SBA PPP and EIDL Small Business Loans (some money is forgivable)

[jackofall]

Anyone has a legal opinion on this section?

I am waiting on a tax attorney to give me an officially opinion. Off the record he said there is no way that was the intent of the SBA.

[cgr]

If it's a service-based company and there are no cost of goods sold, it would be calculated just by 50% of annual revenue?

With a cap of 150k, correct.

[SwellCindy]

Thank you. But should overhead be reported as Cost Of Goods Sold?
Also, could you please direct me to the exact terms of what the EIDL loan may be utilized for?

[SwellCindy]

Me again, is that Gross or Net annual revenue?

[cgr]

Thank you. But should overhead be reported as Cost Of Goods Sold?
Also, could you please direct me to the exact terms of what the EIDL loan may be utilized for?

No. COGS is generally costs related to manufacturing a finished product, not overhead.

Here's the basic overview (see page 4 and 8 ):
https://www.sba.gov/sites/default/files/articles/EIDL_and_P3_4.15.2020_10am.pdf

For more detail (Page 84 on PDF viewer, Page 75 if following noted page #s):
https://www.sba.gov/document/sop-50-30-9-disaster-assistance-program-posted-05-31

[cgr]

Me again, is that Gross or Net annual revenue?

Read the question again. The application is very clear on that.

[SwellCindy]

Read the question again. The application is very clear on that.

Didn't apply yet, just gathering info off of here, hence my asking. 

ETA: Or did you mean that revenue = profit?

[cgr]

Didn't apply yet, just gathering info off of here, hence my asking. 

Gotcha. It's Gross Revenues for 02/01/19-01/31/20.

[SwellCindy]

Gotcha. It's Gross Revenues for 02/01/19-01/31/20.

Whew glad to hear that, thanks!

[Hiding]

Kabbage now says they don't advise applying as you may not be approved in time. Who else is a good quick option to get approved before the deadline?

[TBD]

If it's a service-based company and there are no cost of goods sold, it would be calculated just by 50% of annual revenue?

Don't know their source But.....

https://bench.co/blog/operations/how-to-apply-sba-disaster-loan/

How to calculate Cost of Service (COS)

If you’re a services provider, you instead need to calculate your Cost of Service, which is simpler than COGS.

Cost of Service is just all the costs you incur during the process of providing your service. So if you’re a lawyer and you need to pay $8 to print a few hundred pages of a contract on behalf of a client, that $8 is part of your COS.

[cgr]

Cost of Service is just all the costs you incur during the process of providing your service.

Didn't see this as part of the EIDL application rules, but since all other amounts reduce revenue to give you a lower loan amount, I'd keep it blank to ensure the biggest loan possible is received.

[theblakdavid]

Read through about 10 pages, but couldn't find the answer. If it has been discussed please just point me out where I overlooked.
I Applied over a month ago for PPP through Bluevine- they just got back to me with a  reduced offer based on payroll docs I sent them. I am SE and owner of the LLC- I am not on payroll though- I assumed that I can count 8/52 of my profits for the year as well as payroll for the employees. Am I wrong?

[JACKBLUE]

Applied Sunday for several LLC’s, didn’t get any email yet wether I’m approved or not, but got overnight $1k deposits in all of the accounts. What does that mean?

[shapsam]

Applied Sunday for several LLC’s, didn’t get any email yet wether I’m approved or not, but got overnight $1k deposits in all of the accounts. What does that mean?

You got the grant portion that doesn't have to be paid back. They will email you when/if approved for the loan.

[cgr]

Read through about 10 pages, but couldn't find the answer. If it has been discussed please just point me out where I overlooked.
I Applied over a month ago for PPP through Bluevine- they just got back to me with a  reduced offer based on payroll docs I sent them. I am SE and owner of the LLC- I am not on payroll though- I assumed that I can count 8/52 of my profits for the year as well as payroll for the employees. Am I wrong?

Per SBA rules you can get 2.5X of both employee payroll and owner comp (not 8/52), but many banks choose to approve only for employee payroll, probably because it's easier for them not deal with more documentation. Try to talk to someone at Bluevine to see if they can give you the full amount based on both.

[JACKBLUE]

Definitely will.

Done.

[theblakdavid]

Per SBA rules you can get 2.5X of both employee payroll and owner comp (not 8/52), but many banks choose to approve only for employee payroll, probably because it's easier for them not deal with more documentation. Try to talk to someone at Bluevine to see if they can give you the full amount based on both.

Thanks, will do!

[SwellCindy]

Can I apply for EIDL loan excluding the grant? Also, is there a date by when I must apply?

[cgr]

Can I apply for EIDL loan excluding the grant? Also, is there a date by when I must apply?

Yes, just don't check off the grant box.
Deadline is December 21, 2020 but they can choose to cease accepting new applications at any time.