Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 73789 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2010 on: July 07, 2020, 11:42:26 AM »
if i took advantage of the tax retention credit on my business can i still apply for a EIDl loan?

Whoever answers thanks in advance but please if you have a source to it would appreciate it

thanks

Yes, you can.

Section 2301(j) of the CARES Act states:
RULE FOR EMPLOYERS TAKING SMALL BUSINESS INTERRUPTION LOAN. If an eligible employer receives a covered loan under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by section 1102 of this Act, such employer shall not be eligible for the credit under this section.

Sec. 1102. Paycheck protection program
Sec. 1110. Emergency EIDL grants.

As you can see only businesses taking Sec. 1102 (PPP) loans are restricted from taking ERTC.
Sec. 1110 (EIDL) is not included in the restriction.

Offline JuryDuty

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2011 on: July 07, 2020, 11:55:16 AM »
Can independent contractors apply for the grant?
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2012 on: July 07, 2020, 12:13:39 PM »
Can independent contractors apply for the grant?

Yes.
If you enter 0 employees on the application you'll get 1k.

Offline shiframeir

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2013 on: July 07, 2020, 12:53:11 PM »
This means that the entire forgiveness hinges on the FTE multiple, and if reduced to (based on my quick calculations) .6 or less, you'll start seeing cuts to forgiveness.
yes, but if the top gross number is big enough (say 15M payroll on a 10m loan) than u could get away with cutting 33% of employees without a loss of forgiveness. surprising.

Offline meilich

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2014 on: July 07, 2020, 12:56:21 PM »
For some reason I never got the grant (applied for an LLC and wrote 0 employees), however I was approved for the loan, is there a way to cancel the application and reapply to try to receive the grant?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2015 on: July 07, 2020, 01:40:47 PM »
For some reason I never got the grant (applied for an LLC and wrote 0 employees), however I was approved for the loan, is there a way to cancel the application and reapply to try to receive the grant?

No.
Don't accept the loan and call in to check the status of your grant.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2016 on: July 07, 2020, 01:42:38 PM »
yes, but if the top gross number is big enough (say 15M payroll on a 10m loan) than u could get away with cutting 33% of employees without a loss of forgiveness. surprising.

Correct. That was the "mistake" of moving to a 24 week covered period and not forcing payroll levels to be maintained for the full 24 week duration. (although I do understand that it would be close to impossible to force that on businesses when you're only providing 2.5 months of payroll.)

Offline avrumy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2017 on: July 07, 2020, 05:07:26 PM »
Anyone know if you can apply for the NJ EDA Grant if one got the EIDL?

Offline justaregularguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2018 on: July 07, 2020, 05:33:42 PM »
im getting msgs urging me to complete the loan application otherwise the application will be withdrawn. I already received the grant. do i ignore this email?
nothings impossible- the word itself says Im possible

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2019 on: July 07, 2020, 05:44:07 PM »

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2020 on: July 07, 2020, 05:44:48 PM »
im getting msgs urging me to complete the loan application otherwise the application will be withdrawn. I already received the grant. do i ignore this email?

Yup. If you don't want the loan ignore it (or reject it to stop annoying emails).

Offline nucheiner

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2021 on: July 07, 2020, 09:43:06 PM »
I've emailed the SBA countless times about this because they said they'll publish guidance on how forgiveness will work "soon"- no response yet and when I call the reps tell me email is the only way...
Where did you get your loan from? The sources I'm seeing are indicating that for SELF EMPLOYMENT the basis for the calculation need to be off a 2019 or 2020 tax return.

Offline nucheiner

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2022 on: July 07, 2020, 09:44:59 PM »
I am a self employed new business and I got a ppp loan based on "jan & feb 2020" income. Will this loan be forgiven? I'm reading online that forgiveness goes by 2019, so how does it work for new businesses?
I've emailed the SBA countless times about this because they said they'll publish guidance on how forgiveness will work "soon"- no response yet and when I call the reps tell me email is the only way...
Where did you get your loan from? The sources I'm seeing are indicating that for SELF EMPLOYMENT the basis for the calculation need to be off a 2019 or 2018 tax return.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2023 on: July 07, 2020, 10:37:38 PM »
Where did you get your loan from? The sources I'm seeing are indicating that for SELF EMPLOYMENT the basis for the calculation need to be off a 2019 or 2020 tax return.

I'm referring to forgiveness guidelines for a loan that was issued based on 2020 income. There were no guidelines released on this.

Offline thebudgetdeals

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