Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 73904 times)

Offline JuryDuty

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2055 on: July 10, 2020, 02:04:23 PM »
My wife works for more than one agency, and one of them is a 1099. Does that qualify her for a grant?
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Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2056 on: July 10, 2020, 02:17:14 PM »
My wife works for more than one agency, and one of them is a 1099. Does that qualify her for a grant?
Yes

Offline JuryDuty

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2057 on: July 10, 2020, 02:18:08 PM »
Yes

Wow that's amazing! Any issues using the same bank account for two different people's grants?
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2058 on: July 10, 2020, 03:17:26 PM »
My wife works for more than one agency, and one of them is a 1099. Does that qualify her for a grant?

If she has a 1099 she has a Schedule C so just double check if PPP won't net her more (for a few $ more obviously go with EIDL because it's not worth the hassle of PPP but anything more than that PPP is probably worth it).

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2059 on: July 12, 2020, 12:56:40 AM »
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the Advance is no longer available.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2060 on: July 12, 2020, 01:01:20 AM »
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the Advance is no longer available.
Is this from the SBA? Because I've seen this from one or two unreputable sources, and not from the SBA or any source I'd trust.

Offline thebudgetdeals

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2061 on: July 12, 2020, 01:06:13 AM »
Is this from the SBA? Because I've seen this from one or two unreputable sources, and not from the SBA or any source I'd trust.
Yes. Received email from SBA.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2062 on: July 12, 2020, 01:17:19 AM »
Yes. Received email from SBA.
Ok thanks

Offline est

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2063 on: July 12, 2020, 12:21:12 PM »
Is this is effecting PPP?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2064 on: July 12, 2020, 12:44:25 PM »
Is this is effecting PPP?

Not directly, but perhaps those who would have only received 1k-2k from PPP opted for the EIDL grant since it's a simplified process, and now that that's no longer available, they will go for PPP which might deplete funds faster. Again we're talking small numbers so I doubt we'll see a direct effect.

Online nafnaf12

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2065 on: July 12, 2020, 01:01:15 PM »
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the Advance is no longer available.
are existing applications effected as well, or only new ones? Applied on Thursday.
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Offline Elikip

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2066 on: July 12, 2020, 07:58:35 PM »
For LLC sole member, what are the parameters for eligibility? Link anyone? (no wiki, combing thru pages didn't yield info) And which to apply for, PPP or EIDL?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2067 on: July 12, 2020, 08:04:30 PM »
For LLC sole member, what are the parameters for eligibility? Link anyone? (no wiki, combing thru pages didn't yield info) And which to apply for, PPP or EIDL?

They're very different programs.

PPP- fully forgivable loan
EIDL- loan at 3.75%, 30 year term

For PPP any loans under 2MM are considered as though made in good faith as it relates to economic uncertainty.
For EIDL you're certifying that you've suffered "substantial economic injury".

Offline Elikip

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2068 on: July 12, 2020, 08:06:42 PM »
They're very different programs.

PPP- fully forgivable loan
EIDL- loan at 3.75%, 30 year term

For PPP any loans under 2MM are considered as though made in good faith as it relates to economic uncertainty.
For EIDL you're certifying that you've suffered "substantial economic injury".
Thanks,
Given PPP for the most part is to be allocated towards Payroll and rent, is it forgivable if Sole member pays him/herself out the loss/difference in earnings in 2020 compared to 2019 and rent?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2069 on: July 12, 2020, 08:17:35 PM »
Thanks,
PPP forgivable if Sole members pays him/herself out the loss/difference in earnings in 2020 compared to 2019?

No.

As a sole prop you get your Schedule C Line 31 divided by 12, times 2.5, forgivable over a period of 24 weeks from loan origination. Best practice is to pay yourself that amount from business to personal account so there's a record (although it's not clear that sole props/owners need to pay themselves for forgiveness).

If it's an LLC filing as an S Corp and you don't pay yourself via payroll, you're not eligible for PPP. If you do run payroll, your 2019 payroll divided by 12, times 2.5, will be forgivable as owner compensation.

You need to spend 60% as owner comp, and can spend the remaining 40% as rent but since you'll only receive 2019 divided by 12 times 2.5 as your loan amount, you'll be spending 100% on owner comp automatically.