Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 231174 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1680 on: June 17, 2020, 08:32:57 AM »
Is this loan forgivable? https://covid19relief.sba.gov/#/

The EIDL advance is a grant that doesn’t have to be repaid. There are no “forgiveness requirements”. If you get PPP forgiveness, the forgiveness amount is reduced by the amount of your EIDL advance.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1681 on: June 17, 2020, 08:49:55 AM »
Mazal Tov! Loan docs means you’re approved. Did they already fund you?
No. Need to sign now the docs


Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1683 on: June 17, 2020, 08:59:06 AM »
WOW


What amounts shall be eligible for forgiveness?The amount of loan forgiveness can be up to the full principal amount of the loanplus accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount spent over the 24-week period beginning on the date your PPP loan is disbursed3(“covered period”) on:i.payroll costs including salary, wages, and tips, up to $100,000 of annualized pay per employee (for 24weeks, a maximum of $46,154 per individual,4or for eight weeks, a maximum of $15,385per individual), as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums);

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1684 on: June 17, 2020, 08:59:58 AM »
MAZEL TOV FOR ALL SE

owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52)of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months’ worth (2.5/12)of 2019 net profit(up to $20,833)for a 24-week covered period,but excluding any qualified sick leave equivalent amount for which a credit is claimed under

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1685 on: June 17, 2020, 09:04:17 AM »
OUCH...

Employee Benefits:The total amount paid by the Borrower for:1.Employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees.Do not add employer health insurance contributions made on behalf of a self-employed individual, general partners, or owner-employees of an S-corporation, because such payments are already included in their compensation.


BUT WITH 24 WEEKS MOST SHOULD BE FINE

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1686 on: June 17, 2020, 09:05:41 AM »
RETIREMENT BENEFITS FOR S CORPS SEEMS TO BE ELIGIBLE.

Employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees.Do not add employer retirement contributions made on behalf of a self-employed individual or general partners, because such payments are already included in their compensation, and contributions on behalf of owner-employees are capped at 2.5 months’ worth of the 2019 contribution amount.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1687 on: June 17, 2020, 09:08:16 AM »
SEEMS RENT PREPAYMENTS ARE ELIGIBLE

Line 2:Enter the amount of business mortgage interest payments paid or incurred during the Covered Period for any business mortgage obligation on real or personal property incurred before February 15, 2020.Do not include prepayments.

Line 3:Enter the amount of business rent or lease payments paid or incurred for real or personal property during the Covered Period, pursuant to lease agreements in force before February 15, 2020.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1688 on: June 17, 2020, 09:10:23 AM »
IT SEEMS THAT IT WILL BE EITHER 8 WEEKS OR 24 WEEKS, NO IN BETWEEN

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1689 on: June 17, 2020, 10:08:43 AM »
MAZEL TOV FOR ALL SE

owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52)of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months’ worth (2.5/12)of 2019 net profit(up to $20,833)for a 24-week covered period,but excluding any qualified sick leave equivalent amount for which a credit is claimed under

This is great!!!

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1690 on: June 17, 2020, 10:31:52 AM »
The SBA has added an EZ Forgiveness Application for borrowers who:
Have no employees or;
Had no employee reductions in salaries and FTEs or;
Had no employee reductions in salaries and was unable to operate due to mandatory closures

https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf
https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1691 on: June 17, 2020, 10:38:06 AM »
MAZEL TOV FOR ALL SE

owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52)of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months’ worth (2.5/12)of 2019 net profit(up to $20,833)for a 24-week covered period,but excluding any qualified sick leave equivalent amount for which a credit is claimed under

Weird how they're letting employees get a full 24/52 but employers only 2.5/12. Guess they're still worried about the windfall...

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1692 on: June 17, 2020, 10:48:37 AM »
Weird how they're letting employees get a full 24/52 but employers only 2.5/12. Guess they're still worried about the windfall...
Because that is the max loan amount, no?

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1693 on: June 17, 2020, 11:10:59 AM »
if i got the eidl grant the first time around but they did not approve my loan. can i reapply now?
#TYH

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1694 on: June 17, 2020, 11:27:15 AM »
Because that is the max loan amount, no?

Were the loans capped at 100k annualized compensation as well? or could you get your loan at full compensation and only forgiveness is capped at 100k annualized?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1695 on: June 17, 2020, 11:34:38 AM »
MAZEL TOV FOR ALL SE

owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52)of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months’ worth (2.5/12)of 2019 net profit(up to $20,833)for a 24-week covered period,but excluding any qualified sick leave equivalent amount for which a credit is claimed under

I told you the 24-weeks would affect forgiveness of SE. Yippee, only issue is having to wait.

I take it SE is not considered to have no employees, right?

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1696 on: June 17, 2020, 12:36:32 PM »
Were the loans capped at 100k annualized compensation as well? or could you get your loan at full compensation and only forgiveness is capped at 100k annualized?
Loan amount is capped at $100k annual salary AFAIK.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1697 on: June 17, 2020, 01:07:23 PM »
Were the loans capped at 100k annualized compensation as well? or could you get your loan at full compensation and only forgiveness is capped at 100k annualized?

100k salary, certain benefits might not have been included in the 100k and this may have varied by lender.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1698 on: June 17, 2020, 02:23:49 PM »
The question is by what date you will need to have the FTE count back. June 30? Date of forgivness application? Dec 31?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1699 on: June 17, 2020, 02:27:47 PM »
The question is by what date you will need to have the FTE count back. June 30? Date of forgivness application? Dec 31?
Here are the FTE (not salary) options:
Compare covered period FTEs to February 15, 2019 through June 30, 2019 or January 1, 2020 through February 29, 2020 or;
February 15, 2020 through April 26, 2020 to February 15, 2020 or;
Last day of covered period to January 1, 2020 or;
FTEs as of the forgiveness application submission date, or December 31, 2020, whichever is earlier, to February 15, 2020.