I have a client who has informed me that smaller subsidiaries of large companies (NOT franchisees) can qualify for the PPP if they have less than 500 employees. He claims the bill was modified to allow this. I haven't seen it anywhere in the literature I've found. Has anyone else heard this??
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Did you ask the client where he heard the information? Many are saying they are hearing different information on the same subject without knowing if it is factual and correct information.
Think best place for the latest and correct information (which is updated often) is the IRS and U.S. Treasury web sites.Last edited by TAXNJ; 04-03-2020, 03:52 PM.Always cite your source for support to defend your opinion -
Maybe they are referring to this:
"Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries."
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Yeah - I asked him where he heard it, but I haven't gotten a response yet. I'm thinking it's a black helicopter conspiracy thing... but I told him I'd ask....Comment
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On a webinar I was on today, the speakers referred to franchises and the 500 employee limit -- that if a franchise is run as an independent business separate from its parent company, then only its own employees are counted, not those of the parent. They also mentioned Bill's point about SBA's size standards for an industry, if larger than 500.Comment
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My client specifically mentioned entities like McDonalds - and I reminded him that those are franchises, not parts of a mother ship.
I think a lot of his reaction is coming from anger - his bank is telling him they won't consider him for the payroll protection loan because he didn't have an existing loan relationship, even though he's had a business account with them for years.Comment
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