Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 73902 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1890 on: June 28, 2020, 11:07:23 AM »
https://realtime.inc.com/question/in-the-eidl-loan-docs-it-says-limits-on-distribution-of-assets-borrower-will-not--5ec6e6dc883ddc52f1535a8a

https://www.revelcpa.com/blog#:~:text=Here's%20the%20exact%20text%20so,or%20partner%20or%20any%20of

There’s a very tricky clause in here that vaguely alludes to not having the resources go to the owners—or even employees, at least not in unusual ways. Here’s the exact text so you can interpret for yourself:  “Borrower will not, without the prior written consent of SBA, make any distribution of Borrower’s assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise, to any owner or partner or any of its employees, or to any company directly or indirectly controlling or affiliated with or controlled by Borrower, or any other company.”

Based on the way the EIDL terms are written, it seems to me that regular payroll or standard owner compensation is fine (that much is clearly spelled out), but anything out of the ordinary is not. A bit complicated for SE who finish the year with a positive number on their Schedule C, but don't actually take out any funds.

Offline joeberg

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1891 on: June 28, 2020, 01:02:47 PM »
Seems like for the EIDL need min 570 credit score.

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1892 on: June 28, 2020, 07:42:44 PM »
Kabbage is still accepting PPP applications till midnight. Someone applied today and had an approval within 3 hours.
התורה חסה על ממונם של ישראל

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1893 on: June 28, 2020, 07:54:42 PM »
Thoughts?

EIDL applications are open til 12/21/20 (or until funds run out).
PPP is closing soon and then forgiveness applications will start rolling in.

For anyone just looking for the grant portion, it might be a good idea to wait til after PPP forgiveness and then apply for EIDL grant. No express guidance on this but that might prevent your EIDL grant from being deducted from your PPP forgiveness.

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1894 on: June 28, 2020, 07:57:10 PM »
Thoughts?

EIDL applications are open til 12/21/20 (or until funds run out).
PPP is closing soon and then forgiveness applications will start rolling in.

For anyone just looking for the grant portion, it might be a good idea to wait til after PPP forgiveness and then apply for EIDL grant. No express guidance on this but that might prevent your EIDL grant from being deducted from your PPP forgiveness.

Fraud?

Offline shapsam

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Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1896 on: June 28, 2020, 08:00:25 PM »
Thoughts?

EIDL applications are open til 12/21/20 (or until funds run out).
PPP is closing soon and then forgiveness applications will start rolling in.

For anyone just looking for the grant portion, it might be a good idea to wait til after PPP forgiveness and then apply for EIDL grant. No express guidance on this but that might prevent your EIDL grant from being deducted from your PPP forgiveness.
Those who use 8 weeks forgiveness and didn't receive the advance can do it by now already... and @123-Rosh not every LEGAL concept that doesn't make sense is fraud...
All ppl who signed on EIDL loans are going to do much more fraud than this,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1897 on: June 28, 2020, 08:19:54 PM »
Fraud?

There's nothing in either PPP or EIDL rules that state that you must first go for EIDL and only then go for PPP. It's perfectly legal to go for PPP first and then, if still experiencing hardship go for an EIDL....

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1898 on: June 28, 2020, 08:27:34 PM »
There's nothing in either PPP or EIDL rules that state that you must first go for EIDL and only then go for PPP. It's perfectly legal to go for PPP first and then, if still experiencing hardship go for an EIDL....
BUt on the EIDL application you have to fill out if... Compensation From Other Sources Received as a Result of the Disaster

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1899 on: June 28, 2020, 08:32:33 PM »
EIDL Application

Business Activity: Real Estate
Detailed business activity: Property Management Realty or Real Estate Developers.

Anyone can provide DP if got approved when choosing Real Estate Developers Category? Anyone got a denial because not approved category or just received no response from SBA

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1900 on: June 28, 2020, 08:42:17 PM »
BUt on the EIDL application you have to fill out if... Compensation From Other Sources Received as a Result of the Disaster

PPP doesn't count here- it's been stated multiple times by the SBA that when applying for EIDL one does not report PPP funds as grants or compensation received.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1901 on: June 28, 2020, 08:53:36 PM »
EIDL Application

Business Activity: Real Estate
Detailed business activity: Property Management Realty or Real Estate Developers.

Anyone can provide DP if got approved when choosing Real Estate Developers Category? Anyone got a denial because not approved category or just received no response from SBA

My understanding is that only PPP has limits when it comes to RE entities.
EIDL is open to everyone except businesses that are engaged in: illegal activities, lobbying, and significant gambling.

Offline JACKBLUE

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1902 on: June 28, 2020, 09:01:46 PM »
EIDL Application

Business Activity: Real Estate
Detailed business activity: Property Management Realty or Real Estate Developers.

Anyone can provide DP if got approved when choosing Real Estate Developers Category? Anyone got a denial because not approved category or just received no response from SBA
i got approved for 50% of revenue.

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1903 on: June 29, 2020, 12:07:03 AM »
Anyone with friends that has a small business call them up and check with the if they applied already for PPP... Its shocking that after all the talk and news about this program there are still a lot of folks out there who didnt apply because of misconceptions or plain ignorance. Either because they are on UI and dont know that can apply or for some other reasons. there is free money out there and it is a real mitzvah of hashuvas aveidah

Offline bubkiz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1904 on: June 29, 2020, 12:09:40 AM »
Anyone with friends that has a small business call them up and check with the if they applied already for PPP... Its shocking that after all the talk and news about this program there are still a lot of folks out there who didnt apply because of misconceptions or plain ignorance. Either because they are on UI and dont know that can apply or for some other reasons. there is free money out there and it is a real mitzvah of hashuvas aveidah
Agreed! I spoke to many today who had no idea (babysitters, home business on Schedule C, tutors, etc).
How it will effect UI is scaring some people off.