Betty The Restauranteur

[Ghel]

Yeah, she's had the loan for 25 years, and it's been considered a problem loan for 23 of those years. Previous management enabled her by adding the property taxes to her loan (so it wouldn't go tax forfeit) and not foreclosing when she was severely past due. With the current loan terms, she has another 10 years to pay back the remaining balance. So it sounds like I'll be dealing with Betty for a long while yet.

[dawnfire]

Ghel has telling us about Betty since 2008, that's 13 years. looks like the bank has dealt with 10 years previously, so 23 years.

[taxguykarl]

Wow, she sure knows how to game the loans. How long has it been, Ghel? 20 years? 30 years? And has barely paid down the original loan.

[Ghel]

We got Betty's completed application for forgiveness for her PPP loan just before the end of the year. We'll upload that soon and the SBA will likely forgive her loan. It's small potatoes compared to some of the big loans, so I doubt they'll ever audit it. It's basically free money for Betty.

As for her property taxes, she waited until the last minute (well, last week or so of the year) to pay her property so it wouldn't go tax forfeit. Now we reset that for another year.

[Candy Cane Xmas]

Betty

Any updates?

[Monterey Jack]

"Round One . . . FI-- ! . . . Neither of them showed up, did they? They said they'd be here!"

Betty V Brandy: Whoever Wins, We Lose...Money!

[Tama]

Betty called asking about PPP forgiveness this week. I told her we sent out information last week and to check her email. Somehow, she was thinking that she ALSO had received another amount the same as her PPP loan. No one's going to give you another $10,000+ for no reason, Betty. She apparently saw the PPP loan on her online banking and thought it was money she could access, not a debt to be repaid.

I've been wondering if Covid would be the nail in her coffin, but it looks like it's not, so far.

I wonder if the gambling is going to get her at last, if she's still up to that.

[Ghel]

Betty got her PPP loan. I'm not sure if she used it for the categories that will allow loan forgiveness, but that's up to her to prove. If she doesn't somehow manage to prove that she used all the PPP funds for payroll, mortgage interest, or utilities, then she'll have to repay the loan within 2 years. But because the SBA hasn't even started reviewing the forgiveness applications, the bank is going to be sending out deferral documents for customers to sign. Otherwise, their first payments would be due in November. It's a huge CF.

Betty called asking about PPP forgiveness this week. I told her we sent out information last week and to check her email. Somehow, she was thinking that she ALSO had received another amount the same as her PPP loan. No one's going to give you another $10,000+ for no reason, Betty. She apparently saw the PPP loan on her online banking and thought it was money she could access, not a debt to be repaid.

[EricKei]

We need a Betty V Brandy thread.

"Round One . . . FI-- ! . . . Neither of them showed up, did they? They said they'd be here!"

[Monterey Jack]

We need a Betty V Brandy thread.

[Seanette]

Any updates on Betty? I can't imagine any restaurant is in great financial shape lately, especially one as infamous as this.

[EricKei]

Doesn't matter that their pay stubs clearly show the taxes being taken out of their pay, if the employer doesn't pay, the employee is totally screwed.

To the best of my understanding, you are 100% correct -- I know the employees would be on the hook for their half (ish) of the payroll tax "contribution;" unsure if they would be held responsible for the employer portion as well.

[taxguykarl]

I bet Betty has not been paying taxes and employment insurance that she should had been paying.

At one time she was cashing paychecks out of the till, so that is very likely.

[Slave to the Phone]

I feel even more badly for Betty's staff now than I usually do. If she's not paying the unemployment, her employees won't be covered and also won't be eligible for the extra 600 a week. Doesn't matter that their pay stubs clearly show the taxes being taken out of their pay, if the employer doesn't pay, the employee is totally screwed.

[Ghel]

I bet Betty has not been paying taxes and employment insurance that she should had been paying.

Yes, that seems likely.