and firing them is going to set them up to, if you fire them, you're going to set them up for unemployment. So, and reporting them for fraudulently doing it, I don't know. I mean, if they're taking it anyways, I feel like you fire them, you document it,

and they're going to collect unemployment either way. I'd rather them collect it and you not be paying them. You guys took the PPP loan, is that correct? No. Yeah, we applied for the PPE loan and, you know, working on that and whatnot. Well, it sounds like you don't want it. wouldn't. I mean, because they're obligated to keep your employees if you're going to get that thing forgiven. And so I would say, tap the brakes on the PPP loan, get rid of the team that is collecting unemployment and not showing up and hire some people who want to work. Yeah. You got to let them know. You got to let them know you're going to hold them accountable. You don't have to get into the bureaucracy side of it. But I'm going to tell you something right now. I'm going to tell you're going to talk about this. There are people, I'd start hitting the bushes and telling people, hey, we've got opportunities for you to make money right now. Unfortunately, though, Dave, we talked about this with Art Laffer. today, this is a real thing. This CARES Act has created this incentive to stay home.

Their employees asking to be laid off or for a load. Yeah, they're making way more money, because these are hourly wage earners, Daniel, and so they're making way more. But here's the reality. You know, July 25th is looming. Okay, it's coming. And, you know, there are a lot of people who need work, and so I'd move on. I'd absolutely move on. I'd say, I'm going to hold you accountable, nothing against you, but we've got to get people in here that want to work, and I'd go get people that won't work. Well, and I want business owners right now to realize that they do not have to participate in the incompetence by the Fed. I mean, that Congress's best day is your worst day. And I know some of them are trying, I know they're trying to put stuff together to help. I think their hearts are

probably to really help people out, but their competency to design a plan. I was going to question I'm trying to be gracious. You're being very nice. I mean, the truth is that you can't wait on Congress to get this problem solved. You've got to solve it. Brent is with us in Florida. Hey, Brent, what's up? Hey, top of the afternoon. Do you, Dave? You too. How can we help? So my company, I'm the president of my company, and we took the PPO.

We actually applied for it. The first day it came out about an hour into it. We were nervous. We were unsure about it. And then I watched your show the other day and when you said, do not take the PPE loan. So I believe I have a moral obligation to give this money back to the bank so they can give it back to Congress. And that's what I intend to do with it. I don't think there's a mechanism whereby you can do that.

If you give it back to the bank, they're not going to give it back to Congress. That's not going to happen. So you're just done. You're in. The government doesn't take contributions. Can he just pay it off, though? Yeah. You could pay the loan off.

Yeah, if you wanted to. That would be giving it back to the bank. But, I mean, you can't request that the money, go back to the government. They bank may or may not do that. But I mean, you can just pay the loan off, or you can just sit there and see if you end up qualifying for the forgiveness.

If you've kept all the employees in place and done all the different hoops and gyrations they're going to require you to do to qualify for forgiveness, you can qualify for forgiveness. Then you could donate the money to something if you got forgiveness if you wanted to. I would sit on it like an egg right now. Yeah. And let it let's let it run. little bit. And let's see if you qualify for the forgiveness and then you can decide what you're

going to do. If you qualify for the forgiveness, then you've got forgiveness. You've got the option of keeping the money. You've got the option of donating it to something if you wanted to do that. You've got the option of paying it back anyway, repaying the loan, even if you do qualify for forgiveness, which would be so confusing to a bank. They just really won't know how to deal with this. So I think you just, you know, just chalk this up to a thing you've learned in this process. And just make the next right decision. I mean, you can't necessarily undo it, but you optimize what you've done and where you're at.

A little hard to unring the bell on this. This is the Dave Ramsey Show.