The first round of PPP, as originally written wasn't too bad. It was based on a real formula that made some sort of sense, and it incentivized companies to keep their workers. It was basically get 2.5x your average monthly salary in a loan, and you can pay 8 weeks of salary + rent. We did the math on all this and we did as intended, we kept people on payroll we would have otherwise let go.
It's once they adjusted it to giving people the option of pushing it from 8 weeks to 24 weeks that the math stopped working. Companies could cut their workforce in half, and still get the full amount forgiven. Now that us accountants know how it works, the second round will have more of the benefits going to the owners.
Now of the two companies I work for, one has a revenue loss of 90% and the other has a revenue loss of 80%. One can recover and one won't. But this second round of PPP + the tax deductions really make it that even with revenue loss of 80% , and in one of the companies...we're going to have more cash coming this March than we did last March. By well more than a million bucks. We'll just go from 60 employees down to 30 for the time being.
Really , it should be industry specific. Lawyers don't need PPP funds. Neither do private equity investment companies, IT companies, etc. Although you can make an argument that just a quick throw money at everyone helped ease the pain back in March-June. But by now this 2nd round of PPP is just ridiculous. There needs to be a clawback of PPP funds that ultimately flow through to people with certain networths.