Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 73877 times)

Offline cgr

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2017
  • Posts: 1927
  • Total likes: 313
  • DansDeals.com Hat Tips 3
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1845 on: June 25, 2020, 11:48:23 AM »
Thanks to @aygart for pointing out the following:

As part of the CARES Act, the SBA is paying principal, interest, and loan fees for a six-month period on SBA 7(a), 504, or Microloans loans if the loan is disbursed prior to September 27, 2020. (this does not include EIDL or PPP loans)

There's still time to apply for these loans and receive 6 months of comped payments!

For a basic overview of 7(a) vs 504 vs Microloans see https://www.sba.gov/sites/default/files/articles/FY_2019_LoanQuickReference.pdf
« Last Edit: June 25, 2020, 11:52:32 AM by cgr »

Online Deal Guy

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Apr 2009
  • Posts: 4533
  • Total likes: 35
  • DansDeals.com Hat Tips 9
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1846 on: June 25, 2020, 12:10:34 PM »
Are ppp loans still being accepted today?
Are there funds left?

Online shapsam

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Feb 2017
  • Posts: 2382
  • Total likes: 334
  • DansDeals.com Hat Tips 10
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1847 on: June 25, 2020, 12:17:55 PM »
Are ppp loans still being accepted today?
Are there funds left?
Yes and yes.

Offline beeweegee

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Sep 2013
  • Posts: 1514
  • Total likes: 76
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: New York, NY
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1848 on: June 25, 2020, 03:11:45 PM »
Your employees can definitely file if they're not receiving a paycheck.
As for yourself, if the total received divided by 24 weeks (assuming you're choosing this longer period) is less than $504 I think you should be able to claim no problem. I'm not sure if you can end-load the amount to only count as "earnings" for the last 2.5 months instead of over 24 weeks, although I can see good reason as to why you can make that claim since they only funded you for 2.5 months.
If one did this (claim unemployment while collecting PPP payments) due to the total being under the $504 or $713 maximum, how would you report the hours worked? When you certify, they ask how much you made but also how many hours you worked. Would you just use your general hourly rate and calculate how many hours that PPP payment would equal to? (NJ if it makes a difference.)

Offline thebudgetdeals

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2014
  • Posts: 718
  • Total likes: 43
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1849 on: June 25, 2020, 03:20:39 PM »
Thanks to @aygart for pointing out the following:

As part of the CARES Act, the SBA is paying principal, interest, and loan fees for a six-month period on SBA 7(a), 504, or Microloans loans if the loan is disbursed prior to September 27, 2020. (this does not include EIDL or PPP loans)

There's still time to apply for these loans and receive 6 months of comped payments!
Anyone with more updates which loan has the shortest term, as 6 months of payments should include a large amount of principal in it also?

Offline thebudgetdeals

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2014
  • Posts: 718
  • Total likes: 43
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1850 on: June 25, 2020, 03:23:46 PM »
IT SEEMS THAT THE SBA NUMBER NEEDS TO BE ISSUED BY JUNE 30 NOT THE ACTUAL LOAN DISBURSEMENT

Dear ......,
Per SBA guidance, lenders are not able to obtain PPP-SBA numbers after June 30th. If you have not supplied all required documentation to support your application, please do so as soon as possible. We will be working diligently to process all applications that are active and have supplied all required documentation.

Offline cgr

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2017
  • Posts: 1927
  • Total likes: 313
  • DansDeals.com Hat Tips 3
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1851 on: June 25, 2020, 03:33:52 PM »
Anyone with more updates which loan has the shortest term, as 6 months of payments should include a large amount of principal in it also?

The chart give you the basics- Microloans generally have the shortest term but also has the smallest maximum loan...

You'd also want something with no prepayment penalty if you just want the loan for the 6 months of free money and then pay it all off once you need to start footing the bill...

Question- if I get a 50k microloan with a 6 month term, does that mean the SBA just gave me 50k straight up?

Offline SwellCindy

  • Dansdeals Gold Elite
  • ***
  • Join Date: Aug 2017
  • Posts: 116
  • Total likes: 20
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Northern U.S.
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1852 on: June 25, 2020, 03:36:44 PM »
Can one use EIDL loan funds for payroll?
- Faith begins where logic ends -

Offline thebudgetdeals

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2014
  • Posts: 718
  • Total likes: 43
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1853 on: June 25, 2020, 03:41:31 PM »
Can one use EIDL loan funds for payroll?
Yes. but not the same payroll that you used PPP funds for

Offline SwellCindy

  • Dansdeals Gold Elite
  • ***
  • Join Date: Aug 2017
  • Posts: 116
  • Total likes: 20
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Northern U.S.
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1854 on: June 25, 2020, 03:53:16 PM »
Yes. but not the same payroll that you used PPP funds for

Meaning payroll that covers different dates would be ok?
For ex, if the PPP funds were used to pay employees from April - May 25th, can I use EIDL loan funds from May 26 and on?

Thank you for your replies.
- Faith begins where logic ends -

Offline thebudgetdeals

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2014
  • Posts: 718
  • Total likes: 43
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1855 on: June 25, 2020, 03:55:26 PM »
Meaning payroll that covers different dates would be ok?
For ex, if the PPP funds were used to pay employees from April - May 25th, can I use EIDL loan funds from May 26 and on?

Thank you for your replies.
correct

Offline thebudgetdeals

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2014
  • Posts: 718
  • Total likes: 43
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: United States
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1856 on: June 25, 2020, 04:11:58 PM »
The chart give you the basics- Microloans generally have the shortest term but also has the smallest maximum loan...

You'd also want something with no prepayment penalty if you just want the loan for the 6 months of free money and then pay it all off once you need to start footing the bill...

Question- if I get a 50k microloan with a 6 month term, does that mean the SBA just gave me 50k straight up?
https://www.grsm.com/publications/2020/borrowers-lenders-sba7a-504-loans-cares-act

Remember, traditional SBA 7(a) and 504 loans require that borrowers meet the “credit elsewhere test.”  That test requires a showing that the borrower does not have the ability to obtain some or all of the requested loan funds from alternative sources without causing undue hardship.

Offline JACKBLUE

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2014
  • Posts: 1759
  • Total likes: 155
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: USA
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1857 on: June 25, 2020, 04:21:31 PM »
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?
If you used the same email for multiple applications and it doesn't show up in your account, you can call SBA to manually add them.

Offline cgr

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2017
  • Posts: 1927
  • Total likes: 313
  • DansDeals.com Hat Tips 3
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1858 on: June 25, 2020, 04:24:36 PM »
https://www.grsm.com/publications/2020/borrowers-lenders-sba7a-504-loans-cares-act

Remember, traditional SBA 7(a) and 504 loans require that borrowers meet the “credit elsewhere test.”  That test requires a showing that the borrower does not have the ability to obtain some or all of the requested loan funds from alternative sources without causing undue hardship.

Wouldn't the fact that they're offering to comp 6 moths automatically make them the best deal out there?

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 56979
  • Total likes: 4799
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA Global Services, AA Lifetime Plat, DL Dirt, SPG Plat, Hyatt Diamond, Fairmont Lifetime Plat, Hilton Diamond, Priority Club Plat, Avis Chairman, National EE, Hertz PC
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1859 on: June 25, 2020, 04:30:56 PM »
Haven't been following PPP updates, but is it correct that if you take a 24 week period, owner compensation is capped at $20,833 and employee compensation is capped at $46,154?
Can you take out a bigger loan or that's still capped at 2.5x salary (capped at 100K)?
Any other major updates?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.