Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535753 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1320 on: May 23, 2020, 10:11:03 PM »
30 year term is nice, 3.75% not so much.
If you got a PPP for that entity you'll need to roll it into that so PPP loan terms will rule.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1321 on: May 23, 2020, 10:15:14 PM »
If you got a PPP for that entity you'll need to roll it into that so PPP loan terms will rule.

That makes no sense, my PPP is much lower than the amount they're offering for EIDL.

Keep in mind I'm an unincorporated independent contractor, would this mean that if I roll the EIDL into my PPP my forgiveness amount is higher?
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Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1322 on: May 23, 2020, 11:04:01 PM »
All EIDL advance apps are now offered loans, look out for an email to create an account.

Looks like business will soon boom. Company's that were struggling before this whole thing at snow getting a loan nobody would have given them for a low APR with 30 year terms and NO personal guarantee, taking about a V shape recovery.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1323 on: May 23, 2020, 11:11:47 PM »
That makes no sense, my PPP is much lower than the amount they're offering for EIDL.

Keep in mind I'm an unincorporated independent contractor, would this mean that if I roll the EIDL into my PPP my forgiveness amount is higher?

I don't think it affects the original PPP or the forgiveness amount. My understanding is that it would be treated the same as leftover money that's not forgivable.
There's very little information out there, especially about EIDLs received AFTER PPP origination. Do you have some time before you need to accept or decline? Hoping the SBA releases more guidance on this as businesses start approaching the end of their 8 week period and forgiveness becomes real.

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1324 on: May 23, 2020, 11:13:44 PM »
All EIDL advance apps are now offered loans, look out for an email to create an account.

Looks like business will soon boom. Company's that were struggling before this whole thing at snow getting a loan nobody would have given them for a low APR with 30 year terms and NO personal guarantee, taking about a V shape recovery.
After I created the account, it says how much I'm eligible to borrow, how is that amount calculated?

When there's no personal guarantee, would it also have no affect on the credit report of a sole proprietor?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1325 on: May 23, 2020, 11:27:08 PM »
All EIDL advance apps are now offered loans, look out for an email to create an account.

Looks like business will soon boom. Company's that were struggling before this whole thing at snow getting a loan nobody would have given them for a low APR with 30 year terms and NO personal guarantee, taking about a V shape recovery.

What V recovery, the SBA has 60bn allotted to EIDL, and much of that will go to advances. This is peanuts.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1326 on: May 23, 2020, 11:29:39 PM »
There's very little information out there, especially about EIDLs received AFTER PPP origination. Do you have some time before you need to accept or decline? Hoping the SBA releases more guidance on this as businesses start approaching the end of their 8 week period and forgiveness becomes real.

I accepted the max amount they offered (it was a lot more than my PPP, but nothing outlandish) and submitted for processing. We'll see what happens.
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Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1327 on: May 23, 2020, 11:45:54 PM »
I accepted the max amount they offered (it was a lot more than my PPP, but nothing outlandish) and submitted for processing. We'll see what happens.

You are a sole prop and got I guess peanuts from the EIDL loan. All my friends that have abusinesses got around 150-200K offered which is a very nice loan for a no personal guarantee loan.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1328 on: May 23, 2020, 11:47:57 PM »
You are a sole prop and got I guess peanuts from the EIDL loan. All my friends that have abusinesses got around 150-200K offered which is a very nice loan for a no personal guarantee loan.

Are you talking about EIDL or PPP?

I was under the impression not that many people got EIDL loans so far.
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1329 on: May 23, 2020, 11:51:24 PM »
If you got a PPP for that entity you'll need to roll it into that so PPP loan terms will rule.
Only for EIDL loans received till April 3 I think. There is no way to combine it now into PPP. On the firgivness application they only ask about advance.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1330 on: May 23, 2020, 11:52:48 PM »
You are a sole prop and got I guess peanuts from the EIDL loan. All my friends that have abusinesses got around 150-200K offered which is a very nice loan for a no personal guarantee loan.

The amount is based on a) revenue over last 12 months b) COGS over last 12 months c) loss in revenue due to pandemic

If they got 150k-200k it's because he had what to show for it either in revenue or in losses.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1331 on: May 23, 2020, 11:54:03 PM »
What V recovery, the SBA has 60bn allotted to EIDL, and much of that will go to advances. This is peanuts.
For loans they don't need money from congress $1 for $1 as they expect most of it to be repaid. I thing for every $1B in congress approval they can write $10B in loans
« Last Edit: May 23, 2020, 11:57:39 PM by thebudgetdeals »

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1332 on: May 23, 2020, 11:54:24 PM »
Only for EIDL loans received till April 3 I think. There is no way to combine it now into PPP. On the firgivness application they only ask about advance.

Possible. In the PPP forgiveness it asks for your EIDL loan #, and I read that they'll use that to look it up and roll it in. Not sure though because there was no guidance.

Online AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1333 on: May 23, 2020, 11:54:54 PM »
The amount is based on a) revenue over last 12 months b) COGS over last 12 months c) loss in revenue due to pandemic

If they got 150k-200k it's because he had what to show for it either in revenue or in losses.

I think I got offered 50% of what I reported for last 12 months' revenue.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1334 on: May 23, 2020, 11:56:11 PM »
For loans they don't need money from conhress $1 for $1 as they expect most of it to be repaid. I thing for every $1B in congress approval they can write $10B in loans

That sounds insane. These are 30 year terms, repayment won't happen so soon.
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1335 on: May 23, 2020, 11:57:01 PM »
All EIDL advance apps are now offered loans, look out for an email to create an account.

Looks like business will soon boom. Company's that were struggling before this whole thing at snow getting a loan nobody would have given them for a low APR with 30 year terms and NO personal guarantee, taking about a V shape recovery.
All this is still before the Fed launches their Main street loan program which is suppose to launch in June. With another few hundred billion in loans. But this will not be for the really small business.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1336 on: May 23, 2020, 11:58:34 PM »
Possible. In the PPP forgiveness it asks for your EIDL loan #, and I read that they'll use that to look it up and roll it in. Not sure though because there was no guidance.
It is only for the Advance part

Offline Shua

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Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1338 on: May 24, 2020, 12:10:19 AM »
Are you talking about EIDL or PPP?

I was under the impression not that many people got EIDL loans so far.

I'm taking about the EIDL loan you mentioned above with a 3.5% apr. Not sure how they base the loan amount but all my friends with S-Corps including me all got at least 150K loan offers. Some sole props got 5K-25K loan offers and one got 1K, but he only makes 20K/year.

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1339 on: May 24, 2020, 12:11:03 AM »
After I created the account, it says how much I'm eligible to borrow, how is that amount calculated?

When there's no personal guarantee, would it also have no affect on the credit report of a sole proprietor?

Not sure how it's calculated. What amount was offered?