Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 217325 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1820 on: June 24, 2020, 10:19:39 AM »
9 The general loan forgiveness process described above applies only to loan forgiveness applications that are not reviewed by SBA prior to the lender’s decision on the forgiveness application.  A separate interim final rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities describes SBA’s procedures for reviewing PPP loan applications and loan forgiveness applications.c.Deferral Period and Forgiveness Section 3(c) of the Flexibility Act provides that if the borrower does not apply for forgiveness of a loan within 10 months after the last day of the covered period, the PPP loan is no longer deferred and the borrower must begin paying principal and interest.  Therefore, the following text is added as a new paragraph b. at the end of Part III.2:   b. When must a borrower apply for loan forgiveness or start making payments on a loan? A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.  If the borrower applies for forgiveness before the end of the covered period and has reduced any employee’s salaries or wages in excess of 25 percent, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period, as described in Part III.5.

https://www.sba.gov/sites/default/files/2020-06/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule-508.pdf

So based on this one can apply for forgiveness before the 24-week period is over, but must prorate any cuts for the full 24 weeks, even if they only used funds over say 10 weeks?
Interesting.

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1821 on: June 24, 2020, 10:24:48 AM »
where can i still apply for a PPP for Schedule C?
#TYH

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1822 on: June 24, 2020, 10:32:57 AM »
Applied for a few loans under same email, when i open my account i can only see 1 loan, how do i add all others?

Offline avrumy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1823 on: June 24, 2020, 11:00:47 AM »
where can i still apply for a PPP for Schedule C?
first commerce

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1824 on: June 24, 2020, 11:15:48 AM »
Applied for a few loans under same email, when i open my account i can only see 1 loan, how do i add all others?
Kabbage.com?

Good luck!

I used the Gmail trick of adding a "." somewhere in the address to differentiate.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1825 on: June 24, 2020, 11:20:54 AM »
Looking for 5 volunteers to test my excel PPP forgiveness application.

Need a mix of businesses with owner comp only, owner comp + employees, as well as employees only. The more complicated your FTE/wage reduction situation the better.
If you're interested in participating email me at chaiplus1@gmail.com by Thursday- please do not PM me via DDF.
You'll be chosen based on your situation, not first come first serve.
If you don't hear back from me by Friday you have not been chosen to participate. Please don't follow up if you don't hear from me.

You can use the doc to test several scenarios to see how it increases or decreases your forgiveness amount. I'm doing this for the feedback (user friendliness and accuracy), not as a free giveaway to shore up popularity- please only participate if you're interested in communicating your thoughts.


Include in your email:
Loan Amount (Field will be locked and you will not be able to change at a later date)
Loan Date (Field will be locked and you will not be able to change at a later date)
Will you have an FTE or wage reduction from 02/15/20 through the end of your expected forgiveness application submission date?

Bump

Offline bubkiz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1826 on: June 24, 2020, 11:57:05 AM »
where can i still apply for a PPP for Schedule C?
Bluevine. Applied 12:52 am. Got approval email 10:10 am.
Just make sure all your docs are in order so that it does not require manual review (they have clear instructions on the site).

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1827 on: June 24, 2020, 12:17:44 PM »
Does anyone have info on how EIDL loan amounts are determined?

It seems like the only question is Gross Revenue. So if I'm a sole proprietor with gross revenue of $100,000 and I pay $48,000 of that to a corporation I own as a Management Fee. Can I apply for EIDL as a sole proprietor based on the $100,000 and then apply for my Management Corporation based on the $48,000 of its gross revenue?
I've been waiting over 5 years with bated breath for someone to say that!
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1828 on: June 24, 2020, 12:24:31 PM »
Does anyone have info on how EIDL loan amounts are determined?

It seems like the only question is Gross Revenue. So if I'm a sole proprietor with gross revenue of $100,000 and I pay $48,000 of that to a corporation I own as a Management Fee. Can I apply for EIDL as a sole proprietor based on the $100,000 and then apply for my Management Corporation based on the $48,000 of its gross revenue?

