Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 217319 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1520 on: June 04, 2020, 08:55:45 AM »
You can do the other way,
Claim now backpay from Unemployment, PPP you can use after July 31

Nice spin. Liked!

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1521 on: June 04, 2020, 09:10:18 AM »
What's if the money from ppp is gone.  Can i use other monies at a later date and claim that is the ppp funds?  Does it have to be the same dollars?
#TYH

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1522 on: June 04, 2020, 09:22:39 AM »
What's if the money from ppp is gone.  Can i use other monies at a later date and claim that is the ppp funds?  Does it have to be the same dollars?

I don’t think they’re tracking it that way.

PPP (or 75% thereof) was designed to keep your employees employed, and forgiveness was designed around that. As long as you fulfill whatever the forgiveness requirements are, I don’t think they care “which” funds you used for payroll. Basically, money is fungible.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1523 on: June 04, 2020, 10:08:49 AM »
If he only submitted an estimated schedule c , and now revised it when he actually files his return, I don't see why he can't use the new amount for forgiveness. Will it raise flags is another question.

That shouldn't be an issue. If he ended up filing with the expenses he should be able to use at forgiveness (might have to provide the actual return though to prove that).

For some filing a revised return might be worth it too.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1524 on: June 04, 2020, 10:10:52 AM »
You can do the other way,
Claim now backpay from Unemployment, PPP you can use after July 31

Wow that is crazy. Wonder when they'll realize that they totally defeated the purpose of ending the program on June 30 which pretty much meant that SE were forced to make a choice between some weeks on PPP vs UI FPUC...

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1525 on: June 04, 2020, 10:11:58 AM »
What's if the money from ppp is gone.  Can i use other monies at a later date and claim that is the ppp funds?  Does it have to be the same dollars?

Last I checked digital dollars don't have serial numbers...

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1526 on: June 04, 2020, 10:37:10 AM »
Wow that is crazy. Wonder when they'll realize that they totally defeated the purpose of ending the program on June 30 which pretty much meant that SE were forced to make a choice between some weeks on PPP vs UI FPUC...

Come again? Which program ends 6/30 (PPP forgiveness FTE-levels?)? #pleasespoonfeedme

Also, what ended happening with the point Rubio brought up, that the Payroll 60% threshold is a cliff and not a sliding-scale, was that fixed in the final bill?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1527 on: June 04, 2020, 10:48:01 AM »
Come again? Which program ends 6/30 (PPP forgiveness FTE-levels?)? #pleasespoonfeedme
Last date to get PPP funds is 06/30 which means that with an 8 week covered period the whole country would be off of PPP by 08/24.
Last date for UI FPUC is 07/26.

This meant that if you went for PPP at the very last possible moment to maximize your UI FPUC payments, you'd still lose out on UI payments from 06/30-07/26.
Now with the ability to use PPP over 24 weeks you can stay on UI and get FPUC til 07/26, and at that point start using your PPP.
Basically there's no losing out on one program because of the other- unlike the way it was previously structured.

Also, what ended happening with the point Rubio brought up, that the Payroll 60% threshold is a cliff and not a sliding-scale, was that fixed in the final bill?

My understanding is that they passed original House bill with no changes.
Not spending 60%+ on payroll= $0 forgiveness. No prorated deductions like before (although based on what we've seen til now from the SBA, I'm pretty certain it'll say "if you applied prior to 06/XX/20 you can get forgiveness based on the previous rules")

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1528 on: June 04, 2020, 10:51:00 AM »
Last date to get PPP funds is 06/30 which means that with an 8 week covered period the whole country would be off of PPP by 08/24.
Last date for UI FPUC is 07/26.

This meant that if you went for PPP at the very last possible moment to maximize your UI FPUC payments, you'd still lose out on UI payments from 06/30-07/26.
Now with the ability to use PPP over 24 weeks you can stay on UI and get FPUC til 07/26, and at that point start using your PPP.
Basically there's no losing out on one program because of the other- unlike the way it was previously structured.

My understanding is that they passed original House bill with no changes.
Not spending 60%+ on payroll= $0 forgiveness. No prorated deductions like before (although based on what we've seen til now from the SBA, I'm pretty certain it'll say "if you applied prior to 06/XX/20 you can get forgiveness based on the previous rules")

Thanks for the spoonfeeding.