You can apply for each business you own as long as they have a unique EIN.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1829 on: June 24, 2020, 12:36:46 PM »
You can apply for each business you own as long as they have a unique EIN.

And it's all based on gross revenue only?

How do they determine the loan amounts? If I apply as a Sole Proprietor, what restrictions are there on use of funds? Is it like PPP for sole proprietor with no deductions on the schedule C (other than the management fee?)
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1830 on: June 24, 2020, 12:40:56 PM »
And it's all based on gross revenue only?

How do they determine the loan amounts? If I apply as a Sole Proprietor, what restrictions are there on use of funds? Is it like PPP for sole proprietor with no deductions on the schedule C (other than the management fee?)

If you only include gross revenues, it's usually 50% of that with a 150k cap.
If you include COGS and or other applicable losses, it reduces your loan amount.

Restrictions:
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


Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1831 on: June 24, 2020, 01:09:01 PM »
Is there any talk of ppp deadline being extended past June 30th?

What part of the process needs to be done by June 30th? Do you need a loan number by then? At what point in the application process do you get a loan number?


Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1832 on: June 24, 2020, 01:16:05 PM »
Is there any talk of ppp deadline being extended past June 30th?

What part of the process needs to be done by June 30th? Do you need a loan number by then? At what point in the application process do you get a loan number?
i believe must be funded
#TYH

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1833 on: June 24, 2020, 01:21:36 PM »
i believe must be funded

If that's the case then what's with the "24 week period cannot go past 12/31/20" term?
24 weeks from 06/30/20 is 12/15/20. Makes me lean towards the assumption that you must have an SBA loan number by 06/30 because that's the date that the SBA will stop processing applications, but it might take your bank another few days to actually fund the loan.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1834 on: June 24, 2020, 01:35:08 PM »
At what step in the process do you get a loan number? Do you get it early on, or does it come at the end when you are already approved?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1835 on: June 24, 2020, 01:47:52 PM »
At what step in the process do you get a loan number? Do you get it early on, or does it come at the end when you are already approved?

Each bank works differently. Some apply for a loan number to the SBA and then review your docs and confirm your eligibility, while others (most) review your docs first and then get a loan number from the SBA.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1836 on: June 24, 2020, 02:02:48 PM »
Each bank works differently. Some apply for a loan number to the SBA and then review your docs and confirm your eligibility, while others (most) review your docs first and then get a loan number from the SBA.
Thanks. Do you know how Cross River works?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1837 on: June 24, 2020, 02:07:27 PM »
Thanks. Do you know how Cross River works?

Based on the timing I'd say they first review your docs and then apply to the SBA for a loan #.
From what I've seen most banks do it this way, the exception being Dime which apparently first gets you an SBA # and then reviews your loan.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1838 on: June 24, 2020, 05:08:58 PM »
If you only include gross revenues, it's usually 50% of that with a 150k cap.
If you include COGS and or other applicable losses, it reduces your loan amount.

Restrictions:

So if I would like to apply as a sole proprietor, do I deduct the Stimulus Check amount I received (or any other assistance received on the personal level)? (4.3.C.8.b - on pg 84: Grants and Gifts: You must deduct grants and monetary gifts from any other sources including, but not limited to, other federal agencies, state or local governments, volunteer agencies, charitable organizations, etc.)
I've been waiting over 5 years with bated breath for someone to say that!
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1839 on: June 24, 2020, 05:17:14 PM »
So if I would like to apply as a sole proprietor, do I deduct the Stimulus Check amount I received (or any other assistance received on the personal level)? (4.3.C.8.b - on pg 84: Grants and Gifts: You must deduct grants and monetary gifts from any other sources including, but not limited to, other federal agencies, state or local governments, volunteer agencies, charitable organizations, etc.)

No, you don't need to declare your stimulus check. (It's a tax credit, not a "grant").
You might have to declare Grants received from local gov or private organizations if they're for Covid, although I haven't see that published elsewhere (these rules are the general EIDL rules. Many changes and waivers now for Covid.)