If the 75% threshold became a  60% cliff, are they still keeping 8/52? Makes less sense since 8/52 was supposed to be ~75%.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1529 on: June 04, 2020, 12:32:18 PM »
Published a basic overview of PPP Flexibility Act. See my signature line.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1530 on: June 04, 2020, 01:57:10 PM »
WOW. FOR EMPLOYEES NOT OWNERS

The maximum amount paid to any one employee that will be forgiven is capped at an annualized salary of $100,000; as a result, for a 24-week covered period, this limit will be reached once an employee receives $46,153 in cash compensation.

https://www.forbes.com/sites/anthonynitti/2020/06/03/congress-agrees-on-favorable-changes-to-paycheck-protection-loans-what-does-it-mean-for-borrowers/?utm_source=newsletter&utm_medium=email&utm_campaign=follow&utm_campaign=follow&cdlcid=5ec2e183f414222e418d7971#799739b766fd

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1531 on: June 04, 2020, 02:06:36 PM »
WOW. FOR EMPLOYEES NOT OWNERS

The maximum amount paid to any one employee that will be forgiven is capped at an annualized salary of $100,000; as a result, for a 24-week covered period, this limit will be reached once an employee receives $46,153 in cash compensation.

https://www.forbes.com/sites/anthonynitti/2020/06/03/congress-agrees-on-favorable-changes-to-paycheck-protection-loans-what-does-it-mean-for-borrowers/?utm_source=newsletter&utm_medium=email&utm_campaign=follow&utm_campaign=follow&cdlcid=5ec2e183f414222e418d7971#799739b766fd

You stopped pasting a line too early:
H.R. 7010 does not make that clear, but here’s to hoping that soon-to-be-released guidance does.

Maybe I'm a pessimist, but I don't have that much faith in the SBA... though if they increase this you have a bigger chance of the 8/52 increasing as well.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1532 on: June 04, 2020, 04:32:47 PM »
You stopped pasting a line too early:
H.R. 7010 does not make that clear, but here’s to hoping that soon-to-be-released guidance does.

Maybe I'm a pessimist, but I don't have that much faith in the SBA... though if they increase this you have a bigger chance of the 8/52 increasing as well.

Does this only change things up for forgiveness (as the law’s name implies), or will new applicants be getting bigger loans as well?

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1533 on: June 04, 2020, 04:40:27 PM »
Does this only change things up for forgiveness (as the law’s name implies), or will new applicants be getting bigger loans as well?
There's no changes to the 2.5x average monthly payroll.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1534 on: June 04, 2020, 07:19:22 PM »
If i meet the spend within 9-10 weeks must i wait till the end on the 24 weeks to apply for forgiveness?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1535 on: June 05, 2020, 12:52:32 PM »
If i meet the spend within 9-10 weeks must i wait till the end on the 24 weeks to apply for forgiveness?

Not clear- it says that applicants will be able to retain an 8 week period if they choose, but haven't seen anything about choosing an in-between period.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1536 on: June 05, 2020, 12:57:33 PM »
Anyone here Schedule C (8/52) who also has W2 wages for employees who was able to get PPP funding for both W2 (to cover employee payroll)+ Schedule C (to cover owner salary)?

I know a few people in this boat. Based on SBA it looks like they should be able to get funding for both portions (owners are not also on W2 wages- they take a draw only) but their banks only funded them for W2 portion. Wondering if this can be corrected still.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1537 on: June 05, 2020, 02:02:49 PM »
Anyone here Schedule C (8/52) who also has W2 wages for employees who was able to get PPP funding for both W2 (to cover employee payroll)+ Schedule C (to cover owner salary)?

I know a few people in this boat. Based on SBA it looks like they should be able to get funding for both portions (owners are not also on W2 wages- they take a draw only) but their banks only funded them for W2 portion. Wondering if this can be corrected still.

From what I'm seeing they should be able to apply with Schedule C as follows:
2019 Schedule C Income- (line 31)
+ Wages for employees reported on a W-2 — Do not include owner, include employees at 100k max (Schedule C line 26)
+ Pension & Profit sharing for employees — Do not include owner (Schedule C line 19)
+ Health Insurance for employees — Do not include owner

Now I need a bank who will allow this...

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1538 on: June 05, 2020, 02:49:26 PM »
PPP Flexibility Act just passed in the Senate.

Signed into law

Offline Geshmak25

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1539 on: June 05, 2020, 06:39:43 PM »
Where have people had success getting approved for SE? Ive seen Kabbaged mentioned on DDMS is that the best route at this point?
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